Question

Connie thinks that her salary and tax rate for next year will be lower than for this year. What step should she take to minimize her taxes in the current year? Select one: a. Accelerate receipt of income. b. Delay deductions. c. Practice tax evasion. d. Accelerate deductions. e. None of these will allow her to minimize her taxes.

Answer 1

Answer:

d. Accelerate deductions

Explanation:

Tax acceleration is a way that a taxpayer is able to hasten tax deduction.

Taxi is paid in the year that it was incurred instead of in the subsequent year.

This way tax expense that will be paid from the current year is reduced and tax income will increase.

In the given scenario where Connie thinks that her salary and tax rate for next year will be lower than for this year, the best way to minimise her tax expense starting this year is by tax acceleration