V6. Sean Grey acquired a 30% interest in Beau Grey Productions, LLC several years ago for $48,000. He does not materially participate in the business. At the beginning of 2021, Sean has a tax basis in his LLC interest of $20,000. In 2021, Beau Grey incurred a loss of $180,000 and did not make any distributions to its members. Compute the loss from Beau Grey which Sean can deduct on his return for 2021 assuming that he has rental property from which he has net income of $8,500.

V6. Sean Grey acquired a 30% interest in Beau Grey Productions, LLC several years ago for $48,000. He does not materially participate in the business. At the beginning of 2021, Sean has a tax basis in his LLC interest of $20,000. In 2021, Beau Grey incurred a loss of $180,000 and did not make any distributions to its members. Compute the loss from Beau Grey which Sean can deduct on his return for 2021 assuming that he has rental property from which he has net income of $8,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Rachel purchased blue corp stock for 10,000 in 2014. Rachel sells the stock to her sister for 2,000 in 2018. In 2020, her sister sells the bonds for 25,000 to a non relative. What is the amount of her sister's taxable gain? a. 0 b. 15000 c. 23000 d. 25000
Auntie sold some stock she purchased several years ago for $10,000 to Niece for $6,000. I. If this is Auntie's only stock transaction, she can deduct only $3,000 of the loss. II. If Niece sells the stock for $10,000, her taxable gain is $4,000. What is correct?
Betty sells an interest in a passive activity for $100,000. Her adjusted basis is $70,000 and losses from prior years that were not deductible due to the passive activity loss restrictions total $40,000. The tax effects of the sale are: Gain $30,000 O Gain $60,000 O Loss $10,000 O No gain, No loss.
Mark purchased 100 shares of PQR Mutual Fund stock on April 13, 2022 for $1,000. He received a capital gain distribution of $100 in 2022, but he did not sell his shares of the mutual fund during the year. The $100 was reported to him on Form 1099-DIV. How is this reported on his tax return?
Three years ago Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return? Assume the same facts as in part (1) except that on Jan 20 of year 5, Adrian purchases 100 shares of X corp. stock for $6,000. How much loss from the sale on December 30 of year 4 is deductible on Adrian’s year 4 tax return? What basis does Adrian take in the stock purchased on Jan 20 of year 5?
Bruno, an individual, is the sole shareholder of Green Corporation. On January 1, 2019, Bruno decided to liquidate Green Corporation. At the date of liquidation, Green Corporation had assets with a FMV of $2,500,000 and a basis of $1,800,000. Green Corporation’s earnings and profits at the date of liquidation were $2,000,000. Bruno’s basis in Green Corporation stock is $900,000. 1. What tax impact does the liquidation have on Green Corporation? 2. What tax impact does the liquidation have on Bruno (Assume tax rate of 23.8%) 3. How would your answer change if Bruno was a C-Corporation instead of an individual?
Julia has invested her profits from the last several years with BF Dutton, Inc. and has provided the Forms 1099 INT and 1099DIV for 2022 for her investment income. She has no other income for 2022 and did not receive any Forms 1099 B. Julia's Taxable Income for 2022 is: $216, 736 $267,848 $270,442 $218, 811
Subject:
Assume Nathalie dies today. Based on their current situation, what asset would be subject to probate fees?a) nathalie's spousal and individual RRSPb) nathalie's cottagec) Nathalie 50% ownership interest in the couple's principsi residence and their joint investment account.d) nathalie's death will not result in tax liability this year.
Jackson is the sole owner of JJJ Corporation (an S corporation). At the beginning of 2022, Jackson's basis in his JJJ stock was $8,000. For 2022, JJJ reported a ($30,000) ordinary business loss (not a passive loss) and $4,000 of long-term capital gains. Assuming Jackson's tax basis and his at-risk amount are the same, what is Jackson's stock basis at the end of the year and how much of the ordinary business loss is he allowed to deduct in 2022?
Lisa sells business property with an adjusted basis of $132,000 to her son, Alfred, for its fair market value of $105,600. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss of which $___________is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.
Jose is married filing a joint return. In 2022, he earned $160,000 of profit from his sole proprietorship, which operates a service business. The business paid no W-2 wages in 2022 and owns no tangible business property. Compute Jose’s allowable QBI deduction if his joint return includes his spouse's salary and reflects taxable income of $300,000 before the deduction. Hint: the correct answer should be $29,749