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People also ask
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What is your main goal when tax planning should be quizlet?
In general terms, the goal of tax planning is to maximize the taxpayer's after-tax wealth while simultaneously achieving the taxpayer's nontax goals. -
What is effective tax planning?
Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor's financial plan. -
What is the primary purpose of effective tax planning?
The primary goal of effective tax planning is to minimize income taxes as much as legally possible; it cannot cross the line into illegal evasion of tax through deceit, subterfuge, or concealment. -
Is the primary purpose of effective tax planning is to reduce or defer the tax in the current tax year?
The primary purpose of effective tax planning is to reduce or defer the tax in the current tax year. A taxpayer's marginal tax rate is the most appropriate tax rate to use in tax planning. A Limited Liability Company (LLC) pays income taxes at the same rates as regular (C) corporations. -
Is the goal of tax planning is tax minimization True or false?
The goal of tax planning is tax minimization. The goal is to maximizing after-tax wealth and achieving the taxpayer's nontax goals. The timing strategy is based on the idea that the location of where the income is taxed affects the tax costs of the income.
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