The income-shifting tax strategy is least effective when income-producing gifts are given to persons

Question

Quizplus · Accepted Answer

The income-shifting tax strategy is least effective when income-producing gifts are given to persons under age 19 as they may be subject to a "Kiddie Tax" which limits the tax benefits of this strategy. Gifting assets to persons over age 24 generally provides the most tax benefits as they are considered independent taxpayers and may be subject to lower tax rates.

The Income-Shifting Tax Strategy Is Least Effective When Income-Producing Gifts