Walks them through their current year tax return.

Detail which expenses they incurred that were nondeductible for tax purposes and explain why. The Smiths have always itemized deductions instead of taking the standard deduction on their tax return. Explain how this may no longer be the best tax strategy due to changes in tax law under the TCJA.

Regarding the investment opportunities you calculated in week explain:

Which investment opportunity you would recommend.

What the conversion tax planning strategy is and which of these investments employ this strategy.

How implicit taxes may limit the benefits of the conversion strategy.

Kate and Sam are considering purchasing a vacation home. They plan on spending several months each year vacationing in the home and renting out the property the rest of the year. Provide an overview of the key tax considerations they should consider when making this decision.

Answer rating: 100% (QA)

1 Nondeductible Expenses on Tax Return I would review the Smiths expenses for the year and identify any that are nondeductible for tax purposes Nondeductible expenses typically include personal expens... View the full answer