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?

• Please note that the PDF version is the authorised version of this withdrawal notice.
  TD 94/87 has been withdrawn as part of a project to review public rulings.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Taxation Determination TD 94/87 is withdrawn with effect from today.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 TD 94/87 is being withdrawn to form part of a consolidated ruling on the tax treatment of long-term construction contracts.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

References

ATO references:
NO 1-BD70DD7

Related Rulings/Determinations:

TD 92/125
TD 92/131
TD 92/186
IT 2450

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