In this clip, Tom Wheelwright, CPA, CEO and founder of WealthAbility, explains how the new tax law affects independent pharmacy owners.
Independent pharmacy owners scored big time with the new tax law. For example if you are under $25 million now, it used to be $10 million. You can be on the cash basis, instead of the accrual basis, which that’s really important because what that means is that you don’t have to pay taxes now on money that you’ve billed but haven’t received. So you can wait to pay taxes until you actually get the cash, which is a huge deal for independent pharmacists. And the second piece of that is, once you do that, you can also choose, if you choose, you can choose to deduct your inventory when you buy it instead of waiting until you sell it. So that can be a huge deduction. A lot of pharmacy owners, frankly, the year that they make that change will pay 0 tax, and legitimately and legally.