Construction & Real Estate Development
Members of the Gregory, Sharer & Stuart Construction Industry Team understand contractors and developers. Our clients benefit from this knowledge as we help them maximize their bonding and banking capacity as well as minimize income taxes. Our construction and real estate development clients include design-build firms, general contractors, specialty subcontractors, utility contractors, real estate developers and property managers.
Tax and accounting rules for contractors are unique, which is why you want a firm that understands construction and can help you with not just the basics of percentage of completion (POC) accounting, but with the complex areas as well – for example:
- Is it ever appropriate to use an accounting method other than POC to account for a construction contract?
- What is the most advantageous accounting method to use for tax purposes?
- When can revenue be recognized for unapproved change orders?
- When is a contract considered complete?
- How should payments for retainage be considered in the POC accounting method?
- Do the "look-back" interest rules apply to small contractors?
- What GAAP/tax differences exist for allocating overhead costs?
- Are unused materials treated differently for GAAP and tax?
Real estate developers also face unique accounting and tax rules. Proper planning and the application of specific accounting and tax planning techniques can mean the difference as to whether a project is successful. Critical areas that we can help you with to maximize chances for success include:
- Treatment of development costs
- Revenue recognition methods
- Interest capitalization methods
- Depreciation methods - including cost segregation studies
- Multi-state taxation
- Foreign ownership matters
In addition to the firm's core tax and assurance compliance services, we provide the following services that may be of particular value to construction companies:
- Maximizing "Section 199" deduction
- Use of most tax-effective revenue recognition method
- Surety assistance
- Project cost analysis and comparison
- Cash flow analysis/budgeting
The members of our Construction Industry Service Team do not belong to construction industry organizations in name only, but actively participate and take leadership roles in the local chapters. Examples of roles include president of the Construction Financial Management Association, vice-chair of the FICPA Construction Industry Conference, member of the ABC Education Committee and member of the Pre-qualification Committee set up by the Pinellas County Board of County Commissioners. As a result of our leadership roles, we are uniquely positioned to provide you insights and early warnings of matters of interest to you.
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