Postponing income

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Postponing income

Purposely delaying receipt of income to a later year in order to reduce current tax liability.

Postponing Income

The act or practice of not receiving otherwise expected income in a given tax year in order to reduce one's tax liability. For example, a company may postpone income if it has had a net operating loss in the year to date and wishes to apply it to future tax liability. Realizing income in the current tax year may eliminate that possibility. See also: Future Income Tax.
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