Question
Abby owes a deductible expense that she can legally pay (and deduct) either this year or next year. She is in the 22% marginal tax
Abby owes a deductible expense that she can legally pay (and deduct) either this year or next year. She is in the 22% marginal tax rate bracket this year. Assuming Abby is trying to minimize her total tax bill over the two years, which of the following statements is true?
Group of answer choices
None of these
If Abby expects to be in the 12% marginal tax bracket next year, she should deduct the expense in the current yr
All of the above (pay this year no matter what)
If Abby expects to be in the 24% marginal tax bracket next year, she should deduct the expense in the current year.
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