Uniform Capitalization Rules for Grocers

The Uniform Capitalization (UNICAP) rules were enacted by Congress in an attempt to bring some consistency and clarity to the question of what should be capitalized versus expensed.  For small grocers, these tax provisions are usually out of sight, out of mind due to various exemptions.  But when that small grocer starts to grow and expand, the exemptions may become inapplicable throwing the grocer into UNICAP’s complex maze of detailed rules and regulations. But how does a small reseller know when it has exceeded the threshold and must conform to the UNICAP rules?

More on the Charitable Food Inventory Deduction

As we noted in the last segment of our Tax Updates, one of the items included in the recently enacted  “Protecting Americans from Tax Hikes Act of 2015” (“Path Act”), was a change to the Charitable Food Inventory Deduction.  Since this deduction has been permanently extended, and due to the importance to the grocer industry, we felt that it would be beneficial to discuss a few of the basic requirements for taking this deduction.

More on the Charitable Food Inventory Deduction

2015 Tax Extenders Legislation (Part II)

This is our second of two installments on the recently passed Protecting Americans from Tax Hikes Act of 2015 (PATH Act), more informally known as the 2015 Tax Extenders Legislation.  In Part I, we gave a general overview of those provisions which are of particular interest to the grocer industry.  In this segment, we will delve a little deeper into two of the provisions: the charitable deduction for donation of food inventory and bonus depreciation.
Charitable Deduction of Food Inventory

2015 Tax Extenders Legislation (Part I)

Congress has once again extended the "extenders", a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws, but this time with a new twist – it actually made some of them permanent!  In this Part I of a two-Part series, we will discuss an overview of the various items which most impact grocers, and then in Part II, we will look a little closer at specific items which may be of interest to you as a store owner.


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