Construction Executive published an article by Tax Partner Ashlie Forum on the impact of the Tax Cuts & Jobs Act on construction contractors.
By Ashlie Forum, Partner, Tax & Business Services
One of the most beneficial TCJA changes for contractors is how income is reported. Contractors with average annual gross receipts below $25 million will now be able to use the cash or completed contract method for tax purposes. Three prior years of gross receipts is averaged to determine the taxpayer’s average annual gross receipts for the purposes of this test.