Determine charlottes share of luxurys income

Reference no: EM133612324

Question: Charlotte contributes land (basis $60,000, FMV $60,000) in exchange for a 40% share of the profits and losses of Luxury LLC, a calendar year LLC. In 2023, Luxury generates $200,000 of ordinary taxable income. Charlotte sold her interest in Luxury at the beginning of 2024 for $140,000. Determine (1) Charlotte's share of Luxury's income that should be reported on her 2023 tax return (2) Charlotte's gain on sale of her interest in Luxury in 2024.

Reference no: EM133612324

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