Lance contributed investment property worth $705,000, purchased Four years ago for $430,000 cash, to Cloud Peak...

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Lance contributed investment property worth $705,000, purchased Four years ago for $430,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits and capital interest in the LLC. Cloud Peak owes $525,000 to its suppliers but has no other debts. a. What is Lance's tax basis in his LLC interest? Tax basis c. What is Cloud Peak's basis in the contributed property? Basis Laurel contributed equipment worth $120,000, purchased 9 months ago for $136,500 cash and used in her sole proprietorship, to Sand Creek LLC in exchange for a 35 percent profits and capital interest in the LLC. Laurel agreed to guarantee all $10,200 of Sand Creek's accounts payable, but she did not guarantee any portion of the $60,000 nonrecourse mortgage securing Sand Creek's office building. Other than the accounts payable and mortgage, Sand Creek does not owe any debts to other creditors. a. What is Laurel's initial tax basis in her LLC interest? Tax basis c. What is Sand Creek's initial basis in the contributed property? Initial basis Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y Mountain partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by $142,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) a. How much gain will Cosmo recognize from the contribution? Gain recognized b. What is Cosmo's tax basis in his partnership interest? Tax basis Lance contributed investment property worth $705,000, purchased Four years ago for $430,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits and capital interest in the LLC. Cloud Peak owes $525,000 to its suppliers but has no other debts. a. What is Lance's tax basis in his LLC interest? Tax basis c. What is Cloud Peak's basis in the contributed property? Basis Laurel contributed equipment worth $120,000, purchased 9 months ago for $136,500 cash and used in her sole proprietorship, to Sand Creek LLC in exchange for a 35 percent profits and capital interest in the LLC. Laurel agreed to guarantee all $10,200 of Sand Creek's accounts payable, but she did not guarantee any portion of the $60,000 nonrecourse mortgage securing Sand Creek's office building. Other than the accounts payable and mortgage, Sand Creek does not owe any debts to other creditors. a. What is Laurel's initial tax basis in her LLC interest? Tax basis c. What is Sand Creek's initial basis in the contributed property? Initial basis Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y Mountain partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by $142,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) a. How much gain will Cosmo recognize from the contribution? Gain recognized b. What is Cosmo's tax basis in his partnership interest? Tax basis

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Answer Part 1 a Lances tax basis in his LLC Interest 430000 52500085 ... View the full answer