Which of the following tax planning strategies is based on the present value of money?
A)Timing
B)Tax avoidance
C)Income shifting
D)Conversion
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Timing tax planning strategies are based on the present value of money, as they involve deferring income or accelerating expenses to take advantage of the time value of money. By delaying income, taxpayers can reduce their tax liability in the present and pay less tax overall.

Which of the Following Tax Planning Strategies Is Based on the Present