I am working on a research problem I:7-68 for my Tax Law class, and I need to know:

1. Identification of the relevant facts of the case.

2. Identification of the tax issues/questions.

3. Discussion of the rules uncovered in research relevant to the case. Identify appropriate sections of the code, regulations or court cases by the related citation.

4. Indication of your postition in resolving the tax issues. A clear connection should be made between the research findings and conclusions/recomendations.

Thank you!

1:7-68 porated sole proprietorship. In 2016, the IRS disallowed several business deduction ed attorney who operates his law practice as an unincor- took in 2004 and 2015. In addition to paying the deficiency and assessed penal also pays $18,000 in interest on the tax owed. Can he deduct that interest in year? Sec. 162, Sec. 163 Reg. Sec. 1.163-9T Kikalos v. Comm., 84 AFTR 2d 99-5933 Last year, Mr. Smith was involved in an automobile accident, severely injuring his legs. As part of a long-term rehabilitation process, his physician prescribes a daily routine of swimming. Because there is no readily available public facility nearby, Smith investigates the possibility of either building a pool in his own back yard or purchasing another home with a pool. In the current year he finds a new home with a pool and purchases it for $175,000. He then obtains some estimates and finds that it would cost approximately $20,000 to replace the pool in the home he has just purchased. He also obtains some real estate appraisals, which indicate that the existing pool increases the value of the home by only $8,000. During the current year, Smith also expends $500 in maintaining the pool and $1,800 in other medical expenses. What is the total amount of medical expenses he may claim in the current year? Smith's AGI for the year is $60,000. Sec. 213 Reg. Sec. 1.213-1(e) (1)(iii) Richard A. Polacsek, 1981 PH T.C. Memo [81,569, 42 TCM 1289 Paul A. Lerew, 1982 PH T.C. Memo 182,483, 44 TCM 918 Jacob H. Robbins, 1982 PH T.C. Memo (82,565, 44 TCM 1254