Sec. 70430. Exception to percentage of completion method of accounting for certain residential construction contracts
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Section 460(e) is amended— in paragraph (1)— by striking home construction contract both places it appears and inserting residential construction contract , and by inserting (determined by substituting after 3-year for 2-year in subparagraph (B)(i) for any residential construction contract which is not a home construction contract) the requirements of clauses
(i)and
(ii)of subparagraph
(B), by striking paragraph
(4)and redesignating paragraph
(5)as paragraph (4), and in subparagraph
(A)of paragraph (4), as so redesignated, by striking paragraph
(4)and inserting paragraph
(3). Section 56(a)(3) is amended by striking any home construction contract (as defined in section 460(e)(6)) and inserting any residential construction contract (as defined in section 460(e)(4)) . The amendments made by this section shall apply to contracts entered into in taxable years beginning after the date of the enactment of this Act.