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1. Accelerate deductions and defer income
Deferring tax is usually a good strategy simply for the time value of money. This year it’s even more important. Taxpayers want to use deductions now while rates are higher and defer income into future years when rates might be lower. There are plenty of income items and expenses they may be able to control. They should consider deferring bonuses, consulting income or self-employment income. On the deduction side, they may be able to accelerate state and local income taxes, interest payments and real estate taxes.