Liam and Irene live at 8 MacDuff Lane, Elgin. They have two children, Case Study

Liam and Irene live at 8 MacDuff Lane, Elgin. They have two children, Stuart and Tracy, aged 8 and 4 years respectivel - Case Study Example This is because the couple will be required to cater for the monthly mortgage fee and insurance premium before the new owners move in. Consequently, the computations below illustrated the actual amount each of the three offers will generate. Consequently, the analysis above reveals that the third offer is most preferable for the couple due to its potential of maximizing the untaxed capital gain they will accumulate (King & Carey, 2014). This implies that the couple should consider selling their house to the third buyer at the price of  £195,000. Even though the offer will cost the couple a higher maintenance, the strategy will allow a realization of a higher net value of the house. The optimal decision that Liam should undertake on the 1,000 shares he inherited from his father is to sell them at the current lower price. This is because the strategy will allow Liam to avoid capital gain tax from the sale of the inherited shares. Shares that are inherited use the market value price at the day they were inherited if they were inherited after 31st of March 1932 by the new owner (Mclaughlin, 2013). Owing to the recent sharp decline of the distillery shares, the current price is likely to be lower than the market value of the shares at the day of their inheritance. Thus, Liam will avoid paying lump sum tax amount by selling the shares at their current prices instead of keeping them in future that might attract tax (Spencer, 2013). In addition, selling the shares currently will allow Liam to claim for capital loss in his tax return. This is because the net amount that will be realized from the sale of the shares will be lower than the market value of the shares at th e day of their inheritance. Even though the price of the shares will be lower than the market value under consideration, the value of the shares has the potential of been higher to that of the original price his father acquired the shares.