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Event Description

Manufacturers have all the tax issues of any tax client PLUS the need to determine cost of goods sold by capturing the right costs for labor and material, then calculating appropriate overhead amounts. Along the way, tax rules come into play because IRC Section 263A and related regulations tell us exactly which costs must be included in cost of goods. Section 199A allows a tax deduction that arguably should not affect my cost calculations . . . but where do I account for it ?

Lynn Nichols, CPA, has provided tax services to manufacturers of all types and sizes–from small specialty machine shops with gross sales under $250,000 to an elevator manufacturer with gross sales in excess of $100 million. He has led teams of accountants in comprehensive analysis of complex cost structures to develop standard costs. He understands, and more importantly can explain in simple terms, cost accounting concepts: unit cost, process cost, shared cost, fixed cost, variable and semi-variable cost. 

THIS PROGRAM WILL COVER
– IRS Audit Guide for Manufacturing
– Code Section 263A
– Relationship between book and tax accounting systems for:
     o Financial and pricing decisions  
     o Income tax compliance
– Effect of Tax Cuts and Jobs Act of 2017
     o Limit on business losses
     o Section 199A and production costs
     o Cash vs Accrual for “small manufacturer”

Objectives

LEARNING OBJECTIVES:

To prepare accountants to give good advice and to properly record common transactions affecting federal income tax compliance by manufacturers, including”
– Recording and summarizing costs 
– Applying various limitations to deductions
– Applying TCJA 2017 changes in the law
– How to request and document a change in accounting method for inventories

Discussion Leader

E. Nichols, CPA