1. A tax client wants to know the difference between getting a tax deduction and a tax credit. Compare and contrast the two concepts.

2. Please inform your tax client why they are now paying an Alternative Minimum Tax. They have not had to pay this tax in prior years. Explain to them how they might legally avoid this tax in the future.

3. Your tax client has a large capital loss carry forward from prior years. Explain to them the difference between the taxation of capital assets versus ordinary income. Also, please explain to them the erosion of the value of the capital loss carry forward based upon the time value of money