What is padgetts tax basis in the land

Reference no: EM13944408

When Padgett Properties LLC was formed, Nova contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Oscar contributed cash of $300,000. Both members received a 50% interest in LLC profits and capital.

a. How is the land recorded for § 704(b) book capital account purposes?

b. What is Padgett's tax basis in the land?

c. If Padgett sells the land several years later for $300,000, how much tax gain will Nova and Oscar report?

Reference no: EM13944408

Questions Cloud

Evaluate the leadership decision : Your project must include the following: •Research a leadership decision that was ineffective or did not lead to desired results. •Evaluate the leadership decision including why and how it was made.

Describes the wide variety of dog species : Which of the following concepts best describes the wide variety of dog species we observe, ranging from the domesticated golden retriever or the basset hound, to the wild dogs of Africa, to foxes

How definition of happiness is different than philosopher : What do you think of Aristotle's conclusion that the good life is a life of intellectual contemplation? Are there other ways of life that could bring happiness?

Identify a tourism or hospitality enterprise : Identify a tourism or hospitality enterprise that you are familiar with (e.g. that you work for, or have a good understanding of its operations)

What is padgetts tax basis in the land : What is Padgett's tax basis in the land? If Padgett sells the land several years later for $300,000, how much tax gain will Nova and Oscar report?

Majority of americans find gay-lesbian relations : Does this sample provide evidence that the majority of Americans find gay/lesbian relations "morally acceptable"? Describe how you could generate a single randomization sample in this situation, and identify the statistic that you would calculate ..

Explain process of photosynthesis and why it is important : Explain the process of photosynthesis and why it is important. What happens during photosynthesis in areas that have a change of seasons

What is the value of the maximum flow : Here is a flow network. Trace the execution of the Edmonds-Karp algorithm to find the maximum flow. Draw a separate picture for each augmenting step - clearly showing the residual graph and the flow network. What is the value of the maximum flo..

What amount of loss may roadrunner recognize on distribution : Roadrunner Corporation never used the land for business purposes during the time it owned the property. What amount of loss may Roadrunner recognize on the distribution of the land?

User Account

All Pages