West Central Iowa | IN555 - 1/24/2019 08:02
Other than delaying some income one time we would be in the exact same place. Your tax liability has not changed, you just decided to delay a chunk until a later date. Really you aren't gaining much.
Edit: Really to do a proper balance sheet there should be a line on the liabilities for deferred tax. If I am carrying 300K of sales over with no expense I likely have over 100K of tax liability that hasn't been realized.
So I prepay inputs for a few years, get myself in a position to buy a tractor with a lot of cash, then buy the tractor and then I won't have to prepay the inputs and I'm back to square one. |
Prepay 2019 inputs?
