This week, we are going to explore research related to tax scenarios.

Please be sure to utilize the AAA and BNA resources provided in our course to assist you in answering the scenarios below.  It is important to learn how to explore these two resources as they will be used in future classes for coursework and also in your career for your employer.  The BNA resource should be utilized for tax research as it contains the latest updates and helpful information.  Just a reminder!  Thank you!

Please review the tax scenarios below and select one for your posting.

SCENARIO 1:

A client, Carter Fowlkes, owns a second home that he has been unable to sell for quite a while. He has struck on the idea of granting the local fire department rights to use it for training, including the right to destroy it by fire or other means, if that would prove beneficial to the department. He would then like to deduct the value of the structure on his income tax return. When the fire department is finished with the structure, Mr. Fowlkes would build something else on the property. Your client has asked you to explain what effects this transaction will have on his income taxes. Make a letter to Mr. Fowlkes responding to his inquiry, using the principles of effective document design discussed in this chapter