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Small business taxpayer exceptions under tax reform — Gross receipt aggregation rules

Jan 25, 2019 · 5 min read

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Small business taxpayers benefit from several tax reform provisions that simplify tax reporting. These include provisions that exempt small business taxpayers from the requirements to:

  • Use the accrual overall method of accounting[1]

  • Maintain inventories[2]

  • Capitalize certain costs under Sec. 263A[3]

  • Account for long-term contracts using the percentage-of-completion method[4]

  • Apply the business interest limitation[5]

For a business to be eligible for small business taxpayer treatment, the taxpayer must not be considered a tax shelter and can’t have average annual gross receipts

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