You receive a call from an important client, Dwight, looking for tax advice. His spouse,

A$,$ owns a photography business and wants to buy a new car. She will use this car to drive

to various locations to photograph clients. She is also considering using the car as her personal

car and taking long road trips with Dwight so they can go on vacations. She thinks this is a great

option because she will be able to take a business deduction for the car but use it as much as she

wants for personal use. Your job is to research the potential tax consequences of

buying a car and using it only for business purposes or using it for both business and personal

uses.

You should prepare a formal research memo and tax client letter describing the results of your

research. Keep in mind

that the memo should be written in a way that somebody who has general tax and business

knowledge, but is not a tax expert, can understand. Also, please make sure to include all of the

authority $($code sections, Treasury Regulations, court rulings, etc.$)$ that lead you to your

conclusions. On the other hand, the Scarns appreciate you explaining your findings and getting to

your conclusions relatively quickly. Flowery introductions or language are unnecessary for this

task and your memo and client letter should be no more than $4$ pages each, double$-$spaced.