Which of the following is an example of the timing strategy?
A) A corporation paying its shareholders a $20,000 dividend
B) A parent employing her child in the family business
C) A taxpayer gifting stock to his children
D) A cash-basis business delaying billing its customers until after year end
E) None of these

Question

Quizplus · Accepted Answer

The timing strategy involves manipulating when income is received or expenses are paid in order to minimize taxes. Delaying billing customers until after year end is an example of this strategy. The other options do not involve timing strategies.

Which of the Following Is an Example of the Timing