FGV Can Muddy Waters Write Off The $200,000 Loss on Her Residence MEMO

 the U.S. tax law-You will be required to do a tax research and write a file memo(file meme example in the attachments) on a problem a client is having (Problem will be given to you after accepting this- You are required to ask the client at least 5 questions related to her issue to extract more info to help you to solve their problem -It is better to have access a website that you can research U.S. laws related to the assignment – The file tax memo should be at least 3 pages single spaced and it must be supported by good evidence-The tax problem will be given after accepting the assignment and more detailed instructions So this is the problem that my client is facing, you are required to ask them questions (5 at least) in order to get more information from them that will help you to write the paper.I own a home–my personal residence–north of Indianapolis on a tributary of the White River. I bought this home because it was located on the river where my family could boat and fish–probably not swim, too muddy. Due to some industrial pollution of the river, thousands of fish were killed in the White River and now nobody wants to get close to the water. I figure that the value of my property has dropped dramatically. I purchased the home for $500,000 five years ago and now it may be worth only $300,000. The polluting company was penalized by the EPA, but we didn’t get anything and my lawyer doesn’t think we can sue. Can I write this $200,000 loss off? Let me know if you need more information.Muddy Waters