Question: Mr and Mrs WG s AGI averages 600 000 and they are
Mr. and Mrs. WG’s AGI averages $600,000, and they are in the 39.6 percent tax bracket. They support their 22-year-old son who is a full-time college student. Mr. and Mrs. WG are considering giving him a bond portfolio that generates $25,000 annual interest income. He could support himself with this income stream (he would be financially independent) and would file his own tax return. Compute the annual income tax savings to the family resulting from this plan.
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