R and J form an LLC. R transfers cash for 50% ownership in the LLC. J receives 50% ownership in the LLC's in return for services. 2 Explain the tax consequences to J if the ownership interest she receives is a capital and profits interest in the LLC a. b. Explain the tax consequences to J if the ownership interest she receives is really only an interest in future profits of the LLC. R and J form an LLC. R transfers cash for 50% ownership in the LLC. J receives 50% ownership in the LLC's in return for services. 2 Explain the tax consequences to J if the ownership interest she receives is a capital and profits interest in the LLC a. b. Explain the tax consequences to J if the ownership interest she receives is really only an interest in future profits of the LLC