Still Time to Reduce Year-End Taxes
By GPSApr 1, 2004
By Craig Koop as featured in Home Business
Businesses and individuals, armed with an understanding of changes in the federal tax code, can still make decisions that may significantly impact their 2003 tax liability. There are generally three basic strategies that can be employed to decrease income tax liability: 1) deferring or accelerating income; 2) accelerating expenses; and 3) taking advantage of available tax credits.
Deferring or Accelerating Income
Individuals with relatively stable income, who experience no significant movement between tax brackets, most commonly postpone payment of taxes by deferring income and accelerating deductions. For example, delaying a year-end bonus …
