Big update for residential contractors.

The completed-contract method just expanded.

Under the new law, more residential projects qualify, including apartments and long-term housing.

Why does this matter?

Because percentage-of-completion forces you to recognize profit as you go. Even before you are paid. Even before the job is done.

That means you can owe taxes on money you have not collected yet.

The completed-contract method flips that.

You defer profit recognition until the project is finished.

That means:

• Better cash flow timing
• Lower estimated tax payments during the project
• More control over when income hits your return

For contractors running multi-year residential jobs? This is a game-changer.

But it is not automatic.

You need to elect the right method. Your contracts need to qualify. And your books need to support it.

Get this wrong and the IRS reclassifies your income retroactively. Get it right and you keep more cash working in your business, where it belongs.

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