Question
Sweeney originally contributed $185,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the
Sweeney originally contributed $185,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLCs income was $110,000 and he withdrew $75000 cash. The LLCs liabilities are $91,000, of which Sweeneys share is $22,750. The LLC has $45,500 of hot assets, of which Sweeneys share is $11,375. Sweeney sells his LLC interest to Jana for $200,000 cash, with Jana assuming Sweeneys share of the LLCs liabilities.
How much is Sweeneys gain on the sale, and how much is recognized as ordinary income? How much is Janas adjusted basis for her LLC interest?
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2001 Innovative Ways To Save Your Company Thousands By Reducing Costs A Complete Guide To Creative Cost Cutting And Boosting Profits
Authors: Cheryl L. Russell
1st Edition
0910627770, 978-0910627771
