year-end tax planning

The year-end tax dance

One benefit of good cash flow management is having leeway in covering costs. The end of the year is a good time to put that flexibility to use to reduce your income tax bill on April 15.

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The twist in year-end tax planning

If Congress doesn’t extend the tax cuts, in effect raising taxes for 2011, it will make more sense to defer expenses into 2011 and accelerate income into 2010.

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The timing of any major year-end expenditure should be viewed in light of taxes.

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