Which of the following does not limit the income shifting strategy?
A) assignment of income doctrine.
B) business purpose doctrine.
C) substance-over-form doctrine.
D) step-transaction doctrine.
E) none of these.

Question

Quizplus · Accepted Answer

None of the given options limit the income shifting strategy, therefore, option E is correct. The assignment of income doctrine limits the ability to shift income to another party to avoid taxes. The business purpose doctrine limits taxpayers' ability to claim deductions for expenses incurred without a valid business purpose. The substance-over-form doctrine requires taxpayers to report transactions based on their economic substance rather than their legal form. The step-transaction doctrine compels taxpayers to report a series of transactions as a single transaction if the series is prearranged, integrated, and focused on achieving a particular result.

Which of the Following Does Not Limit the Income Shifting