Here is a link to the podcast (It is episode 591 titled HUGE TAX NEWS FOR AMAZON SELLERS)
https://theamazingseller.com/category/podcast/
I rarely listen to this podcast but that headline caught my attention and I was out of fantasy football podcasts to listen to today. The CPA claimed the following (his site is called cpaonfire).
- Any business with under 25M in gross revenue can deduct inventory when purchased instead of when sold
- Ending inventory from prior year may also be deducted in the current year (2018)
Obviously this would turn the world on its head (in a good way) for a lot of small businesses. I might even be able to report a loss this year and it would save me a huge bill come end of year.
Regretfully though, I have not been able to verify this. I have been googling "IRS updates inventory" "AICPA updates inventory", etc, etc. I reached out to the CPA through his website asking for the official release and stating I would be happy to pay for a 1 hour consultation. He told me the following
Thanks for checking out the podcast and reaching out. I don't have the IRS release on hand, but it's definitely official.
We don't currently have the space to offer one time consulting services, we are only able to do consulting as a part of our larger packages. If you are interested in those let me know and I can send over some info.
Starting to seem a little fishy to me. I am going to schedule an appointment soon with my CPA to ask about this potential change but figured I would post the information I have here and see if anyone else has heard anything.
EDIT: Seems to be absolutely legit:
https://www.irs.gov/pub/irs-drop/rp-18-40.pdf
EDIT 2: I can't believe this is being downvoted, this may be the biggest news for inventory based small business in my life time. If you actually are reading this, send the links in my first edit to your CPA, you will save a boat load this year.
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