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Family Tax PlanningOur business clients with school age children have opportunities to shift income into lower brackets that otherwise would be taxed to them. We often recommend:
With top brackets of over 40% in the parents' tax returns, the children are virtually untaxed on the first $1,500 of unearned income and untaxed another $4,550 of W2 income. It doesn't take many children to save the family with a business thousands of dollars in income taxes this way. The administrative cost is almost nothing for the first two options. Family trusts have some cost to set up and administer but have the biggest long-term payoff in terms of tax savings.
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3828 Canal Street • New Orleans, LA 70119 • 504.482.6661 |