November $23,2024$Red Wolf CPA Services$255$ Hayes WayRichmond, IN $47374$Dear Red,Please let me introduce myself. I am David McAndrew. I moved to the United Statesfrom the Cayman Islands with my wife Margaret at the beginning of the year. I amwriting to seek advice about income taxation in the U$.$S$.$ and how it will be appliedto sources of income. Please identify my tax issues, the implications of our currentfacts, and a tax plan that would legally reduce our taxable income.Here are the facts that pertained before moving to the United States. In the Cayman Islands, we did not have an income tax. In the Cayman Islands, I entered into a life$-$time contract with my wifeindicating that all of my earnings from property, labor or services would besplit $50/50.$ I operate a small landscaping business as a sole$-$proprietorship. When paid formy labor or services, my customers pay me $(1)/(2)$ of the total bill and pay Margaretthe other $(1)/(2)$ of the total bill. My landscaping business does have contingentliabilities associated with warrantied work. Margaret signed a life$-$time contract splitting $(1)/(2)$ of her earnings from labor,services, or property.o Margaret and I entered into this agreement to set spending limits in ourhousehold. Neither of us is allowed to spend more than we haveindividually earned after taxes. Margaret has proven to be more frugal than I.o She invested $$1,000,000$ in private sector coupon bonds. These arecorporate bonds that pay six percent interest semi$-$annually on January $1$and July $1.$ To collect the interest, you detach the coupon when it comesdue with your personal information and return mailing address. Margaret has a sister, Shannon, who lives in Connersville and is strugglingfinancially.o To help Shannon, Margaret has detached the coupons from her corporatebonds and given them to Shannon.o Shannon will mail the coupons into the corporation and the corporationwill prepare and mail interest checks to Shannon.o The interest from the coupon bonds Because I face some contingent liabilities associated with my business, weplan to file married filing separately. I estimate that I will receive $$250,000$ for the labor and services I provideas a landscape architect. The operating costs are $$75,000$ for this business. Margaret has been unsuccessful in finding employment in $2024$ and has no earnedincome.Sincerely,David McAndrew help please here are the instructions