$40,000 basis in inventory $40,000 basis in land, $86,000 basis in partnership. $30,000 basis in inventory $42,000 basis in land, $110,000 basis in partnership. $30,000 basis in inventory $40,000 basis in land, $98,000 basis in partnership. What basis does Mack take in the inventory and land and in the partnership interest (including debt share) following the distribution? a. In addition, Mack's share of partnership debt decreased by $12,000 during the year. At the end of the current year, the partnership distributed to Mack, in a proportionate nonliquidating distribution, cash of $20,000, inventory (basis to the partnership of $30,000 and fair market value of $40,000), and land (basis to the partnership of $40,000 and fair market value of $42,000). Mack has a basis in a partnership interest of $200,000, including his share of partnership debt. $75,000 basis $0 ordinary income $20,000 capital gain. At the sale date, what is Nicholas's basis in his LLC interest, how much gain or loss must he recognize, and what is the character of the gain or loss? a. Nicholas's share of the LLC's unrealized receivables is valued at $6,000 ($0 basis). During the current tax year, DDBN's taxable income is $120,000 (earned evenly during the year). In addition, Anna assumes Nicholas's share of LLC liabilities, which, at that date, was $15,000. On July 1 of the current tax year, Nicholas sells his LLC interest to Anna for $80,000 cash. At the end of the last tax year, Nicholas's basis in his interest was $50,000, including his $20,000 share of LLC liabilities. Nicholas is a 25% owner in the DDBN LLC (a calendar year entity).
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