Art is in the 28% marginal tax bracket for 2011. He owes a $10,000 bill for business
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Art is in the 28% marginal tax bracket for 2011. He owes a $10,000 bill for business expenses. Because he reports taxable income on a cash basis, he can deduct the $10,000 in either 2011 or 2012, depending on when he makes the payment. He can pay the bill at any time before January 31, 2012, without incurring the normal 8% interest charge. If he expects to be in a 33% marginal tax bracket for 2012, should he pay the bill and claim the deduction in 2011 or 2012?
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Art should pay the expense and claim the deduction in 2012 In t...View the full answer
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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