Sales and Use Tax Issues for Construction Contractors

S&U tax treatment of real estate construction contracts varies. A customer who is a manufacturer versus a tax-exempt entity will have substantially different S&U tax treatment. Construction contracts for real property compared to tangible personal property are also subject to substantially different S&U tax rules. 

Understanding these distinctions is critical for applying the correct sales tax treatment and maintaining compliance. Tax practitioners working with construction clients need to be able to analyze contract terms and project details to determine the tax consequences and compliance obligations.

Listen as our panel of experienced SALT professionals navigates the complexities of sales tax for construction contractors.

I. S&U tax for construction contractors: introduction

II. Analyzing real property construction contracts

III. Sales tax considerations by entity type

IV. Sales tax considerations for property types

A. Real property

B. Tangible personal property

V. Applying sales tax rules to construction contracts

The panel will cover these and other critical issues:

• Identifying key components of real property construction contracts
• S&U tax requirements for real property vs. tangible personal property
• S&U requirements for manufacturers vs. tax-exempt entities
• Analyzing construction contracts to determine applicable property types

Learning Objectives

After completing this course, you will be able to:

• Identify key contract terms in construction contracts
• Determine how S&U tax for construction projects applies to manufacturers
• Decide how S&U tax is applied to property in construction contracts
• Ascertain S&U tax differences between real property and tangible personal property

• 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 at mid-level within the organization, preparing complex state income tax forms and schedules; supervisory authority over other preparers/accountants. Knowledge and understanding of state taxation of warranties, including mandatory, option and extended warranties; familiarity with sales tax nexus issues.

  
  

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).