Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kenisha and Shawna form the equal KS LLC, with a cash contribution of $726,000 from Kenisha and a property contribution (adjusted basis of $762,300, fair
Kenisha and Shawna form the equal KS LLC, with a cash contribution of $726,000 from Kenisha and a property contribution (adjusted basis of $762,300, fair market value of $726,000 ) from Shawna. If an amount is zero, enter " 0 ". 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? Shawna has realized of $ , of which is recognized. b. What is Kenisha's tax basis in her LLC interest? \$ The 704(b) book basis? \$ c. What is Shawna's tax basis in her LLC interest? \$ The 704(b) book basis? \$ d. What tax basis does the LLC take in the property transferred by Shawna? e. Are there more effective ways to structure the formation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started