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I kind of wish we had chosen a cash basis. On a percentage complete basis in my world you are stuck trying to estimate the remaining material and labor on the job. We have a bunch of contracts that go on for several years due to the nature of our work. We build new roads in new subdivisions but can't install the final surface of asphalt until all of the houses are complete. It may not really bother you if you only have a few things going at the end of the year though.

There is also something called the alternative minimum tax that may come into play if you are going to show a loss for the year just because you haven't completely finished a contract but have made money through the year. The tax man is going to get his no matter what. Good luck.
 
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