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?
Michael D’Addio, JD, is a tax principal in Marcum LLP’s New Haven, Conn., office. He has presented at the Accubuild Users Conference and been a main speaker at technical sessions for many professional organizations across the state, and has instructed courses in the Masters of Taxation program at the University of New Haven. D’Addio can be contacted at firstname.lastname@example.org.