Tax Memo


Rico owns a building in downtown San Diego. Rico is trying to lease the building. Rico is a calendar-year, cash-method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements. Lease option 1, the building rents for $5,000 per month, payable on the first of the next month, and the tenant must make a $5,000 security deposit that is refunded at the end of the lease. Lease option 2, the building rents for $55,000 per year, payable at the time the lease is signed, but no security deposit is required. Lease option 3, the building rents for $5,000 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $10,000 that is to be applied toward the rent for the last two months of the lease.

Don't use plagiarized sources. Get Your Custom Essay on
Tax Memo
Just from $13/Page
Order Essay

a. What amounts are included in Rico’s gross income this year if a tenant signs lease option 1 on December 1 and makes timely payments under that lease?

b. What amounts are included in Rico’s gross income this year if the tenant signs lease option 2 on December 31 and makes timely payments under that lease?

c. What amounts are included in Rico’s gross income this year if the tenant signs lease option 3 on November 30 and makes timely payments under that lease?

Your responsibility:

Prepare a tax research memo for the tax files regarding the federal income tax treatment of the three alternative options. Please note for the first lease option there is judicial authority and please look to the regulations for the third lease option. You will need to support your conclusions using primary sources of tax law. Your textbook is NOT primary authority.

You must use proper citation form in your memo (see Chapter 2 for help with citation form). The form for this communication should be professional and in the form of a tax research memo (example posted on Blackboard and a similar example in your text on p. 2-20). Do yourself a favor and look at the grading rubric before you submit.

This memo should be whatever length you feel is appropriate to resolve the issues. We do NOT use a bibliography or list of references in a tax research memo. You will see that citations are within the text of the document in the example. Once a court case has been cited in full, it can be referred to using simply the name in italics.

Please do not simply regurgitate the background, but present the facts in a logical, factual manner.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Writall
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business Studies
Hello Can I please get a copy of a plagiarism report? Thanks, Dan
Customer 454899, September 30th, 2021
Got an A in this project.
Customer 453877, September 5th, 2020
Thank you
Customer 455319, June 6th, 2022
Absolutely incredible service. Thank you
Customer 454925, May 15th, 2022
English 101
Incredible service and final paper! I couldn't be happier. Thank you so much!
Customer 454867, September 8th, 2021
Social Work and Human Services
thanks a bunch
Customer 453933, December 1st, 2020
Excellent!! Great Work Exactly what I needed!!!!
Customer 455199, December 15th, 2021
Customer 454639, March 30th, 2021
Amazing work! 10/10
Customer 455105, December 5th, 2021
I got an A in this deliverable 2 today. Thanks
Customer 453877, February 6th, 2020
Business Studies
great paper!
Customer 454811, January 7th, 2022
Thank you so much.
Customer 455319, April 19th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Live Chat+1(978) 822-0999EmailWhatsApp