Which of the following is an example of the timing strategy?
A)A cash-basis taxpayer paying all outstanding bills by year-end.
B)A parent employing her child in the family business.
C)A business paying its owner a $30,000 salary.
D)A taxpayer investing in a tax-preferred investment.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Timing strategy involves manipulating the timing of transactions to maximize tax benefits. Paying outstanding bills by year-end could reduce taxable income for the current year and lower tax liability. The other options are not examples of timing strategies.

Which of the Following Is an Example of the Timing