For this course you will have three tax research assignments. This research assignment will include a memo and a client letter.

The facts for the first assignment are as follow:

In 2009, Mr. Smith purchased a principal residence for $1,500,000. He made a down payment of $300,000 and financed the remainder by borrowing $1,200,000 through a loan secured by the residence. In 2009, Mr. Smith paid interest that accrued on the indebtedness during that year. He had no other debt secured by the residence. May he deduct the entire amount of interest which was paid on the home loan?

Your research assignment will be graded using the following criteria:

1.Recognition of the important facts and issues

2.Correct conclusion

3.Proper citation of relevant sources

4.Format, Spelling & Grammar

5.Clarity of writing

Tax Research Assignment 2.

The facts for this assignment are as follow:

R.E.M., a calendar year corporation and Athens, Georgia, band recently sold tickets ($20,000,000) for concerts scheduled in the United States for next year and the following year. For financial statement purposes, R.E.M. will recognize the income from the tickets when it performs the concerts. For tax purposes, it uses the accrual method and would prefer to defer the income from the ticket sales until it performs the concerts. This is the first time that it has sold tickets one or two years in advance. Michael Stipe has asked your advice.

Your research assignment will be graded using the following criteria:

1. Recognition of the important facts and issues

2. Correct conclusion

3. Proper citation of relevant sources

4. Format, Spelling & Grammar

5. Clarity of writing

Tax Research Assignment 3.

The facts for this assignment are as follow:

Mary and Bob have been married for 25 years. They are both college professors. Mary (50 years of age) makes $65,000 annually and Bob (60 years of age) makes $75,000 annually. Their oldest daughter is getting married. Bob and Mary would like to either 1) take out a second mortgage on their home (they can get an interest rate of 7 percent) or 2) withdraw funds from their IRAs or 3) sell their rental property. The cost of the wedding is $35,000. The equity in their home is $150,000; they have $80,000 in IRAs between the two of them and the basis of the rental property is $20,000. The rental property can be sold for $120,000. Mary and Bob want to know how they should finance the wedding and if tax implications will be a factor.

Your research assignment will be graded using the following criteria:

6.Recognition of the important facts and issues

7.Correct conclusion

8.Proper citation of relevant sources

9.Format, Spelling & Grammar

10.Clarity of writing