Determine the taxable income and income tax payable for the following situation. Reference the Internal Revenue Code to justify all determinations that you make. Bill sold his primary residence on January 31, 2021 for $433,000. He had purchased the home in 2006 for $184,000 and installed a new garage on the property at a cost of $27,000 in 2010, replaced his roof in 2012 for $8,000 and repainted the home in 2018 for $1,200. When Bill sold his home in January, the realtor kept 6% of the sales price for commissions. In addition to the commission, Bill paid transfer tax of $2,200, a state filing fee of $150 and $350 for property taxes associated with the home for the period of 1/1/21 to 1/31/21. On December 12, 2020 Bill’s father, Gerry, passed away and bequeathed his home to Bill. Gerry had paid $96,000 for his beach front home in 1956. Gerry was considering selling the home prior to his death and had received a Brokers Pricing Opinion (BPO) on December 3 of 2020 that valued his home at $1,236,000. After Gerry’s death, Bill was unable to obtain any records that indicated any work being conducted on Gerry’s house. After Bill sold his home, he moved into his inherited house on 2/1/21 and started living there as his primary residence. After living in the home for several months, Bill decided he didn’t feel comfortable there and decided to sell the home. On November 28, 2021, Bill sold the home for $1,325,000. The realtor kept 6% of the sales price of the home for commission and Bill paid transfer tax of $2,500, a state filing fee of $150 and $8650 for property taxes associated with the home for the period of 2/1/21 to 11/28/21. What is gain/loss and taxable income on each property sold and the income tax associated with each property. Assume Bill has a capital gains rate of 20%. Write a client letter following the example of the one on page 2-23 of the text book and address the tax issues for Bill from the In-Class Tax Research. The in-class assignment has also been uploaded to Blackboard. The client letter is being written to someone who is not a tax expert and is a client of yours, so the tone of the letter will be different than that of the Tax Research Memo. The example from the book gives instructions of how to address the different parts of the letter, but please remember that in text citing of tax research must still be included in the letter. The client letter should be no more than 2 pages long.