One limitation of the timing strategy is the difficulties in accelerating a tax deduction without accelerating the actual cash outflow that generates the tax deduction.

Question

Quizplus · Accepted Answer

This is true because in order to take advantage of a tax deduction, a cash outflow must occur in the same calendar year. It is not possible to accelerate a tax deduction without also accelerating the cash outflow.

One Limitation of the Timing Strategy Is the Difficulties in Accelerating