Deferring your Income and Accelerating Expenses

If you don’t expect to be in a higher tax bracket next year, deferring income into the following tax year and accelerating expenses into the current tax year is a proven planning tool. If you are an independent contractor or other self-employed individual, you may decide to hold off on mailing invoices until late December to push the associated income into 2020. However, all taxpayers, regardless of employment status can defer income by realizing potential capital gains after January 1. However, keep in mind that waiting to sell increases the risk your investment may decrease.