*********I need help with - C,D,and E only please.********

Problem 21-35 (c) (LO. 6, 7, 9, 10)

Seeley and Swan share equally in the profits, losses, and capital of the accrual basis SS Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Seeley is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Seeley's capital account has a balance of $815,000 and the LLC has debts of $192,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC recourse debt is shared equally between the partners. The following information about SS's operations for the current year is obtained from the LLC's records:

Ordinary income	$1,400,000
Interest income	42,000
Short-term capital loss	16,000
Long-term capital gain	59,000
Charitable contribution	12,000
Cash distribution to Seeley	62,000

Year-end LLC debt payable to unrelated parties is $120,000. Assume all transactions are reflected in her beginning capital account and tax basis in the same manner. All SS Products' activities are eligible for the qualified business income deduction. What is Seeley's basis in her LLC interest:

Question Content Area

a. Seeley's basis in the LLC interest at the beginning of the year is $fill in the blank 135e6bfde046009_1.

Question Content Area

b. Seeley's basis in the LLC interest at the end of the year is $fill in the blank ece86d027fac02b_1.

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c. What income, gains, losses, and deductions does Seeley report on her income tax return?

If an amount is zero, enter "0".

Ordinary income	$fill in the blank 47c1250c8f86fcf_1
Net long-term capital gain	$fill in the blank 47c1250c8f86fcf_2
Interest income	$fill in the blank 47c1250c8f86fcf_3
Charitable contribution deduction	$fill in the blank 47c1250c8f86fcf_4
Cash distribution	$fill in the blank 47c1250c8f86fcf_5

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d. Based on the information provided, what other calculations is Seeley required to make?

Seeley may be eligible to deduct up to fill in the blank cce8ff02ef96fee_1% of the ordinary income as qualified business income under 199A, and will make that calculation on her return. This deduction

doesdoes not

require a cash outflow by Seeley or the LLC, and it

doesdoes not

affect her basis or capital account. As someone treated as a general partner, Seeley's distributive share of the LLC's ordinary business income

isis not

subject to self-employment tax and possibly the additional Medicare tax. Her

capital gainnet investment incomeordinary income

from the LLC may be subject to the additional tax under 1411.

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e. Prepare Seeley's capital account rollforward from the beginning to the end of the tax year. How does her ending capital account differ from her ending basis as calculated in part (a)?

Capital account balance, beginning year			$fill in the blank 8f6cee014fa0f88_1
Ordinary income	$fill in the blank 8f6cee014fa0f88_2
Interest income	fill in the blank 8f6cee014fa0f88_3
Net long-term capital gain	fill in the blank 8f6cee014fa0f88_4
			fill in the blank 8f6cee014fa0f88_5
			$fill in the blank 8f6cee014fa0f88_6
Less:
Charitable contribution	$fill in the blank 8f6cee014fa0f88_7
Cash distribution to Seeley	fill in the blank 8f6cee014fa0f88_8
			fill in the blank 8f6cee014fa0f88_9
Capital account balance, end of year			$fill in the blank 8f6cee014fa0f88_10

Seeley's capital account differs from her basis only by the amount of her share of LLC

assetsliabilitieslossesgainsdistribution