Reference no: EM132191363

RULES AND INSTUCTIONS FOR COMPREHENSIVE CASE ANALYSIS:

1. Websites permissible for research: NO OTHER WEBSITES ARE PERMISSABLE!
a. IRS.gov
b. Bankrate
c. Google to search, but may not go to any links found.
d. Spilker textbook, class PowerPoint slides, and class notes.
c. MUST cite all sources (if you find something on Google, copy and past the link on the last page of your final)

2. Attach a tax return using the 2017 forms (2018 not available) but working with 2018 tax laws. It is your team's responsibility to gather and fill out all of the tax forms necessary to complete this assignment. You should prepare a 2"' return with your final suggestions in ADDITION to the first (original return).

3. Be sure to justify your answers to parts 2-4, without solid, responsible reasoning very little points will be given. Additionally, all work must be shown and all forms used must be emailed in a packet along with the typed answers to questions 2-4. Calculations can be handwritten and scanned on a sheet of paper.

4. Grammar, punctuation, critical thinking, and presentation count! This is supposed to be a professional proposal given to a paying client.

5. Any sharing of answers or working with others outside of your team will be considered cheating and will result in a 0 for your work and that of your teammates and a possible for the course. This includes group me texts, google share does, etc.

6. Once you are satisfied with your exam answers you will email me ONE copy with all team members cc'd on the email. I will grade the exams and email your grades and feed back to all members on the team via a reply to the original email. Please send this email through the MU system and NOT through canvas.

7. Each team member will send a separate email with the team participation points and summary of the case(s) course. (Counts towards 50% of your "class work and participation points).

I. List your team number and all team members (include yourself)
Assign points to all team members (including yourself) ranging from 20 to 15. No member should receive the same point total and the points given should be based on performance of team assigned tasks.
Give me short reasons why you are grading the team member as you are.

II. Summarize your experience in project, let me know what you learned, what you liked, what you didn't, what could be changed to make the case better. I would like this in three parts:
1. What you learned from the case project/paper
2. What you learned from the presentation
3. What you learned about working as a team vs. individual on a project of this nature.

THE MERRITT FAMILY

Please evaluate the Merritt's current tax situation based on the information given. Create a 2018 Federal Income tax return based on this information. Once you have done the tax return, present the Merritt's with some suggestions that will reduce their federal tax burden for the coming year. Be sure to justify your recommendations with the income tax reasoning while also considering their financial goals. If these suggestions will alter their current/future goals, please make sure to inform them of such and have the justification to counter what would be an obvious argument from your client.

The output from this case analysis should include the following:

1. 2018 Federal Income Tax Return

Use 2017 tax forms and create a pdf of the return to attach to the rest of the final. Be sure that your pdf includes the numbers that you have entered on the form. (email it to yourself to make sure you can see it correctly)

2. Financial suggestions for the 2018 tax year that would benefit the Merritt's from a tax standpoint. (how can you reduce their tax liability for 2018) Be sure to justify your suggestions with documentation (additional tax returns showing changes) and sound financial reasoning.

3. What are the implications to the Merritt's stated financial goals if they take your suggestions in part 2, both positive and negative. Again, be sure to justify your answer.

4. After reviewing the information in parts 2 & 3, what are your final recommendations for the Merritt family (summarize) and Why are you making these recommendations? How will these suggestions further or hinder their financial goals stated? How will these suggestions benefit the family from a tax perspective?

**The answers to parts 2-4 should be a minimum of 2 pages typed, but no longer than 4 pages (1.5 to 2.0 space) this does not include the reference list mentioned in item 5 of the Rules.**

ARGO AND MARIE MERRITT

The Family:
Argo Merritt (54, born 3/9/1964) is a self-employed contractor and is married to Marie Merritt (56, born 2/24/1962), who is an employee of ATI Inc. They have been married for 16 years and have adult children from a former marriage. They have four grandchildren ages 10, 8, 6, and 4, who are all close to Argo and Marie. Additionally, the Merritt's have a fifth grandchild (Matt, born 8/10/2015) that they are in the process of adopting and who has lived with them the entire 2018 calendar year. This adoption is scheduled to be finalized early in 2019.

Financial Goals & Concerns:
1. They want to plan for retirement when Argo is age 66 with 80% of preretirement income. They expect to live until Argo is 95 and they will include Social Security in any retirement needs analysis.
2. They want to be debt free at retirement except for their mortgage.
3. They want to start a 529 plan for each of their grandchildren, including Matt.

Economic and Bank Lending Information:
• General inflation is expected to average 3.0% annually
• Education inflation is expected to be 5.5% annually
• They expect Treasury Bills to yield 1.5%, Notes 2.5%, and Bonds 3.5%.
• 15-year mortgage rate is 4.0%; 30-year mortgage rate is 4.5%
• Any closing costs associated with any mortgage refinance are an additional 3% of any amount mortgaged, and the lender requires a 20% equity in the home to re­ finance.

Investment Return Expectations:

Cash & Money Market	2.5%
Treasury Bonds/Corporate Bonds	4.0/6.0%
Index Funds	9.0%
International Stock Funds	5.5% (tax rate 1.75%)

Attachment:- final tax case.rar