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?
Barry A. Fischman
Barry A. Fischman is a tax and business services partner in the New Haven, Conn., office of Marcum LLP and a member of the firm’s national construction services practice. Michael D’Addio is a tax principal at Marcum LLP. For more information, email firstname.lastname@example.org or email@example.com.