A family entity combines the tax-planning aspects of the progressive tax rate structure with the use of the owner's family to minimize the overall tax liability of the entire family.

Question

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A family entity, such as a family limited partnership, can be used to transfer assets and income to family members who are in lower tax brackets, thus taking advantage of the progressive tax rate structure and minimizing the family's overall tax liability. This is a common tax planning strategy used by high net worth individuals and families.

A Family Entity Combines the Tax-Planning Aspects of the Progressive