Two years ago, Marcus contributed land with a basis of $6,000 and a fair market value of $20,000 in exchange for a 30% i
Posted: Thu Apr 28, 2022 11:12 am
Two years ago, Marcus contributed land with a basis of $6,000
and a fair market value of $20,000 in exchange for a 30% interest
in the MNO LLC. The partnership has no hot assets. This year when
the value was $25,000, that property was distributed to Jamal whose
basis in the LLC interest was $50,000 before the distribution.
Marcus recognizes a gain of $14,000 and increases his basis in his
LLC interest by that same amount; Jamal takes a $20,000 basis in
the distributed property.
true or false
and a fair market value of $20,000 in exchange for a 30% interest
in the MNO LLC. The partnership has no hot assets. This year when
the value was $25,000, that property was distributed to Jamal whose
basis in the LLC interest was $50,000 before the distribution.
Marcus recognizes a gain of $14,000 and increases his basis in his
LLC interest by that same amount; Jamal takes a $20,000 basis in
the distributed property.
true or false