### Question
What does construction contract mean?


### Answer
**Construction contract** has the following meaning in *26 U.S.C. § 460*:

> any contract for the building, construction, reconstruction, or rehabilitation of, or the installation of any integral component to, or improvements of, real property

#### 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**

