Objective
- Recognize the impact recent tax legislation has had on the construction industry
- Identify when the cash method of accounting may be used for long-term contracts
- Recall the authoritative source of the Internal Revenue Code (IRC) impacting the construction industry in general and long-term contracts in particular
- Recognize how the IRC impacts specialized sectors of the construction industry, such as homebuilders and residential construction
- State how a contractor qualifies for the small contractor exemption and the advantages it presents the contractor
- Recognize the different methods of income recognition from long-term contracts available when the 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 the alternative minimum tax impacts the construction industry
- Identify ways to reduce the impact of the alternative minimum tax
- Recognize the issues involved with the “look-back” provisions
- Recognize 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 specifically 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 to the taxpayer
- Options available to the “small” contractor 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
- How the “look-back” rules impact contractors
- How the “10 percent method” can allow certain contractors to defer recognizing taxable income
- Critical tax planning strategies for contractors
Designed For
CPAs who either work for or represent construction contractors who are looking for ways to reduce taxable incomePrerequisite
Previous construction industry experienceAdvanced Preparation
None