Tax planning is most commonly done to
A)reduce debt balances.
B)change income patterns to avoid taxes.
C)minimize taxes.
D)pay extra taxes.
E)learn the tax code.

Question

Quizplus · Accepted Answer

Tax planning is done to minimize taxes legally by taking advantage of deductions, credits, and other tax-saving strategies. The objective of tax planning is to reduce the tax liability while staying in compliance with the tax laws. It is not done to increase debt balances or pay extra taxes, nor does it necessarily involve changing income patterns or learning the tax code (although having knowledge of the tax code can be helpful in finding tax-saving opportunities).

Tax Planning Is Most Commonly Done to