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please... help and thank you thank you Moneymaker LLC was formed on January 1, 2020. John and Mary are equal general partners in the partnership
please... help and thank you thank you
Moneymaker LLC was formed on January 1, 2020. John and Mary are equal general partners in the partnership and each have a 50% Capital and Profits interest. John contributed $10,000 and Mary contributed land with a fair market value of $10,000 and a basis of $4,000. The partnership reported ordinary business income of $10,000 for 2019. On July 1, 2020, the partnership sold a section 1231 asset for a gain of $6,000. In addition, the partnership paid a non-deductible fine to IRS in the amount of $1,000. On August 1, 2020, the partnership took out a business loan of $20,000. Each partner received a cash distribution of $1,000 on December 31, 2020. Compute the end of the year outside adjusted tax basis for each partner. Description John-Adjusted Tax Basis Mary-Adjusted Tax Basis 0 Beginning Adjusted Tax Basis 0 Ending Adjusted Tax Basis Moneymaker LLC was formed on January 1, 2020. John and Mary are equal general partners in the partnership and each have a 50% Capital and Profits interest. John contributed $10,000 and Mary contributed land with a fair market value of $10,000 and a basis of $4,000. The partnership reported ordinary business income of $10,000 for 2019. On July 1, 2020, the partnership sold a section 1231 asset for a gain of $6,000. In addition, the partnership paid a non-deductible fine to IRS in the amount of $1,000. On August 1, 2020, the partnership took out a business loan of $20,000. Each partner received a cash distribution of $1,000 on December 31, 2020. Compute the end of the year outside adjusted tax basis for each partner. Description John-Adjusted Tax Basis Mary-Adjusted Tax Basis 0 Beginning Adjusted Tax Basis 0 Ending Adjusted Tax BasisStep by Step Solution
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