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How to Pay Zero Taxes, 2018: Your Guide to Every Tax Break the IRS Allows, 35th Edition by Jeff A. Schnepper

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CHAPTER 15

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.

BACKGROUND INFORMATION

•   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 year ...

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