Overview: You will write a memorandum about the best possible tax plan for your client based on tax research.
Prompt: write a short paper outlining the best possible tax plan advice for your client based on tax research. When giving advice to clients, it is important to have a clear-cut plan for clients to follow in regard to tax advice. Are there appropriate times when there are no clear answers? Support your answer with details.
John is interested in tax planning and saving for his children’s education. He needs some further information on the topics below:
- He has several long- and short-term investments that he would like to sell to put his children through college, and he does not know the tax consequences associated with them if he sells.
- He is considering taking a second mortgage or home equity loan on the house in order to increase funds available for his children’s tuition. He would like to understand the deductibility of the interest and any limitations that exist.
- He is considering contributing to his IRA or converting to a Roth, but maybe he can wait a couple years before doing this as he believes there are severe tax consequences to this. He would also like to know about the income limitations to convert from an IRA to a Roth.
- He asks about any credits that he could get for paying for his children’s tuition, room, and housing.
John is married and has a combined adjusted gross income of $135,000; he currently has a mortgage of $500,000
Must be original please, use specific tax law code. The attached files are short paper rubric and example essay. You can refer to example essay’s format and law code, thank you!