shifting income

shifting income
Device used by taxpayers in high tax brackets to move income from themselves to their children and others who are in a lower bracket. Short term or Clifford trusts, as well as gifts to minors, were among the devices used to accomplish this purpose. However, since the Tax Reform Act of 1986 the process of shifting income has become more restrictive. For example, unearned income in excess of a minimal amount of children under the age of 14 is taxed at their parents' highest rate. The Clifford trust rules have also changed and earnings on assets put into a trust subsequent to March, 1986 is taxed at the grantor's rate

Black's law dictionary. . 1990.

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