Tax planning is a year-round activity. By planning income and deduction strategies, you may be able to reduce your tax. You may realize capital gain income subject to lower capital gain rates, defer certain income to a later year in which you expect to pay a lower tax, and accelerate deductions to a higher tax year. Tax-free investments are available and, within limits, income splitting with family members may be possible.
This chapter introduces basic tax-planning strategies. In subsequent chapters, tax-savings plans for homeowners, families, investors, and executives are discussed.
28.2 When To Defer Income and Accelerate Deductions
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