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?
||TD 94/87 has been withdrawn as part of a project to review public rulings.
||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Taxation Determination TD 94/87 is withdrawn with effect from today.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 TD 94/87 is being withdrawn to form part of a consolidated ruling on the tax treatment of long-term construction contracts.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