Objective
- Recognize the impact of recent tax legislation on the construction industry
- Identify when the cash method of accounting may be used for long-term contracts
- Reference sections of the Internal Revenue Code (IRC) that impact the construction industry
- Recognize how the IRC impacts specialized sectors of the construction industry, such as homebuilders and residential construction
- Explain how a contractor qualifies for the small contractor exemption and its advantages
- Recognize the different methods of income recognition from long-term contracts available when a contractor qualifies for the small contractor exemption
- Identify the qualifications for the 10 percent deferral election
- Identify the major differences regarding cost capitalization rules between U.S. GAAP, exempt contracts, and nonexempt contracts
- Recognize the five basic rules concerning cost allocation for tax purposes
- Recognize how alternative minimum tax impacts the construction industry and identify ways to reduce its impact
- Understand the issues involved with the look-back provisions
- Recall the issues involved in determining a worker’s status as an employee or independent contractor and how this determination impacts the construction industry
- Recognize the key provisions of FIN 48 and how it impacts the construction industry
- Identify the most commonly missed tax strategies for contractors
Highlights
- The impact of recent legislation on the construction industry
- How to qualify for the small contractor exemption and its advantages for the taxpayer
- Options available to small contractors regarding taxation of long-term contracts
- How the choice of entity impacts taxation of contractors
- How AMT impacts the construction industry
- IRC §460 and large contractors
- How uninstalled materials impact taxation of contractors
- Look-back rules
- Using the 10 percent method to allow certain contractors to defer recognizing taxable income
- Critical tax planning strategies for contractors
Designed For
CPAs who work for or represent construction contractors looking for ways to reduce taxable incomePrerequisite
Previous construction industry experienceAdvanced Preparation
None