Construction Executive's Managing Your Business published an article by Partner Barry Fischman and Principal Michael D'Addio about income recognition for construction contractors.
Construction Executive's Managing Your Business
By Barry Fischman, Partner, Tax & Business Services & Michael D'Addio, Principal, Tax & Business Services
The 9th Circuit Court’s review of how construction contractors should recognize income had a somewhat surprising outcome. The key question being considered was: When should developers recognize income under the completed contract method? Is it when the entire project is complete, is it on percentage of completion, or is it upon the sale of each individual home sold?