Question: Jonathan owns 100 of Lemon Company In the current year

Jonathan owns 100% of Lemon Company. In the current year, Lemon recognizes a long-term capital gain of $70,000 and no other income (or loss). Jonathan is in the 33% tax bracket and has no recognized capital gains (or losses) before considering his ownership interest in Lemon Company. What is the income tax result from the $70,000 if Lemon is:
a. An LLC? (No election has been filed under the check-the-box Regulations.)
b. A C corporation?

View Solution:

Sale on SolutionInn
  • CreatedSeptember 09, 2015
  • Files Included
Post your question