### Question
How is the term residential construction contract defined?


### Answer
The term **residential construction contract** is defined in *26 U.S.C. § 460* as the following:

> any contract which would be described in subparagraph (A) if clause (i) of such subparagraph reads as follows:


“(i) dwelling units (as defined in section 167(k)), and”

#### 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**

