What's one tax planning opportunity created by recent economic disruption that most practitioners are overlooking? How could businesses better capitalize on this?

One of the most overlooked tax planning opportunities emerging from recent economic disruptions is the ability for businesses to strategically harvest losses and revalue assets during periods of volatility. Many practitioners focus on defensive moves—cutting costs or delaying investments—but they miss the chance to use downturn conditions to reset basis, accelerate depreciation, or claim partial asset dispositions that permanently lower future tax burdens. Businesses can capitalize on this by conducting a mid-cycle cost segregation review rather than waiting for a property acquisition or renovation. Economic disruptions often change asset use, retire outdated equipment, or reduce fair market value, which creates opportunities to write down or dispose of portions of an asset that no longer produce economic benefit. This reduces taxable income immediately while improving cash flow at a time when liquidity matters most. Companies that treat volatility as a planning window—not just a risk—tend to emerge with stronger tax efficiency and more capital available for growth.

One major tax planning opportunity created by recent economic disruption—and one most practitioners are completely overlooking—is the ability to "reset" basis, income character, and future deductions through strategic restructuring during down years. When valuations dip, business owners can transfer equity into trusts, family partnerships, or next-gen entities at a dramatically reduced tax cost, locking in future appreciation outside their taxable estate. They can also harvest losses, reposition depreciated assets, and use cost segregation timing to offset high-income rebound years. In other words, economic volatility becomes a discount window for tax planning—and businesses that proactively restructure during downturns end up capturing millions in long-term tax savings instead of waiting for a recovery and losing the opportunity.

One tax planning opportunity created by recent economic disruption that many practitioners are overlooking involves accelerated depreciation and bonus depreciation on capital investments. In the wake of economic shifts, businesses have been investing in technology, equipment, and infrastructure to adapt to new market demands. While many companies account for these purchases in standard depreciation schedules, they often overlook the ability to immediately expense a significant portion of these investments under bonus depreciation rules, which can provide substantial near-term tax savings. To better capitalize on this, businesses should conduct a detailed audit of their recent and planned capital expenditures, identify assets eligible for accelerated depreciation, and coordinate timing to maximize deductions within the current fiscal year. Additionally, pairing this strategy with forward-looking projections can help optimize cash flow, support reinvestment into growth initiatives, and reduce overall taxable income without delaying operational plans. The key is proactive planning: businesses that integrate accelerated depreciation into their strategic financial management—not just routine bookkeeping—can gain a meaningful tax advantage, freeing up resources to navigate uncertainty and invest in competitive priorities.

One tax opportunity that keeps getting missed lives in the mess disruption created. Those years broke everything. Revenue moved around. Costs came early. Teams got reshuffled. New entities popped up. Everyone focused on survival. Once growth came back, most teams shut the file and moved on. That clean up never really happened. Losses get attention, but deferred tax assets get ignored. Timing differences from revenue recognition changes, unpaid bonuses, provisions, write downs. These sit quietly on the balance sheet. Treated like old accounting baggage. In reality, they reduce cash taxes for years if tracked properly. Transfer pricing is another blind spot. During disruption, risk shifted. India teams did more real work. US or parent entities slowed down. Markups stayed the same because changing them felt like effort. That creates exposure and missed planning room. Resetting this with real operating logic saves future pain. Indirect tax credits sit idle too. GST refunds on exports. Input credits stuck due to classification shifts. Many founders mentally write these off. With follow up, these turn into actual cash, especially for SaaS and services companies. Entity structures also deserve a second look. Groups expanded fast during chaos. IP locations, intercompany charges, entity roles got decided in a hurry. Disruption gives a solid business reason to fix these without drama. The playbook stays simple. Go back to the disruption years. Review them slowly. Connect tax positions to what actually happened in the business. Teams that do this turn old stress into cash savings and cleaner governance going forward.

One opportunity that often gets overlooked is using periods of slower revenue or economic disruption to restructure the business so future income is taxed more efficiently. When margins tighten, it becomes easier to justify shifting to cleaner entity structures, refining how owners take distributions, or separating operating and investment activities so each side can be optimized. Most practitioners focus on short term relief during downturns, but the smarter move is creating a setup that lets the business grow into a better tax position once conditions improve. Businesses can capitalize on this by reviewing their structure with a forward looking lens, not just a compliance lens, and making the adjustments that are too easy to ignore when times are busy.

One often overlooked tax planning opportunity emerging from recent economic disruptions is the strategic use of net operating losses (NOLs) and deferred tax assets, particularly for businesses that experienced volatility during COVID-19 and subsequent inflationary periods. Many practitioners miss the chance to carry forward or carry back losses to offset taxable income, thus improving liquidity. To capitalize on this, businesses should reassess prior year returns and current projections with a tax advisor to identify loss-utilization strategies, optimize timing for deductions, and plan asset sales or restructuring accordingly. This can provide significant tax relief and cash flow advantages.

Most tax practitioners miss that business losses from failed ventures or closed operations can offset other income in ways people don't realize exist. At AffinityLawyers I see business owners who shut down one operation then start another, and they never connect that the losses from the failure reduce taxes on the new success. Economic disruption created tons of situations where people have losses sitting unused because nobody told them you can carry those forward or sometimes backward to recover taxes already paid. If you closed a business in 2023 that lost money, those losses might offset your 2025 income from a completely different venture, but most people just move on without claiming what they're owed. The opportunity businesses miss is proper documentation of losses when things go wrong. People just shut down operations without formally closing entities or calculating final losses that could save them significant money later. You need records showing what you lost to claim the deduction, and if you didn't document it properly at the time, you've lost the benefit forever even though the loss was real. Talk to tax professionals about carryforward losses and net operating loss provisions before you just abandon failed ventures, because there's real money in properly documenting your failures that offsets future success.

One opportunity that has not received enough attention is the ability to use fluctuating valuations during economic disruption to make more strategic decisions about asset transfers. When markets dip or business revenues soften, the fair market value of certain assets falls as well. That creates a window where transfers, gifts, or equity restructuring can be done at a lower taxable value. For example, some small businesses experienced temporary declines in revenue during recent economic shifts. During that period, moving ownership interests to family members, trusts, or new partners could be done with a reduced tax impact because the valuation reflected short term conditions rather than long term potential. Many practitioners focused on cash flow issues and missed this strategic angle. Businesses can capitalise on this by keeping updated, defensible valuations and working with advisors before year end rather than after the recovery begins. Once numbers bounce back, the opportunity disappears. The key is recognising that volatility does not only create risk. It also creates moments where long term tax positioning can be improved at a lower cost.

What is one tax planning opportunity created by recent economic disruption that most practitioners are overlooking, and how could businesses better capitalize on this? One overlooked opportunity is using periods of compressed margins to restructure debt in a way that creates both immediate tax advantages and long term financial resilience. Economic disruptions often pressure profitability, yet many businesses continue carrying high interest or inefficiently structured obligations without recognizing that debt restructuring can shift interest deductibility, improve cash flow, and create timing benefits on taxable income. When paired with accelerated depreciation or strategic asset write downs, companies can reposition their balance sheets while reducing near term tax burden. To capitalize on this, businesses should build tax sensitive cash flow models that integrate financing decisions rather than treating debt as a separate operational category. Aligning debt strategy with tax timing turns volatility into a planning tool rather than a setback.

What is one tax planning opportunity created by recent economic disruption that most practitioners are overlooking, and how could businesses better capitalize on this? One often overlooked opportunity is the ability to use volatile earnings periods to strategically accelerate or defer deductions in a way that permanently lowers a company's effective tax rate over multiple years. Economic disruption frequently creates uneven income patterns, yet many practitioners continue applying stable year assumptions to decisions about depreciation, capitalization, and timing of major expenses. When income drops temporarily, businesses can benefit from accelerating deductions such as bonus depreciation or cost segregation to generate losses that can be carried forward into more profitable years. Conversely, when revenue rebounds sharply, deferral of discretionary expenses can help smooth taxable income and reduce peak year exposure. Businesses can capitalize on this by building a multi year tax model that integrates operational forecasts with tax timing decisions rather than treating deductions and revenue changes as isolated events. The advantage lies in shifting the tax profile across cycles, which ultimately strengthens cash flow and planning accuracy.

I appreciate the question, but I need to be transparent here: tax planning isn't my area of expertise. As the CEO of Fulfill.com, my focus is on logistics, supply chain optimization, and helping e-commerce brands scale their fulfillment operations. While I work closely with hundreds of brands navigating economic disruptions, I'd be doing you and your readers a disservice by speaking authoritatively on tax strategy. What I can tell you from my perspective in the logistics world is that economic disruption has created significant opportunities that do have tax implications, even if I'm not the right person to detail the tax mechanics. For example, the shift to distributed inventory networks and nearshoring has changed how companies structure their operations geographically. At Fulfill.com, we've seen brands move from single-warehouse models to multi-node fulfillment networks across different states and regions. This operational shift affects everything from sales tax nexus to property considerations, but the specifics of optimizing that tax situation should come from a qualified tax professional. Similarly, the surge in returns and reverse logistics has forced brands to rethink their entire supply chain cost structure. We've helped brands implement more efficient returns processing that reduces carrying costs and improves cash flow, but again, the tax optimization angle of inventory write-offs and loss management is beyond my expertise. Here's what I'd recommend: connect with a tax professional who specializes in e-commerce and supply chain operations. They can speak to opportunities around Section 179 deductions for warehouse equipment and technology, R&D credits for logistics innovation, and strategies around inventory valuation methods that I've heard brands discuss but can't advise on directly. I'm always happy to discuss logistics strategy, supply chain optimization, or how economic disruption is reshaping fulfillment operations. Those are areas where I can provide real value based on fifteen years of hands-on experience. For tax planning specifically, you deserve an expert in that field who can give you accurate, actionable guidance.

Businesses should assess their eligibility for the Employee Retention Credit (ERC), which offers significant tax savings by covering a percentage of qualified wages and healthcare costs for employees during pandemic-related disruptions. Despite its benefits, many businesses, especially those in heavily impacted sectors, overlook this credit. Ensuring proper eligibility assessment can help improve cash flow and provide funds for reinvestment and growth.

One of the most overlooked tax planning opportunities right now is taking advantage of the enhanced Net Operating Loss (NOL) carryback provisions. After recent economic disruptions, these updated regulations can really help improve cash flow and operational flexibility. The truly unfortunate fact is that many professionals tend to disregard them or think they're too complicated. Well, guess what? They can be a great asset for businesses. If you are looking to navigate tough financial times, this is very useful for you. How Can Businesses Capitalize On This? The only way businesses can capitalize on this is to implement a strategic use of the NOLs and Section 163(j). How? Let's check it out! 1. Maximizing ATI For Absorbing Interest Before 2025, some taxpayers could choose to capitalize their interest costs under specific tax rules, like IRC 263A(f). In fact, this helped them to avoid the limit imposed by Section 163(j). So, this allowed them to change an immediate deduction into a capitalized cost. In fact, this could then be recovered through depreciation. However, new rules will affect this strategy starting in 2026. Additionally, general tax planning techniques can increase the current year's Adjusted Taxable Income(ATI). I am talking about situations like: Speeding up income Delaying deductions Now, this will allow for a larger Business Interest Expense(BIE) deduction. 2. Optimizing NOL Utilization Firstly, you can only deduct NOLs (Net Operating Losses) after calculating the 163(j) limit. This means that the taxable income available for the NOL deduction is what's left after the maximum Business Interest Expense is taken out. If taxpayers operate in multiple states, they need to check how each one follows Section 163(j) and NOL rules. Many states have different rules or limits. This will lead to higher state tax costs or fewer opportunities to optimize them. 3. Enhancing Entity Structures Now, let's say you have a business structure like a partnership or a corporation. In that case, you can apply the BIE limitation at the entity level. However, any interest that the authorities did not allow, you can carry forward. But, you can only do so if you are the individual partner or S corporation owner. Also, this process can make it more complicated to track and use these carryforwards. In the case of corporate groups that are consolidated, the limitation is applied at the group level, which makes internal calculations simpler.