Tax planning involves the timing of income and deductions. General rules of thumb to follow when planning include
I.putting income into the year with the lowest marginal tax rate.
II.deferring deductions.

Question

Tax planning involves the timing of income and deductions. General rules of thumb to follow when planning include
I.putting income into the year with the lowest marginal tax rate.
II.deferring deductions.
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Quizplus · Accepted Answer

Putting income into the year with the lowest marginal tax rate is a common tax planning strategy to minimize taxes. Deferring deductions is generally not advisable as it may result in higher taxes in the current year.

Tax Planning Involves the Timing of Income and Deductions