Please help me work through this problem
Question # 00067962
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Updated on: 05/10/2015 04:01 PM Due on: 05/10/2015
When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC: |
| Basis | Fair Market Value | |||||
| Maude: | ||||||
| Cash | $ | 31,000 | $ | 31,000 | ||
| Land* | 114,000 | 430,750 | ||||
| Totals | $ | 145,000 | $ | 461,750 | ||
| *Nonrecourse debt secured by the land equals $186,000 |
| James, Harold, and Jenny each contributed $275,750 in cash for a 25 percent profits and capital interest. a. What is Maude’s tax basis in her LLC interest? B. What tax basis do James, Harold, and Jenny have in their LLC interests |
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Rating:
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Solution: Tax basis problem solved