Objectives
- 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
Prerequisite
Previous construction industry experience
