Income Averaging and Hurricane Tax Breaks
“Suppose you were an idiot.And suppose you were a member of Congress....But then I repeat myself.”MARK TWAIN
The American Jobs Creation Act of 2004 amended the Internal Revenue Code to permit fishermen to average their income over 3 years, similar to taxpayers involved in a farming trade or business.
• For taxable years beginning after December 31, 1997, individual taxpayers engaged in a farming business may elect to compute their income tax liability by treating all or a portion of their taxable income from farming as if one-third of it had been earned in each of the prior 3 years. Making this election may give taxpayers a lower tax liability for the current ...