Mrs. Day structures a transaction to shift income from her sole proprietorship to her grandson's business. This tax planning strategy may be taking advantage of the:

Question

Quizplus · Accepted Answer

The entity variable involves shifting income or deductions from one taxpayer to another, in this case, from Mrs. Day's sole proprietorship to her grandson's business, to potentially take advantage of different tax rates or attributes.

Mrs Day Structures a Transaction to Shift Income from Her