Discussion:Building contractor getting paid as house is built?

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Revision as of 12:14, 14 March 2008
RoyDaleOne (Talk | contribs)
(600K is way shor)
← Previous diff		 Revision as of 13:11, 14 March 2008
Vickytown (Talk | contribs)
(I thought revenu)
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{{ForumReplyPost|UserID=RoyDaleOne|Date=14 March 2008|Text=600K is way short of 5mil what is up here?}} {{ForumReplyPost|UserID=RoyDaleOne|Date=14 March 2008|Text=600K is way short of 5mil what is up here?}}
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 +{{ForumReplyPost|UserID=Vickytown|Date=14 March 2008|Text=I thought revenue had to be $10 million before the percentage of completion requirement.}}

Revision as of 13:11, 14 March 2008

Discussion Forum Index --> Basic Tax Questions --> Building contractor getting paid as house is built?
Discussion Forum Index --> Tax Questions --> Building contractor getting paid as house is built?

Scottycoyote (talk|edits) said:

13 March 2008
normally i captialize all the costs and put them into cost basis then show them as expense in the year the house is sold.

Got a contractor thats building custom houses to order now, and basically they get reimbursed for all their costs and make 6 to 10% over that as a contractor fee. Im thinking in this situation youd have to show the income and expense as you go now, if i wait until the house is closed on and it goes into the next year there are some timing issues im guessing the irs wouldnt agree with?

Scottycoyote (talk|edits) said:

13 March 2008
nevermind

percentage of completion accounting

RoyDaleOne (talk|edits) said:

14 March 2008
Why?

Solomon (talk|edits) said:

14 March 2008
"nevermind

percentage of completion accounting "

See Sec. 460(e).

RoyDaleOne (talk|edits) said:

14 March 2008
Did not give sales revenue level!!!

Scottycoyote (talk|edits) said:

14 March 2008
ive looked and looked, i didnt see where revenue level came into play, can you elaborate please?

Szptax (talk|edits) said:

14 March 2008
constuction rev > 5 mill requires % of completion method

Scottycoyote (talk|edits) said:

14 March 2008
kewl thanks

revenue was about 600k so they are on the hook

RoyDaleOne (talk|edits) said:

14 March 2008
600K is way short of 5mil what is up here?

Vickytown (talk|edits) said:

14 March 2008
I thought revenue had to be $10 million before the percentage of completion requirement.
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