Tax Issues for Real Estate and Homebuilding 26-27

Overview

Taxation of real estate and homebuilding activities has been subject to IRS scrutiny, primarily regarding compliance with cost capitalization issues and revenue recognition, including the costing out of units sold. This course provides an in-depth analysis of tax accounting methods for various real estate and homebuilding activities, including the application of IRC Section 263A (capitalization and inclusion in inventory costs of certain expenses) and IRC Section 461 (the general rule for the taxable year of deduction). This program will provide clear insights into approaching compliance with costing rules, avoiding IRS audit adjustments, and obtaining the most beneficial tax results for the home builder/developer.

Highlights

• Discussion of appropriate entity selection and small taxpayer status
• 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

Prerequisites

 General knowledge of IRC 263A and IRC 461.

Designed For

 CPAs and tax professionals working in or serving the construction industry.

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

Preparation

 None

Notice

This course is offered by a 3rd party vendor. Login instructions will not be accessible in the My CPE Tracker section of the ISCPA website. Login instructions will be emailed directly to you by California Education Foundation (CalCPA).