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atluriram
atluriram, Professor
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Prepare a three-page memo (at least 300 words per page) to

Customer Question

Prepare a three-page memo (at least 300 words per page) to John and XXXXX XXXXX addressing the issues presented:

1. XXXXX XXXXX tax issues:

a. How is the $300,000 treated for purposes of federal tax income?

b. How is the $25,000 treated for purposes of federal tax income?

c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above?

2. XXXXX XXXXX tax issues:

a. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes?

b. Can John and XXXXX XXXXX utilize a 1031 tax exchange to buy a more expensive house using additional money from John's case?

c. Does Jane have a business or hobby? Why is this distinction important?

d. Would Jane (and John) realize better tax benefits if she had a separate business for her jewelry-making activities?

e. What tax benefits would John realize if he invested $15,000 in Jane's jewelry making?

f. Can Jane depreciate her vehicle or jewelry-making equipment? How?

3. John and XXXXX XXXXX tax issue:

a. Should John and Jane file separate or joint tax returns?

You Decide: It's your turn as a tax professional to decide on the best course of action from a tax perspective on their issues as presented above.

For each issue, begin by restating the issue and numbering as shown above [i.e., 1(a), 1(b), etc.]. Next, explain and discuss the tax rules that apply to the issue, which you gleaned from your tax research. Then, conclude with a definitive answer to the issue, supported by citations to the sources used. So for each issue, you should:

1. state the issue;
2. explain and discuss the applicable law (IRC sections, regulations, court decision, etc.); and
3. present your answer in the form of a concluding paragraph that refers to specific language from the IRC sections, regulations, court decisions, and other sources (if applicable) to support the conclusion.

Citations

Citations are required. You must provide cites whenever you refer to the sources of tax law used in this memorandum. You may cite your sources in numbered footnotes, numbered endnotes, or in parentheses immediately after the sentence mentioning the cited source.
Submitted: 5 years ago.
Category: Homework
Expert:  atluriram replied 5 years ago.

atluriram :

Sir/madam

atluriram :

Please let me know level of urgency

atluriram :

with regards

atluriram :

atluri ramesh

Customer:

Where is the answer to the question? I con not find it.

Customer:

I clicked on view answer but nothing came up

atluriram and 2 other Homework Specialists are ready to help you
Customer: replied 5 years ago.
I have not received my amswer. I just clicked accepted because I thought that will open the answer for me. can you email it dirrectly to my email?

Bridget
Customer: replied 5 years ago.
Relist: Other. The answer did not download so I did not actually receive anything for the money I paid. I need you to send me the answer as soon as possible.

You are a CPA with an office in NearLakes City and clients consisting primarily of professionals, entrepreneurs, and small business owners. XXXXX XXXXX, Esq., a practicing attorney with offices near yours, walks in your office and wants advice from you relating to a recent influx of cash he received as a result of winning a large jury verdict on behalf of his client in a personal injury case. His wife XXXXX XXXXX accompanies him during your meeting because she has some additional tax planning advice to ask of you.
Role
After reviewing John and XXXXX XXXXX’s points of view, it will be your turn as a tax professional to decide on the best course of action from a tax perspective on their issues. Prepare a three page memo (at least 300 words per page) to John and XXXXX XXXXX addressing the issues presented.
1. XXXXX XXXXX tax issues:
a. How is the $300,000 treated for purposes of Federal tax income?
b. How is the $25,000 treated for purposes of Federal tax income?
c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above?
2. XXXXX XXXXX tax issues:
a. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for Federal income tax purposes?
b. Can John and XXXXX XXXXX utilize a 1031 tax exchange to buy a more expensive house using additional money from John’s case?
c. Does Jane have a business or hobby? Why is this distinction important?
d. Would Jane (and John) realize better tax benefits if she had a separate business for her jewelry making activities?
e. What tax benefits would John realize if he invested $15,000 in Jane’s jewelry making?
f. Can Jane depreciate her vehicle or jewelry making equipment? How?
3. John and XXXXX XXXXX tax issue:
a. Should John and Jane file separate tax returns or jointly?
You Decide: It’s your turn as a tax professional to decide on the best course of action from a tax perspective on their issues as presented above.
For each issue, begin by restating the issue and numbering as shown above, i.e., 1(a), 1(b), and so on. Then, explain and discuss the tax rules that apply to the issue, which you gleaned from your tax research. Then, conclude with a definitive answer to the issue, supported by citations to the sources used. So, for each issue, you should:
1. State the issue,
2. Explain and discuss the applicable law (IRC sections, regulations, court decision, etc.), and
3. Present your answer in the form of a concluding paragraph that refers to specific language from the IRC sections, regulations, court decisions, and other sources (if applicable) to support the conclusion.
CITATIONS
Citations are required. You must provide cites whenever you refer to the sources of tax law used in this memorandum. You may cite your sources in numbered footnotes, numbered endnotes, or in parentheses immediately after the sentence mentioning the cited source.
Expert:  atluriram replied 5 years ago.
Sir/madam

I undertook the assignment and will submit the answer within 2-3 days

with regards
atluri ramesh
Customer: replied 5 years ago.
I need the answer today befor 12:00 noon not in two to three days.
Customer: replied 5 years ago.
When am I getting my answer?
Expert:  atluriram replied 5 years ago.
Sir/madam

It will take atleast another 24 hours

with regards
atluri ramesh
Customer: replied 5 years ago.
Do not charge my card as I did not get any answer from you.

Bridget

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