Accelerated Deductions
There are certain tax tips that can help a taxpayer shift their tax bracket by simply utilizing some smart tax planning techniques: one of those techniques is "accelerated deductions." If you expect to pay more tax in the current year than what you will pay in the upcoming year, you might want to consider the "accelerated deductions" strategy to help reduce your tax liability in the current year. By increasing your deductions in a given year, you give yourself a better chance of paying less tax. Here are some concepts for accelerating deductions:

  • Make extra charitable donations
  • Realize losses by selling securities at a loss
  • Renew professional journals and licenses prior to year end
  • Prepayments of state income tax
  • Sell other investment property at a loss
  • Pay next year's fees and subscriptions in the current year
  • Replace outdated or old business equipment in the current year
  • Buy a residence, instead of renting
Deferral of Income

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Frequently Asked Questions
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