b. What are Georgio's separately stated items for the year? Description Separately Stated Items on Schedule K-1: Total Amount Allocated to Georgio Georgio owns a 30 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra $ 82,750 $ 18,400 $(49,250) $ (5,950) $(18,900) $(12,300) $ (3,200) $ 6,500 $ 5,100 $ (3,950) *Assume the $179 property placed in service limitation does not apply. a. How much ordinary business income (loss) is allocated to Georgio for the year? Description Total Amount Allocated to Georgio Sales Revenue Ordinary Business Income
b. What are Georgio's separately stated items for the year? Description Separately Stated Items on Schedule K-1: Total Amount Allocated to Georgio Georgio owns a 30 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra $ 82,750 $ 18,400 $(49,250) $ (5,950) $(18,900) $(12,300) $ (3,200) $ 6,500 $ 5,100 $ (3,950) *Assume the $179 property placed in service limitation does not apply. a. How much ordinary business income (loss) is allocated to Georgio for the year? Description Total Amount Allocated to Georgio Sales Revenue Ordinary Business Income
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 8DQ
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Transcribed Image Text:b. What are Georgio's separately stated items for the year?
Description
Separately Stated Items on Schedule K-1:
Total
Amount
Allocated
to Georgio
Transcribed Image Text:Georgio owns a 30 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following
revenues, expenses, gains, and losses:
Sales revenue
Gain on sale of land (§1231)
Cost of goods sold
Depreciation-MACRS
§179 deduction*
Employee wages
Nondeductible fines and penalties
Municipal bond interest
Short-term capital gains
Guaranteed payment to Sandra
$ 82,750
$ 18,400
$(49,250)
$ (5,950)
$(18,900)
$(12,300)
$ (3,200)
$ 6,500
$ 5,100
$ (3,950)
*Assume the $179 property placed in service limitation does not apply.
a. How much ordinary business income (loss) is allocated to Georgio for the year?
Description
Total
Amount
Allocated to
Georgio
Sales Revenue
Ordinary Business Income
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