Kaplan University School of Professional and Continuing Education Kaplan University School of Professional and Continuing Education

Construction Contractors: Special Tax and Accounting Considerations (CCST)

(Updated for the Tax Cuts and Jobs Act) 8-Hour Program

WHY ATTEND THIS COURSE?

This program explains and illustrates special accounting and auditing issues related to the construction industry, contractor specific disclosure rules, and current accounting and auditing developments. On the tax side, the program examines the similarities and differences of tax and financial reporting for percentage of completion and completed contract method, and other permitted methods of accounting. Adjustments for the “look back” rules will be considered under various scenarios. Attention is paid to current tax issues involving the Section 199 deduction and Worker Classification. Practical application is provided through audit program examples and financial statement presentation and disclosure issues.

DESIGNED FOR...

CPAs in public practices and in construction businesses who prepare tax returns, are responsible for financial statements, and provide tax and financial advice to construction contractors.

OBJECTIVE

Participants will be able to:

  • Understand the definition of “long term contract”
  • Present a contractor’s financial information in accordance with U.S GAAP
  • Calculate a contractor’s bonding capacity
  • Calculate “look-back” adjustments to taxable income
  • Calculate IRC Sec. 199 “Qualified Domestic Production Deduction”
  • Apply IRC Secs. 263A and 460 to cost accumulation
  • Efficiently audit a contractor
  • Plan financial and tax transactions to assure maximum bonding capacity
  • Advise contractors on how business decisions

MAJOR SUBJECTS

Accounting:

  • Over and under billings
  • New revenue recognition standard and new lease standard for contractors
  • Consolidation of variable interest entities
  • Deferred income taxes
  • Disclosure of risk and uncertainty
  • Audit program for contract related items, applying risk analysis to contractors’ operations, and required disclosures

Tax:

  • Cash versus accrual
  • Accounting methods available to small contractors
  • Percentage of completion vs. completed contract
  • “Look back” rules
  • AMT
  • Sec. 460 regulations on accumulation of contract costs
  • Homebuilder/developer regulations, the qualified business income deduction, expanded small contractor relief, and the IRS Audit Techniques Guide for the construction industry IRS Audit Techniques Guide for the construction industry

COURSE ACRONYM: CCST

PRESENTATION METHOD: Group-live

LEVEL OF KNOWLEDGE: Intermediate

PREREQUISITES:

  • None

ADVANCE PREPARATION: None

FIELD OF STUDY: Specialized Knowledge/Construction Contractors

RECOMMENDED CPE CREDIT:

  • Specialized Knowledge: 4 hours
  • Construction Contracts: 4 hours

CPE Sponsor icon

SmartPros®, A Kaplan Company and Loscalzo Institute, A Kaplan Company are registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.