Question

Tom is talking to his friend Bob, who has an interest in Freedom, LLC. about purchasing his LLC interest. Bob's outside basis in Freedom, LLC is $15.000. This includes his $3.500 one-fourth share of the LLC's debt. Bob's 704(6) capital account is $22.000. If Tom bought Bob's LLC interest for $27,000, what would Tom's outside basis be in Freedom, LLC? Multiple Choice $15.000 O $23.500 O $27,000 O $30,500

Answer 1

solution D Tom's outside basis be in freedom LLC ? Amount paid for Interest to share of Lle's Debt 27000 + 3500 - 73500

Brett's outside tax basis in his LLC Interest = cash paid + Adjusted basis + Brett Loan portion & [ secured amount -adjusted basis] + [ Brett's portion in adjusted basis] - searred Loan 4600 + 78000 + 14.8000 X 504]+( 33000 – 28000] + ( 28000X50%) – 33000 = 42600