Kenisha and Shawna form the equal KS LLC, with a cash contribution of $726,000 from Kenisha and a property contribution (adjusted basi of $762,300, fair market value of $726,000) from Shawna. If an amount is zero, enter "0". a. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much? Shawna has realized is recognized. of $ of which $ b. What is Kenisha's tax basis in her LLC interest? $ The § 704(b) book basis? $ c. What is Shawna's tax basis in her LLC interest? The § 704(b) book basis? $

Kenisha and Shawna form the equal KS LLC, with a cash contribution of $726,000 from Kenisha and a property contribution (adjusted basi of $762,300, fair market value of $726,000) from Shawna. If an amount is zero, enter "0". a. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much? Shawna has realized is recognized. of $ of which $ b. What is Kenisha's tax basis in her LLC interest? $ The § 704(b) book basis? $ c. What is Shawna's tax basis in her LLC interest? The § 704(b) book basis? $

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 29P

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Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much? What is Kenisha’s basis in her LLC interest? What is Shawna’s basis in her LLC interest? What basis does the LLC take in the property transferred by Shawna? Are there more effective ways to structure the formation? Explain. My answer. 1. Shawna realizes a 20,000 loss on the transfer of property to KS LLC. Due Section 721, she does not recognize this loss. The loss is deferred. 2. 360,000 3. 380,000 4. 380,000 5. No. There is no malpractice and the type of business is not specified. Please advise.
Kenisha and Shawna form the equal KS LLC, with a cash contribution of $416,000 from Kenisha and a property contribution (adjusted basis of $436,800, fair market value of $416,000) from Shawna. If an amount is zero, enter "0".
During the current year, Ethel exchanges a business land for different business land in a like-kind exchange. Ethel's adjusted basis in the land given up is $7,000, and she receives a land worth $13,000 plus $3,000 cash. a. Calculate the amount of gain realized by Ethel on the exchange. b. Calculate the amount of the gain that must be recognized by Ethel on the transaction.
Angelina gave a parcel of realty to Julie valued at $167,500 (Angelina purchased the property five years ago for $71,000). Required: a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $174,000. What is the amount of her gain or loss, if any, on the sale? a. Amount of taxable gift b. Amount of gain
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875. a. Logan's recognized gain is $____________ . b. Assume that Johnathan's land is worth $103,140 and he gives Logan $11,460 cash. Logan's recognized gain is $___________
Oisha gave a parcel of realty to Julie valued at $197,500 (Oisha purchased the property five years ago for $83,000). a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $204,800. What is the amount of her gain or loss, if any, on the sale? Answer is complete but not entirely correct. $ 182.500 $ 121,800 a. Amount of taxable gift b. Amount of gain
kk. Subject :- Accounting Michelle exchanges land in Illinois with a FMV of $100,000 and an adjusted basis of $60,000 for land in Indiana with a FMV of $80,000 and $20,000 cash. Both parcels of land will be used in Michelle's trade or business. What is Michelle's recognized gain or loss?
María and Bob form Robin Corporation. María transfers property worth $100,000 with a basis of $35,000 for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $40,000 with a basis of $8,000 and legal services worth $4,000 in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes María has a basis of $ b. What basis do María and Bob have in the Robin Corporation stock? of $ 1 Robin Corporation has a basis of $ Bob recognizes and Bob has a basis of $ c. What is Robin Corporation's basis in the property and services it received from María and Bob? in the property Bob transferred. in the stock. in the property María transferred and a basis of
María and Bob form Robin Corporation. María transfers property worth $420,000 with a basis of $150,000 for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $165,000 with a basis of $30,000 and legal services worth $15,000 in organizing the corporation. If there is no gain or loss, enter "0" for the amount. a. What gain or income, if any, will the parties recognize on the transfer? María recognizes no gain or loss Feedback of $ Bob recognizes ordinary income of $ Check My Work Section 351 is mandatory if a transaction satisfies the provision's requirements. The three requirements for nonrecognition of gain or loss under § 351 are that (1) property is transferred (2) in exchange for stock and (3) the property transferors are in control of the corporation after the exchange. b. What basis do María and Bob have in the Robin Corporation stock? María has a basis of $ Feedback Check My Work Incorrect , and Bob has a basis of $ 420,000 X in the stock. c. What is Robin…
Dan receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is $110,000. At the time of the gift, the land and building have FMVS of $64,000 and $96,000, respectively. No gift tax is paid by Dan's uncle at the time of the gift. Read the requirements. Requirement a. To determine gain, what is Dan's basis for the land? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Dan's (the donee's) basis for the land is Requirement b. To determine gain, what is Dan's basis for the building? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Dan's (the donee's) basis for the building is Requirement c. Will the basis of the land and building be the same as in Parts a and b for purposes of determining a loss? , the basis of the land and building the same as in Parts a and b for purposes of determining a loss because
1. Kelly exchanges land (adjusted basis of $75,000; fair market value of $62,000) used in her business and common stock held for investment (adjusted basis of $8,000; fair market value of $12,000) for a single parcel of land (fair market value of $74,000) to be used in her business in a like-kind exchange. Determine her basis for the land she exchanges.
1. Joe owns a farm with a basis of $250,000 and a fair market value of $550,000. Willy owns an apartment building with a fair market value of $100,000 and a basis of $300,000. They exchange properties. In addition, Willy gives Joe $450,000 in cash. a. What are Joe's and Willy's realized gain and losses on the transaction? b. What amounts of gain or loss do they recognize on the transaction? c. What is the basis of the property received by Joe? Willy?