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Your firm, “We Save You Tax” has a some clients who have high levels of mortgage debt on their personal residences and rental properties. Covid-19 and other economic circumstances have, and still could, result in the mortgage balances being written down. Please draft an “internal Research Memo” (See Exhibit 2-9) for the firm. Be certain to include the July 15, 2020, Tax Court case of Weiderman, TC Memo 2020-109, 7/15/20 as your major reference. You should cite at least 3 good form references, in addition to Weiderman. The references might include Internal Revenue Code sections, Treasury Regulations, IRS pronouncements, and other court cases. Please limit your memo to 700 words or less.
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