I believe I could make a real strong case in support of my position, but I am not of unlimited means whereas the IRS essentially is, and it would probably cost me more to "fight" it in the event of an audit. Accordingly, I have reached a compromise of sorts. Given that the contract started in December 2021, which was two years and 11 months after I retired, the bulk of the services will be provided beyond the IRS three-year QBI deduction threshold. With this being the first income I've earned as a consultant, I will choose the accrual method of accounting and thereby wait until 2022 to claim the deduction - presuming Congress doesn't eliminate it in the meantime!
Thanks again for your feedback, Coleen. Much appreciated! ~ Ken
