For a plumbing contractor, is new construction reported at a different tax rate?

[crazyclan81]

I was told by our CPA that new construction was taxed differently, but haven't seen anything that separates regular income from that of new construction.

[PeterM · Accepted solution]

There is not a separate tax rate for "new construction." The tax rates operate on a tiered structure...10% until it becomes 15%, until it becomes 25%, etc...There are different tax rate structures for collectibles, and capital gains but not for new construction.