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Accounting method for selling on eBay after TCJA expires

If I am reselling on eBay and intend to keep inventories, does it matter if I use the cash method or the accrual method when reporting to IRS?  I heard that it will not matter while TCJA is in effect, but when it expires in 2025, would accrual method be the only correct choice? The expected total revenue per year will be under $1 million though.

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1 Reply
RobertB4444
Employee Tax Expert

Accounting method for selling on eBay after TCJA expires

It won't matter at all as long as your total sales stay below one million dollars.  

 

Accrual accounting for businesses with inventory is seen as a more accurate way to view you income and expenses.  But it is not a requirement for you.

 

@oboero2 

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