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 guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about NT's operations for the current year is obtained from the LLC's records: Ordinary income $562,000 Dividend income 8,000 Long-term capital loss 18,000 Long-term capital gain 22,000 Charitable contribution 4,000 Cash distribution to Noi 11,000 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. 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)? Capital account balance, beginning year Ordinary income Dividend income Net long-term capital gain Less: Charitable contribution Cash distribution to Amy Capital account balance, end of year Noi's capital account differs from her basis only by the amount of her share of LLC ?.
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.
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 ?.
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