Question

Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets:

		Basis		Fair Market
				Value
Kevan:
Cash	$	15,000		$	15,000
Land*		120,000			440,000
Totals	$	135,000		$	455,000

*Nonrecourse debt secured by the land equals $210,000

Each member received a one-third capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.)

Answer 1

Answer.

Particular. Kevan Other members.   

1. Basis on land contributed. 120000

2. Contribution of cash. 15000. 245000

3.Non recourse mortgage higher

Of basis in contributed land. 90000

4. Other non recourse mortgage. 40000. 40000

Thak you

Basis immediately prior to debt relief 265000 5) Relief from mortgage debt (210000) Each member's initial tax basis in the LLC 55000 285000 Gain or loss will Jerry, Dave and Kevan recognize on the contributions = 0 Kevan's tax basis in his LLC interest = $55,000 Tax basis Jerry and Dave have in their LLC interests = $285,000 each Albee LLC's tax basis in its assets = $625,000. Albee, LLC takes a $135,000 carryover basis in the assets Kevan contributes and a $490,000 the total cash the other two members contributed.

I hope you understand