Which of the following does not limit the benefits of deferring income?

Question

Quizplus · Accepted Answer

None of the choices limit the benefits of deferring income. Deferring income can potentially lead to a lower tax liability, regardless of the taxpayer's cash flow needs or investment decisions. In fact, continuing an investment with the potential for a high rate of return may be even more advantageous when income is deferred. Similarly, deferring income does not subject the taxpayer to unnecessary risks. The only factor that might limit the benefits of deferring income is if tax rates increase, but this is not included in the choices.

Which of the Following Does Not Limit the Benefits of Deferring