### Question
How is the "long-term contract" defined?


### Answer
The term **long-term contract** is defined in *26 U.S.C. § 460* as follows -

> any contract for the manufacture, building, installation, or construction of property if such contract is not completed within the taxable year in which such contract is entered into

#### Citation:
  - *26 U.S.C. § 460*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

