Individually prepare a brief (less than one page, single-spaced) research memorandum for the facts below:
Ben is single and works as a lawyer. His mother lives in a nursing home, which costs $24,000 a year. Ben pays $10,000 and her health insurance policy pays the remaining $14,000. His mother’s only income for the year is $9,000 from Social Security. ?Can Ben claim his mother as a dependent on his tax return? Explain. ?Would your answer change if the $14,000 were not from a health insurance policy but from Medicare? Explain. See pages 16-23 to 16-24in the Murphy & Higgins text for a sample template of a memorandum (memo). Your memo should be typed, spell-checked, and professionally written. The document shouldinclude the Facts, Tax Issue, Conclusion, and Analysis (Reasoning).Use the K-StateLibrary Website to search the Checkpoint database to obtain the following tax authority to help you come to a conclusion regarding the issue (your memo should only include these resources):1.IRC Sections 151, 152, and 213 (you may also use your Code book)2.Rev.Rul. 64-223, 1964-2 CB 503.Rev. Rule 70-341, 1970-2 CB 314.Rev. Rul. 79-173, 1979-1 CB 86Hints for accessing the Revenue Rulings: -Go to the K-State Library homepage (https://www.lib.k-state.edu/)-Click “Research” and then “Databases” underneath. -Click on the “C” at the top of the page and then click on “Checkpoint”-In RIA Checkpoint, enter “64-223” as the keyword at the top of the screen and click on “IRS Rulings and Releases” as the source (on the right-hand side, 2under “Primary Source Material”). Repeat again with “70-341” and “79-173” as keywords.
Sample Solution