answer the following with at least three paragraphs with four sentences each:

1. What is the difference between an above the line and a below the line deduction and give me two examples of each.

2. What are some potential advantages of a 1031 transaction? What are some pitfalls with section 1031 that should be avoided?

3. What is the concept of basis and how is it relevant in the world of taxation? Explain some different types of basis (like stepped up basis, etc.).

4. Which is of greater value to a taxpayer who has just completed her 1040 for the last tax year and who owes the IRS $2,000:an additional $1,000 tax deduction that can be taken, or a $1,000 tax credit that can be taken? Explain your answer.