Fair Accounting for Condominium Construction Act

Summary#

The bill changes federal tax accounting rules for certain residential construction contracts. It would extend an exception to the percentage-of-completion accounting method beyond home construction contracts. For residential construction contracts that are not home construction contracts, it applies a three-year period instead of the current two-year period in a specified eligibility test. The changes would apply to contracts entered into after the bill becomes law.

What it means for you#

The changes concern tax accounting for businesses with qualifying residential construction contracts. The text does not explain how many contracts or businesses would qualify.

Expenses#

The bill does not specify government or taxpayer costs.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.