Georgio owns a 40 percent profits and capital interest in Rain Tree LLC. For the current year,
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Question:
Georgio owns a 40 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses:
Sales revenue | $ 80,000 |
---|---|
Gain on sale of land (1231) | 21,000 |
Cost of goods sold | (26,000) |
DepreciationMACRS | (3,000) |
179 deduction* | (10,000) |
Employee wages | (11,000) |
Nondeductible fines and penalties | (3,000) |
Municipal bond interest | 6,000 |
Short-term capital gains | 4,000 |
Guaranteed payment to Sandra | (3,000) |
*Assume the 179 property placed in service limitation does not apply.
a. How much ordinary business income (loss) is allocated to Georgio for the year?
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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