Question
Keyarrow and Morgan form the equal ownership Baby LLC with a cash contribution of $360,000 from Keyarrow and a property contribution (adjusted basis of $380,000
Keyarrow and Morgan form the equal ownership Baby LLC with a cash contribution of $360,000 from Keyarrow and a property contribution (adjusted basis of $380,000 & fair market value of 360,000) from Morgan.
1. How much gain or loss, if any does Morgan realize on the transfer? Does Morgan recognize any gain or loss? If so, how much?
2. What is Morgans tax basis in her LLC interest? What is the section 704(b) book basis?
3. What tax basis does the LLC take in the property transferred by Morgan?
4. Are there more effective ways to structure this formation? Explain the problem if you can identify it and explain how to structure this transaction to avoid this problem.
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Audit Of The Financial Stability Oversight Councils Designation Of Financial Market Utilities Report To The Financial Stability Oversight Council And The Congress
Authors: The Council Of Inspectors General On Financial Oversight
1st Edition
1503369331, 978-1503369337
