Question

ranite Slab LLC was recently formed with the following members: Capital/ Name Tax Year-End Profits % Nelson Black December 31 22.0% Brittany Jones December 31 24.0% Lone Pine LLC June 30 4.5% Red Spot Inc. October 31 4.5% Pale Rock Inc. September 30 4.5% Thunder Ridge LLC July 31 4.5% Alpensee LLC March 31 4.5% Lakewood Inc. June 30 4.5% Streamside LLC October 31 4.5% Burnt Fork Inc. October 31 4.5% Snowy Ridge LP June 30 4.5% Whitewater LP October 31 4.5% Straw Hat LLC January 31 4.5% Wildfire Inc. September 30 4.5% What is the required taxable year-end for Granite Slab LLC

Answer 1

Granite Slab LLC's required taxable year-end is December 31, influenced by its members with the highest profit percentages, Nelson Black and Brittany Jones, whose tax year-ends correspond to that date.

Step-by-step explanation:

The required taxable year-end for Granite Slab LLC is determined based on the tax year-ends of its members. The Internal Revenue Service (IRS) has guidelines that require a partnership to conform its tax year to its members or to the majority interest in partnership profits and capital.

In this case, the members with the highest profit percentages, namely Nelson Black and Brittany Jones, have a taxable year-end of December 31. Therefore, the required taxable year-end for Granite Slab LLC would logically be December 31, as this would represent the majority interest in profits, which sets the standard for the whole LLC unless a business reason is stated otherwise or a specific tax ruling is applied.

Answer 2

Answer: December 31

Step-by-step explanation:

Granite Slab should adopt the year-end of its principal partners.

A principal partner is one who owns 5% or more of a company's stock.

There are therefore two (2) principal partners here: Nelson Black and Brittany Jones as they own 22% and 24% respectively.

Both of these partners have December 31 as their year end so Granite Slab should adopt this date as well.