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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4154
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I need to write a memo case. Can you help me find some

Customer Question

Hi, I need to write a memo for a case. Can you help me find some queries about the case?
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: This is the caseRex “Tumbleweed” Banyon was a big western movie star back in the 1950s and1960s. Now in his late 80s and not in the best of health, Rex has not been aworking actor for many years. Rex has also fallen into some financial difficulties.He and his third wife live in a beautiful ranch home near Santa Barbara, Californiathat he purchased about ten years ago when he was in better financial andphysical condition. Rex is presently several months behind in his mortgagepayments (he owes about $3.6 million on the outstanding loan) and the bank hasstarted foreclosure proceedings. A sympathetic loan officer alerted the media to oldTumbleweed’s plight and several stories about Rex’s problems have run in thenational press and on television. One person moved by the story is Dot Matrix, avery successful and wealthy software designer. Dot fondly ***** ***** toSaturday Matinees as a child and watching Tumbleweed put an end to the evildoings of assorted varmints and bad-apples. She decides to help Rex out in histime of need by purchasing his ranch home from the lender (appraised value of$3.4 million – the bank agrees to “write off” the $200,000 excess of debt over value)and lease the home to Rex and his wife for $1.00 per month. Dot figures the SantaBarbara property is a good long-term investment – and the value of the mediacoverage of her act of kindness to old Tumbleweed (Dot is certain she and hersoftware company will get plenty of favorable publicity) ain’t too shabby either. OnAugust 1, Rex and his wife execute a Deed in lieu of Foreclosure, conveying thehouse to the lender in exchange for being released from the debt. Simultaneously,Dot purchases the home from the lender for its appraised value and a grateful Rexand his wife execute a renewable five-year lease on the home at $1.00 per month.A comparable rental in Rex's neighborhood is presently running about $6,000 permonth.
JA: Is there anything else important you think the Accountant should know?
Customer: no
JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.
Submitted: 10 months ago.
Category: Tax
Expert:  PDtax replied 10 months ago.

Hi from just answer. I'm PDtax. I can assist, but the price offered is low.

I'll post an offer of premium service to write the memo and research the tax issues. Please confirm the due date.

Expert:  PDtax replied 10 months ago.
I didn't hear back about my offer, so I will opt out. Other experts can review your request and advise.