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Taxation Determination

TD 94/87W

Income tax: property development: where the estimated profits method of recognising income from long-term construction contracts (Taxation Ruling IT 2450) is adopted, how is an estimated 'ultimate loss' arising under a contract to be recognised?

Attention TD 94/87 has been withdrawn as part of a project to review public rulings.
Attention This document has changed over time. View its history.

Notice of Withdrawal

Taxation Determination TD 94/87 is withdrawn with effect from today.

1. TD 94/87 clarifies that where the estimated profits basis is used for recognising income from long-term construction contracts, an estimated contract loss is to be spread over the period taken to complete the contract and in a manner that reflects the progress of the contract.

2. TD 94/87 is being withdrawn to form part of a consolidated ruling on the tax treatment of long-term construction contracts.

3. The issue covered by TD 94/87 is now covered in Taxation Ruling TR 2017/D8.

Commissioner of Taxation

18 October 2017

Previously released as Draft TD 94/D71


ATO references:
NO  1-BD70DD7

ISSN 2205-6211

Related Rulings/Determinations:
TD 92/125
TD 92/131
TD 92/186
IT 2450

Legislative references:
ITAA 25(1)
ITAA 51(1)

TD 94/87 history   Top  
   Date   Version   Change 
   24 November 1994   Original ruling   
 You are here ®  18 October 2017   Withdrawn   


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