Make a tax memo for the following:

Your clients, Jim Walker and his wife Susan Walker, are planning to sell their home that they have owned and lived in for the past 15 years. Once they sell it, they are immediately planning to buy another home they found in another neighborhood where there is a better high school for their daughter to go to. Their old home was originally purchased for $300,000. They can now sell it for $700,000.

You are pretending your group members are tax CPAs and you all are writing a tax memo (an explanation) to a client on a sale of principal residence.

include a separate sheet of where they derived there research.