For companies that maintain inventory, the Uniform Capitalization (UNICAP) rules under Section 263A play a critical role in determining which costs must be capitalized for tax purposes. These rules extend beyond standard book accounting, requiring the capitalization of both direct and indirect costs related to property produced or acquired for resale.
The regulations are complex, with multiple calculation methods, exemptions for small taxpayers, and distinctions for manufacturers, retailers, and producers. Understanding how to properly identify, categorize, and allocate costs is key to ensuring accurate compliance.
In this webinar, Frank Nieves, Jim Swanick, and Matt Gauss will break down the fundamentals of UNICAP under Section 263A. This practical session will cover:
- The types of costs incurred in connection with the production or resale of inventory that must be capitalized under IRC Section 263A
- Methodologies for identifying costs subject to capitalization, including those arising from service departments that support both production and non-production functions
- Walkthrough sample calculations demonstrating how the UNICAP rules and safe harbor provisions are applied in real-world scenarios
Earn 1 CPE Credit for Attending the Live Event
