Webcast: Introduction to Section 263A: Uniform Capitalization of Inventory (XSI263217)
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Determining which costs should be included in inventory and cost of goods sold has been a continuing issue between taxpayers and the IRS for decades. Section 263A, the Uniform Capitalization Rules, provides standards regarding the capitalization of expenditures for manufacturers and large resellers. Each tax return, from the Form 1040, Schedule C to the Form 1120 where a taxpayer has inventories has a schedule where ending inventory must be calculated—and that calculation will reflect the Secti

10/27/2017
When: 10/27/2017
9:00 AM until 11:00 AM
Where: Webcast
SURGENT
I263-2017-01-WEBNR-300-76
United States
Presenter: Mike Tucker, Ph.D., LL.M., J.D., CPA


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Acronym XSI263217
CPE 2 hours
Vendor Surgent
Category
Taxation
Level Advanced
Prerequisite A basic understanding of deductible business related expenses
Adv Prep None
Yellow Book? No
Designed for CPAs with manufacturing clients and for those CPAs with large retail clients..
Registration
Member $89
CPA Non-Member $114

The Member rate applies to LCPA members, other state society members, and non-CPA staff of LCPA members. To register online, use the ‘Register’ button above. To register by phone, call the LCPA Member Service Center at 800.288.5272 or 504.464.1040, Monday through Friday, 8am to 5pm.

Course Description

Determining which costs should be included in inventory and cost of goods sold has been a continuing issue between taxpayers and the IRS for decades. Section 263A, the Uniform Capitalization Rules, provides standards regarding the capitalization of expenditures for manufacturers and large resellers. Each tax return, from the Form 1040, Schedule C to the Form 1120 where a taxpayer has inventories has a schedule where ending inventory must be calculated—and that calculation will reflect the Section 263A rules. This program discusses Section 263A principles as they must be applied on almost all business income tax returns with inventories.

Objectives

  • Identify the costs that were capitalized under the pre-Section 263A rules and the additional costs that need to be capitalized under Section 263A
  • Understand the process of allocating the additional Section 263A costs to ending inventory
  • Determine which taxpayers are subject to the Section 263A cost capitalization rules 

Topics

  • What types of taxpayers are subject to the Section 263A rules?
  • Costs that must be capitalized under the Section 263A rules
  • Methods used to apply overhead costs to inventory
  • The relationship between the Section 263A rules and the repair regulations