Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 68

Vincent ("Vinny") Vineyard is a very successful physician in Temecula, California. He earns approximately $800,000 per year from his medical practice. His two children have graduated from college and he and his wife are now "empty-nesters." His son, Vincent, Jr., is an officer in the U.S. Navy, and his daughter, Valerie, is an electrical engineer in Texas. Vinny has had an interest in wine and grape growing for many years. Now, with more time to devote to other activities, Vinny recently started a winery with an initial investment of $1,000,000. Since the winery is new, he expects it to be eight to 10 years before the winery makes a profit. Vinny would like your advice as to any potential tax problems he might have with his new winery investment.
a. What additional information might you want in this situation
b. Where might that information come from
c. Are all the given facts pertinent Which (if any) are irrelevant
d. What is the primary research question you would try to answer
e. Are there any additional research question(s) you want to address