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Calculation of Work in Process Clarified

Additional clarification has been provided regarding rules related to the reporting of Work in Process (WIP) of certain professionals.

Professionals must begin reporting their WIP for all tax years beginning after March 21, 2017,at the lower of cost or fair market value. It has been clarified that if the professional is calculating their WIP based on cost, they do not have to include fixed overhead costs.

In addition, if the professional is also the owner, they do not have to include their time in the calculation.