Cincinnati OH, Feb. 6, 2019 — The Tax Cuts and Jobs Act (“TCJA” or the “Act”) was signed into law in late 2017, marking the largest change to U.S. tax policy in decades. One change in particular brought on by the TCJA will serve as one of the more advantageous tax savings opportunities for “small” breweries — the changes made to IRC §471 rules for inventory. The Act defines “small” breweries as those with less than $25 million of average gross receipts for a trailing three-year period. For breweries that have not been in business for three years, the average gross receipts of the years in operation are used. For discussion purposes, we are using breweries as the example, but many of the considerations of this article remain unchanged for brewpubs, distilleries,and other manufacturers.

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