NWR Inc. is structuring a transaction that will require a $200,000 deductible cash expenditure. Which of the following structures is the most effective in terms of the time period variable?

Question

Quizplus · Accepted Answer

By paying the cash in 20Y2 and reporting the deduction in 20Y1, NWR can take advantage of the deduction in the earlier tax year, thereby reducing their tax liability sooner. This structure is the most effective in terms of the time period variable.

NWR Inc Is Structuring a Transaction That Will Require a $200,000