8. Mary has an outside basis in her LLC membership interest of $100,000. In a liquidating proportionate distribution, the LLC distributes to her cash of $60,000, and land with an inside basis of $50,000 and a FMV of $40,000. Her taxable gain and basis in the land is:

8. Mary has an outside basis in her LLC membership interest of $100,000. In a liquidating proportionate distribution, the LLC distributes to her cash of $60,000, and land with an inside basis of $50,000 and a FMV of $40,000. Her taxable gain and basis in the land is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Abelinda Estate distributed some land, basis of $15,500 and fair market value of $18,000, to beneficiary Bartholomaus. The estate is subject to a 28% marginal income tax rate, and Bartholomaus is subject to a 32% marginal rate. What are the tax savings if the executor of the estate elects that the entity recognize the related realized gain? Please note that I came up with $125 & it is incorrect.
Ss.243.
Jennifer transferred land with an adjusted basis of $15,000 and a fair market value of $25,000 to ABC Corporation in return for all of its stock. Jennifer also received a $1,000 short-term note (boot). Please calculate the following for Jennifer. You must show your all of your work. 1) Her realized gain 2) Her recognized gain 3) Her basis in the stock 4) Her basis in the note
What are the amount and character of Kimberly's recognized gain or loss on the distribution? What is Kimberly's remaining basis in KST after the distribution? What is KST's basis in the land Kimberly contributed after Kimberly receives this distribution?
C sold capital property in Year 1 for net proceeds of $200,000. The property has an adjusted cost base of $40,000. C received $120,000 at the time of the sale and a note for the balance to be paid in equal annual instalments over the following two years. What is the minimum taxable capital gain to be reported in Year 2?
During the current year, David sells a tract of land for $700,000. The property was received as a gift from Marva on March 10, 1995, when the property had a $340,000 fair market value (FMV). The taxable gift was $330,000 because the annual exclusion was $10,000 in 1995. Marva purchased the property on April 12, 1980, for $76,000. At the time of the gift, Marva paid a gift tax of $17,000. In order to sell the property, David paid a sales commission of $21,000. Read the requirements. Requirement a. What is David's realized gain on the sale? Select the formula, then calculate David's realized gain on the sale. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar.) Minus: Realized gain Requirement b. How would your answer to Part a change, if at all, if the FMV of the gift property was $45,000 as of the date of the gift? The realized gain in this scenario is
An estate has the following income: The interest income was immediately conveyed to the appropriate beneficiary. The dividends were given to charity as per the decedent’s will. What is the taxable income of the estate? $4,400 $5,000 $8,000 $8,400
Betty sells an interest in a passive activity for $100,000. Her adjusted basis is $70,000 and losses from prior years that were not deductible due to the passive activity loss restrictions total $40,000. The tax effects of the sale are: Gain $30,000 O Gain $60,000 O Loss $10,000 O No gain, No loss.
1.
Jacinto sold a plot of land to Eva on July 31,2021 for $25000, and Jacinto basis in the property was 15000. Eva made one payment of $5000 during 2021 and agree to pay additional $5000 each year, plus interest for the next 4 years. Using the installment method what is Jacinto taxable gain for 2021
17. TP had an adjusted basis in her LLC interest of $50,000 immediately before she received a current proportionate distribution of $20,000 cash, unrealized accounts receivable with a basis of 0 and a FMV of $10,000, and real property with a basis of $40,000 and a FMV of $50,000. Her basis in the distributed real property is: a. 0 b. $30,000 c. $20,000 d. $40,000 e. None of the above
Individual E owns equipment that originally cost $60,000 and has an undepreciated capital cost of $40,000. E sells the equipment to a corporation for its market value of $50,000. To avoid tax on the transfer a section 85 election is filed by E and the corporation. What is the appropriate section 85 elected transfer price?