Write a tax memo, using prescribed format, correct grammar, spelling, and citations, of at least 4 pages (double spaced) on the following tax research problem. This is not a group project. Discuss the federal income tax consequences.

Taxpayer has a complicated tax life with the following problems:

A. Her business, Pot Pots, has lost money the last two years; prior to that it made a little profit for two years.

B. She advertises in Pottery Weekly, but gets no customers in return for the expensive ads. She likes to see her name in print.

C. Ms. Pot has given several of her pots to organizations which support pot use for medicinal purposes.

D. While delivering her pots to a customer, she got a speeding ticket and wants to deduct that expense.