While certain income of a minor is taxed at higher rates, discuss how income shifting may still be accomplished and any constraints that may exist on income shifting.
What will be an ideal response?
1. Children may own stock in the family business. Dividends may be distributed to the children, but these may be taxed at the parents' rates.
2. A child may work in the family business. Income earned by the child would be taxed at the child's tax rate. Income earned by the child would be subject to reasonable compensation limits.
3. Series EE U.S. savings bonds may be purchased in the child's name to mature after the child reaches age 24. A gift of the bonds to the child may be subject to gift tax.
You might also like to view...
Coaching focuses on helping the salesperson recognize the need to improve his or her performance and:
A) using specially-sequenced exercises B) tracking performance improvements carefully C) encouraging salespeople to focus on primary tasks D) creating space for salespeople to develop professionally E) developing the salesperson's commitment to improve performance
The largest free zones are called free cities
Indicate whether the statement is true or false
Unlike ordering cost, setup cost:
A) includes the costs of completing paperwork, making phone calls, and getting competing bids. B) is the cost of keeping inventory until it is used or sold. C) is the cost of changing or adjusting a machine so that it can produce a different kind of inventory. D) is also known as carrying or storage cost.
Which of the following is one of the four steps in reading a contract?
A)What-ifs B)Scan for typos C)Re-write with a lawyer D)Final approval