Accounting Question

Post ID: 3442998

Instructions for Tax Memo Assignment

Use the Provided Template
- Complete the assignment using the official Tax Research Memo Template & Prompt I’ve attached.
- Do not create your own format — follow the structure in the template exactly.
Follow the Example Provided
- I’ve attached a Practice Tax Memo and Answer.
- Review both carefully so you understand the expected writing style, level of detail, and overall format.
- Your final memo should mirror this style and organization.
Meet All Criteria
- I’ve attached the grading criteria/rubric.
- Make sure every section (Facts, Issue, Authorities, Conclusion, Research & Analysis, Actions to be Taken) is fully addressed.
- Accuracy, clarity, and completeness are required for full credit.
Use Class Materials
- I will also provide presentations and lecture slides from the course. I will also upload the rest of the PowerPoint/lectures once you accept the assignment.
- You are expected to use these materials, along with the tax code and regulations, to support your analysis.
- All information must be cited and explained properly.
Absolutely No AI or Internet Sources
- Do NOT use AI tools (ChatGPT, etc.) or random internet sources.
- This memo must be 100% your own work based only on the materials provided (lectures, template, practice memo, and IRS/tax code references).
- The final submission will be checked on turnitin.com for plagiarism, so be very careful and use your own work.
Accuracy is Key
- All tax law references, citations, and explanations must be correct.
- Double-check calculations, authorities cited (IRC sections, regulations, case law), and conclusions.
- The professor will expect a professional-quality tax memo.
Length & Depth
- The memo doesn’t need to be overly long, but it should fully explain the reasoning behind the conclusion.
- Each section must have enough detail to show critical thinking (especially “Research & Analysis”).
Final Deliverable
- Submit the completed memo in the same template document provided.
- Make sure formatting matches the example (headings, citations, style, etc.).
- Review against the criteria one last time before submitting.
The Prompt: Facts: Two years ago, Larry and Dawn’s bank provided them with a $500,000 mortgage loan for their new home. The mortgage loan was a three-year, interest-only note with a balloon payment at the end of three years. Larry and Dawn (Californians residing in the 9^th Circuit) chose this type of loan to allow them to minimize their mortgage payment until their other home was sold. After 15 months, Larry and Dawn sold their other house and refinanced their original short-term loan with a 30-year conventional mortgage. The bank charged Larry and Dawn $10,000 in points upon the refinancing, which they would like to deduct on their tax return.