What is padgetts tax basis in the land

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When Padgett Properties LLC was formed, Nova contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Oscar contributed cash of $300,000. Both members received a 50% interest in LLC profits and capital.

a. How is the land recorded for § 704(b) book capital account purposes?

b. What is Padgett's tax basis in the land?

c. If Padgett sells the land several years later for $300,000, how much tax gain will Nova and Oscar report?

Reference no: EM13944408

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