If you have a state income tax you can potentially achieve a higher deduction if you pay higher estimated taxes. Of course the money comes back as taxable next calendar year when you file your state return. While the IRS could say its a sham deduction if it's too much a lot could depend on your actual tax situation plays out and what could be perceived as reasonable. An individual might prepay taxes based on an anticipated transaction which ends up not occurring.
Statistics: Posted by 123 — Sat Nov 22, 2025 12:01 am — Replies 6 — Views 734