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Tax Deferral

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Tax Deferral
Tax deferral refers to instances where a taxpayer can delay paying taxes to some Future period. In theory, the net taxes paid should be the same. In practice, due to the Time value of money, paying taxes in Future is usually preferable to paying them NOW. Taxes can sometimes be deferred indefinitely, or may be taxed at a lower rate in the Future, particularly for deferral of income taxes. It is a general fact of taxation that when taxpayers can choose when to pay taxes, the total amount paid in Tax Will likely be lower.
Posted by  LISA Life Insurance Settlement Association
 
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