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Kolo Ren is a 40% member in Praetorian LLC. At the beginning of the tax year. ylo Ren's capital account showed a balance of $120,000.
Kolo Ren is a 40% member in Praetorian LLC. At the beginning of the tax year. ylo Ren's capital account showed a balance of $120,000. In this case, his capital account equals his basis in the LLC interest excluding his share of the LLC's debts. His K-1 showed recourse debt (guaranteed by Kylo Ren) and nonrecourse debt of S10,000 and $20,000, respectively. During the current year, Praetorian reported net ordinary income of $200,000 and non-deductible expenses of $2,000. There were no distributions during the year. At the end of the year, Kyle Ren's share of recourse (guaranteed) and nonrecourse liabilities were $20,000 and $30,000, respectively. How much is Kylo Ren's basis in the LLC interest at the end of the year
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