5. What planning engagements can the tax professional offer? Why is he or she in an ideal position to offer these services?

6. Summarize the most important planning services that a tax professional can offer to a client.

7. When might a taxpayer undertake transactions seemingly opposite to the usual tax planning principles?

8. On creating a new 100 percent-owned corporation, Ben was advised by his tax consultant to treat 50 percent of the total amount that was invested as a loan and 50 percent as a purchase of corporate stock. What tax advantage does this arrangement have over structuring the entire investment as a purchase of stock? Explain.

9. George, a high-bracket taxpayer, wishes to shift some of his own taxable income from corporate bonds he owns to his 25-year-old daughter, Debra, so that Debra rather than George is taxed on the interest. One alternative is to make a gift of the interest, and the other is to make a gift of the bonds themselves. Evaluate the pros and cons of each alternative.