Question 21 Raja and Brady form and LLC that is treated as a partnership for federal income tax purposes Raja contributes property with a tax basis of $900 and fair market value of $1,600 In return Raja receives a 40 ownership interest in the LLC Brady contributes property with a tax basis of $1,400 and fair market value of $2,400 In return Brady receives a 60 ownership interest in the LLC The LLC has no liabilities a How much gain or loss does Raja realize b How much gain or loss does Raja recognize c What is Rajas initial outside basis d What is the LLCs tax basis (inside basis) in the property contributed by Raja e What is Bradys initial outside basis f What is Bradys initial book capital account balance Show your calculation

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Question  21   Raja and Brady form and LLC that is treated as a partnership for federal income tax purposes  Raja contributes property with a tax basis of $900 and fair market value of $1,600  In return Raja receives a 40  ownership interest in the LLC  Brady contributes property with a tax basis of $1,400 and fair market value of $2,400  In return Brady receives a 60  ownership interest in the LLC  The LLC has no liabilities  a  How much gain or loss does Raja realize  b  How much gain or loss does Raja recognize  c  What is Rajas initial outside basis  d  What is the LLCs tax basis (inside basis) in the property contributed by Raja  e  What is Bradys initial outside basis  f  What is Bradys initial book capital account balance  Show your calculation

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Question #21 . Raja and Brady form and LLC that is treated as a partnership for federal income tax purposes. Raja contributes property with a

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