Tax Court Rules With Developers In Accounting Method Case

Law360, New York (February 13, 2014, 5:22 PM EST) -- The U.S. Tax Court said Wednesday that a residential developer and its affiliates may continue their method of accounting income and loss on home sale contracts for houses in planned developments by deferring it to the year the development has been completed.

Judge Robert A. Wherry Jr. said Shea Homes Inc. and its subsidiaries may account for individual home sales in a residential development after the final road is paved and the last bond is released. The Internal Revenue service had claimed this accounting method was...
To view the full article, register now.