The Sleeper Tax Item for Pharmacies in the TCJA
Under the Tax Cuts and Jobs Act, some retail pharmacies can opt to move their accounting from an accrual basis to a cash basis, which could result in adjustments as far back as the 2015 tax year. It is optional, but could provide tremendous tax savings. As a part of the requirements to shift to cash basis accounting, a retail pharmacy must have an average gross sales of $25 million or less in the last three successive tax years. In this video, Ollin Sykes of Sykes & Company, P.A. discusses some of the requirements to make this switch, the benefits to pharmacies and how to prepare if you determine this is right for your independent pharmacy business.