### Question
How is the term contract year defined?


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

> 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**

