George, a high-bracket taxpayer, wishes to shift some of his own taxable income to his 25-year-old daughter,

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George, a high-bracket taxpayer, wishes to shift some of his own taxable income to his 25-year-old daughter, Debra, and is considering two alternative methods of doing so. One is to make a gift of the interest on some corporate bonds that he owns. The other is to make her a gift of the full principal amount of the bonds. Evaluate the pros and cons of each alternative.

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Federal Tax Research

ISBN: 9780324659658

8th Edition

Authors: William A. Raabe, Gerald E. Whittenburg, Debra L. Sanders

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