A piece of the new federal tax package addresses accounting for long-term contracts. It is the first significant piece of tax legislation for the construction industry in years. The tricky part: larger contractors won’t be affected and will continue to account for long-term contracts as they did in the past. For the majority of affected contractors, however, there may be significant tax deferment and cash management options under the new law. Eligible contractors will need to plan ahead to set up the right accounting method for new long-term contracts.
About the Author
Scott Allen, CPA, joined Cornwell Jackson as a Tax Partner in 2016, bringing his expertise in the Construction and Oil and Gas industries and 25 years of experience in the accounting field. As the Partner in Charge of the Tax practice at Cornwell Jackson, Scott provides proactive tax planning and tax compliance to all Cornwell Jackson tax clients.
In this whitepaper, we cover:
- What is a long-term contract?
- Are you compliant?
- Accounting methods for long-term contracts
- Alternative Minimum Tax (AMT)
- Planning ahead for new long-term contracts
Please fill out the form to download the whitepaper.