IRS Carves Back TCJA Inventory Relief
The Tax Cuts And Jobs Act created an exemption from keeping inventories for “certain small businesses” that are not tax shelters.
There were three ways out. One was to treat the inventory as “non-incidental materials and supplies”. The next was to treat the goods in the same way as you treated them on an “applicable financial statement”. The third option, for those who did not have an applicable financial statement, was to conform with “books and records of the taxpayer prepared in accordance with the taxpayer’s accounting procedures” (BRAP).
Dealing With Debt Stress
Have you ever thought about how to manage your unexpected expenses and sudden emergencies when they appear before you? Well, your answer is hidden in the ‘Emergency Fund’.
The ‘Emergency Fund’ can act as your first line of defense and can cover all your sudden financial emergencies. First, try to save $500 to $1000 in your emergency fund. Later, try to save 3 months to 6 months’ salary in your emergency fund. With an emergency fund in hand, you don’t have to take too much stress about your money and debt repayment.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.