### Question
How does Taxable Year for Which Items of Gross Income Included define contract year?


### Answer
Under *26 U.S.C. § 460*, **contract year** is defined as:

> any taxable year for which income is taken into account under the contract

#### 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**

