Which of the following is an example of the timing strategy?
A) A cash basis taxpayer paying all outstanding bills by year end.
B) A parent employing her child in the family business.
C) A business paying its owner a $30,000 salary.
D) A taxpayer investing in a tax preferred investment.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The timing strategy involves the deliberate timing of income and expenses in order to minimize taxes. Paying outstanding bills by year-end is an example of this strategy.

Which of the Following Is an Example of the Timing