Inventory Costing
Each company may utilize different methods to calculate inventory, and this will determine cost of goods sold – the best way to reduce income tax for companies subject to 280E
As we have seen in landmark cases like Harborside vs. Commissioner, IRS has been quite direct with their tax treatment of producers and resellers.
Long story short, if resellers can only add costs to acquire inventory to figure cost of goods sold, while producers can also take indirect expenses.
This usually results in high tax burdens, but there are options to minimize this and get a competitive edge over those who don’t take all the opportunities they can.
Our Green CFO helps you stay ahead of the game with:
Company tailored IRC 471 Cost Allocations
Cost Segregation for Accelerated Depreciation
Accounting Method Analysis
IRC 280 Tax Planning