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Tax planning - and transfer income to a different entity...

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Tax planning * Tax planning is the conscious effort of directing one's financial activities in such a manner as to eliminate, reduce, or defer the incidence of tax on those activities * The tax system provides a certain degree of flexibility in determining income and organizational structures * Taxpayers can, within certain limits, take planned steps to convert one type of income to another, shift income from one time period to another,
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Unformatted text preview: and transfer income to a different entity for tax purposes * Potential tax advantages may be denied if the activities are considered to be a misuse or abuse of the income tax system * Business people must recognized that in order to plan their taxes, one must be able to acquire a certain amount of tax knowledge and certain general skills if decisions are to be effective and creative * The factor to all these skills is cash ±ow...
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