Jennifer is the Physical Therapist for the Dallas Stars. She makes $89,000 a year. She works hard for her money and wants to keep as much money as possible. She hates paying taxes! Her accountant has advised her to max out her 401k and start investing in ETFs/bonds. She follows her accountant's advice and maxes out her 401k and invest in ETFs. She finds several municipals bonds in her community to invest in. She receives a 20% increase in her ETFs the first quarter! She is excited and invests in 10 company's stocks. In October, she notices that of her stocks are averaging a 12% return and of her stocks are losing 5% or more. She decides that she isn't going to report the gains of her tax return next year because that would cause her to pay more taxes. 1. Is Jennifer evading and/or avoiding taxes? 2. Explain three legal ways she could avoid taxes on any of her investments? 3. Is there a way for her to offset some of her capital gains? How?