. Gordon Bolt, a recently retired professional athlete, is writing his memoir. He intends to direct any royalties received from the book to a charity. He has not yet signed a contract with the publisher in the UK, nor has decided on a charity. He is concerned whether future royalties would be included in his taxable gross income and seeks your advice.

Prepare a written memorandum stating:

1. 4-5 tax consequences and/or opportunities you would need to tell your client. In your answer provide any tax minimization strategies that Gordon may utilize.
2. Your conclusion concerning the issue (s) and the specific statutory, regulatory or judiciary authority supporting your conclusion (properly cited).