The Cartmills updated their exterior windows in their primary residence last year. The new windows exceed the energy efficiency criteria established by the International Energy Conservation Code (IECC) for the climate zone. They have brought the manufacturers certification along. The cost of the new windows total $4,700. Daves Bargain Books sold $239,000 of merchandise. They had a beginning inventory of $39,250 and an ending inventory of $94,300. All other expenses/transactions remained the same except Dave does not elect to take 179 expensing or additional first year depreciation on his office furniture purchase; but does elect to take the 179 deduction for the computer system. He made quarterly estimated Federal income tax payments of $1,500 on January, April, June and September, 2018 ($6,000 in total payments). Michigan estimated income tax payments were $400 per quarter or $1,600 for the year. The Cartmills sold 1,000 shares of Capp Corp stock they had received as a wedding present on June 25, 2002. The stock was worth $6 per share in January but had had dropped to $4 per share on September 3 when the Cartmills sold the stock on that date. They had been given the stock by Dave's father, who paid $9.50 per share for it in 1973. Its value at the date of gift was $18.50 per share. No gift tax was paid on the gift. (The Cartmill's basis is $9.50 per share.) Dave has 3 employees and is contemplating the Affordable Health Care Act provisions and the effect they will have on his business operations. He wonders how to keep his business profitable, how to best take advantage of available tax deductions and credits and how they can plan more efficiently to minimize their tax burden while increasing their wealth. Diane is wondering how changes in the family composition and tax law changes might effect their 2019 taxes and what steps they can take now to reduce their tax liability. What advice can you offer the Cartmills on how they can improve their current tax situation and improve their tax planning process for next year? Compose a 2 page tax memo or a client letter to the Cartmills enumerating all of your tax recommendations and the reasons why the proposed changes make sense.

I JUST NEED HELP WITH WHAT TO WRITE IN THE TAX MEMO OR CLIENT LETTER