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Amy and Mitchell share equally (50% each) in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member
Amy and Mitchell share equally (50% each) in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC. At the beginning of the current tax year, Amy's outside basis in the LLC is $240,000, including her $100,000 share of partnership liabilities. The following information about AM's operations for the current year 21 represents Amy's allocated 50% share Ordinary income W-2 wages to employees Depreciation expense Other ordinary expenses 1,300,000 525,000 700,000 200,000 7,000 Interest income Short-term capital loss 10,500 21,000 7,000 50,000 Dividend income Charitable contribution (cash) Cash distribution to Amy During the year, all of the partnership debt has been repaid. a. Calculate Amy's ending outside basis - show all work b. How much of the losses are deductible by Amy for the year? c. What items are suspended for the year
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