Tax Issues for Real Estate and Homebuilding

Overview

In June 2022, the AICPA Auditing Standards Board (ASB) introduced three interrelated standards on quality management, collectively known as the QM standards. These standards signify a pivotal shift for CPA firms, transitioning from a policies-based approach to a more dynamic risk-based approach to audit and attestation quality. Every firm engaged in SASs, SSARSs, and SSAEs will be impacted by these changes, which must be implemented by December 15, 2025. This course will explore the key changes introduced by the new standards, including a tailored risk assessment process, revised components of the quality management system, enhanced leadership and governance requirements, and new obligations for networks and service providers. By the end of this course, you will be equipped to navigate these changes effectively and ensure compliance with the new standards.

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.

Objectives

• Apply revenue recognition, capitalization, and costing methods for real estate development and homebuilding activities, including compliance with IRC Sections 263A and 461.
• Evaluate accounting method options and small business taxpayer exemptions under the TCJA and OBBBA of 2025, with emphasis on depreciation, expensing, and interest limitations.
• Identify opportunities for tax deferral and planning strategies, while addressing IRS scrutiny of related-party transactions, compensation, and ordinary vs. capital gain classifications.

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will NOT be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by CalCPA. The course expires one year from the purchase date. Format = Online Self-Study.