How much are henriettas realized and recognized gains

Assignment Help Taxation

Reference no: EM13944424

Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. In 2015, the LLC generates $80,000 of ordinary taxable income. Enercio withdrew $10,000 from the partnership during 2015. Enercio is taxed on what amount of the LLC's 2015 income? On how much of the $10,000 distribution will Enercio be taxed?

Henrietta transfers cash of $75,000 and equipment with a fair market value of $25,000 (basis to her as a sole proprietor, $10,000) in exchange for a 40% profit and loss interest worth $100,000 in a partnership.

a. How much are Henrietta's realized and recognized gains?

b. What is the amount of Henrietta's basis in her partnership interest?

c. What is the partnership's basis in the contributed equipment?

Reference no: EM13944424

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