Answer:
See below
Explanation:
Business refers to the practice of producing or purchasing goods and services for sale to make a profit. It is the act of engaging in commercial activities of buying and selling products and services for profits.
Business entails individuals and companies' activities of supplying desired products and services to customers with profit motives. A businessperson identifies a need in the community. He or she sells to the community goods or services that satisfy that need a higher price to make a profit.
Answer:
$42,000
Explanation:
Computation of Brett's outside tax basis in his LLC interest.
Contributing partner's outside basis can be seen as a basis which is consists of the amount of the basis of the contributed property minus any debt relief plus any of the partnership debt which was allocated to the partner.
Therefore When there are allocatingn of the nonrecourse debt which was been secured by the contributed property, this means that any nonrecourse debt that tend to exceeds the basis of the contributed property must be effectively allocated to the partner alone that contributed to the property.
Therefore Any remaining nonrecourse debt will be allocated according to the partners' profit sharing ratios which is :
Cash+ $ Basis of building− debt on building+ (50% profit sharing ratio × nonrecourse bank nonrecourse mortgage less basis of contributed property + (50% × remaining mortgage on building) = Total tax basis
[$4,200+ $26,000
=$30,000−$31,000
=$1,000
Hence,
$1,000 + $23,000 +$5,000 + $13,000
Outside tax basis =$42,000
Therefore Brett's outside tax basis in his LLC interest would be $42,000
