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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Wednesday, October 28, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$247.00
CPE
ALL

This course will prepare tax professionals and advisers working with large and small construction contractors. The panel will explain book and tax accounting methods for contractors considering the proposed regulations released July 2020, strategies for reporting expenses paid with PPP loan proceeds without specific guidance, as well as how to handle contract modifications and the IRS initiative targeting contractors.

Faculty

Carlo R. Ferri
Director, Tax Strategies
Kreischer Miller

Mr. Ferri has extensive experience providing tax and business advisory services for privately-held companies in various industries including manufacturing, distribution, and construction. He helps these companies, including their owners and key executives through the various cycles (i.e. growth, maturity, exit) of their business related to corporate and individual tax matters, as well as representing them in front of the IRS. As the Construction Industry Group Co-Leader, Mr. Ferri specializes in tax compliance and strategic planning for the construction industry. He also serves as an instructor for Kreischer Miller’s in-house professional training on topics related to the construction industry. In addition, Mr. Ferri has been actively involved in advising clients with tax strategies on the new Tangible Property Regulation and Cost Segregation Services along with solar and other alternative energy projects.

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Mark A. Guillaume
Director, Audit & Accounting
Kreischer Miller

Mr. Guillaume provides business advisory, audit, and accounting services to clients in a variety of industries, including construction, distribution, investment management, and manufacturing. He assists businesses in acquisition due diligence, internal control evaluations, corporate governance, succession planning, and financing.

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Description

The current state of the economy has wreaked havoc on businesses. Many construction businesses applied for and received PPP loans. Although the loans were welcome, how to apply for and handle the forgiveness remains unclear. Decisions need to be made about the deductibility of the expenses relative to these loans before additional guidance is issued.

The 2017 tax reform provided some relief by raising the threshold for using the completed contract method (CCM) or cash method for small contractors from $10 million to $26 million (indexed for inflation). Proposed regulations issued July 2020 offer guidance on qualification for this relief. Although the percentage complete method provides a more realistic approach to reporting of income, it is substantially more complicated than other bookkeeping methods. Ensuring that your client's business qualifies for more favorable tax accounting methods is more critical than ever.

Listen as our panel of experts discusses the non-deductibility of expenses relative to loan forgiveness, GAAP and tax reporting differences, additional financial statement disclosures and reporting considerations in light of current economy. They will also discuss the top planning ideas for 2020-2021 to make sure your construction business client is maximizing depreciation and job cost deductions.

Outline

  1. Accounting considerations for construction contractors
    1. Percentage complete vs. completed contract method
    2. ASC 606 tax considerations
    3. Contract modifications
  2. Tax considerations for construction contractors
    1. Small contractor methods: cash and CCM
    2. Syncing tax and book under ASC 606
    3. Avoiding or preparing for the IRS
    4. Depreciation after tax reform
    5. Maximizing other deductions after tax reform
    6. Top Planning Ideas for 2020
  3. Contractor issues in the current economy
    1. CARES ACT Relief
    2. PPP Loan Forgiveness
    3. Financial statement considerations

Benefits

The panel will address these and other relevant matters:

  • Method considerations under the proposed regulations issued July 2020
  • Properly handling contract modifications for book and tax methods
  • PPP loan forgiveness and reporting PPP related expenses
  • CARES Act impact on contractors
  • Maximizing depreciation deductions after tax reform
  • Update on ASC 606 for revenue recognition

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify cost saving strategies for contractors
  • Ascertain when the completed contract method is allowed
  • Distinguish between acceptable and nonacceptable tax and GAAP methods for contractors
  • Determine appropriate depreciation methods after tax reform

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of corporate taxation, including taxation of businesses, accounting methods, net operating losses and loss limitations; familiarity with net operating loss carry-backs and carry-forwards.

Strafford Publications, Inc. is 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 Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).