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

Question

Quizplus · Accepted Answer

Taxpayers should consider their after-tax rate of return when deciding whether to accelerate deductions. If the after-tax return on investments is higher than the benefit from accelerating deductions, it might be better to delay deductions, especially if tax rates are expected to increase.

If Tax Rates Will Be Higher Next Year, Taxpayers Should