Description
Understand the complexities of income splitting and make informed decisions for your clients.
With the recent doubling, at least temporarily, of the applicable exclusion from gift and estate taxation, planning professionals are turning their attention to reducing the aggregate income tax burden on the family unit, often by shifting income from a taxpayer in a higher marginal rate bracket to one or more taxpayers in lower brackets. In this presentation, we will review the fundamental tax policies underlying the taxation of income, the progressive rate structure, the realization requirement, and the definition of the family as an economic unit, and consider what these policies may imply with respect to opportunities for income shifting. We will look closely at several incomeshifting strategies, seeking to identify some of the advantages, disadvantages, uncertainties, and limitations of each. You will come away with a much clearer understanding of which techniques might be appropriate to a particular situation, and where the opportunities lie.
Date: 2022-11-15 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to describe the tax policy framework within which income shifting or splitting may occur.
* You will be able to explain the income and transfer tax implications of various income shifting strategies.
* You will be able to identify appropriate vehicles for shifting income, in light of the particular facts of your situation.
* You will be able to discuss and address possible nontax issues arising from an incomeshifting transfer.