Q. Bart also Kesha are in 35% tax bracket y are interested in reducing taxes y pay each year they are currently considering several alternatives For each of subsequent alternatives, indicate explain how much tax, if any, they would save.
a. Make a gift of bonds valued at $5000 that yield $400 per year interest to their 24 year old daughter, who has no or income.
b. Sell bonds from Part a rather than give m to their daughter also buy tax-exempt bonds that pay 6%. Assume bonds can be sold for an amount equal to their basis of $5,000
c. Give 1,000 cash to charity. Assume they itemized deductions.
d. Pay their daughter a salary of $10,000 for services rendered in their unincorporated business.