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Attachment 1 to Industry Director Directive on Super Completed Contract Method

Proforma IDR for deferral of home sales until 95% of costs are incurred.  Primarily the uncompleted common improvement is preventing the 95% test from being met.

For each development, project, or community that has deferral of any home sales for tax purposes because 95% of the costs have not been incurred, provide the following information:

  1. Name of development.
  2. Total number of lots to be developed.
  3. The year the development is expected to be completed.  
  4. Total number of homes built and sold by you as of the end of the tax year(s) under examination.  Additionally include the gross amount of these sales for each year and the amount deferred for tax purposes each year.
  5. Total number of lots sold by you, without the construction of a home, as of the end of the tax year(s) under examination.  Total dollar amount of these sales for each year and the amount deferred for tax purposes each year.
  6. Describe how each of the following costs are allocated to each individual home/lot:
    • Land Cost (Both direct & indirect
    • Building Costs (Both direct & Indirect)
    • Common Improvements (Both direct & indirect)
  7. A description of each common improvement that you are contractually obligated or required by law to provide for the development.
  8. A description of the document evidencing the contractual obligation or requirement of law and a description of the nature of the obligation contained in the document.
  9. Identify the person or persons to whom you are contractually obligated or required by law to provide common improvements.
  10. The estimated costs for each common improvement and the manner in which the estimate was made.
  11. The portion of the estimated cost of common improvements allocable to each home/lot and a description of the manner in which the estimated cost was allocated to each lot if not described in item 6, above.
  12. The estimated date production will begin on each common improvement   and an estimated date of completion of the common improvement.
  13. Provide a schedule showing the following information with regards to each common improvement:
    • Total costs of the common improvement incurred as of the beginning of the tax year under examination.
    • Total costs of the common improvements incurred during the tax year under examination.
    • Total estimated costs of the common improvement to be incurred after the tax year under examination.
  14. Provide a schedule showing the following information with regards to each home/lot sold during the year and home/lots still owned by you as of the end of the tax year:
    • Total costs of each home/lot incurred as of the beginning of the tax year under examination.
    • Total costs incurred for the direct land and building during the tax year under examination.
    • Total costs incurred for common improvements during the tax year under examination.
Page Last Reviewed or Updated: 29-Nov-2013