Question

What type of tax planning is it when an owner of a business in an incorporated city moves their business to an unincorporated city to avoid the city tax? and why is it that type?

Answer 1

1.) Sometimes the owner moves from an unincorporated city to an incorporated city to reduce the tax burden

2.)Actually the tax burden will be reduced between city to city regarding the factors like cost of living, tax rates, prices variation etc.,

3.)In an un incorporated city the standard of living is less when compared to the incorporated city so the owner of the business plans his income for the purpose of reducing the house property income.

4.)House rent allowance will also be more in case of incorporated city when compared to unincorporated city.

5.)Sometimes the prices of the products varies from city to city due to demand of the product and according to their cultures