Unformatted Attachment Preview
Tax Return 9: Partnership
Instructions:
Please complete the required federal partnership income tax return forms for AAA Fast Plumbing for the
2013 tax year based upon the facts presented below. If required information is missing, use reasonable
assumptions to fill in the gaps. Ignore all AMT calculations and AMT related tax differences.
Michael Rodriguez and Devontae Johnson have been life-long friends. Both Michael and Devontae
started to work for the same national plumbing repair company immediately after graduating from
technical college. After nearly a decade of working for that same company, Michael and Devontae
decided to venture out on their own and form their own plumbing company called AAA Fast Plumbing
Repair (AAA). They formed their business entity as a limited liability company (LLC). Michael and
Devontae each own 50% of the company. The company has been successful primarily based upon
reputation and the fact that AAA is available 24 hours a day, seven days a week. Although AAA charges
a premium for after normal business hour calls, most of its competitors will not perform services past 9
p.m. and, as a result, AAA finds itself often as one of the only available choices for middle of the night
emergencies.
AAA has several employees and, as a result of implementing technology solutions to aid in its call
dispatch program, AAA has been able to expand its service area to now include a three-county area
instead of just one.
Information relating to AAA and its owners is as follows:
Name of Company:
Address:
Company formed and started:
Accounting Method:
Tax-year end:
Employer Identification Number:
AAA Fast Plumbing Repair, LLC
1456 East Buena Vista Blvd.
Los Angeles, CA 90001 (has not changed since inception)
January 1, 2007
Cash
December 31
34-1234567
Members’ Information:
Michael Rodriguez
1515 West Bloomington Street
Los Angeles, CA 90001
SSN- 585-31-6060
Profit/Loss/Capital membership interest is 50%.
Devontae Johnson
19 East Violet Circle
Los Angeles, CA 90001
SSN: 397-29-9239
Profit/Loss/Capital membership interest is 50%.
Other information:
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AAA is a domestic limited liability company
Michael and Devontae are not related.
Michael and Devontae are both U.S. citizens.
Both Michael and Devontae are managing members.
AAA has not and did not file a Form 8893 or anything similar to it this year or in the past
AAA is not a publicly traded partnership
During the year no debt was cancelled or forgiven in relation to AAA.
AAA is not required to file a Form 8918
AAA did not have or control a foreign bank account or have authority over any such financial
account
AAA was not the grantor of or a transferor to a foreign trust
AAA has never made a Section 754 election
AAA has never entered into a like-kind exchange or distributed a tenancy-in-common or other
undivided interest in partnership property
AAA has never been required to file Form 8858
AAA was required to file Form(s) 1099 related to certain payments it made during the year and
those forms were filed on a timely basis
AAA was not required to file any Form(s) 5471 during the year
Michael is the Tax Matters Partner (TMP)
Both Michael and Devontae are active in the business and work full-time for AAA
The debt owed to First National Bank is a non-recourse obligation and neither Michael nor
Devontae have guaranteed its repayment (see balance sheet below). This debt is not directly
tied to any specific asset but is rather a debt secured against all of the assets of the company.
with neither Michael nor Devontae personally responsible for its repayment.
During the year, Michael and Devontae each contributed $20,000 to the capital of AAA
AAA does not maintain any inventory. AAA purchases supplies and has a policy of expensing
such purchases as paid for tax and book purposes
During the year, Michael and Devontae each received a $75,000 distribution from each of their
respective capital accounts
During the year, AAA acquired the following assets (all assets were placed in service on the
acquisition dates as indicated below):
o Service vans-new (not Luxury Automobiles)
July 1, 2013
$500,000
o Plumbing machinery/equipment-new
July 1, 2013
$250,000
AAA did not claim Section 179 expense for any of the current year asset additions but it did
claim available bonus depreciation.
Financial Statements:
Balance Sheet
Assets:
1/01/13
12/31/13
Cash
Tax-exempt Securities
Building
Less: Acc. Depreciation
Equipment
Less: Acc. Depreciation
Land
$
30,000
100,000
4,000,000
(551,282)
2,500,000
(1,481,400)
1,000,000
$ 45,000
100,000
4,000,000
(653,842)
3,250,000
(2,231,663)
1,000,000
Total Assets:
$5,597,318
$5,509,495
$4,267,318
300,000
200,000
$4,046,673
300,000
200,000
415,000
415,000
481,411
481,411
$5,597,318
$5,509,495
Liabilities and Capital:
Note Payable-First National Bank
Note Payable-Michael Rodriguez
Note Payable-Devontae Johnson
Capital Account-MR
Capital Account-DJ
Total Liabilities and Capital:
Income Statement for the year ending December 31, 2013
Item
Amount
Income:
Service Revenue-Cash
Service Revenue-Credit Cards
Consulting Revenue-Cash
Consulting Revenue-Credit Cards
$ 343,565
$1,922,710
$ 50,950
$ 155,005
Interest Income-First National Bank
Municipal Bond Interest Income
$
$
Total Income:
$2,476,270
1,540
2,500
Expenses:
Employee Salaries
Guaranteed payment-MR
Guaranteed payment-DJ
Repairs and Maintenance-Trucks
Rent
Payroll Taxes
Licensing Fees
Property Taxes
Interest Expense
Depreciation
Office Supplies
Employee Training
Advertising
Plumbing supplies
Meals and Entertainment (prior to disallowance)
Travel
Gasoline
Utilities
Telephone
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
515,735
50,000
50,000
113,415
35,000
41,260
1,750
77,000
235,000
852,823
3,420
5,675
18,850
15,125
13,740
4,210
158,675
24,940
16,830
Total Expenses:
$2,233,448
Net Income:
$ 242,822
SCHEDULE B-1
(Form 1065)
(Rev. December 2011)
Department of the Treasury
Internal Revenue Service
Name of partnership
Part I
Information on Partners Owning 50% or
More of the Partnership
▶ Attach
OMB No. 1545-0099
to Form 1065. See instructions on back.
Employer identification number (EIN)
Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a)
Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a
partnership), trust, tax-exempt organization, or any foreign government that owns, directly or indirectly, an interest of 50% or more in
the profit, loss, or capital of the partnership (see instructions).
(i) Name of Entity
Part II
(ii) Employer
Identification Number
(if any)
(iii) Type of Entity
(iv)
Country of Organization
(v) Maximum
Percentage Owned
in Profit, Loss,
or Capital
Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b)
Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the
profit, loss, or capital of the partnership (see instructions).
(i) Name of Individual or Estate
(ii) Identifying Number
(if any)
For Paperwork Reduction Act Notice, see the Instructions for Form 1065.
(iii) Country of Citizenship (see instructions)
Cat. No. 49842K
(iv) Maximum
Percentage Owned in
Profit, Loss,
or Capital
Schedule B-1 (Form 1065) (Rev. 12-2011)
Page 2
Schedule B-1 (Form 1065) (Rev. 12-2011)
General Instructions
Section references are to the Internal Revenue Code unless
otherwise noted.
Purpose of Form
Use Schedule B-1 (Form 1065) to provide the information
applicable to certain entities, individuals, and estates that own,
directly or indirectly, an interest of 50% or more in the profit,
loss, or capital of the partnership.
Who Must File
Schedule B-1 (Form 1065) must be filed by all partnerships that
answer “Yes” to question 3a or question 3b on Schedule B of
Form 1065. Attach Schedule B-1 to Form 1065.
Specific Instructions
Part I
Complete Part I if the partnership answered “Yes” to Form
1065, Schedule B, question 3a. List each corporation,
partnership, trust, tax-exempt organization, or foreign
government owning, directly or indirectly, an interest of 50% or
more in the profit, loss, or capital of the partnership at the end
of the tax year. Enter the name, EIN, type of entity (corporation,
partnership, trust, tax-exempt organization, or foreign
government), country of organization, and the maximum
percentage interests owned, directly or indirectly, in the profit,
loss, or capital of the partnership. For an affiliated group filing a
consolidated tax return, list the parent corporation rather than
the subsidiary members. List the entity owner of a disregarded
entity rather than the disregarded entity. If the owner of a
disregarded entity is an individual rather than an entity, list the
individual in Part II. In the case of a tax-exempt organization,
enter “tax-exempt organization” in column (iii).
Example 1. Corporation A owns, directly, an interest of 50%
in the profit, loss, or capital of Partnership B. Corporation A
also owns, directly, an interest of 15% in the profit, loss, or
capital of Partnership C. Partnership B owns, directly, an
interest of 70% in the profit, loss, or capital of Partnership C.
Therefore, Corporation A owns, directly or indirectly, an
interest of 50% in the profit, loss, or capital of Partnership C
(15% directly and 35% indirectly through Partnership B). On
Partnership C’s Form 1065, it must answer “Yes” to question
3a of Schedule B. Partnership C must also complete Part I of
Schedule B-1. In Part I, Partnership C must identify Corporation
A, which includes entering “50%” in column (v) (its maximum
percentage owned). It also must identify Partnership B, and
enter “70%” in column (v).
Part II
Complete Part II if the partnership answered “Yes” to Form
1065, Schedule B, question 3b. List each individual or estate
owning, directly or indirectly, an interest of 50% or more in the
profit, loss, or capital of the partnership at the end of the tax
year. Enter the name, social security or employer identification
number, country of citizenship (for an estate, the citizenship of
the decedent), and the maximum percentage interests owned,
directly or indirectly, in the profit, loss, or capital of the
partnership.
Example 2. A owns, directly, 50% of the profit, loss, or capital
of Partnership X. B, the daughter of A, does not own, directly,
any interest in X and does not own, indirectly, any interest in X
through any entity (corporation, partnership, trust, or estate).
Because family attribution rules apply only when an individual
(in this example, B) owns a direct interest in the partnership or
an indirect interest through another entity, A’s interest in
Partnership X is not attributable to B. On Partnership X’s Form
1065, it must answer “Yes” to question 3b of Schedule B.
Partnership X must also complete Part II of Schedule B-1. In
Part II, Partnership X must identify A, which includes entering
“50%” in column (iv). Partnership X will not identify B in Part II.
Form
4562
Depreciation and Amortization
▶ See
separate instructions.
Name(s) shown on return
1
2
3
4
5
▶ Attach
Attachment
Sequence No. 179
to your tax return.
Identifying number
Business or activity to which this form relates
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
Maximum amount (see instructions) . . . . . . . . . . . . . . . . . .
Total cost of section 179 property placed in service (see instructions) . . . . . .
Threshold cost of section 179 property before reduction in limitation (see instructions) .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . .
Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If
separately, see instructions . . . . . . . . . . . . . . . . . . . .
6
2013
(Including Information on Listed Property)
Department of the Treasury
Internal Revenue Service (99)
Part I
OMB No. 1545-0172
(a) Description of property
(b) Cost (business use only)
. . .
. . .
. . .
. . .
married
. . .
. .
. .
. .
. .
filing
. .
5
(c) Elected cost
7 Listed property. Enter the amount from line 29 . . . . . . . . .
7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
. . . . . .
9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . .
10 Carryover of disallowed deduction from line 13 of your 2012 Form 4562 . . . . . . . . . . .
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . .
13
13 Carryover of disallowed deduction to 2014. Add lines 9 and 10, less line 12 ▶
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
Part II
1
2
3
4
8
9
10
11
12
Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . .
15 Property subject to section 168(f)(1) election .
16 Other depreciation (including ACRS) . . .
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14
15
16
Part III MACRS Depreciation (Do not include listed property.) (See instructions.)
Section A
17
17 MACRS deductions for assets placed in service in tax years beginning before 2013 . . . . . . .
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . ▶
Section B—Assets Placed in Service During 2013 Tax Year Using the General Depreciation System
(a) Classification of property
(b) Month and year
placed in
service
(c) Basis for depreciation
(business/investment use
only—see instructions)
19a
b
c
d
e
f
g
h
3-year property
5-year property
7-year property
10-year property
15-year property
20-year property
25-year property
Residential rental
property
i Nonresidential real
property
(d) Recovery
period
25 yrs.
27.5 yrs.
27.5 yrs.
39 yrs.
(e) Convention
(f) Method
MM
MM
MM
MM
S/L
S/L
S/L
S/L
S/L
(g) Depreciation deduction
Section C—Assets Placed in Service During 2013 Tax Year Using the Alternative Depreciation System
S/L
20a Class life
12 yrs.
S/L
b 12-year
40 yrs.
MM
S/L
c 40-year
Part IV Summary (See instructions.)
21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . .
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions .
23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs
. . . . . . .
23
For Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 12906N
21
22
Form 4562 (2013)
Page 2
Listed Property (Include automobiles, certain other vehicles, certain computers, and property used for
entertainment, recreation, or amusement.)
Form 4562 (2013)
Part V
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a,
24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
Section A—Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.)
24a Do you have evidence to support the business/investment use claimed?
24b If “Yes,” is the evidence written?
Yes
No
Yes
(c)
(a)
(b)
Business/
(d)
Type of property (list Date placed
investment use Cost or other basis
vehicles first)
in service
percentage
(e)
Basis for depreciation
(business/investment
use only)
(f)
Recovery
period
(g)
Method/
Convention
(h)
Depreciation
deduction
No
(i)
Elected section 179
cost
25 Special depreciation allowance for qualified listed property placed in service during
the tax year and used more than 50% in a qualified business use (see instructions) .
25
26 Property used more than 50% in a qualified business use:
%
%
%
27 Property used 50% or less in a qualified business use:
S/L –
%
S/L –
%
S/L –
%
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 .
28
29 Add amounts in column (i), line 26. Enter here and on line 7, page 1 . . . . . . . . . . . .
29
Section B—Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other “more than 5% owner,” or related person. If you provided vehicles
to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.
(a)
Vehicle 1
30 Total business/investment miles driven during
the year (do not include commuting miles) .
31 Total commuting miles driven during the year
32 Total other personal (noncommuting)
miles driven
. . . . . . . . .
33 Total miles driven during the year. Add
lines 30 through 32 . . . . . . .
34 Was the vehicle available for personal
use during off-duty hours? . . . . .
35 Was the vehicle used primarily by a more
than 5% owner or related person? . .
Yes
No
(b)
Vehicle 2
Yes
No
(c)
Vehicle 3
Yes
(d)
Vehicle 4
No
Yes
No
(e)
Vehicle 5
Yes
(f)
Vehicle 6
No
Yes
No
36 Is another vehicle available for personal use?
Section C—Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not
more than 5% owners or related persons (see instructions).
No
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes
your employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your
employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners . .
39 Do you treat all use of vehicles by employees as personal use?
. . . . . . . . . . . . . . . .
40 Do you provide more than five vehicles to your employees, obtain information from your employees about the
use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . .
41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) .
Note: If your answer to 37, 38, 39, 40, or 41 is “Yes,” do not complete Section B for the covered vehicles.
.
.
Part VI Amortization
(a)
Description of costs
(b)
Date amortization
begins
(c)
Amortizable amount
(e)
Amortization
period or
percentage
(d)
Code section
(f)
Amortization for this year
42 Amortization of costs that begins during your 2013 tax year (see instructions):
43 Amortization of costs that began before your 2013 tax year . . . . . .
44 Total. Add amounts in column (f). See the instructions for where to report .
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Form 4562 (2013)
Certain Cash Contributions for Typhoon Haiyan Relief Efforts
in the Philippines Can Be Deducted on Your 2013 Tax Return
A new law allows you to choose to deduct certain charitable contributions
of money on your 2013 tax return instead of your 2014 return. The
contributions must have been made after March 25, 2014, and before April
15, 2014, for the relief of victims in the Republic of the Philippines affected
by the November 8, 2013, typhoon. Contributions of money include
contributions made by cash, check, money order, credit card, charge card,
debit card, or via cell phone.
The new law was enacted after the 2013 forms, instructions, and
publications had already been printed. When preparing your 2013 tax
return, you may complete the forms as if these contributions were made on
December 31, 2013, instead of in 2014.
The contribution must be made to a qualified organization and meet all
other requirements for charitable contribution deductions. However, if you
made the contribution by phone or text message, a telephone bill showing
the name of the donee organization, the date of the contribution, and the
amount of the contribution will satisfy the recordkeeping requirement.
Therefore, for example, if you made a $10 charitable contribution by text
message that was charged to your telephone or wireless account, a bill
from your telecommunications company containing this information
satisfies the recordkeeping requirement.
1065
U.S. Return of Partnership Income
Form
Department of the Treasury
Internal Revenue Service
A Principal business activity
For calendar year 2013, or tax year beginning
B Principal product or service
Type
or
Print
C Business code number
▶
OMB No. 1545-0099
, 2013, ending
, 20
2013
.
Information about Form 1065 and its separate instructions is at www.irs.gov/form1065.
Name of partnership
D Employer identification number
Number, street, and room or suite no. If a P.O. box, see the instructions.
E Date business started
City or town, state or province, country, and ZIP or foreign postal code
F Total assets (see the
instructions)
$
G
H
I
J
(1)
(2)
(3)
Initial return
Final return
Name change (4)
Address change
(6)
Technical termination - also check (1) or (2)
Other (specify) ▶
Check accounting method: (1)
Cash
(2)
Accrual
(3)
Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year ▶
(5)
Check applicable boxes:
Check if Schedules C and M-3 are attached
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Amended return
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Deductions
(see the instructions for limitations)
Income
Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.
1a
b
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16a
b
17
18
19
20
21
22
Signature of general partner or limited liability company member manager
Print/Type preparer’s name
Firm’s name
Preparer’s signature
▲
Paid
Preparer
Use Only
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16c
17
18
19
20
21
22
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager)
is based on all information of which preparer has any knowledge.
▲
Sign
Here
1a
Gross receipts or sales . . . . . . . . . . . . .
Returns and allowances . . . . . . . . . . . .
1b
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . .
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . .
Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . .
Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . .
Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . .
Other income (loss) (attach statement) . . . . . . . . . . . . . . . . .
Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . .
Salaries and wages (other than to partners) (less employment credits) . . . . . . .
Guaranteed payments to partners . . . . . . . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation (if required, attach Form 4562) . . . . . .
16a
Less depreciation reported on Form 1125-A and elsewhere on return 16b
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . .
Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . . . . . .
Total deductions. Add the amounts shown in the far right column for lines 9 through 20 .
Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . .
May the IRS discuss this return with the
preparer shown below (see
instructions)?
Yes
No
Date
Date
PTIN
Firm's EIN ▶
▶
Firm’s address ▶
For Paperwork Reduction Act Notice, see separate instructions.
Check
if
self-employed
Phone no.
Cat. No. 11390Z
Form 1065 (2013)
Form 1065 (2013)
Schedule B
1
a
c
e
2
3
a
Page
2
Other Information
What type of entity is filing this return? Check the applicable box:
Domestic general partnership
b
Domestic limited partnership
Domestic limited liability company
d
Domestic limited liability partnership
Foreign partnership
f
Other ▶
At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including
an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner),
or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yes
No
At the end of the tax year:
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit,
loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule
B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . .
b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of
the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information
on Partners Owning 50% or More of the Partnership
. . . . . . . . . . . . . . . . . . . .
4
a
At the end of the tax year, did the partnership:
Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of
stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see
instructions. If “Yes,” complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . .
(i) Name of Corporation
(ii) Employer Identification
Number (if any)
(iii) Country of
Incorporation
(iv) Percentage
Owned in Voting Stock
b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss,
or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial
interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . .
(i) Name of Entity
(ii) Employer
Identification
Number (if any)
(iii) Type of
Entity
(iv) Country of
Organization
(v) Maximum
Percentage Owned in
Profit, Loss, or Capital
Yes
5
No
Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under
section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for
more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Does the partnership satisfy all four of the following conditions?
a The partnership’s total receipts for the tax year were less than $250,000.
b The partnership’s total assets at the end of the tax year were less than $1 million.
c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including
extensions) for the partnership return.
d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . .
If “Yes,” the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065;
or Item L on Schedule K-1.
7
Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . .
During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms
8
modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . .
Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
9
information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . .
10
At any time during calendar year 2013, did the partnership have an interest in or a signature or other authority over a financial
account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for
exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F
90-22.1). If “Yes,” enter the name of the foreign country. ▶
Form 1065 (2013)
Form 1065 (2013)
Schedule B
Page
Yes
11
3
Other Information (continued)
No
At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or
transferor to, a foreign trust? If “Yes,” the partnership may have to file Form 3520, Annual Return To Report
Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . .
12a
Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . .
See instructions for details regarding a section 754 election.
b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If “Yes,”
attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . .
c
13
14
15
16
17
Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a
substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section
734(d))? If “Yes,” attach a statement showing the computation and allocation of the basis adjustment. See instructions
Check this box if, during the current or prior tax year, the partnership distributed any property received in a
like-kind exchange or contributed such property to another entity (other than disregarded entities whollyowned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . ▶
At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other
undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . .
If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign
Disregarded Entities, enter the number of Forms 8858 attached. See instructions ▶
Does the partnership have any foreign partners? If “Yes,” enter the number of Forms 8805, Foreign Partner’s
Information Statement of Section 1446 Withholding Tax, filed for this partnership. ▶
Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached
to this return. ▶
18a Did you make any payments in 2013 that would require you to file Form(s) 1099? See instructions . . . . .
b If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . .
Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign
19
Corporations, attached to this return. ▶
20
Enter the number of partners that are foreign governments under section 892. ▶
Designation of Tax Matters Partner (see instructions)
Enter below the general partner or member-manager designated as the tax matters partner (TMP) for the tax year of this return:
Identifying
number of TMP
▲
Phone number
of TMP
▲ ▲
▲
Name of
designated
TMP
If the TMP is an
entity, name
of TMP representative
Address of
designated
TMP
▲
Form 1065 (2013)
Form 1065 (2013)
Schedule K
1
2
3a
Income (Loss)
b
c
4
5
6
7
8
9a
Alternative
Other Information Minimum Tax
(AMT) Items
Foreign Transactions
Credits
SelfEmploy- Deductions
ment
b
c
10
11
12
13a
b
c
d
14a
b
c
15a
b
c
d
e
f
16a
b
c
d
g
i
l
m
n
17a
b
c
d
e
f
18a
b
c
19a
b
20a
b
c
Page
Partners’ Distributive Share Items
4
Total amount
Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . .
1
Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . .
2
Other gross rental income (loss) . . . . . . . .
3a
Expenses from other rental activities (attach statement)
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . .
3c
Guaranteed payments
. . . . . . . . . . . . . . . . . . . . .
4
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
5
Dividends:
6a
a Ordinary dividends . . . . . . . . . . . . . . . . .
. . . . . .
6b
b Qualified dividends
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . .
8
Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . .
9a
Collectibles (28%) gain (loss) . . . . . . . . .
9b
Unrecaptured section 1250 gain (attach statement) . .
9c
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . .
10
Other income (loss) (see instructions) Type ▶
11
Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . .
12
Contributions . . . . . . . . . . . . . . . . . . . . . . . .
13a
Investment interest expense
. . . . . . . . . . . . . . . . . . .
13b
(1) Type ▶
Section 59(e)(2) expenditures:
(2) Amount ▶ 13c(2)
Other deductions (see instructions) Type ▶
13d
Net earnings (loss) from self-employment . . . . . . . . . . . . . . .
14a
Gross farming or fishing income . . . . . . . . . . . . . . . . . .
14b
Gross nonfarm income . . . . . . . . . . . . . . . . . . . . .
14c
Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . .
15a
Low-income housing credit (other)
. . . . . . . . . . . . . . . . .
15b
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . .
15c
Type ▶
15d
Other rental real estate credits (see instructions)
Type ▶
Other rental credits (see instructions)
15e
Other credits (see instructions)
Type ▶
15f
Name of country or U.S. possession ▶
Gross income from all sources . . . . . . . . . . . . . . . . . . .
16b
Gross income sourced at partner level . . . . . . . . . . . . . . . .
16c
Foreign gross income sourced at partnership level
Passive category ▶
e General category ▶
f Other ▶
16f
Deductions allocated and apportioned at partner level
Interest expense ▶
h Other . . . . . . . . . . ▶
16h
Deductions allocated and apportioned at partnership level to foreign source income
Passive category ▶
j General category ▶
k Other ▶ 16k
▶
Total foreign taxes (check one):
Paid
Accrued
. . . . . . . .
16l
Reduction in taxes available for credit (attach statement) . . . . . . . . . .
16m
Other foreign tax information (attach statement) . . . . . . . . . . . . .
Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . .
17a
Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . .
17b
Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . .
17c
Oil, gas, and geothermal properties—gross income . . . . . . . . . . . .
17d
Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . .
17e
Other AMT items (attach statement) . . . . . . . . . . . . . . . . .
17f
Tax-exempt interest income . . . . . . . . . . . . . . . . . . . .
18a
Other tax-exempt income . . . . . . . . . . . . . . . . . . . .
18b
Nondeductible expenses . . . . . . . . . . . . . . . . . . . . .
18c
Distributions of cash and marketable securities . . . . . . . . . . . . .
19a
Distributions of other property . . . . . . . . . . . . . . . . . . .
19b
Investment income . . . . . . . . . . . . . . . . . . . . . . .
20a
Investment expenses . . . . . . . . . . . . . . . . . . . . . .
20b
Other items and amounts (attach statement) . . . . . . . . . . . . . .
Form 1065 (2013)
Form 1065 (2013)
Page
5
Analysis of Net Income (Loss)
Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of
Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . .
1
Analysis by
(ii) Individual
(iii) Individual
(v) Exempt
(i) Corporate
(iv) Partnership
(active)
(passive)
Organization
partner type:
1
2
(vi)
Nominee/Other
a General partners
b Limited partners
Schedule L
1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19a
b
20
21
22
Assets
Cash . . . . . . . . . . . . .
Trade notes and accounts receivable . . .
Less allowance for bad debts . . . . .
Inventories . . . . . . . . . . .
U.S. government obligations . . . . .
Tax-exempt securities
. . . . . . .
Other current assets (attach statement) . .
Loans to partners (or persons related to partners)
Mortgage and real estate loans
. . . .
Other investments (attach statement) . . .
Buildings and other depreciable assets . .
Less accumulated depreciation . . . .
Depletable assets . . . . . . . . .
Less accumulated depletion
. . . . .
Land (net of any amortization) . . . . .
Intangible assets (amortizable only) . . .
Less accumulated amortization
. . . .
Other assets (attach statement) . . . .
Total assets . . . . . . . . . . .
Liabilities and Capital
Accounts payable . . . . . . . . .
Other current liabilities (attach statement)
All nonrecourse loans . . . . . . .
Other liabilities (attach statement) .
Partners’ capital accounts . . .
Total liabilities and capital . . .
.
.
.
(d)
.
.
.
.
.
.
.
.
Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).
Net income (loss) per books . . . .
Income recorded on books this year not included
6
Income included on Schedule K, lines 1, 2, 3c,
5, 6a, 7, 8, 9a, 10, and 11, not recorded on
books this year (itemize):
3
Guaranteed payments (other than
health insurance) . . . . . . .
4
Expenses recorded on books this year
not included on Schedule K, lines 1
through 13d, and 16l (itemize):
a Depreciation $
b Travel and entertainment $
5
Add lines 1 through 4 . . .
Schedule M-2
3
4
5
End of tax year
(c)
Loans from partners (or persons related to partners)
Mortgages, notes, bonds payable in 1 year or more
2
1
2
Beginning of tax year
(a)
(b)
Mortgages, notes, bonds payable in less than 1 year
Schedule M-1
1
Balance Sheets per Books
.
.
on Schedule K, lines 1 through 11 (itemize):
a
Tax-exempt interest $
a
Deductions included on Schedule K, lines
1 through 13d, and 16l, not charged
against book income this year (itemize):
Depreciation $
7
8
9
Add lines 6 and 7 . . . . . . . .
Income (loss) (Analysis of Net Income
(Loss), line 1). Subtract line 8 from line 5 .
6
Distributions: a Cash
. .
b Property .
Other decreases (itemize):
.
.
.
.
.
.
.
.
Add lines 6 and 7 .
.
.
.
.
.
Analysis of Partners’ Capital Accounts
Balance at beginning of year .
Capital contributed: a Cash
.
b Property
Net income (loss) per books . .
Other increases (itemize):
Add lines 1 through 4 . . . .
.
.
.
.
.
.
.
.
.
.
7
8
9
.
.
.
Balance at end of year. Subtract line 8 from line 5
Form 1065 (2013)