Legitimate Income Sources for Tax Planning

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Question:

Where can individuals earn income from for tax planning? Question 7Answer a. Sponsorships, inheritances, gifts, and foreign exchanges b. Illegal activities, smuggling profits, black-market sales c. Social media activities, blog posts, lottery winnings d. Interest on bank accounts, salaries, wages, bonuses, investment earnings

Answer:

The best answer for where individuals can earn income from for tax planning is:

d. Interest on bank accounts, salaries, wages, bonuses, investment earnings

This option includes legitimate sources of income that are typically reported for tax purposes and can be planned for in terms of tax strategy.