Why should I defer income to a later year?

Most individuals are in a higher tax bracket in their working years than during retirement. Deferring income until retirement may result in paying taxes on that income at a lower rate. Deferral can also work in the short term if you expect to be in a lower bracket in the following year or if you can take advantage of lower long-term capital gains rates by holding an asset a little longer.
  • 0 gebruikers vonden dit artikel nuttig
Was dit antwoord nuttig?

Gerelateerde artikelen

What's the best way to borrow to make consumer purchases?

For homeowners, it's the home equity loan. Other consumer-related interest expenses, such as from...

What special deductions can I get if I'm self employed?

You may be able to take an immediate expense deduction of up to $500,000 for 2016 (same as 2015),...

Can I ever save tax by filing a separate return instead of jointly with my spouse?

You sometimes may benefit from filing separately instead of jointly. Consider filing separately...

Why should I participate in my employer's cafeteria plan or FSA?

In 2016, medical and dental expenses are deductible to the extent they exceed 10 percent of your...

What's the best way to give to charity?

If you're planning to make a charitable gift, it generally makes more sense to give appreciated...