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  3. 1 r and j form an llc which is treated...

Question: 1 r and j form an llc which is treated...

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1. R and J form an LLC, which is treated as a partnership for income tax purposes. R transfers cash of $500 to the LLC in return for a 50% ownership interest in the LLC. J transfers land with an adjusted basis of $380 and a fair market value of $500 in return for a 50% ownership interest in the LLC. a. What is Rs amount realized? b. What is Js amount realized? c. What is Rs gain/loss realized? d. What is Js gain/loss realized? e. What is Rs gain/loss recognized? f. What is Js gain/loss recognized? g. What is the LLCs gain/loss recognized? h. What is Rs initial basis (i.e., outside basis) in his LLC interest? i. What is Js initial outside (i.e., outside basis) in her LLC interest? j. What is Rs holding period in his LLC interest? k. What is Js holding period in her LLC interest? I. What is the LLCs basis (i.e., inside basis) in the land? m. What is the LLCs holding period in the land? n. Construct the LLCs initial balance sheet for both book and tax purposes.

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