Your client is in big trouble. He owes $1.3 million to IRS for the year ended...

Transcribed Image Text:

Your client is in big trouble. He owes $1.3 million to IRS for the year ended December 31, 2021. He won a lawsuit on June 1, 2020 in the amount of $5 million and lost almost everything in day trading. He just forgot to pay taxes on his winning of law suit. He is married and has three children-16 years, 12 years and 11 years old. He makes $3,333 per month. H had $439 in his bank account. He has two credit cards (1) Credit limit $18500, amount owed 8,592 (2) Credit limit 7,500 amount owed $6,247. He owns two cars (1) 2020 Nissan Quest, miles 85,000 (2) 2019 Maxima miles 87,000. He has clear title to these cars. He owns a house in Kingwood Texas -purchase price $217,000 date acquired 02/01/01 current value 210,000 loan balance 177,395 monthly payments $1,585. There are quite a few homes on sale in his neighborhood. OIC: Problem # 2 Mr. Charlie and Greta Jones are over 65 and have major health issues. Both are diabetic and have heart problems. They live in Dallas and own a house in Houston. They have clear title to the house. Their son - Christopher- had a run with the law is unemployed. Jones helps their son with the living expenses. House in Houston is worth $85,000 and requires repairs every year. The repair expenses are paid by Mr. Jones. Jones also takes care of their granddaughter who has ADD. Although State of Texas pays most of the expenses of their granddaughter, Jones usually pay around $500 per month for medical expenses of their granddaughter. Your client is in big trouble. He owes $1.3 million to IRS for the year ended December 31, 2021. He won a lawsuit on June 1, 2020 in the amount of $5 million and lost almost everything in day trading. He just forgot to pay taxes on his winning of law suit. He is married and has three children-16 years, 12 years and 11 years old. He makes $3,333 per month. H had $439 in his bank account. He has two credit cards (1) Credit limit $18500, amount owed 8,592 (2) Credit limit 7,500 amount owed $6,247. He owns two cars (1) 2020 Nissan Quest, miles 85,000 (2) 2019 Maxima miles 87,000. He has clear title to these cars. He owns a house in Kingwood Texas -purchase price $217,000 date acquired 02/01/01 current value 210,000 loan balance 177,395 monthly payments $1,585. There are quite a few homes on sale in his neighborhood. OIC: Problem # 2 Mr. Charlie and Greta Jones are over 65 and have major health issues. Both are diabetic and have heart problems. They live in Dallas and own a house in Houston. They have clear title to the house. Their son - Christopher- had a run with the law is unemployed. Jones helps their son with the living expenses. House in Houston is worth $85,000 and requires repairs every year. The repair expenses are paid by Mr. Jones. Jones also takes care of their granddaughter who has ADD. Although State of Texas pays most of the expenses of their granddaughter, Jones usually pay around $500 per month for medical expenses of their granddaughter.

Answer rating: 100% (QA)

Based on the information provided for both cases here are some initial suggestions for each situation PROB Your Clients Financial Situation 1 IRS Debt ... View the full answer