Statements concerning the kiddie-tax rules

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Reference no: EM13933015

All the following statements concerning the “kiddie-tax” rules are correct EXCEPT:

(A) The rules are promulgated to curtail the shifting of income from high-tax-bracket parents to the lower-tax-bracket children.

(B) The rules are limited to trust income received by a child from trusts established by the child’s parents or grandparents.

(D) The rules provide for the taxation of a child’s net unearned income at the parent’s highest marginal tax rate.

Provide a detailed explanation for your answer. Only answer if you have a strong estate planning background.

Reference no: EM13933015

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