Suzy contributed assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest...
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Suzy contributed assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest in Suz-Anna GP (a general partnership). Anna contributed land and a building valued at $640,000 (basis of $380,000) in exchange for the remaining interest. Anna's property was encumbered by a qualified nonrecourse debt of $100,000, which was assumed by the partnership. The partnership reports the following income and expenses for the current tax year.
Sales $560,000 Utilities, salaries, and other operating expenses 360,000 Short-term capital gain 10,000 Tax-exempt interest income 4,000 Charitable contributions 8,000 Distribution to Suzy10,000 Distribution to Anna 20,000
At the end of the year, Suz-Anna held recourse debt of $100,000 for partnership accounts payable and qualified nonrecourse debt of $200,000.
Assume that Suz-Anna was formed as an LLC.
Suzy's ending basis in the LLC interest is $.
and the amount at risk in her LLC interest is $
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