Taxation of homebuilding contractors has been subject to IRS scrutiny. Especially, in complying with cost capitalization issues and revenue recognition, particularly costing out for units sold. Participate in an in-depth analysis regarding tax accounting methods for homebuilding activities, including the application of IRC Section 263A–uniform capitalization requirements, and IRC Section 461–economic performance.
This program will provide clear insights to approach compliance with costing rules, avoiding IRS audit adjustments, and obtaining the most beneficial tax results for the homebuilder/developer.
Recognize the applicable revenue recognition and costing methods required for homebuilding activities.
Determine appropriate accounting methods now available as a result of tax reform.
Identify areas where tax deferral still exists, especially for small businesses.
Walkthrough of costing methods and compliance issues under IRC 263A
Analysis of IRC 461 related to economic performance
Illustrative examples and analysis
Sample computations for homebuilder unit costing
Recent IRC 263A challenges by the IRS
Update of related cases and issues – including 2017 Tax Reform Act
CPAs and tax professionals.
General knowledge of IRC 263A, and IRC 461.