Phoebe and Parker are equal members in the Phoenix Investment Group LLC. Phoebe contributed land with an A/B of $25,000 and a FMV of $90,000. Parker contributed $90,000 cash. They agreed to share profits and losses equally. Three years after the formation of the partnership, the land contributed by Phoebe was sold for $100,000. a. What is the realized and recognized gain on the sale of the land? b. How is the gain from the sale of the land allocated in the tax bases of the members?

Phoebe and Parker are equal members in the Phoenix Investment Group LLC. Phoebe contributed land with an A/B of $25,000 and a FMV of $90,000. Parker contributed $90,000 cash. They agreed to share profits and losses equally. Three years after the formation of the partnership, the land contributed by Phoebe was sold for $100,000. a. What is the realized and recognized gain on the sale of the land? b. How is the gain from the sale of the land allocated in the tax bases of the members?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 74P

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