A Family Partnership Can Be Used to Shift a Portion

question 13

True/False

A family partnership can be used to shift a portion of the income from an accounting practice to a taxpayer's young children.

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Definitions:

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and with Indian tribes.

Due Process Clause

A constitutional provision requiring that government actions against individuals follow fair procedures, including the right to a fair trial.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public services and infrastructure.

Due Process Clause

A constitutional guarantee providing fair treatment through the normal judicial system, especially as a citizen's entitlement.