Question
Kenisha and Shawna form the equal KS LLC with a cash contribution of $758,000 from Kenisha and a property contribution (adjusted basis of $795,900, fair
Kenisha and Shawna form the equal KS LLC with a cash contribution of $758,000 from Kenisha and a property contribution (adjusted basis of $795,900, fair market value of $758,000) from Shawna.
a. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much?
b. What is Kenisha's basis in her LLC interest?
c. What is Shawna's basis in her LLC interest?
d. What basis does the LLC take in the property transferred by Shawna?
e. Are there more effective ways to structure the formation? Explain.
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aTo calculate the realized gain or loss of Shawna on the transfer Adjusted B...
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South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
Authors: James Smith, William Raabe, David Maloney, James Young
18th Edition
9781285438290, 1285439740, 1285438299, 978-1285439747
