Individuals, especially those who own their own business, are continually looking for ways to shift income to minimize their tax liability. As a result, they seek to tap into opportunities to avoid the “kiddie tax,” employ their children, establish family limited partnerships, implement sale and leasebacks, and create useful trusts. This is not an all-inclusive list, however it provides a reasonable starting point for advising clients about taking advantage of income-shifting strategies and how they minimize tax liability.
Author: Daniel C. Ruggieri, CPA, is an audit associate at KPMG LLP, Philadelphia. Mr. Ruggieri specializes in auditing technology and life-science industries.