The timing strategy becomes more attractive as tax rates decrease.

Name: The timing strategy becomes more attractive as tax rates decrease.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The timing strategy, which involves timing the recognition of income and deductions to manage tax liability, generally becomes more attractive as tax rates increase, not decrease. Higher tax rates make it more beneficial to defer income or accelerate deductions to reduce taxable income.

The Timing Strategy Becomes More Attractive as Tax Rates Decrease