Tax Accounting Questions

12-5. 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