Discussion:Construction Tax/Completed Contracts

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Revision as of 17:40, 24 October 2007

Discussion Forum Index --> Basic Tax Questions --> Construction Tax/Completed Contracts
Discussion Forum Index --> Tax Questions --> Construction Tax/Completed Contracts

Mtmckeecpa (talk|edits) said:

24 October 2007
Facts:

1) Residential pool contractor, small contractor's exemption applies under IRC 460(e).

2) Initial S corp return filed 2004, method of accounting selected on return, CASH; little activity in 2004, no income and a few expenses, minimal.

Taxpayer has NOT filed the '05 S corp return and is sitting on a pile of cash at 12/31/05 with jobs/contracts in progress at 12/31/05.

Is the completed-contract method available to taxpayer for 05 OR since the other preparer selected the cash method on the initial return, must the taxpayer use the cash receipts and disbursements method for 05 and subsequent years until he files for a change in accounting method?

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