Techniques that can be used to minimize the current period tax liability include:
A) Recognizing the interaction between the regular income tax liability and the alternative minimum tax liability.
B) Utilizing special allocations.
C) Having favorable treatment of certain fringe benefits.
D) Minimizing double taxation.
E) All of these can be used for effective tax planning.

Question

Quizplus · Accepted Answer

All of the options listed (A through D) are valid techniques for minimizing current period tax liability. Recognizing the interaction between regular income tax and alternative minimum tax, utilizing special allocations, having favorable treatment of certain fringe benefits, and minimizing double taxation are all strategies that can be employed in effective tax planning.

Techniques That Can Be Used to Minimize the Current Period