Share your keywords for each scenario by using this link.
Scenario 1: You are an accountant with a client who asks if they can deduct from their tax burden legal fees that they’ve incurred from their defense in a criminal case in which they were found guilty. You will have to write a memo with an argument and primary sources to back up that legal argument. Can you provide the correct answer with the relevant case?
Scenario 2 (assignment): Mr. and Mrs. Castellano have been married for 5 years. This year, they won $500,000 at a casino. They know that this will put them in the highest tax bracket for the year. To reduce their tax burden and avoid the “marriage penalty”, they are considering going to Mexico in December to obtain a divorce. They plan to continue to live together, but file separate returns for this year using the single filing status. They plan to remarry in February of next year. They have come to your firm to see if this strategy is a valid way to reduce their taxes.
For Scenarios #1 and #2 above, you will share your search results here in a shared Excel spreadsheet.