Sweeney originally contributed $310,000 in cash for a one-fourth interest in the Gilbert LLC. During the...
Sweeney originally contributed $310,000 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 LLC's income was $186,000 and he withdrew $124,000 cash. The LLC's liabilities are $155,000, of which Sweeney's share is $38,750. The LLC has $77,500 of hot assets, of which Sweeney's share is $19,375. Sweeney sells his LLC interest to Jana for $409,200 cash, with Jana also assuming Sweeney's share of the LLC's liabilities.
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How much is Sweeney's gain on the sale, and what is its character?
Sweeney's total gain on the sale is $ , of which $ recognized as ordinary income, with the remaining $ recognized as a long-term capital gain.
How much is Jana's adjusted basis for her LLC interest?
$
Homework Answers
ANSWER
409,200 +38,750=447,950
310,000 +186,000 -124,000 =372,000
372,000+38,750=410,750
Gain on sale=447,950-410,750=37,200
Adjusted basis=409,200 +38,750=447,950
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Sweeney originally contributed $310,000 in cash for a one-fourth interest in the Gilbert LLC. During the...
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Sweeney originally contributed $302,000 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 LLC's income was $181,200 and he withdrew $120,800 cash. The LLC's liabilities are $151,000, of which Sweeney's share is $37,750. The LLC has $75,500 of hot assets, of which Sweeney's share is $18,875. Sweeney sells his LLC interest to Jana for $398,640 cash, with Jana also assuming Sweeney's share of...
Sweeney originally contributed $302,000 in cash for a one-fourth interest in the Gilbert LLC. During the...
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