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Stop-and-Go Tactic |
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Stop-and-Go Tactic A tactic in which a taxpayer waits to recognize revenues until the next tax year or attempts to recognize a deduction in the current tax year. Stop-and-go tactics are used in order to reduce one's tax liability in a given year. An example of a stop-and-go tactic is the purchase of a house in the current tax year in order to realize the first-time homeowner's tax credit. Another example is waiting to sell securities until the next tax year so that one can delay paying taxes on the profits.
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