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Simple English definitions for legal terms

income-shifting

Read a random definition: law question

A quick definition of income-shifting:

Income-shifting is when someone moves their money to someone else who has a lower tax rate, like a child, to pay less taxes. This is sometimes done by creating a special type of trust called a Clifford trust. Taxes are money that the government collects from people, businesses, and things like property to pay for things that everyone needs. Sometimes taxes are paid in money, but not always. Accrued tax is when someone owes taxes but hasn't paid them yet. The accumulated-earnings tax is a penalty for companies that keep their profits instead of giving them to shareholders as dividends. An admission tax is a fee you pay to get into a special event.

A more thorough explanation:

Definition: Income-shifting is the practice of transferring income to a taxpayer in a lower tax bracket, such as a child, to reduce tax liability. This is often done by forming a Clifford trust.

Example: A parent transfers ownership of a rental property to their child who is in a lower tax bracket. The child then receives the rental income and pays a lower tax rate on it than the parent would have.

This example illustrates income-shifting because the parent is transferring ownership of the rental property to their child to reduce their tax liability. The child is in a lower tax bracket and will pay a lower tax rate on the rental income than the parent would have.

Definition: Tax is a monetary charge imposed by the government on persons, entities, transactions, or property to yield public revenue. It includes duties, imposts, and excises.

Example: Sales tax is a tax imposed on the purchase of goods and services. When you buy a new phone, you pay a percentage of the purchase price as sales tax.

This example illustrates tax because the government imposes a charge on the purchase of goods and services, which is paid by the consumer as sales tax. The revenue generated from sales tax is used to fund public services and programs.

income property | income stock

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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