Businesses with gross receipts of $25 million or less in the 3 prior years can use the cash method. If they have inventory, they can treat it as deductible non-incidental materials and supplies. The IRS has provided guidance on changing to these accounting method options.
Barbara Weltman
Big Ideas for Small Business, Inc.
Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."
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