Tax research memo

Your clients, Jim Walker and his wife Susan Walker, are planning to sell their home that they have owned and lived in for the past 15 years. Once they sell it, they are immediately planning to buy another home they found in another neighborhood where there is a better high school for their daughter to go to. Their old home was originally purchased for $300,000. They can now sell it for $700,000. complete a Tax research memo. Section One - Cordial Introduction - Issue/purpose with a short-answer explanation - Steps that were taken in researching our answer Section Two - Statement of facts - Establish the current cost basis for the property - Establish expected capital gain Section Three - Which laws/book citations relate to the answer (quote directly) - Determine if property transactions are eligible for a 1031 tax-free exchange (chapter 12) - If 1031 exchange, illustrate timelines in order to qualify for the exchange Section Four - Analyses - Conclusion/Recommendation - Create a plan of action - Determine the cost basis for the new property - Closing/Follow Up          

Sample Solution