Construction Tax and Reporting Issues After Tax Reform: Revenue Recognition, Contract Modifications

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Wednesday, October 23, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will prepare tax professionals and advisers working with large and small construction contractors. The panel will explain book and tax accounting methods for contractors, how to implement the most recent revenue recognition standards and deal with contract modifications, cost-savings strategies, and the IRS initiative targeting contractors.

Description

The release of ASC 606, Revenue from Contractors with Customers and the five-step revenue recognition model changed the way revenue is recognized for contractors. This coupled with the 2017 tax legislation modification to IRC Section 451 requiring revenue recognition for tax purposes no later than the taxable year in which income is included in revenue on the taxpayer's "applicable financial statement" creates a higher tax burden for contractors.

At the same time, the 2017 tax reform provided some relief by raising the threshold for using the completed contract (CCM) or cash method for small contractors from $10 million to $25 million. Although the percentage complete method provides a more realistic method of reporting of income, it is substantially more complicated than other bookkeeping methods. Being sure your client's business qualifies for more favorable tax accounting methods is more critical than ever.

Listen as our panel of experts discusses applying the new revenue recognition standards under ASC 606 and the tax considerations for these changes which could result in GAAP and tax reporting differences. They will also discuss the top planning ideas for 2019 to make sure your construction business client is maximizing depreciation and job cost deductions after tax reform.

READ MORE

Outline

  1. Accounting considerations for construction contractors
    1. Percentage complete vs. completed contract method
    2. ASC 606 Tax Considerations
    3. Contract modifications
  2. Tax considerations for construction contractors
    1. Small contractor methods: cash and CCM
    2. Syncing tax and book under ASC 606
    3. Avoiding or preparing for the IRS
    4. Depreciation after tax reform
    5. Maximizing other deductions after tax reform
    6. Top Planning Ideas for 2019

Benefits

The panel will address these and other relevant matters:

  • Recognizing revenue under the new ASC 606 standards
  • Properly handling contract modifications for book and tax methods
  • Selecting the appropriate tax and accounting reporting method
  • Maximizing depreciation deductions after tax reform

Faculty

Ferri-Carlo
Carlo R. Ferri

Director, Tax Strategies
Kreischer Miller

Mr. Ferri has extensive experience providing tax and business advisory services for privately-held companies in various...  |  Read More

Guillaume, Mark
Mark A. Guillaume, CPA, CCIFP

Director, Audit & Accounting
Kreischer Miller

Mr. Guillaume provides business advisory, audit, and accounting services to clients in a variety of industries,...  |  Read More

Other Formats
— Anytime, Anywhere

Download

CPE Not Available

$247