Question
Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $52,000 of
Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $52,000 of accounts payable and no other debt. The current fair market value of Winterhavens capital is $200,000.
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?
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Auditing With The Computer
Authors: Wayne S. Boutell
1st Edition
0520363329, 978-0520363328
