Tax Accounting for Inventories

  • Thursday, August 15, 2019 – Thursday, April 30, 2020

  • 2

There are multiple ways to derive an inventory valuation, but which method will affect the amount of taxable income recognized?

This self-study course details the methods of valuing inventory, including special rules for dealing with FIFO and LIFO. Effect of shrinkage and market will also be discussed. You will learn about proposals to prohibit LCM and subnormal goods methods that include wash-sale goods.

This course also offers practical guidance on which costs are included or excluded from the UNICAP calculation and identifies which companies are subject to the UNICAP rules.


Identify the allowable inventory valuation methods for tax purposes.
Examine scenarios in which a taxpayer may wish to use FIFO or LIFO inventory methods.
Recognize when a taxpayer can qualify to use the simplified dollar-value LIFO method.
Determine which costs are included or excluded from the UNICAP calculation.
Identify which companies are subject to the UNICAP rules.
Recognize the simplified production method.
Identify when an estimated shrinkage deduction can be claimed.
Identify when a corporation is allowed to reduce the inventory value of goods.


Inventory methods
Financial statement conformity
Switching inventory methods
IRC Section 263A, Uniform Capitalization Rules (UNICAP)
Direct costs, indirect costs, burden rates
Estimating inventory shrinkage

Additional Information

Designed For

Tax Staff Essentials, Level 2 is designed for junior tax staff who want to take on a wider variety of firm engagements and establish a supervisory role within the firm. Those with 2 to 4 years of tax experience.


American Institute of CPAs


2.00 Taxes

Course Number


Level of Knowledge


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