
Small Business Inventory: When Can You Deduct Purchases Before Sale?
A qualifying small business may deduct merchandise purchases before sale. Learn how payment timing, actual business records and method history control the answer.
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Practical tax insights, business strategies, and real-world guidance from the Houston CPA.

A qualifying small business may deduct merchandise purchases before sale. Learn how payment timing, actual business records and method history control the answer.

An equipment reseller reportedly expensed purchases while an inventory balance stayed unchanged for years. This ongoing JAG case separates the current deduction method from the old-balance cleanup.

A real construction-tax review shows why cash accounting, contract methods and available income deferrals must be reconciled separately—and why the cash needed to pay the tax still matters.

A home builder’s WIP balance does not decide whether cash, completed-contract, or percentage-of-completion applies. Start by separating spec homes from customer contracts, then test the contract year and exemption rules.

Missed Depreciation on Rentals? Amend vs. Form 3115 If you bought rentals in 2022–2024 and didn’t take bonus depreciation or cost segregation, you’ve got

Start with the question you want answered, what has changed and the records available. Use this checklist to prepare for a useful business tax planning conversation.

If you invest in Houston real estate—single‑family rentals in Katy, duplexes in The Heights, STRs near the Medical Center, or commercial space in The

Electing S‑corp status can drop thousands off your tax bill— but only if you get the timing, paperwork, and after‑election housekeeping right. Use the notes

A personal CPA Houston can help you plan for taxes by keeping you in compliance and consulting you in how to reduce taxes over

Updated September 5, 2026. A construction business can have work booked, crews busy, and profit on a report while cash is still tight. Before
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