The land bob contributed for 59000 how much gain loss

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the land Bob contributed for $59,000. How much gain (loss) related to this transaction will Bob report on his X4 return? Multiple Choice $8,000. $12,000. $26,000. Correct $34,000. Explanation The original $22,000 of built-in gain on the contributed land must be allocated to the contributing partner—Bob. The remaining $8,000 of gain must be allocated equally between Frank and Bob. Thus, Bob will report $26,000 gain ($22,000 + (50% × $8,000)) from this transaction on his return.
Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by contributing cash, property, or both. In addition to the members' contributions, their LLC will obtain a $53,000 nonrecourse loan from First Bank at the time it is formed. Brett contributes cash of $6,500 and a building he bought as a storefront for the motorcycles. The building has a FMV of $48,000, an adjusted basis of $33,000, and is secured by a $38,000 nonrecourse mortgage that the LLC will assume. What is Brett's outside tax basis in his LLC interest?
$44,500. $45,500. $49,500. Correct Explanation A contributing partner's outside basis initially consists of the basis of contributed property less any debt relief plus any partnership debt allocated to the partner. When allocating nonrecourse debt secured by the contributed property, any nonrecourse debt that exceeds the basis of the contributed property must be allocated solely to the partner that contributed the property. Any remaining nonrecourse debt is allocating according to the partners' profit sharing ratios. [$6,500 (cash) + $33,000 (basis of building) − $38,000 (debt on building) + $26,500 (50% profit sharing ratio × $53,000 nonrecourse bank loan) + $5,000 (nonrecourse mortgage less basis of contributed property) + $16,500 (50% × $33,000 remaining mortgage on building) = $49,500] Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $26,000 of cash and land with a FMV of $71,000. Her basis in the land is $36,000. Andrew contributes equipment with a FMV of $28,000 and a building with a FMV of $49,000. His basis in the equipment is $24,000, and his basis in the building is $36,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?
$48,000. $52,000. Explanation Partnerships don't recognize any gain on the receipt of contributed appreciated property. The built-in gain or built-in loss will be reported at the time of disposition of the asset. To ensure this result, the partnership's basis in the acquired property is a carryover basis.

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