You are asked to write a memo to your client, Mr. Carter regarding his tax question.

Your paper should not be more than 2-3 pages, double spaced The format should be as follows:

Restate the issue / question (first paragraph)

Explain the facts in relation to your research (middle paragraphs)

Cite a primary or authoritative material at least once Refer the the tax form the information would be reported on

Include calculations and explanations

Give the client your final conclusion and recommendations (last paragraph)

Mr. Carter plans on selling his house located in Virginia in 2018. He wants to know if he will be taxed on the gain of the sale. He is especially concerned because he had heard there may be a tax issue since he did not live in the house for a period of time. Please make sure you address this concern.

a) Mr. Carter believes the home will sell for at least $560,000.

b) He purchased the home in 1995 for $210,000.

c) Mr. Carter is not married, and files single.

d) In 2008, an addition was put on the house that cost $85,000.

e) From January 15, 2015 March 15, 2016, he moved in with his mother to care for her until she moved to a nursing home.

f) He moved to his Florida condo on November 1, 2017 and is now a resident of Florida.

g) He rented the home to his niece from January 2015 until he moved back home in March 2016. The income and expenses were reported on the Schedule E.