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Year is 2019. Need help for box 14A. Thanks! Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM
Year is 2019. Need help for box 14A. Thanks!
Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $864,000, and the LLC has debts of $561,600 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records. Operating income* W-2 wages Depreciation expense Interest income $1,296,000 200,000 300,000 12,960 8,640 25,920 13,010 64,800 Long-term capital loss Long-term capital gain Charitable contribution (cash) Cash distribution to Amy Unadjusted basis of partnership depreciable property immediately after acquisition 1,600,000 * Operating income equals revenue less operating expenses (other than expenses listed separately above). Year-end LLC debt payable to unrelated parties is $393,120. Assume that all transactions are reflected in Amy's beginning capital and basis in the same manner. Also assume that all AM Products' activities are eligible for the qualified business income deduction. General partner or LLC member- Limited partner or other LLC manager member HI Domestic partner Foreign partner H2 If the partner is a disregarded entity (DE), enter the partner's: TIN Name 8 Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 8,640 18 Tax-exempt income and nondeductible expenses 11 What type of entity is this partner? Individual A 12 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here o 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) Partner's share of profit, loss, and capital (see instructions): Beginning Ending Profit 50 % 50 % 11 Other income (loss) 19 Distributions A 64,800 Loss 50 % 50 % Capital 50 % 50 % Check if decrease is due to sale or exchange of partnership interest 12 Section 179 deduction 20 Other information A 6,480 13 Other deductions A Z* STMT QBI 6,505 398,000 Ending W-2 wages K Partner's share of liabilities: Beginning Nonrecourse $ 280,800 Qualified nonrecourse $ financing 196,560 100,000 UBIA 800,000 Recourse $ Check this box if Item k includes liability amounts from lower tier partnerships. 14 Self-employment earnings (loss) A L Partner's capital account analysis: Beginning capital account $ 864,000 Capital contributed during the year. . 21 - More than one activity for at-risk purposes* 22 More than one activity for passive activity purposes* $ Current year net income (loss)..... $ 406,615 *See attached statement for additional information. $ Other increase (decrease) (attach explanation) Withdrawals & distributions $ 64,800 ) Ending capital account $ 1,205,815 M Did the partner contribute property with a built-in gain or loss? Yes No If "Yes," attach statement. See instructions. N Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning capital account ......... Ending .... $ $Step by Step Solution
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