Federal Tax Accounting, 2021 (U.S.)

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Author: Frank L. Brunetti

Advises tax preparers about timing issues, i.e. when an item,
such as income, deduction, or credit may be reported on a tax
return. Tax accounting rules govern the tax incidents of when
tax events must be taken into account for federal income tax
purposes. The “when” question is the subject of this book. In
general, tax accounting is not concerned with whether an item
is includable in income or deductible or even with the character
of the item but when it may be reported.

Many of the issues that arise in an audit depend on resolution
of tax accounting issues. As a result tax accounting issues have
become more and more important and receive more scrutiny in
determining tax policy.

Tax practitioners need to have a thorough understanding of tax
accounting to be able to analyze and solve tax problems.

Tax accounting is not transactional but periodic which means
that on an annual basis taxpayers must determine whether
they have income or losses. There are several ameliorative
provisions such as net operating losses, the tax benefit rule,
etc. which may balance out certain tax accounting principles.
Indeed, a substantial portion of every tax problem that
practitioners face inevitably involves a tax accounting issue.

Chapter 1 Introduction
Chapter 2 Tax Accounting Doctrines
Chapter 3 The Entity’s Tax Year
Chapter 4 Methods of Accounting
Chapter 5 The Cash Receipts and Disbursements Method
Chapter 6 The Accrual Method
Chapter 7 Change in Accounting Method
Chapter 8 Inventory
Chapter 9 Uniform Capitalization Rules
Chapter 10 Installment/Method Sales
Chapter 11 Long-Term Contracts
Chapter 12 Domestic Manufacturing Deduction
Chapter 13 Distinguishing between Capital Expenditures and Repairs
Chapter 14 Time Value of Money

Appendix 1 IRS Form 1128: Application to Adopt, Change, or Retain a Tax Year
Appendix 2 IRS Form 8716: Election to Have a Tax Year Other Than a Required Tax Year
Appendix 3 IRS Form 2553: Election by a Small Business Corporation
Appendix 4 IRS Form 3115: Application for Change in Accounting Method-Repairs
Appendix 5 IRS Form 3115: Application for Change in Accounting Method (Blank)
Appendix 6 IRS Instructions for Form 3115
Appendix 7 Steps for Determining and Applying the Uniform Capitalization Rules
Appendix 8 Capitalizable and Non-Capitalizable Costs
Appendix 9 IRS Publication Capitalization Period of Direct and Indirect Costs
Appendix 10 IRS UNICAP Flow Chart
Appendix 11 IRS Form 6252: Installment Sale Income
Appendix 12 IRS Form 8903 Domestic Production Activities Deduction
Appendix 13 Form 8697: Interest Computation under the Look-Back Method for Completed Long-Term Contracts
Appendix 14 Determination of Tax Year
Appendix 15 Cash Method Accounting Flow Charts
Appendix 16 Accrual Method Accounting Flow Charts
Appendix 17 Change in Accounting Method
Appendix 18 Uniform Capitalization Rules
Appendix 19 Installment Sales
Appendix 20 Long Term Contracts
Appendix 21 Lookback Rule

Oct 30, 2020 356 pages 9780808054566

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