CCH Learning Center

Tax Accounting Methods (Second Edition)

The selection and application of accounting methods for tax accounting purposes is important in determining when an item of income, expense or credit enters into the computation of the taxpayer's income tax.

The taxpayer's tax accounting method is used in conjunction with his annual accounting period and will be used to determine the timing of most income and expense items.

Certain taxpayers may be required to use a particular accounting method for certain receipts. While other taxpayers may be required to take inventories in order to clearly reflect income.

Tax Accounting Methods reviews the applicable provisions and current developments in this changing area by covering the following tax accounting principles:

• permissible accounting methods
• the constructive receipt of income doctrine;
• choosing a method of accounting; and
• change in accounting method