Describe the ways in which timing strategy has limitations

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1. Describe the ways in which the timing strategy has limitations.

The concept of the time value of money suggests that $1 today is not equal to $1 in the future. Explain why this is true.

2. Why is understanding the time value of money important for tax planning?

3. What two factors increase the difference between present and future values?

4. What factors have to be present for income shifting to be a viable strategy?

5. Name three common types of income shifting.

Reference no: EM13905534

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