2-5.
Give one or more examples to show how a taxpayer might take advantage of preferential tax rates on long-term capital gains by
structuring transactions to produce capital gains rather than ordinary income.
12-6. 6.
Name two types of tax traps and give an example of each.
12-12.
Higher-income taxpayers tend to engage in tax planning more than do lower-income taxpayers. Why?
12-13
Is the objective of tax planning always to minimize taxes? Explain.