Consulting, SSTB and 'crack-and-pack"

[Strongsilence-CPA]

If you have a consulting firm with non-SSTB activities, I would like to know your advice or your experience about using the crack-and-pack strategy.

My clients are consultants in a professional services field. But I know that they do technical inspection and monitoring that does not lead to reports or consultation.  Before I ask them to determine the income from each of these two separate activities, I'm researching this strategy.

thanks

[BobKamman]

That's something you do prospectively, not retroactively on a tax return for a completed year.  

[Strongsilence-CPA]

Thank you. 

The S Corp for 2024 has already been prepared and filed.  Is it possible to change the allocation of income and wages on the shareholder's 1040?

[BobKamman · Accepted solution]

No, and since Section 199A might be repealed or amended this year, I wouldn't spend much time planning for it until seeing the new rules.  

[Strongsilence-CPA]

I am allowed to amend the 2024 tax return

For 2025, thanks for the tip.

[BobKamman]

But you are not allowed to amend the 2024 return unless you did something in 2023 to separate this into two businesses.