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When an individual gives his or her child an income-producing asset, he or she is Select one: O a. deferring his or her tax X

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Answer: (d.) shifting his or her income

When an Income generating asset is given to his/her child, the income from such asset will subsequently accrue in the hands of recieving child.

Such transfers are generally done to reduce the effective tax burden, as the child will be generally in lower income tax slab.

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