Which of the following is not required to determine the best timing strategy?
A)The taxpayer's after-tax rate of return
B)The taxpayer's tax rate this year
C)The taxpayer's tax rate in future years
D)The taxpayer's tax rate last year
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The taxpayer's tax rate last year is not relevant to determining the best timing strategy as it is a historical rate and does not reflect the current or future tax environment. The other factors (after-tax rate of return, current and future tax rates) are all crucial in determining whether to defer or accelerate income or deductions.

Which of the Following Is Not Required to Determine the Best