“We meet with clients in October to get a snapshot of where they are and what they can expect toward the end of the year,” said James A. Lawrence, a CPA and tax partner with Traphagen Financial Group in Oradell, N.J. One tactic involves accelerating income or deferring deductions to avoid generating an excess business loss in the first place. “We look at two [tax] years at once and try to see where it makes sense to shift” income into the year when the client might be in a lower tax bracket, Lawrence said.

This code section is set to expire on Dec. 31, 2025. “The IRS indicated a goal to have guidance by June 2019,” Smith said. “This time has passed, but 461 remains one of the more widely applicable provisions to our clients who need assurance.”

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