Deferring income can achieve the same result as accelerating deductions.

Question

Quizplus · Accepted Answer

Deferring income means postponing the receipt of income to a future year, which would result in lesser taxable income in the current year. This can achieve the same result as accelerating deductions, which means moving deductions from a future year to the current year to reduce taxable income. Both strategies aim to lower the taxpayer's tax liability in the current year.

Deferring Income Can Achieve the Same Result as Accelerating Deductions