Taxation of homebuilding activities has been subject to IRS scrutiny; primarily in complying with cost capitalization issues and revenue recognition, including costing out for units sold. This program includes an in-depth analysis regarding tax accounting methods for homebuilding activities, including the application of IRC Section 263A-uniform capitalization requirements, and IRC Section 461-economic performance. This program will provide clear insights to approach compliance with costing rules, avoid IRS audit adjustments, and obtain the most beneficial tax results for the home builder/developer.
Learning Objectives
- Recognize the applicable revenue recognition and costing methods required for homebuilding activities
- Determine appropriate accounting methods now available as a result of tax reform
- Identify areas where tax deferral still exists, especially for small businesses
Major Topics
- Walkthrough of costing methods and compliance issues under IRC 263A
- Analysis of IRC 461 related to economic performance
- Illustrative examples and analysis
- Sample computations for homebuilder unit costing
- Recent IRC 263A challenges by the IRS
- Update of related cases and issues - including recent tax reform
