Discussion:Completed Contracts
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Discussion Forum Index --> Advanced Tax Questions --> Completed Contracts
Discussion Forum Index --> Tax Questions --> Completed Contracts
Gamblin Man (talk|edits) said: | 14 May 2009 |
| I have a client whose gross receipts for FYE 3/09 are in excess of $20 million. The three previous years gross receipts are $7 million per year. For contracts started om FYE 3/09 do I have to use percentage of completion method or does that start in FYE 3/10 | |
| 14 May 2009 | |
| I think you must have misread your construction client's P&L. There is no way their gross receipts went up last year. $2 million sounds closer to reality. Maybe even $200K.
Although 2008/2009 is a good year for the construction client's to finally complete some of those jobs that have been 99.9% complete since 2004. | |
| 14 May 2009 | |
| I once asked a construction contractor what his gross receipts for the year was and he proceeded to empty a bag full of receipts on my desk. "Right there. Gross, isn't it?" | |
RoyDaleOne (talk|edits) said: | 15 May 2009 |
ii) whose average annual gross receipts for the 3 taxable
years preceding the taxable year in which such contract is
entered into do not exceed $10,000,000.
7m + 7m + 20m = 34m ---- 34m / 3 = 11+m Next year, year 3/10 would be the year whose average for the 3 prior years exceed 10m. | |
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