Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.2 9/18/84; site lsuc.UUCP
Path: utzoo!utcs!mnetor!lsuc!dave
From: dave@lsuc.UUCP (David Sherman)
Newsgroups: net.taxes
Subject: Re: taxes & home purchase
Message-ID: <771@lsuc.UUCP>
Date: Thu, 29-Aug-85 13:43:06 EDT
Article-I.D.: lsuc.771
Posted: Thu Aug 29 13:43:06 1985
Date-Received: Fri, 30-Aug-85 01:28:38 EDT
References: <1793@bmcg.UUCP>
Reply-To: dave@lsuc.UUCP (David Sherman)
Organization: Law Society of Upper Canada, Toronto
Lines: 20
Summary: tax deferred is tax saved

In article <1811@bmcg.UUCP> bobn@bmcg.UUCP (Bob Nebert) writes:
>If you prepay on December 30 and deduct it for that year, you will only
>have 11 months for the next year. If you do the same that year, the 
>cycle repeats. I don't see the advantage.

You're forgetting one of the great axioms of tax planning:
	"Tax deferred is tax saved."
(Or from the government's point of view (my wife's an auditor for
Revenue Canada), "tax deferred is tax lost".)

I can't comment on the specifics of the issue, since I don't know
much about U.S. tax law. I'm intimately familiar with the Canadian
tax system, however, and planning for deferral of tax plays a
fundamental part in both personal and corporate tax planning.

Dave Sherman
The Law Society of Upper Canada
Toronto
-- 
{  ihnp4!utzoo  pesnta  utcs  hcr  decvax!utcsri  }  !lsuc!dave