Question
Shemar owns an 80-percent interest in an LLC that is taxed as a partnership. Shemar is not involved in any of the LLC's business management.
Shemar owns an 80-percent interest in an LLC that is taxed as a partnership. Shemar is not involved in any of the LLC's business management. The LLC has net ordinary income from business activities of $70,000, qualified dividends of $1,550, a long-term capital gain on sale of stock of $2,000 (the stock had been held by Shemar for 5 years before he contributed it to the LLC), and a $3,000 short-term capital loss on publicly traded stock bought and sold in the LLC. What pages and/or schedules of his Form 1040 would Shemar use to report the amounts that flow through to him from the LLC?
a.Schedule B and Schedule D
b.Schedule C, Schedule D, and Schedule B
c.Schedule D and Schedule E
d.Schedule B, Schedule D, and Schedule E
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