Tax law allows for several different accounting methods, cost allocations, and gross profit deferral opportunities to be applied when determining taxable income on a long-term construction project. These methods are different than GAAP and can allow for significant income deferrals for taxpayers.
The session provided an in-depth look at tax accounting methods for long-term construction contracts. As a result of participating in this session, you should be able to:
- Describe the various tax accounting methods for long-term construction contracts
- Have a working knowledge of the tax deferral computation
- Explain the interplay with the look-back interest calculation