In October, 2010, Husband formed an LLC (of which he has always been the sole member), and on November 1, 2010, Husband’s LLC purchased from an unrelated seller a 12-unit mini-storage building for $70,000, $50,000 of which was borrowed through a recourse mortgage that Husband personally guaranteed. The $70,000 cost basis was allocated $50,000 to the building and $20,000 to the land beneath the building. Husband’s LLC sold the land and building to an unrelated buyer on June 30, 2019, for $105,000 (which was properly allocated $70,000 to the building and $35,000 to the land). At the closing of the sale, Taxpayers paid off the remaining balance of the mortgage (which was $32,000).

How much total gross income would the man have with a base salary of $205,000?

Answer rating: 100% (QA)

The Total Gross Income are a... View the full answer