If tax rates will be lower next year, taxpayers should accelerate their deductions regardless of their after-tax rate of return.

Question

Quizplus · Accepted Answer

Taxpayers should accelerate their deductions in order to take advantage of higher deduction amounts and lower tax rates, regardless of the after-tax rate of return. This is because a lower tax rate means that each dollar deducted will save more in taxes.

If Tax Rates Will Be Lower Next Year, Taxpayers Should