Explain how much the total tax is and how much the tax code can be reduced with citations of the tax code.

Fact Pattern:

You have a client (Fred Cheng), who has been working with you for many years. He makes a lot of money, is single, but after a lot of moving around, he decides he wants to purchase a home. He has no real financial assets other than the following (respective values are at the end of the previous month:

Current Employer 401(k): $250,000

Previous Employer 401(k): $300,000

Tax Deferred IRA: $5000

ROTH IRA: $25,000

Savings account: $5,000

The home he wants to purchase is on the river and located in Jacksonville, FL and the estimated purchase price is going to be $225,000. Of which, he needs to get 20% down.