Noi and Tu share equally in the profits, losses, and capital of the accrual basis NT Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Noi is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current year, Noi's capital account has a balance of $427,000, and the LLC has debts of $118,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally gua
Noi and Tu share equally in the
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Year-end LLC debt payable to unrelated parties is $80,000. Assume all transactions are reflected in her beginning capital account and tax basis in the same manner. All NT Products' activities are eligible for the qualified business income deduction. What is Noi's basis in her LLC interest:
a. Noi's basis in the LLC interest at the beginning of the year is?
b. Noi's basis in the LLC interest at the end of the year is ?
c. What income, gains, losses, and deductions does Noi report on her income tax return?
If an amount is zero, enter "0".
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d. Based on the information provided, what other calculations is Noi required to make?
Noi may be eligible to deduct up to (fill in the blank)% of the ordinary income as qualified business income under § 199A, and will make that calculation on her return. This deduction require a
e. Prepare Noi's capital account rollforward from the beginning to the end of the tax year. How does her ending capital account differ from her ending basis as calculated in part (a)?
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Noi's capital account differs from her basis only by the amount of her share of LLC ?(gains/losses/liabilites/assets/distributions)
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