Assignment:

Kyle, Kenny, Stan, and Eric own equal interests in the capital and profits of an LLC that is taxed as a partnership. The LLC is a calendar-year taxpayer. For each of the following scenarios, determine (i) whether or not the LLC terminates and (ii) the tax consequences to the members:

e. Kyle and Kenny sell their entire interests to Stan and Eric, respectively, on the same day. Would your answer be different if Kyle sells his interest six months after Kenny sells his interest? One year and six months after Kenny sells his interest?

f. Kyle sells his interest to Kenny, and, six months later, Kenny sells Kyles interest to Stan. Would your answer be different if Kenny sells Kyles interest to Mr. Garrison?

g. Kyle and Kenny each sell their entire interest in the LLCs capital but only half of their respective interests in the partnerships profits.

h. The partnership completely liquidates Kyles and Kennys interests on the same day.