QuestionsConstruction, HVAC & Elevator
Which tax method should a contractor my size use?
Smaller contractors can often use the completed-contract method on jobs expected to finish within two years, which can defer tax on work in progress. Whether it fits depends on your gross receipts and job mix, so we model it first.
Authority: IRC §460(e)(1)(B); IRC §448(c)
Updated October 2026. General information, not advice for your situation.