Taxation of long-term contracts has evolved into a myriad of compliance requirements and reporting nightmares. Understanding the complex and sometimes illogical rules is a specialty in itself. This program has been developed by Gene Ristaino, CPA, ABV, CFF, MT from numerous years of service to the real estate and construction industries, to efficiently plow through the many issues and provide clear approaches to obtain the most beneficial tax result for the construction contractor while meeting the numerous compliance requirements. Detailed guidance will also be presented for the specific accounting requirements for residential homebuilders. 

Understand the applicable revenue recognition and accounting methods required for long-term contracts. Detailed analysis of IRC Code Section 460, and related IRS Regulations Section 1.460. Provide an in-depth analysis of compliance requirements and pitfalls, including identification of available elections, including an analysis of which elections are most beneficial. Discussion will include the identification and analysis of significant "book vs. tax" differences. Also, an in-depth analysis regarding the implementation of the tax accounting methods for homebuilding activities will be provided, including the application of IRC Code Section 263A uniform capitalization requirements.

Objective: 

- Review of pertinent cases and revenue rulings

- Walkthrough of accounting methods and relevant elections

- Illustrative examples and analysis

- Sample computations for homebuilder unit costing

- Compliance with IRC 263A Uniform Capitalization Rules

- Recent IRC 263A challenges by the IRS - Update of other IRS activity