A finished ACC-460 Topic 8 return position research memo example, applying section 121 to a home rented before sale, excluding most of the gain and explaining why the depreciation portion stays taxable. Searches like "acc 460 topic 8 assignment example", "acc460 topic 8 sample" and "acc-460 topic 8 example" land here.
What a finished ACC-460 Topic 8 return position research memo looks like
The finished memo follows the order a reviewing partner expects: facts, issues, conclusions, authorities, analysis. The facts fit in one paragraph: a condominium bought for $210,000, used as a principal residence for three years, rented for two with $12,000 of depreciation claimed, and sold for $300,000 net. Two issues follow. The first asks whether the ownership and use tests of section 121 are met when residential use ended two years before the sale; the memo concludes they are, because three years of use fall inside the five-year window. The second asks whether the full $102,000 gain is excluded. The memo concludes that $90,000 is, within the single-filer limit, and that the $12,000 attributable to depreciation is not, under the carve-out in section 121(d). It also explains why the rental years are not nonqualified use.
How an ACC-460 Topic 8 example is structured
The memo is written to the file and arranged in the order a partner reviews. The facts come first, with dates given because the five-year window is measured back from the sale. Issues are then framed as questions a court could answer yes or no. Short conclusions follow before any analysis, so the reader knows the position before testing it. The authorities section lists section 121, the regulations under it and the depreciation carve-out, each with a line on what it contributes. The analysis takes each issue separately, applying the rule to the dates and figures and then stating the strongest counterargument, that renting the unit ended its character as a residence, together with the statutory answer to it. The memo closes with its assessment of the support for the position under the substantial authority standard in the section 6662 regulations.
Dates stated to the month
The five-year window runs back from the date of sale, so the memo gives purchase, move-out and sale dates precisely rather than as round years.
Issues framed as answerable questions
Each issue is phrased so that yes or no resolves it, which keeps the analysis from drifting into a general discussion of home sales.
Conclusions before the analysis
A reader sees the position, most of the gain excluded and the depreciation portion taxed, before the reasoning that supports it, which is how review works.
The counterargument answered by statute
The memo states the argument that renting ended residence status and shows that section 121 measures use within the window, not at the moment of sale.
Support level stated plainly
A final paragraph assesses the position against the substantial authority standard, so the file records how confident the preparer was and on what grounds.
Where marks go in ACC-460 Topic 8
Conclusions without citations are marked hardest here, since this topic asks for a position a reviewer could sign. A memo that excludes the full $102,000 has missed the depreciation carve-out, and the $12,000 it leaves in is precisely the amount that rule exists to reach. Papers that deny the exclusion because the unit was rented at the time of sale misread the use test, which looks across the five-year window. Treating the rental years as nonqualified use applies a rule the statute excepts for periods after the last residential use. Memos that bury the conclusion under pages of analysis hide the position. Leaving out the counterargument weakens a memo more than a wrong figure, because the defense of the position is the skill being examined. Authorities listed but never applied to the dates add length without support.
Get an ACC-460 Topic 8 example written to your instructions
Send the ACC-460 Topic 8 instructions, the rubric and the research problem your section released. The custom example is written to them in facts, issues, conclusions, authorities and analysis order, with a citation behind each conclusion and the strongest counterargument answered, in 24 to 48 hours. The first is free, and it supports coursework rather than any actual filing.
ACC-460 Topic 8 questions, answered
Why is the depreciation portion taxable if the home qualifies?
Because the exclusion does not reach gain attributable to depreciation claimed while the property was rented. Those deductions reduced the owner's taxable income during the rental years, and excluding the matching gain on sale would give a double benefit. The memo separates the $12,000 so that the excluded and taxable portions are each traced to their own rule.
What is the substantial authority standard?
A threshold in the regulations under section 6662 for how well a position is supported. A position with substantial authority avoids the penalty for a substantial understatement even if it later loses, and the standard is applied by weighing the relevance and persuasiveness of the authorities for and against. A research memo that states where its position sits gives the file a record of the preparer's judgment at the time.
Does the memo show how to report an actual home sale?
No. The facts are illustrative and simplified, and a real sale can raise issues the example deliberately leaves out, such as partial exclusions after an early move or the rules for married couples. The memo shows what a finished coursework position looks like, with every conclusion cited. Reporting an actual sale is a matter for a qualified preparer working from the full facts and current law.