Erica and brett decide to form their new motorcycle, Ask an Expert

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Erica and Brett decide to form their new motorcycle business as a LLC. Each will receive an equal profits (loss) interest by contributing cash, property, or both. In addition to the members' contributions, their LLC will obtain a $45,000 nonrecourse loan from First Bank at the time it is formed. Brett contributes cash of $4,000 and a building he bought as a storefront for the motorcycles. The building has a FMV of $40,000, an adjusted basis of $25,000, and is secured by a $30,000 nonrecourse mortgage that the LLC will assume. What is Brett's outside tax basis in his LLC interest?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92370136

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