Answer:
Brett's outside tax basis in his LLC interest = $48,000
Explanation:
As per the data given in the question,
Cash = $6,000
Adjusted basis of building = $32,000
Debt of building = -$37,000
50% profit sharing ratio × $52,000 = $26,000
Now recourse mortgage - adjusted basis = ($37,000-$32,000)
= $5,000
Remaining mortgage on building = 50% × $32,000
= $16,000
Brett's outside tax basis in his LLC interest = $48,000
