******I NEED ONLY C,D,and E answered. Thanks.******

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

Hayden and Hedvig share equally in the profits, losses, and capital of the accrual basis HH LLC. The LLC does not need to report financial information to any third parties, so captial accounts are determined using tax rules (rather than GAAP). Hayden is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current year, Hayden's capital account has a balance of $1,420,000, and the LLC has debts of $412,000 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 debt is shared equally between the partners. The following information about HH's operations for the current year is obtained from the LLC's records:

Ordinary income	$2.800,000
Interest income	122,000
Short-term capital loss	56,000
Long-term capital gain	110,000
Charitable contribution	36,800
Cash distribution to Hayden	209,000

Year-end LLC debt payable to unrelated parties is $376,000. Assume all transactions are reflected in his beginning capital account and tax basis in the same manner. All HH LLC's activities are eligible for the qualified business income deduction. What is Hayden's basis in his LLC interest:

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a. Hayden's basis in the LLC interest at the beginning of the year is $fill in the blank f7578ef31017052_1.

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A partner's basis in the LLC interest is important for determining the treatment of distributions from the LLC to the partner, establishing the deductibility of LLC losses, and calculating gain or loss on the partner's disposition of the LLC interest. After the partner is admitted to the LLC, the partner's basis is adjusted for numerous items.

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b. Hayden's basis in the LLC interest at the end of the year is $fill in the blank e3c42eff3f92024_1.

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Correct

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c. What income, gains, losses, and deductions does Hayden report on his income tax return?

If an amount is zero, enter "0".

Ordinary income	$fill in the blank 04825d02f06204e_1
Net long-term capital gain	$fill in the blank 04825d02f06204e_2
Interest income	$fill in the blank 04825d02f06204e_3
Charitable contribution deduction	$fill in the blank 04825d02f06204e_4
Cash distribution	$fill in the blank 04825d02f06204e_5

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Partially correct

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

Hayden may be eligible to deduct up to fill in the blank 6a8a67fbe029021_1% of the ordinary income as qualified business income under 199A, and will make that calculation on his return. This deduction

doesdoes not

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

doesdoes not

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

isis not

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

capital gainnet investment incomeordinary income

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

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Incorrect

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

Capital account balance, beginning year			$fill in the blank fcd7df01a07d004_1
Ordinary income	$fill in the blank fcd7df01a07d004_2
Interest income	fill in the blank fcd7df01a07d004_3
Net long-term capital gain	fill in the blank fcd7df01a07d004_4
			fill in the blank fcd7df01a07d004_5
			$fill in the blank fcd7df01a07d004_6
Less:
Charitable contribution	$fill in the blank fcd7df01a07d004_7
Cash distribution to Hayden	fill in the blank fcd7df01a07d004_8
			fill in the blank fcd7df01a07d004_9
Capital account balance, end of year			$fill in the blank fcd7df01a07d004_10

Hayden's capital account differs from his basis only by the amount of his share of LLC

assetsliabilitieslossesgainsdistribution