Stephen and Sarah have been married for $25$ years. Unfortunately, in March of $2023,$ Sarah passed away in a tragic car accident, leaving Stephen with four children.

Joseph $(4)$ who lives with his father full time.

Tammy $(12)$ who lives at a boarding school in Denver $9$ months out of the year.

Stephanie $(18)$ who is married and lives with at home with her father.

Jeremy $(22)$ who is a graduate student at Berkley, and lives on campus full time.

Joseph is not yet old enough to attend kindergarten, and therefore goes to a day care. Day care cost Stephen $$8,000$ per year.

Tammy's tuition which includes room and board and private education tuition evenly, which amounts to $$16,000$ a year.

Stephanie has been married for $1$ year. She is a homemaker, while her husband is a struggling musician. Last year Stephanie and her husband had gross income of $$6,500.$ Last year, their income was so low that they received a refund of $$600.$ This year her husband brought home $$4,800.$

Being that Jeremy is an ongoing student, he has numerous expenses that are related to his education; Tuition $=$$$38,000,$ Books $=$$$1,200,$ Room and Board $=$$$15,000,$ Miscellaneous Living Expenses $=$$$4,200.$ Upon exiting his undergraduate program, he was offered a scholarship that would cover his tuition, room and board.

They have lived in their current home for eight years. They originally purchased the house for $$250,000$ and were thinking about selling the home before Sarah passed away.

Over the last ten years they have been in the side business of flipping houses. In January of this year, they purchased a $$400,000$ house for their flipping business. It is anticipated that they will spend an additional $$100,000$ on the house before they are able to sale it for $$600,000.$ They believe that they will have the home complete by the end the year.

In $2023,$ Stephen made $$145,000,$ while Sarah made $$26,000$ in her abbreviated year. They both fully participated in their employer sponsored retirement plans and fully funded their Roth IRA.

During her life, Stephen took out a $$250,000$ insurance policy on her. Additionally, it was later discovered that the driver of the other vehicle was drunk. For this reason, the family decided to sue the driver for damages. The Judge awarded $$600,000$ in punitive damages, and $$350,000$ compensatory damages.

With the loss of his wife, Stephen is struggling to make ends meet. His monthly mortgage of $$2,600$ and car note of $$700$ is beginning to catch up with him.

Stephen would like for you to advise him on ways that would be best to strategically plan $2024.$ Complete any necessary tax documents and attach your consultation letter to Stephen as your submission. This is a individual assignment. It is not in your best interest to share information or perspectives. Additionally, note that your legal creativity is rewarded. Please note that if you would like to ask Stephen questions that may provide greater clarity, I will be serving as his proxy.