The tax planning strategy known as shifting encompasses shifting earnings and deductions from
(1) taxpayers in one rate bracket to taxpayers in a different rate bracket, and
(2) one jurisdiction to a more tax favorable jurisdiction

Respuesta :

Answer: Income Shifting

Explanation:

Income shifting is basically when you transfer money within different business location that have different tax rates or transfer money within family in order to decrease your tax liability or your adjusted gross income (AGI).

This is the tax planning strategy that the question has mentioned. Which includes:

(1) taxpayers in one rate bracket to taxpayers in a different rate bracket (transfer of money within different family member)

(2) one jurisdiction to a more tax favorable jurisdiction (transfer of money to different business location having different tax rates)

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