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Fair Accounting for Condominium Construction Act

3/18/2024, 9:03 PM

Summary of Bill HR 4280

Bill 118 hr 4280, also known as the Fair Accounting for Condominium Construction Act, was introduced in the US Congress to address issues related to the accounting practices of condominium construction projects. The bill aims to ensure that developers accurately account for the costs and revenues associated with these projects, in order to provide greater transparency and protection for condominium buyers.

Specifically, the bill requires developers to use a standardized accounting method when reporting the financial status of a condominium construction project. This method would include accounting for all costs incurred during the construction process, as well as accurately estimating future revenues from unit sales.

Additionally, the bill includes provisions to protect condominium buyers by requiring developers to provide detailed financial disclosures before a purchase agreement is signed. This information would include a breakdown of all costs associated with the project, as well as any potential risks or liabilities that buyers should be aware of. Overall, the Fair Accounting for Condominium Construction Act aims to promote greater accountability and transparency in the condominium construction industry, in order to protect buyers and ensure the financial stability of these projects.

Congressional Summary of HR 4280

Fair Accounting for Condominium Construction Act

This bill exempts certain residential construction contracts from the requirement to use the percentage of completion method of accounting. The percentage of completion method is a tax accounting method in which the revenues and expenses of long-term contracts are recognized as a percentage of the work completed in a particular period.

Current Status of Bill HR 4280

Bill HR 4280 is currently in the status of Bill Introduced since June 22, 2023. Bill HR 4280 was introduced during Congress 118 and was introduced to the House on June 22, 2023.  Bill HR 4280's most recent activity was Referred to the House Committee on Ways and Means. as of June 22, 2023

Bipartisan Support of Bill HR 4280

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
2
Democrat Cosponsors
2
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 4280

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 4280

Fair Accounting for Condominium Construction Act
To amend the Internal Revenue Code of 1986 to provide an exception to percentage of completion method of accounting for certain residential construction contracts.
Fair Accounting for Condominium Construction Act

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