You will submit a draft of your conclusion. You will compare and contrast the advantages of each type of business entity that the client may select, summarize the alternative involving the possibility of liquidating the business using rationale, and, finally, summarize the alternative of transferring the business activity, providing justification based on tax research, code, and regulation. This assignment will address Section II: Conclusion.

TAX 655 Milestone Two Guidelines and Rubric You will submit a draft explaining the tax effects of salaries if cash is withdrawn from a business. You must also explain the tax consequences of paying the owners based on the taxable entity selected for the business, as well as the tax consequences for each individual's personal tax returns. This assignment will address Section I, Parts D and E of the critical elements of the final project. Specifically, the following critical elements must be addressed: I. Memorandum D. Explain the tax effect based on providing $180,000 per year for the client's salary and $70,000 per year for his daughter's salary if they withdraw cash from the business or pay dividends as appropriate. E. Justify the percentage of ownership the client's daughter should have in the business based on the type of business entity recommended. Consider the tax law in reference to the recommendation and how the decision will affect the daughter's tax return. Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch 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 Memo: Tax Effect on Cash Withdrawals or Dividends Memo: Percentage of Ownership Articulation of Response Proficient (100%) Explains the tax effect based on providing the client and his daughter salaries if they withdraw cash from the company or pay dividends Justifies the percentage of ownership the client's daughter should have based on the business recommended Submission has no major errors related to citations, grammar, spelling, syntax, or organization Needs Improvement (75%) Explains the tax effect based on providing the client and his daughter salaries but details are inaccurate or cursory Justifies the percentage of ownership the client's daughter should have but details are irrelevant or cursory 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 explain the tax effect based on providing the client and his daughter salaries Value 40 Does not justify the percentage of ownership the client's daughter should have Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 40 Total 20 100%