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Business, 02.01.2020 18:31 hellenjones30p0kvtl

Wozniacki and wilcox form jewel llc, with each receiving a one-half interest in the capital and profits of the llc. wozniacki receives his one-half interest as compensation for tax planning services he rendered prior to the formation of the llc. wilcox contributes $50,000 cash. the value of a one-half capital interest in the llc (for each of the parties) is $50,000. a. how much income does wozniacki recognize as a result of this transaction, and what is its character? b. how much is wozniacki’s basis in the llc interest? how will jewel llc treat this amount?

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