If tax rates will be lower next year, taxpayers should accelerate their deductions regardless of their after-tax rate of return.

Question

Quizplus · Accepted Answer

This is because taxpayers can benefit from the higher deduction in the current year when tax rates are higher. However, it is important to consider the timing of cash flows and potential limitations on deductions, such as the Alternative Minimum Tax (AMT).

If Tax Rates Will Be Lower Next Year, Taxpayers Should