Feela is a one-third owner of Alchemy LLC, which is taxed as a partnership. Her basis prior
Question:
Feela is a one-third owner of Alchemy LLC, which is taxed as a partnership. Her basis prior to Alchemy paying Feela an $11,000 cash distribution is $6,000. How much income does Feela recognize from the distribution and what is her basis in her interest in Alchemy after the distribution?
a. $11,000 income and $6,000 basis
b. $6,000 income and $5,000 basis
c. $5,000 income and $0 basis
d. $0 income and negative $5,000 basis
e. None of these choices
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Income Tax Fundamentals 2023
ISBN: 9780357719527
41st Edition
Authors: Gerald E. Whittenburg, Steven Gill
Question Posted: