Question
Kristie is a 25% member in the KLM LLC. At the end of the year, KLM has accounts payable of $60,000 (recourse to the LLC
Kristie is a 25% member in the KLM LLC. At the end of the year, KLM has accounts payable of $60,000 (recourse to the LLC but not guaranteed by the LLC members), and a nonrecourse debt related to real estate of $300,000 (that debt meets the at risk limitation requirements). In addition, Kristie personally guaranteed a $50,000 liability for KLMs equipment purchases. Which one of the following shows the information that should be reported on Kristies Schedule K-1 for the year?
a. | $50,000 recourse debt, $15,000 nonrecourse debt, $75,000 qualified nonrecourse debt. | |
b. | $90,000 nonrecourse debt. | |
c. | $90,000 nonrecourse debt, $12,500 recourse debt. | |
d. | $65,000 recourse debt, $75,000 qualified nonrecourse debt. | |
e. | $15,000 recourse debt, $75,000 qualified nonrecourse debt. |
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