Which of the following is not a good reason to form a family partnership?
A) Income can be shifted to lower-tax-rate individuals
B) A buy-sell agreement can ensure that all ownership interests are retained in the family
C) No gift tax is due on the transfer
D) Non-voting interests can be given to younger family members to ensure the older generation maintains operational control

Question

Quizplus · Accepted Answer

Gift taxes may still apply to transfers within a family partnership, depending on the amount and circumstances of the transfer. The other options (A, B, D) are considered benefits or reasons to form a family partnership.

Which of the Following Is Not a Good Reason to Form