Taxpayers often can legally reduce their exposure to taxation by:

Question

Quizplus · Accepted Answer

Postponing deductions can help taxpayers reduce their exposure to taxation by allowing them to defer the recognition of income or expenses to a later tax year, when their tax rate may be lower or their income may be less. This strategy is commonly used by individuals who expect to be in a lower tax bracket in the future or who have significant deductions that can be used to offset future income. Avoiding the accumulation of gross income or not appearing before tax officials are not legal ways to reduce taxation, and deducting federal taxes is not a way to reduce exposure to taxation but rather a way to pay for it.

Taxpayers Often Can Legally Reduce Their Exposure to Taxation By