Business
Business, 21.12.2019 01:31, Ashley606hernandez

Wozniacki and wilcox form jewel llc, with wozniacki receiving a one-half interest in the capital and wilcox receiving a one-half interest in the capital of the llc. (ignore any profits interest for this problem.) wozniacki receives his one-half interest as compensation for tax planning services he rendered prior to the formation of the llc. wilcox contributes $50,000 cash. the value of a one-half capital interest in the llc (for each member) is $50,000.

a. how much income does wozniacki recognize as a result of this transaction, and what is the character of the income?
b. how much is wozniacki’s basis in the llc interest?
c. how will jewel treat this amount?

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Wozniacki and wilcox form jewel llc, with wozniacki receiving a one-half interest in the capital and...

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