Organizational Analysis & Design Plan: Project Description and Scoring Guide

In this short paper, you will compute the property disposition capital gain and taxation of gross income for the client described in the final project. Based on your computations and relevant sections of the Internal Revenue Code, explain the tax consequences on the possible sale or exchange of the land, including the impact on cash flow and salary or cash distributions.

Specifically, the following critical elements must be addressed:

1. Calculate the property disposition capital gains and taxation of gross income.
2. Identify the tax consequences on the sale or exchange of the land consistent with capital gain rules. Consider the selling expense, brokers fees, closing costs, appraisals, and surveys and the correct schedule form to complete.
3. Describe the after tax effects on the clients cash flow based on the sale of the land. Consider including capital gains tax rules.
4. ExplainwhetherornottheclientandhischildshouldtakeasalaryorcashdistributionaccordingtotaxpurposesandtheInternalRevenueCodeandTreasuryregulations.Considerthetypeofbusinessandthetaxeffectwhetheritissalary,dividends,orcashwithdrawal.

Please advise if additional information is needed. Thank you.