DESCRIPTION
This module is an introduction to the 263A UNICAP rules, with specific emphasis on producers. As many practitioners know, the 263A UNICAP rules can quickly become incredibly complicated. However, certain practical approaches can be utilized by practitioners when dealing with the UNICAP rules, which is the primary focus of this module. Depending on the time, the instructor also has the option of discussing specific exemptions to the 263A UNICAP rules and how resellers are impacted by UNICAP.
This module also includes optional content worth 1.5 CPE hour.
LEARNING OBJECTIVES
- Discuss the treatment of direct, deductible, and indirect costs under the 263A UNICAP rules.
- Calculate a reasonable allocation for purposes of allocating indirect costs to producing and non-producing activities.
- Calculate additional 263A costs.
- Calculate the UNICAP tax adjustment by utilizing the simplified production method without a historical absorption rate.
- (Optional) Analyze the 263A UNICAP computation for resellers.
- (Optional) Discuss specific exemptions to the 263A UNICAP rules.
.
