What is Padgett tax basis in the land

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Question - When Padgett Properties LLC was formed, Nova contributed land (value of $291,000 and basis of $72,750) and $145,500 cash, and Oscar contributed cash of $436,500. Both members received a 50% interest in LLC profits and capital. How is the land recorded for § 704(b) book capital account purposes?

What is Padgett's tax basis in the land?

If Padgett sells the land several years later for $436,500, how much tax gain will Nova and Oscar report?

Reference no: EM133061157

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