General Inquiries

  • 1.  Section 451 and Retainage

    Posted 12-07-2018 11:50
    Hello All,

    For those of you that are large contractors and exclude retainage for tax purposes, what is your take on the new IRC Section 451 rules? It seems that if you have an Applicable Financial Statement, you may now be required to pick up retainages in taxable income if you book retainages receivables on your financials. Looks like the "all-events-test" under Reg 1.451-5 has been removed.  Also, is anyone considering not booking retainages receivable and retainages payable to circumvent the new Reg?


    Lyndon B Livesay, CPA
    Livesay Tax & Business Advisors, P.C.
    P.O. Box 400
    185 Redwood Ave., STE 104
    Pennington Gap, VA  24277
    276-546-4068 (fax)
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