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Laura Davis is a member in a limited liability company that has historically been profitable but is expecting to generate losses in the near future because of a weak local economy. In addition to the...
See AnswerQ: What are the criteria to meet the “not essentially equivalent to
What are the criteria to meet the “not essentially equivalent to a dividend” change-in-stock-ownership test in a stock redemption?
See AnswerQ: Alfonso began the year with a tax basis in his partnership interest
Alfonso began the year with a tax basis in his partnership interest of $30,000. His share of partnership debt at the beginning and end of the year consists of $4,000 of recourse debt and $6,000 of non...
See AnswerQ: Jenna began the year with a tax basis of $45,
Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 of recourse debt and $10,000 of nonrecourse debt at the beginning of the...
See AnswerQ: Juan Diego began the year with a tax basis in his partnership
Juan Diego began the year with a tax basis in his partnership interest of $50,000. During the year, he was allocated $20,000 of partnership ordinary business income, $70,000 of §1231 losses, $30,000 o...
See AnswerQ: Farell is a member of Sierra Vista LLC. Although Sierra Vista
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a develope...
See AnswerQ: Jenkins has a one-third capital and profits interest in the
Jenkins has a one-third capital and profits interest in the Maverick General Partnership. On January 1, year 1, Maverick has $120,000 of general debt obligations and Jenkins has a $50,000 tax basis (i...
See AnswerQ: Suki and Steve own 50 percent capital and profits interests in Lorinda
Suki and Steve own 50 percent capital and profits interests in Lorinda LLC. Lorinda operates the local minor league baseball team and owns the stadium where the team plays. Although the debt incurred...
See AnswerQ: Ray and Chuck own 50 percent capital and profits interests in Alpine
Ray and Chuck own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Chuck each work full time (over 1000 hours per year) mana...
See AnswerQ: Joseph contributed $22,000 in cash and equipment with a
Joseph contributed $22,000 in cash and equipment with a tax basis of $5,000 and a fair market value of $11,000 to Berry Hill Partnership in exchange for a partnership interest. a. What is Joseph’s ta...
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