expenses (a) In general Section 263A(b) is amended by striking all that follows paragraph (1) and inserting the following new paragraphs: (2) Property acquired for resale Real or personal property described in section 1221(a)(1) which is acquired by the taxpayer for resale. (3) Exception for small businesses This section shall not apply to any taxpayer who meets the gross receipts test under section 448(c) for the taxable year (or, in the case of a sole proprietorship, who would meet such test if such proprietorship were a corporation), other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3). (4) Films, sound recordings, books, etc For purposes of this subsection, the term tangible personal property shall include a film, sound recording, video tape, book, or similar property. (5) Coordination with section 481 If a taxpayer changes its method of accounting because this section does not apply to the taxpayer by reason of the exception under paragraph (3) or this section applies to the taxpayer because such exception no longer applies to the taxpayer— (A) such change shall be treated as initiated by the taxpayer, and (B) such change shall be treated as made with the consent of the Secretary. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 13105. Increase in gross receipts test for construction contract exception to percentage of completion method (a) Increase (1) In general Section 460(e)(1)(B) is amended— (A) in the matter preceding clause (i), by inserting (other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3)) after taxpayer , and (B) by striking clause (ii) and inserting the following: (ii) who meets the gross receipts test of section 448(c) for the taxable year in which such contract is entered into (or, in the case of a sole proprietorship, who would meet such test if such proprietorship were a