Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $8,500 outside basis, (2) Joe, a member with a 45% profits and capital interest and a $13,500 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $5,500 outside basis. The following items were reported on Styling's Schedule K for the year: ordinary income of $107,000, Section 1231 gain of $18,500, charitable contributions of $28,500, and tax-exempt income of $6,500. In addition, Styling received an additional bank loan of $15,500 during 20X8. What is Jane's tax basis after adjustment for her share of these items?
ANSWER
Particulars | Jane | Joe | Jack | |
25% | 45% | 30% | ||
Initial Basis | $8,500 | $13,500 | $5,500 | |
Operating Income | $ 107,000 | $ 26,750.00 | $ 48,150.00 | $ 32,100.00 |
1231 Gain | $ 18,500 | $ 4,625.00 | $ 8,325.00 | $ 5,550.00 |
Tax - Exempt income | $ 6,500 | $ 1,625.00 | $ 2,925.00 | $ 1,950.00 |
Additional debt | $ 15,500 | $ 3,875.00 | $ 6,975.00 | $ 4,650.00 |
Charitable Contribution | $ (28,500) | $ (7,125.00) | $ (12,825.00) | $ (8,550.00) |
Total | $ 38,250.00 | $ 67,050.00 | $ 41,200.00 |
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Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members...
Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $11,000 outside basis, (2) Joe, a member with a 45% profits and capital interest and a $16,000 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $8,000 outside basis. The...
Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $11.500 outside basis. (2) Joe, a member with a 45% profits and capital interest and a $16,500 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $8.500 outside basis. The...
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
separately
[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...