Toll Free:

Live chat
Order now Log In
Toll Free:

Research Project

Research Project

Wilma inherited a house from her uncle Bob, who passed away recently.  Bob had taken out a reverse mortgage on his home, which means that he was paid money each month until his death and that this amount, plus accrued interest, accumulated to increase the balance of the mortgage.  On Bob’s death, the balance becomes due in full, immediately, though the bank will wait up to one year to foreclose on the property, if not paid.  The mortgage cannot be enforced against any assets of Bob’s estate, except the house, and none of his beneficiaries can be held liable otherwise for the debt.

The balance of the mortgage at the time of Bob’s death was $210,000, and the fmv of his home was $90,000.  Wilma has taken title to the home and is now looking into what to do.  She has consulted you for advice on the taxation of her options.

The first option she is considering is simply walking away from the house, never going back, and alloing the bank to foreclose on it.  She is concerned that this is a constructive sale to the bank, which, after foreclosure, will lead to the loan being cancelled, and that this debt cancellation will cause that amount to be deemed an amount realized, producing taxable gain.

The second option is for her to offer to settle the loan with the bank at the home’s fmv, $90,000, and then staying in the home, herself.  She is thinking of offering them cash in that amount in order to get the loan discharged.  Again, she is concerned about the amount of the gains arising from this option.

The third option is for her to sell the house to neighbors who want to buy it for their son.  She is considering negotiating with the bank to settle the mortgage for only $80,000, which, after selling the house for $90,000 and paying 7% realtors fees and closing costs, will net her $3,700.  She is concerned about the amount of the gain she might have to report in this case.


1) Prepare a memo to the managing tax partner of your CPA firm in the format illustrated in the examples I have posted.  Be careful to correctly cite court cases, statutes, regulations, revenue rulings, and all other materials that you use as shown in those examples and as described in chapter 2 of the text.  You are to research this question thoroughly because your firm has determined that a number of clients may fall into this situation, and your memo is quite important. The starting point is the Crane, 331 U.S. 1 (1947),  case.  Also, read and integrate the Tufts case, 461 U.S. 300 (1983), as well as other relevant court cases, regulations, revenue rulings, statutes, etc. you find.  You may do your research together with other students, but each student’s memo is to be prepared by them individually.

2) What would you advise Wilma to do if the property had not yet been distributed her, and was still in the estate?



We offer original custom essays in a wide range of subjects. No matter the topic, you will get an impressive essay.


Discussion Board Post

If you want to get the best discussion board post at an affordable price, just apply to our experts for help.


Research paper

If you experience any difficulties in writing research papers, welcome to us. We produce unique academic papers only!



Ask our experienced and highly educated writers to help you write your coursework, and you will get an impeccable and original paper.


Case Study

Use case study writing services offered by our reputable company. We guarantee to deliver only premium papers.



You can buy a unique questions-answers essay from our custom writing agency online. Hire us to help you succeed!


Powerpoint Presentation

Every time you are looking for a place to purchase a high-quality and creative PowerPoint presentation, visit our website.


Term paper

If you need help in writing a quality term paper, contact us. Our skilled writers specialize in creating authentic papers.


Response paper

Hire our experienced writers to produce a perfectly written response paper for you. We are dedicated to your success.



Use the first-class custom formatting service provided by our diligent experts. We can help you format papers in all styles.


Research proposal

If you do not know how to write a research proposal, make use of our superb research proposal writing services whenever you need.



Order a dissertation written by a professional PhD writer. You will be completely satisfied with your piece of writing.


Article Review

When writing an original article review turns out a difficult task for you, entrust it to our professionals to do it in no time.


Literary analysis

If you need expert assistance in writing a literary analysis essay, choose our reliable service to do the job. Order your essay now!



We can help you paraphrase any of your academic papers. Thus, if you need rewriting help, use our services and get high grades.


Reaction paper

Forget about reaction paper writing difficulties! Ask our qualified writers to help you express unique thoughts and reactions on the subject.


Excel Exercises

Leave the details of your Excel assignment to our competent writers, and they will do it professionally and fast, no matter its difficulty.


Annotated Bibliography

Acquire our remarkable annotated bibliography writing services! We charge the most affordable prices and never compromise on quality.


Business Report

In case you need professional assistance with business report writing, turn to our company. We will provide you with a flawless paper.



Purchase a well-structured and unique outline from us online, and get a brilliant paper. We write custom outlines to all papers.

Limited Time Offer
Your 1st Order
Online - please click here to chat