Assume the same facts as in Problem 53. Assume that Burgundy, Inc.s annual guaranteed payment is increased
Question:
Assume the same facts as in Problem 53. Assume that Burgundy, Inc.’s annual guaranteed payment is increased to $120,000 starting on January 1, 2015, and the LLC’s taxable income for 2014 and 2015 (after deducting Burgundy’s guaranteed payment) is the same (i.e., $80,000 and $90,000, respectively). What is the amount of income from the LLC that Burgundy, Inc., must report for its tax year ending April 30, 2015?
Data Ftom Problem 53:
Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy, Inc.) is $80,000 for 2014 and $90,000 for 2015.
Step by Step Answer:
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young