Please let me introduce myself. I am Andrew Edwards. I have newly moved to the United States from the Bahamas with my wife Elana. I am writing to seek advice about income taxation in the U$.$S$.$ and how it will be applied to sources of income. Please identify my tax issues, the implications of our current facts, and a tax plan that would legally reduce our taxable income.

Here are the facts that pertained before moving to the United States.

In the Bahamas, we did not have an income tax.

In the Bahamas, I entered into a life$-$time contract with my wife indicating that all of my earnings from property, labor or services would be split $50/50.$ When paid for my labor or services, my customers would pay me $\frac{1}{2}$ of the total bill and pay Elana the other $\frac{1}{2}$ of the total bill. Due to contingent liabilities, Elana did agree to sign a life$-$time contract splitting $\frac{1}{2}$ of her earnings from labor, services, or property.

Elana and I entered into this agreement to set spending limits in our household. Neither of us is allowed to spend more than we have individually.

Elana has proven to be more frugal than I.

She invested $$1,000,000$ in private sector coupon bonds. These are corporate bonds that pay six percent interest semi$-$annually on January $1$ and July $1.$ To collect the interest, you detach the coupon when it comes due with your personal information and return mailing address.

Elana has a sister, Eloise, who lives in Connersville and is struggling financially.

To help Eloise, Elana has detached the coupons from her corporate bonds and given them to Eloise.

Eloise will mail the coupons into the corporation and the corporation will prepare and mail interest checks to Eloise.

The interest from the coupon bonds will be paid to Eloise.

Because I face some contingent liabilities, we plan to file married filing separately.$|$

I estimate that we will receive $$250,000$ for the labor and services I provide as a landscape architect.

Sincerely,