TAX PLANNING STRATEGIES AND RELATED LIMITATIONS精选.pdfVIP

chapter 3 Tax Planning Strategies and Related Limitations Learning Objectives Upon completing this chapter, you should be able to: LO 3-1 Identify the objectives of basic tax planning strategies. LO 3-2 Apply the timing strategy and describe its applications and limitations. LO 3-3 Apply the concept of present value to tax planning. LO 3-4 Apply the strategy of income shifting, provide examples, and describe its limitations. LO 3-5 Apply the conversion strategy, provide examples, and describe its limitations. LO 3-6 Describe basic judicial doctrines that limit tax planning strategies. LO 3-7 Contrast tax avoidance and tax evasion. hile working with their CPA during W their audit, Bill and Mercedes decide to inquire about less risky tax planning opportunities. Specifically, they would like to gain a better understanding of how to maximize their after-tax returns without increasing their potential for another audit. (Although it was fun and educational, one audit is enough!) Mercedes is convinced that, as a small-business owner (Lavish Interior Designs Inc.), she feels she pays more than her fair share of taxes. Likewise, Bill, an avid investor, wonders whether he is missing the mark by not considering taxes in his investment decisions. ■ Storyline Summary Taxpayers: Bill and Mercedes Family Bill and Mercedes are married description: with one daughter, Margaret. Employment Bill is an economics professor; status: Mercedes is a small-business owner. Filing status: