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Business & farm
@DianeW777 @Vanessa A Thanks for your expertise! In further reviewing the exception for small business taxpayers under the TCJA, if my accounting method is Cash and I treat inventory as "non-incidental materials and supplies", I can only deduct the inventory treated as NIMS in the year that the products are actually SOLD (not year purchased).
In this case, there doesn't seem to be a difference between treating inventory as NIMS or COGS except where the amount is listed (under Expenses vs. Cost of Goods Sold)? In other words, isn't the $ amount the same? As a new small business, I would prefer not to have to keep an inventory if not required but it doesn't seem like it makes a difference either way? In TurboTax, do I put "Non-Incidental Materials & Supplies" under "Enter Business Expenses Not Yet Reported"? This flows to Line 27a under Expenses.