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Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $44,000 of
Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $44,000 of accounts payable and no other debt. The current fair market value of Winterhaven's capital is $190,000. (Leave no answer blank. Enter zero if applicable.) a. If Connie receives a 5 percent capital interest only, how much income must she report and what is her tax basis in the LLC interest? Income Tax basis Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $44,000 of accounts payable and no other debt. The current fair market value of Winterhaven's capital is $190,000. (Leave no answer blank. Enter zero if applicable.) b. If Connie receives a 5 percent profits interest only, how much income must she report and what is her tax basis in the LLC interest? Income Tax basis Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $44,000 of accounts payable and no other debt. The current fair market value of Winterhaven's capital is $190,000. (Leave no answer blank. Enter zero if applicable.) c. If Connie receives a 5 percent capital and profits interest, how much income must she report and what is her tax basis in the LLC interest? Income Tax basis
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