TAX 650 Milestone One Guidelines and Rubric In this short paper, you will compute the property disposition capital gain and taxation of gross income for the client described in the final project. Based on your computations and relevant tax codes, explain the tax consequences on the possible sale or exchange of the land, including the impact on cash flow and salary or cash distributions. Specifically, the following critical elements must be addressed: A. Calculate the property disposition capital gains and taxation of gross income. B. Identify the tax consequences on the sale or exchange of the land consistent with capital gain rules. Consider the selling expense, broker's fees, closing costs, appraisals, and surveys and the correct schedule form to complete. C. Describe the after tax effects on the client's cash flow based on the sale of the land. Consider including capital gains tax rules. D. Explain whether or not the client and his child should take a salary or cash distribution according to tax purposes and IRS code and regulations. Consider the type of business and the tax effect whether it is salary, dividends, or cash withdrawal. Guidelines for Submission: Your paper must be submitted as a 2-4-page Microsoft Word document with double spacing, 12-point Times New Roman font, oneinch margins, and at least three sources cited in APA format. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Tax Computations Proficient (100%) Accurately computes the property disposition capital gain and taxation of gross income Tax Consequences: Salary or Cash Distribution Explains whether the client and his child should take a salary or cash distribution according to tax purposes and IRS code and regulations Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Needs Improvement (75%) Computes the property disposition capital gain and taxation of gross income, but computation is inaccurate or incomplete Explains whether the client and his child should take a salary or cash distribution but details are cursory or not consistent with tax purposes and IRS code and regulations Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Not Evident (0%) Does not compute the property disposition capital gain and taxation of gross income Value 40 Does not explain whether the client and his child should take a salary or cash distribution 40 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Earned Total 20 100%