nerdexam
American_Bankers_Association

CTFA · Question #60

A technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets.

The correct answer is A. Income shifting. See the full explanation below for the reasoning.

Taxation

Question

A technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets.

Options

  • AIncome shifting
  • BTax deferred
  • CTax avoidance
  • DTax Evasion

How the community answered

(57 responses)
  • A
    75% (43)
  • B
    4% (2)
  • C
    14% (8)
  • D
    7% (4)

Topics

#income shifting#tax avoidance#tax brackets#tax planning

Community Discussion

No community discussion yet for this question.

Full CTFA Practice