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Timing income and expenses can impact tax liability from "summary" of Tax-free Wealth by Tom Wheelwright
Timing income and expenses play a significant role in determining your tax liability. By strategically timing when you receive income and when you incur expenses, you can effectively manage your taxes and potentially reduce what you owe to the government. For example, if you expect to be in a higher tax bracket in the coming year, you may want to delay receiving income until the following year when you anticipate being in a lower tax bracket. This can help you minimize the amount of taxes you owe on that income. Conversely, if you expect your income to decrease in the future, you may want to accelerate income into the current year to take advantage of lower tax rates. Similarly, you can also time your expenses to maximize tax benefits. By strategically timing ...
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