Uniform capitalization of indirect inventory costs is required for most large taxpayers.

Question

Quizplus · Accepted Answer

Under Section 263A of the Internal Revenue Code, large taxpayers are required to capitalize indirect inventory costs, also known as uniform capitalization (UNICAP) rules. This applies to taxpayers with average annual gross receipts of $26 million or more or those that produce merchandise for resale or use in their business.

Uniform Capitalization of Indirect Inventory Costs Is Required for Most