Business, 16.04.2020 23:15, GravityShifter13

During the current tax year, Dave and Stu formed the DS LLC with Dave contributing land with a basis of $360,000 and a fair market value of $600,000 at the contribution date. At the end of the year, the LLC distributes $300,000 of cash to Dave. The LLC made no distributions to Stu. Assume there were no other income or loss transactions for the year that would affect Dave's basis in his LLC interest. If an amount is zero, enter "O". a. Under general tax rules, the $300,000 would be treated as a distribution b. Under general tax rules, the income or gain that Dave recognizes as a result of the payment is $ C. Under general tax rules, what basis would the LLC take in the land Dave contributed? $ 360,000 d. The IRS might assert that the contribution and distribution transactions were, in effect: A disguised sale , and the basis the LLC would take in the land contributed e. and f. Under this treatment, Dave would recognize a gain of $ by Dave would be

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During the current tax year, Dave and Stu formed the DS LLC with Dave contributing land with a basis...