annual accounting period

It involves an annual accounting period 365 days long.

The Martian year is 686 days, and it is not at all clear whether Martian taxpayers would be permitted to use their annual accounting period or would be required to use the Earth year.

The Final Regs provide that the threshold amount is generally not prorated in the case of a short tax year of an individual, except for individuals with short tax years that result from a change of annual accounting period.

The Final Regs provide that taxpayers with a short period resulting from a change of annual accounting period must reduce the applicable threshold amount to an amount that bears the same ratio to the full threshold amount provided under Code Sec.

The lookback aims to smooth distortions caused by the annual accounting period and was not designed with homebuilders in mind, said Deloitte Tax Principal Clint Stretch.