Answer:
Seeley's basis in the LLC interest at the end of the year is $1,549,500
Explanation:
In order to calculate Seeley's basis in the LLC interest at the end of the year we would have to make the following calculations:
Particulars Amount Amount
Seeley's beginning capital balance $815,000
Add Seeley's share of :
Taxable Income($1,400,000*1/2) $700,000
Interest Income($42,000/2) $21,000
Net Long term Gain(($59,000-$16,000)/2) $21,500 $742,500
Total $1557500
Less:
Charitable Contribution($12,000/2) $ 6,000
Cash Distribution to Seeley $62,000 $68,000
Balance $1,489,500
Add: Share of Seeley's Debt($120,000/2) $60,000
Seeley's basis at the end of the year $1,549,500
