Tax planning strategies

Summarize tax planning strategies related to each of the following topics that are presented on the Internet by tax advisers looking for clients. Send your findings in an e-mail to your instructor.

a. A strategy for maximizing gains that are eligible for the 0%/15% alternative tax rate rather than the 25% rate.

b. A strategy for maximizing gains that are eligible for the 0%/15% alternative tax rate rather than the 28% rate.

In 2006, a taxpayer made leasehold improvements that were eligible for a 15-year MACRS life. Straight-line depreciation was taken on the improvements. Will these improvements be subject to either § 1245 or § 1250 depreciation recapture if they are eventually disposed of at a recognized gain?

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