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August 8, 2022

How much is Jill’s basis? Show your calculations.

3/ Jill and Donald contributed $15,000 each to WH, LLC.

WH, LLC, purchased a building, paying cash of $-0- and signing a nonrecourse liability of $500,000. No principal payments have been made.

Net income before depreciation was $10,000. Depreciation claimed was $50,000.

Using special allocations, Jill deducted $25,000; Donald, $15,000.

How much is Jill’s basis? Show your calculations.

How much is Donald’s basis? Show your calculations.

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