Question

Kenisha and Shawna form the equal KS LLC, with a cash contribution of $900,000 from Kenisha and a property contribution (adjusted basis of $945,000, fair market value of $900,000) from Shawna.

b. What is Kenisha's tax basis in her LLC interest? $
Section 704(b) book basis? $

c. What is Shawna's tax basis in her LLC interest? $
Section 704(b) book basis? $

d. What tax basis does the LLC take in the property transferred by Shawna?

Answer 1

b) Kenisha's tax basis in her LLC interest is $900,000

c) Shawna's tax basis in her LLC interest is $945,000

d) Property Contribution of $945,000 is taken as basis of Shawna in the LLC's property

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