Question: Same facts as in above example no . 5 with this additional information. Maria s $ 1 0 0 , 0 0 0 basis in

Same facts as in above example no.5 with this additional information. Marias $100,000 basis in her LLC interest included a $120,000 share of the LLCs liabilities. Rather than a cash distribution, the LLC paid off all its liabilities.
Discuss the tax consequences to Maria in this situation.

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