Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 54

In each of the following independent situations, indicate whether the item generally would be a tax (T) or a non-tax (NT) consideration in solving a tax research or tax planning problem.
a. The taxpayer hates to pay federal taxes. He will take any legal action to avoid paying any federal income, estate, or gift taxes.
b. The taxpayer does not trust the U.S. banking system and moves all her money to a bank in Switzerland.
c. The taxpayer is married and his spouse is financially naive. Since he is in bad health, the taxpayer wants to make sure his wife will be taken care of financially if he were to suddenly die.
d. The taxpayer wants to purchase rental real estate. He wants to make sure that he will not be subject to a high state tax where he buys.
e. The taxpayer owns city of San Diego bonds instead of putting his money in a commercial bank.