The Sleeper Tax Item for Pharmacies in the TCJANovember 26, 2018
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.