Hello and welcome back to the U.S. Federal Taxation Capstone Course. In module one of this course, we took a look at the tax situation of a hypothetical client. In module two, we took a look at some of the major recent tax law changes that occurred at the end of 2017. In this third and final module, we're going to take what you learned in your previous four courses, in addition to those recent tax law changes, and hope our hypothetical client do some future tax planning regarding their situation. After several months of baking and selling especially donuts part-time to stellar reviews, Bobby has decided to quit his job at the local grocery store and began selling his delicious craft donuts full-time. Up until now, when Bobby sold his donuts, he hasn't used any type of business entity. Instead, he was just selling doughnuts as Bobby, but now that Bobby is going to make donuts on a grander scale, should Bobby operate through a separate legal entity? If so, what type of business entities should Bobby consider using? What are the advantages and disadvantages associated with each type of entity? What factors should Bobby consider in making his selection? Are there additional questions that you would want to ask Bobby to help him make his decision? Of course, in addition to selecting an entity type, Bobby is also going to have to purchase some new commercial baking equipment. He may even need to purchase real estate for his baking operation. How will the purchase of personal or real property impact Bobby's tax situation?