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20) 20. George, a high-bracket taxpayer, wishes to shift some of his own taxable income from...

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Accounting

20) 20. George, a high-bracket taxpayer, wishes to shift some ofhis own taxable income from corporate bonds he owns to his25-year-old daughter, Debra, so that Debra rather than George istaxed on the interest. One alternative is to make a gift of theinterest, and the other is to make a gift of the bonds themselves.Evaluate the pros and cons of each alternative.

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Pros A gift of the income only from the bonds is not effective for tax purposes Cons To shift the gross income to Debra George must give her the bonds themselves Debra is old enough then to avoid the Kiddie Tax and the income shift is    See Answer
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