Using the following codes, identify the basic approach(es) to tax avoidance that are used in each of the following cases: AR - Avoiding recognition of taxable income CT - Changing the timing of recognition of income, gains, deductions, losses, and credits CJ - Changing tax jurisdictions CC - Changing the character of income RP - Tax planning among related tax payers a. Albert invests his savings in tax-exempt state bonds. b. Betty invests in non-dividend-paying corporate stocks by using borrowed funds. c. Chuck lends $100,000 to his daughter on an interest-free demand note. d. Ed invests $100,00 of his savings in a home for his own use. e. Frankie invests in a mutual fund that purchases only the indebtedness of the state in which he live
Using the following codes, identify the basic approach(es) to tax avoidance that are used in each of the following cases:
CT - Changing the timing of recognition of income, gains, deductions, losses, and credits
CJ - Changing tax jurisdictions
CC - Changing the character of income
RP - Tax planning among related tax payers
a. Albert invests his savings in tax-exempt state bonds.
b. Betty invests in non-dividend-paying corporate stocks by using borrowed funds.
c. Chuck lends $100,000 to his daughter on an interest-free demand note.
d. Ed invests $100,00 of his savings in a home for his own use.
e. Frankie invests in a mutual fund that purchases only the indebtedness of the state in which he lives.
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