ABC, LLC partnership is owned by A (50%), B(25%) and C(25%). 

Land: Proceeds of 500,000; Basis of 300,000

Building: Proceeds of 100,000; Basis of 250,000; Depreciation of 125,000

Equipment: Proceeds of 60,000; Basis of 30,000; Depreciation of 20,000

 

A has no other 1231 activity outside of ABC, LLC. B has a 1231 gain from another source in the amount of $50,000. In the most previous year, B had an overall 1231 loss of $10,000. C has 1231 activity from other sources as follows: DEF, Ltd. 60,000 QRS, LLC (10,000).

What amount, if any, of ordinary income will ABC, LLC recognize?

Answer rating: 100% (QA)

To determine the amount of ordinary income that ABC LLC will recognize we need to calculate the gain ... View the full answer