Simply Small Business Taxpayer Methods #036

Guest Nathan Clark joins host Damien Martin to review the recent recommendations made by the AICPA’s Tax Methods & Periods Technical Resource Panel on challenges associated with making accounting methods changes to adopt the favorable small business taxpayer provisions in the Tax Cuts and Jobs Act (TCJA). Nathan also reviews key takeaways from the recent guidance provided in Revenue Procedure 2018-40 TIME STAMPS OF WHAT’S COVERED [01:59] Overview of what changed under the TCJA [04:47] What’s an accounting method again? [06:10] The resource panel’s July 23 letter [07:51] Guidance under Revenue Procedure 2018-40 [12:01] Key takeaways from the guidance received [15:16] Section 481(a) explained [18:47] The opportunity to plan for lower tax rates under the TCJA [20:40] Section 263A uniform capitalization calculations [21:28] Changes in methods to account for inventories under the TCJA [25:09] Challenges in implementing the changes [32:48] Section 460 and accounting for long-term contracts [34:28] Need for clarification on the interest deduction limitation [36:16] Qualified Improvement Property [42:13] Other items in the July 23 letter [43:08] Training for marathons while keeping up with the pace of tax change BIO FOR GUEST Nathan is a tax partner in Dixon Hughes Goodman’s firm headquarters in Charlotte, North Carolina—SouthPark. He has a deep focus on accounting method changes and specializes in capitalization, depreciation and revenue recognition. Nathan has spoken for AICPA conferences, state CPA societies, and other continuing education events. He has published Tax Alerts and articles for AICPA’s The Tax Adviser, CCH’s Corporate Business Taxation Monthly, CFO.com, AccountingWEB and has been cited by CFO.com and CCH. Follow Nathan on Twitter Connect with Nathan on LinkedIn ADDITIONAL RESOURCES AICPA Tax Methods & Periods Technical Resource Panel AICPA Comments on Impact of Pub. L. No. 115-97 on Accounting Methods for Small Business Taxpayers Revenue Procedure 2018-40 Simply Tax Episode 21: TRPs After Tax Reform GET MORE SIMPLY TAX A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions to [email protected] Connect with Damien on social media! LinkedIn | Twitter | Instagram