Mr. and Mrs. WGs AGI averages $600,000, and they are in the 39.6 percent tax bracket. They

Question:

Mr. and Mrs. WG’s AGI averages $600,000, and they are in the 39.6 percent tax bracket. They support their 22-year-old son who is a full-time college student. Mr. and Mrs. WG are considering giving him a bond that generates $25,000 annual interest income. He could support himself with this income stream (he would be financially independent) and would file his own tax return. Compute the annual income tax savings to the family resulting from this plan.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...