Income Tax Project - Review The Following Accounting And Tax Data And Complete The Two Requirements Below:

ACCT 4221 Spring 2 2021 Tax Project Forms/f1065--2018.pdf Note: The form, instructions, or publication you are looking for begins after this coversheet. Please review the updated information below. Form 1065 BBA Partnerships Filing Amended Returns for CARES Act Relief For tax years beginning in 2018 or 2019, BBA partnerships which filed Form 1065 and furnished all required Schedules K-1 prior to the issuance of Revenue Procedure 2020-23 may amend those returns by filing Form 1065, checking the “Amended return” box, and furnish corresponding amended Schedules K-1 prior to September 30, 2020. This will allow partnerships and their partners to benefit from the provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, without waiting to file Administrative Adjustment Requests (AARs) for the current year, which would otherwise be required under section 6227. See Revenue Procedure 2020-23 for more information. https://www.irs.gov/pub/irs-drop/rp-20-23.pdf https://www.irs.gov/pub/irs-drop/rp-20-23.pdf Form 1065 Department of the Treasury Internal Revenue Service U.S. Return of Partnership Income For calendar year 2018, or tax year beginning , 2018, ending , 20 . ▶ Go to www.irs.gov/Form1065 for instructions and the latest information. OMB No. 1545-0123 2018 Type or Print Name of partnership Number, street, and room or suite no. If a P.O. box, see instructions. City or town, state or province, country, and ZIP or foreign postal code A Principal business activity B Principal product or service C Business code number D Employer identification number E Date business started F Total assets (see instructions) $ G Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address change (5) Amended return H Check accounting method: (1) Cash (2) Accrual (3) Other (specify) ▶ I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year. ▶ J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . .▶ Caution: Include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information. In co m e 1a Gross receipts or sales . . . . . . . . . . . . . 1a b Returns and allowances . . . . . . . . . . . . 1b c Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . 1c 2 Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . 2 3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . 3 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . 4 5 Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . 5 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . 6 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . 7 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . 8 D ed uc ti o ns (s ee in st ru ct io ns fo r lim ita tio ns ) 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . 9 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . 10 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . 11 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . 15 16a Depreciation (if required, attach Form 4562) . . . . . . 16a b Less depreciation reported on Form 1125-A and elsewhere on return 16b 16c 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . 17 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . 18 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . 19 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . 20 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . 21 T ax a nd P ay m en t 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . 22 23 Interest due under the look-back method—completed long-term contracts (attach Form 8697) 23 24 Interest due under the look-back method—income forecast method (attach Form 8866) . 24 25 BBA AAR imputed underpayment (see instructions) . . . . . . . . . . . . . 25 26 Other taxes (see instructions) . . . . . . . . . . . . . . . . . . . . 26 27 Total balance due. Add lines 23 through 27 . . . . . . . . . . . . . . . 27 28 Payment (see instructions) . . . . . . . . . . . . . . . . . . . . . 28 29 Amount owed. If line 28 is smaller than line 27, enter amount owed . . . . . . . . 29 30 Overpayment. If line 28 is larger than line 27, enter overpayment . . . . . . . . . 30 Sign Here 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 partner or limited liability company member) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below? See instructions. Yes No ▲ Signature of partner or limited liability company member ▲ Date Paid Preparer Use Only Print/Type preparer’s name Preparer’s signature Date Check if self-employed PTIN Firm’s name ▶ Firm’s EIN ▶ Firm’s address ▶ Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (2018) Form 1065 (2018) Page 2 Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a Domestic general partnership b Domestic limited partnership c Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f Other ▶ 2 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax- exempt 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 . . . . . . . . . . . . . . . . . . . . 3 At the end of the tax year, did the partnership: a 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 4 Does the partnership satisfy all four of the following conditions? Yes No 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. 5 Is this partnership a publicly traded partnership, as defined in section 469(k)(2)? . . . . . . . . . . . 6 During the tax year, did the partnership have any debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . 7 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . 8 At any time during calendar year 2018, 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 instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If “Yes,” enter the name of the foreign country. ▶ 9 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 . . . . . . . . . 10a 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 . . . . Form 1065 (2018) Form 1065 (2018) Page 3 Schedule B Other Information (continued) Yes No c 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 11 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 wholly owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . ▶ 12 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? . . . . . . . . . . . . . . . . . . . . . . . . 13 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), enter the number of Forms 8858 attached. See instructions . . . . . . . . . . . . . . . . . . . . . . . ▶ 14 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. ▶ 15 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. ▶ 16 a Did you make any payments in 2018 that would require you to file Form(s) 1099? See instructions . . . . . b If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . 17 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. ▶ 18 Enter the number of partners that are foreign governments under section 892. ▶ 19 During the partnership’s tax year, did the partnership make any payments that would require it to file Form 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)? . . . . 20 Was the partnership a specified domestic entity required to file Form 8938 for the tax year? See the Instructions for Form 8938 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Is the partnership a section 721(c) partnership, as defined in Treasury Regulations section 1.721(c)-1T(b)(14)? . 22 During the tax year, did the partnership pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions. If “Yes,” enter the total amount of the disallowed deductions. ▶ $ 23 Did the partnership have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . 24 Does the partnership satisfy one of the following conditions and the partnership does not own a pass-through entity with current year, or prior year, carryover excess business interest expense? See instructions . . . . . a The partnership’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year do not exceed $25 million, and the partnership is not a tax shelter, or b The partnership only has business interest expense from (1) an electing real property trade or business, (2) an electing farming business, or (3) certain utility businesses under section 163(j)(7). If “No,” complete and attach Form 8990. 25 Is the partnership electing out of the centralized partnership audit regime under section 6221(b)? See instructions. If “Yes,” the partnership must complete Schedule B-2 (Form 1065). Enter the total from Schedule B-2, Part III, line 3. ▶ If “No,” complete Designation of Partnership Representative below. Designation of Partnership Representative (see instructions) Enter below the information for the partnership representative (PR) for the tax year covered by this return. Name of PR ▲ U.S. taxpayer identification number of PR ▲ U.S. address of PR ▲ U.S. phone number of PR ▲ If the PR is an entity, name of the designated individual for the PR ▲ U.S. taxpayer identification number of the designated individual ▲ U.S. address of designated individual ▲ U.S. phone number of designated individual ▲ 26 Is the partnership attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . If “Yes,” enter the amount from Form 8996, line 13. ▶ $ Form 1065 (2018) Form 1065 (2018) Page 4 Schedule K Partners’ Distributive Share Items Total amount In co m e (L o ss ) 1 Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . 2 3a Other gross rental income (loss) . . . . . . . . 3a b Expenses from other rental activities (attach statement) 3b c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . 3c 4 Guaranteed payments . . . . . . . . . . . . . . . . . . . . . 4 5 Interest income . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Dividends and dividend equivalents: a Ordinary dividends . . . . . . . . . 6a b Qualified dividends 6b c Dividend equivalents 6c 7 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . 8 9 a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . 9a b Collectibles (28%) gain (loss) . . . . . . . . . 9b c Unrecaptured section 1250 gain (attach statement) . . 9c 10 Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . 10 11 Other income (loss) (see instructions) Type ▶ 11 D ed uc ti o ns 12 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . 12 13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . 13a b Investment interest expense . . . . . . . . . . . . . . . . . . . 13b c Section 59(e)(2) expenditures: (1) Type ▶ (2) Amount ▶ 13c(2) d Other deductions (see instructions) Type ▶ 13d S el f- Em pl oy - m en t 14a Net earnings (loss) from self-employment . . . . . . . . . . . . . . . 14a b Gross farming or fishing income . . . . . . . . . . . . . . . . . . 14b c Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . 14c C re d it s 15a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . 15a b Low-income housing credit (other) . . . . . . . . . . . . . . . . . 15b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) 15c d Other rental real estate credits (see instructions) Type ▶ 15d e Other rental credits (see instructions) Type ▶ 15e f Other credits (see instructions) Type ▶ 15f Fo re ig n T ra ns ac ti o ns 16a Name of country or U.S. possession ▶ b Gross income from all sources . . . . . . . . . . . . . . . . . . . 16b c Gross income sourced at partner level . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level d Section 951A category ▶ e Foreign branch category ▶ 16e f Passive category ▶ g General category ▶ h Other (attach statement) . ▶ 16h Deductions allocated and apportioned at partner level i Interest expense ▶ j Other . . . . . . . . . . ▶ 16j Deductions allocated and apportioned at partnership level to foreign source income k Section 951A category ▶ l Foreign branch category ▶ 16l m Passive category ▶ n General category ▶ o Other (attach statement) ▶ 16o p Total foreign taxes (check one): ▶ Paid Accrued . . . . . . . . 16p q Reduction in taxes available for credit (attach statement) . . . . . . . . . . 16q r Other foreign tax information (attach statement) A lt er na ti ve M in im um T ax (A M T ) I te m s 17a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . 17a b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . 17b c Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . 17c d Oil, gas, and geothermal properties—gross income . . . . . . . . . . . . 17d e Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . . 17e f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . 17f O th er In fo rm at io n 18a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . 18a b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . 18b c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . 18c 19a Distributions of cash and marketable securities . . . . . . . . . . . . . 19a b Distributions of other property . . . . . . . . . . . . . . . . . . . 19b 20a Investment income . . . . . . . . . . . . . . . . . . . . . . . 20a b Investment expenses . . . . . . . . . . . . . . . . . . . . . . 20b c Other items and amounts (attach statement) Form 1065 (2018) Form 1065 (2018) Page 5 Analysis of Net Income (Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 16p . . . . . . . . . . . . . . . . . . 1 2 Analysis by partner type: (i) Corporate (ii) Individual (active) (iii) Individual (passive) (iv) Partnership (v) Exempt Organization (vi) Nominee/Other a General partners b Limited partners Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash . . . . . . . . . . . . . 2a Trade notes and accounts receivable . . . b Less allowance for bad debts . . . . . 3 Inventories . . . . . . . . . . . 4 U.S. government obligations . . . . . 5 Tax-exempt securities . . . . . . . 6 Other current assets (attach statement) . . 7a Loans to partners (or persons related to partners) b Mortgage and real estate loans . . . . 8 Other investments (attach statement) . . . 9a Buildings and other depreciable assets . . b Less accumulated depreciation . . . . 10a Depletable assets . . . . . . . . . b Less accumulated depletion . . . . . 11 Land (net of any amortization) . . . . . 12a Intangible assets (amortizable only) . . . b Less accumulated amortization . . . . 13 Other assets (attach statement) . . . . 14 Total assets . . . . . . . . . . . Liabilities and Capital 15 Accounts payable . . . . . . . . . 16 Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach statement) . 18 All nonrecourse loans . . . . . . . . 19a Loans from partners (or persons related to partners) b Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach statement) . . . . 21 Partners’ capital accounts . . . . . . 22 Total liabilities and capital . . . . . . Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: The partnership may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books . . . . 2 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 16p (itemize): a Depreciation $ b Travel and entertainment $ 5 Add lines 1 through 4 . . . . . . 6 Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest $ 7 Deductions included on Schedule K, lines 1 through 13d, and 16p, not charged against book income this year (itemize): a Depreciation $ 8 Add lines 6 and 7 . . . . . . . . 9 Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . Schedule M-2 Analysis of Partners’ Capital Accounts 1 Balance at beginning of year . . . 2 Capital contributed: a Cash . . . b Property . . 3 Net income (loss) per books . . . . 4 Other increases (itemize): 5 Add lines 1 through 4 . . . . . . 6 Distributions: a Cash . . . . . . b Property . . . . . 7 Other decreases (itemize): 8 Add lines 6 and 7 . . . . . . . . 9 Balance at end of year. Subtract line 8 from line 5 Form 1065 (2018) Version A, Cycle 14 INTERNAL USE ONLY DRAFT AS OF October 29, 2018 2018 Form 1065 SE:W:CAR:MP U.S. Return of Partnership Income \\linprod3.publish.no.irs.gov\tfprod\composition\ok-to-print\irs_newsrelease_header-01.jpg United States flag in the left corner of the header and the IRS logo centered in the header. Note: The form, instructions, or publication you are looking for begins after this coversheet. Please review the updated information below. Form 1065 BBA Partnerships Filing Amended Returns for CARES Act Relief For tax years beginning in 2018 or 2019, BBA partnerships which filed Form 1065 and furnished all required Schedules K-1 prior to the issuance of Revenue Procedure 2020-23 may amend those returns by filing Form 1065, checking the “Amended return” box, and furnish corresponding amended Schedules K-1 prior to September 30, 2020. This will allow partnerships and their partners to benefit from the provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, without waiting to file Administrative Adjustment Requests (AARs) for the current year, which would otherwise be required under section 6227. See Revenue Procedure 2020-23 for more information. Form  1065  Department of the Treasury Internal Revenue Service U.S. Return of Partnership Income . ▶ Go to www.irs.gov/Form1065 for instructions and the latest information.  OMB No. 1545-0123 O M B No. 1545-0123. For Paperwork Reduction Act Notice, see separate instructions. 2018 2018. Cat. No. 11390Z. Type or Print F  Total assets (see instructions)  G Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address change (5) Amended return H Check accounting method: (1) Cash (2) Accrual (3) I J Check if Schedules C and M-3 are attached         ▶ Caution: Include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information.  Income 1 a Gross receipts or sales          1a b Returns and allowances            1b c Balance. Subtract line 1b from line 1a           1c 2 Cost of goods sold (attach Form 1125-A)           2 3 Gross profit. Subtract line 2 from line 1c           3 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement)           4 5 Net farm profit (loss) (attach Schedule F (Form 1040))           5 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797)           6 7 Other income (loss) (attach statement)           7 8 Total income (loss). Combine lines 3 through 7           8 Deductions (see instructions for limitations) 9 Salaries and wages (other than to partners) (less employment credits)           9 10 Guaranteed payments to partners           10 11 Repairs and maintenance           11 12 Bad debts           12 13 Rent           13 14 Taxes and licenses           14 15 Interest  (see instructions)          15 16 a Depreciation (if required, attach Form 4562)           16a b Less depreciation reported on Form 1125-A and elsewhere on return 16b 16c 17 Depletion (Do not deduct oil and gas depletion.)           17 18 Retirement plans, etc.           18 19 Employee benefit programs           19 20 Other deductions (attach statement)           20 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20           21 Tax and Payment 22 Ordinary business income (loss). Subtract line 21 from line 8           22 23 Interest due under the look-back method—completed long-term contracts (attach Form 8697) 23 24 Interest due under the look-back method—income forecast method (attach Form 8866)           24 25 BBA AAR imputed underpayment (see instructions)           25 26 Other taxes (see instructions)           26 27 Total balance due. Add lines 23 through 27           27 28 Payment (see instructions)          28 29 Amount owed. If line 28 is smaller than line 27, enter amount owed           29 30 Overpayment. If line 28 is larger than line 27, enter overpayment          30 Sign Here 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 partner or limited liability company member) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below? See instructions. ▲ Signature of partner or limited liability company member ▲ Date Paid Preparer Use Only Preparer’s signature Date Check if self-employed For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (2018)  Form 1065 (2018) Page  2  Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a Domestic general partnership b Domestic limited partnership c Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f 2 At the end of the tax year:  a


 Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt 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            3 At the end of the tax year, did the partnership: a

 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  4 Does the partnership satisfy all four of the following conditions?  Yes No 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. 5 Is this partnership a publicly traded partnership, as defined in section 469(k)(2)?           6 During the tax year, did the partnership have any debt that was canceled, was forgiven, or had the terms  modified so as to reduce the principal amount of the debt?           7 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide  information on any reportable transaction?           8 At any time during calendar year 2018, 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 instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If “Yes,” enter the name of the foreign country. ▶ 9 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           10 a 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           Form 1065 (2018)  Form 1065 (2018) Page  3  Schedule B Other Information (continued)  Yes No c

 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 11 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 wholly owned by the partnership throughout the tax year)           ▶ 12 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?           13 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign  Disregarded Entities (FDEs) and Foreign Branches (FBs), enter the number of Forms 8858 attached. See instructions           ▶ 14 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. ▶ 15 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships,  attached to this return. ▶ 16 a Did you make any payments in 2018 that would require you to file Form(s) 1099? See instructions           b If “Yes,” did you or will you file required Form(s) 1099?           17 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. ▶ 18 Enter the number of partners that are foreign governments under section 892. ▶ 19 During the partnership’s tax year, did the partnership make any payments that would require it to file Form 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)?          20 Was the partnership a specified domestic entity required to file Form 8938 for the tax year? See the Instructions for Form 8938          21 Is the partnership a section 721(c) partnership, as defined in Treasury Regulations section 1.721(c)-1T(b)(14)?           22
 During the tax year, did the partnership pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions. If “Yes,” enter the total amount of the disallowed deductions.  ▶  $ 23
 Did the partnership have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions           24
 Does the partnership satisfy one of the following conditions and the partnership does not own a pass-through entity with current year, or prior year, carryover excess business interest expense? See instructions           Does the partnership satisfy both of the following conditions? If“Yes,” the partnership is not required to complete Form 8900. (see instructions) a
 The partnership’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year do not exceed $25 million, and the partnership is not a tax shelter, or b
 The partnership only has business interest expense from (1) an electing real property trade or business, (2) an electing farming business, or (3) certain utility businesses under section 163(j)(7). If “No,” complete and attach Form 8990. 25 Is the partnership electing out of the centralized partnership audit regime under section 6221(b)? See instructions. If “Yes,” the partnership must complete Schedule B-2 (Form 1065). Enter the total from Schedule B-2, Part III,        line 3. ▶ If “No,” complete Designation of Partnership Representative below. Designation of Partnership Representative (see instructions) Enter below the information for the partnership representative (PR) for the tax year covered by this return. Name of PR ▲ U.S. taxpayer identification number of PR ▲ U.S. address of PR ▲ U.S. phone
number of PR ▲ If the PR is an entity, name of the designated individual for the PR ▲ U.S. taxpayer identification number of the designated individual ▲ U.S. address of
designated
individual ▲ U.S. phone
number of designated individual ▲ 26 Is the partnership attaching Form 8996 to certify as a Qualified Opportunity Fund?           Form 1065 (2018)  Form 1065 (2018) Page  4  Schedule K Partners’ Distributive Share Items Total amount Income (Loss) 1 Ordinary business income (loss) (page 1, line 22)           1 2 Net rental real estate income (loss) (attach Form 8825)           2 3 a Other gross rental income (loss)           3a b Expenses from other rental activities (attach statement)           3b c Other net rental income (loss). Subtract line 3b from line 3a           3c 4 Guaranteed payments           4 5 Interest income           5 6 Dividends and dividend equivalents: a Ordinary dividends            6a b Qualified dividends  6b c Dividend equivalents 6c 7 Royalties           7 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065))            8 9 a Net long-term capital gain (loss) (attach Schedule D (Form 1065))            9a b Collectibles (28%) gain (loss)           9b c Unrecaptured section 1250 gain (attach statement)           9c 10 Net section 1231 gain (loss) (attach Form 4797)           10 11 Other income (loss) (see instructions) 11 Deductions 12 Section 179 deduction (attach Form 4562)           12 13 a Contributions           13a b Investment interest expense           13b c Section 59(e)(2) expenditures: (2)  Amount ▶ 13c(2) d Other deductions (see instructions)  13d Self- Employ- ment 14 a Net earnings (loss) from self-employment           14a b Gross farming or fishing income           14b c Gross nonfarm income           14c Credits 15 a Low-income housing credit (section 42(j)(5))           15a b Low-income housing credit (other)           15b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable)           15c d Other rental real estate credits (see instructions) 15d e Other rental credits (see instructions) 15e f Other credits (see instructions) 15f Foreign Transactions 16 a b Gross income from all sources           16b c Gross income sourced at partner level           16c Foreign gross income sourced at partnership level d 16e f h  Other (attach statement)          ▶ 16h Deductions allocated and apportioned at partner level i j  Other           ▶ 16j Deductions allocated and apportioned at partnership level to foreign source income k 16l m o  Other (attach statement)    ▶  16o p Total foreign taxes (check one): ▶ Paid Accrued           16p q Reduction in taxes available for credit (attach statement)           16q r Other foreign tax information (attach statement)  16r. Other foreign tax information (attach statement). 16r. Cents. Alternative Minimum Tax (AMT) Items 17 a Post-1986 depreciation adjustment           17a b Adjusted gain or loss           17b c Depletion (other than oil and gas)           17c d Oil, gas, and geothermal properties—gross income           17d e Oil, gas, and geothermal properties—deductions           17e f Other AMT items (attach statement)           17f Other Information 18 a Tax-exempt interest income           18a b Other tax-exempt income           18b c Nondeductible expenses           18c 19 a Distributions of cash and marketable securities           19a b Distributions of other property           19b 20 a Investment income           20a b Investment expenses           20b c Other items and amounts (attach statement)  20c. Other items and amounts (attach statement). 20c. Cents. Form 1065 (2018)  Form 1065 (2018) Page  5  Analysis of Net Income (Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of  Schedule K, lines 12 through 13d, and 16p           1 2    Analysis by partner type: (i)  Corporate  (ii)  Individual  (active)  (iii)  Individual  (passive)  (iv)  Partnership  (v)  Exempt  Organization  (vi) Nominee/Other  a General partners b Limited partners Schedule L Balance Sheets per Books Beginning of tax year End of tax year  Assets  (a) Beginning of tax year. (a). (b) Beginning of tax year. (b). (c) End of tax year. (c). (d) End of tax year. (d). 1 Cash           2a Trade notes and accounts receivable           b Less allowance for bad debts           3 Inventories           4 U.S. government obligations           5 Tax-exempt securities           6 Other current assets (attach statement)           7a Loans to partners (or persons related to partners) b Mortgage and real estate loans           8 Other investments (attach statement)           9a Buildings and other depreciable assets           b Less accumulated depreciation           10a Depletable assets           b Less accumulated depletion           11 Land (net of any amortization)           12a Intangible assets (amortizable only)           b Less accumulated amortization           13 Other assets (attach statement)           14 Total assets            Liabilities and Capital  15 Accounts payable           16 Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach statement)           18 All nonrecourse loans           19a Loans from partners (or persons related to partners) b Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach statement)           21 Partners’ capital accounts           22 Total liabilities and capital           Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return  Note: The partnership may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books           2 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 16p (itemize): a b 5 Add lines 1 through 4           6 Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a 7 Deductions included on Schedule K, lines 1 through 13d, and 16p, not charged against book income this year (itemize): a 8 Add lines 6 and 7           9 Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5           Schedule M-2 Analysis of Partners’ Capital Accounts 1 Balance at beginning of year           2 Capital contributed:  a Cash           b Property           3 Net income (loss) per books            4 5 Add lines 1 through 4           6 Distributions:  a Cash           b Property           7 8 Add lines 6 and 7           9 Balance at end of year. Subtract line 8 from line 5 Form 1065 (2018)  f1_1: f1_2: f1_3: f1_4: f1_5: f1_6: f1_7: f1_8: f1_9: f1_10: f1_11: f1_12: f1_13: c1_1: c1_2: c1_3: c1_4: c1_5: c1_7: f1_14: f1_15: c1_8: f1_16: f1_17: f1_18: f1_19: f1_20: f1_21: f1_22: f1_23: f1_24: f1_25: f1_26: f1_27: f1_28: f1_29: f1_30: f1_31: f1_32: f1_33: f1_34: f1_35: f1_36: f1_37: f1_38: f1_39: f1_40: f1_41: f1_42: f1_43: f1_44: f1_45: f1_46: f1_47: f1_48: f1_49: f1_50: f1_51: f1_52: f1_53: f1_54: f1_55: f1_56: f1_57: f1_58: f1_59: f1_60: f1_61: f1_62: f1_63: f1_64: f1_65: f1_66: f1_67: f1_68: f1_69: f1_70: f1_71: f1_72: f1_73: f1_74: f1_75: f1_76: f1_77: f1_78: f1_79: f1_80: f1_81: f1_82: f1_83: c1_9: f1_84: c1_10: f1_85: f1_86: f1_87: f1_88: f1_89: c2_1: f2_1: c2_3: c2_4: c2_5: f2_2: f2_3: f2_4: f2_5: f2_6: f2_7: f2_8: f2_9: f2_10: f2_11: f2_12: f2_13: f2_14: f2_15: f2_16: f2_17: f2_18: f2_19: f2_20: f2_21: c2_6: f2_22: f2_23: f2_24: f2_25: f2_26: f2_27: f2_28: f2_29: f2_30: f2_31: f2_32: f2_33: f2_34: f2_35: f2_36: f2_37: f2_38: f2_39: f2_40: f2_41: f2_42: f2_43: f2_44: f2_45: f2_46: c2_7: c2_8: c2_9: c2_10: f2_47: c2_11: c2_12: c2_13: c2_14: c3_1: c3_2: c3_3: p3-1: f3_2: c3_4: f3_3: c3_5: c3_6: f3_4: f3_5: c3_7: c3_8: c3_9: f3_6: c3_10: c3_11: c3_12: c3_13: f3_7: f3_8: f3_9: f3_10: f3_11: f3_12: f3_13: f3_14: f3_15: f3_16: f3_17: f3_18: f3_19: c3_14: f3_20: f4_1: f4_2: f4_3: f4_4: f4_5: f4_6: f4_7: f4_8: f4_9: f4_10: f4_11: f4_12: f4_13: f4_14: f4_15: f4_16: f4_17: f4_18: f4_19: f4_20: f4_21: f4_22: f4_23: f4_24: f4_25: f4_26: f4_27: f4_28: f4_29: f4_30: f4_31: f4_32: f4_33: f4_34: f4_35: f4_36: f4_37: f4_38: f4_39: f4_40: f4_41: f4_42: f4_43: f4_44: f4_45: f4_46: f4_47: f4_48: f4_49: f4_50: f4_51: f4_52: f4_53: f4_54: f4_55: f4_56: f4_57: f4_58: f4_59: f4_60: f4_61: f4_62: f4_63: f4_64: f4_65: f4_66: f4_67: f4_68: f4_69: f4_70: f4_71: f4_72: f4_73: f4_74: f4_75: f4_76: f4_77: f4_78: f4_79: f4_80: f4_81: f4_82: f4_83: f4_84: f4_85: f4_86: f4_87: f4_88: f4_89: f4_90: f4_91: f4_92: c4_1: f4_93: f4_94: f4_95: f4_96: f4_97: f4_98: f4_99: f4_100: f4_101: f4_102: f4_103: f4_104: f4_105: f4_106: f4_107: f4_108: f4_109: f4_110: f4_112: f4_121: f4_122: f4_123: f4_124: f4_125: f4_126: f4_127: f4_128: f4_129: f4_130: f4_131: f5_1: f5_2: f5_3: f5_4: f5_5: f5_6: f5_7: f5_8: f5_9: f5_10: f5_11: f5_12: f5_13: f5_14: shade: f5_15: f5_16: f5_17: f5_18: f5_19: f5_20: f5_21: f5_22: f5_23: f5_24: f5_25: f5_26: f5_27: f5_28: f5_29: f5_30: shade1: f5_31: f5_32: f5_33: f5_34: f5_35: f5_36: f5_300: f5_37: f5_38: f5_39: f5_40: f5_41: f5_42: f5_43: f5_44: f5_45: f5_46: f5_47: f5_48: f5_49: f5_50: f5_51: f5_52: f5_53: f5_54: f5_55: f5_56: f5_57: f5_58: f5_59: f5_60: f5_61: f5_62: f5_63: f5_64: f5_65: f5_66: f5_67: f5_68: f5_69: f5_70: f5_71: f5_72: f5_73: f5_74: f5_75: f5_76: f5_77: f5_78: f5_79: f5_80: f5_81: f5_82: f5_83: f5_84: f5_85: f5_86: f5_87: f5_88: f5_89: f5_90: f5_91: f5_92: f5_93: f5_94: f5_95: f5_96: f5_97: f5_98: f5_99: f5_100: f5_101: f5_102: f5_103: f5_104: f5_105: f5_106: f5_107: ACCT 4221 Spring 2 2021 Tax Project Forms/f1065sk1--2018.pdf 651118 OMB No. 1545-0123 Schedule K-1 (Form 1065) 2018 Department of the Treasury Internal Revenue Service For calendar year 2018, or tax year beginning / / 2018 ending / / Partner’s Share of Income, Deductions, Credits, etc. ▶ See back of form and separate instructions. Final K-1 Amended K-1 Information About the Partnership Part I A Partnership’s employer identification number B Partnership’s name, address, city, state, and ZIP code C IRS Center where partnership filed return D Check if this is a publicly traded partnership (PTP) Information About the Partner Part II E Partner’s identifying number F Partner’s name, address, city, state, and ZIP code G General partner or LLC member-manager Limited partner or other LLC member H Domestic partner Foreign partner I1 What type of entity is this partner? I2 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here J Partner’s share of profit, loss, and capital (see instructions): Beginning Ending Profit % % Loss % % Capital % % K Partner’s share of liabilities: Beginning Ending Nonrecourse . . $ $ Qualified nonrecourse financing . . . $ $ Recourse . . . $ $ L Partner’s capital account analysis: Beginning capital account . . . . $ Capital contributed during the year . $ Current year increase (decrease) . . $ Withdrawals & distributions . . . $ ( ) Ending capital account . . . . . $ Tax basis GAAP Section 704(b) book Other (explain) M Did the partner contribute property with a built-in gain or loss? Yes No If “Yes,” attach statement (see instructions) Partner’s Share of Current Year Income, Deductions, Credits, and Other Items Part III 1 Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 6b Qualified dividends 6c Dividend equivalents 7 Royalties 8 Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income (loss) 12 Section 179 deduction 13 Other deductions 14 Self-employment earnings (loss) 15 Credits 16 Foreign transactions 17 Alternative minimum tax (AMT) items 18 Tax-exempt income and nondeductible expenses 19 Distributions 20 Other information *See attached statement for additional information. Fo r IR S U se O nl y For Paperwork Reduction Act Notice, see Instructions for Form 1065. www.irs.gov/Form1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2018 Schedule K-1 (Form 1065) 2018 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner’s Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is passive or nonpassive and enter on your return as follows. Passive loss Report on See the Partner’s Instructions Passive income Schedule E, line 28, column (h) Nonpassive loss See the Partner’s Instructions Nonpassive income Schedule E, line 28, column (k) 2. Net rental real estate income (loss) See the Partner’s Instructions 3. Other net rental income (loss) Net income Schedule E, line 28, column (h) Net loss See the Partner’s Instructions 4. Guaranteed payments Schedule E, line 28, column (k) 5. Interest income Form 1040, line 2b 6a. Ordinary dividends Form 1040, line 3b 6b. Qualified dividends Form 1040, line 3a 6c. Dividend equivalents See the Partner’s Instructions 7. Royalties Schedule E, line 4 8. Net short-term capital gain (loss) Schedule D, line 5 9a. Net long-term capital gain (loss) Schedule D, line 12 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D instructions) 9c. Unrecaptured section 1250 gain See the Partner’s Instructions 10. Net section 1231 gain (loss) See the Partner’s Instructions 11. Other income (loss) Code A Other portfolio income (loss) See the Partner’s Instructions B Involuntary conversions See the Partner’s Instructions C Sec. 1256 contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Cancellation of debt Schedule 1 (Form 1040), line 21 or Form 982 F Section 951A income G Section 965(a) inclusion H Subpart F income other than sections 951A and 965 inclusion I Other income (loss) }See the Partner’s Instructions 12. Section 179 deduction See the Partner’s Instructions 13. Other deductions A Cash contributions (60%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) E Capital gain property to a 50% organization (30%) F Capital gain property (20%) G Contributions (100%) } See the Partner’s Instructions H Investment interest expense Form 4952, line 1 I Deductions—royalty income Schedule E, line 19 J Section 59(e)(2) expenditures See the Partner’s Instructions K Excess business interest expense See the Partner’s Instructions L Deductions—portfolio (other) Schedule A, line 16 M Amounts paid for medical insurance Schedule A, line 1 or Schedule 1 (Form 1040), line 29 N Educational assistance benefits See the Partner’s Instructions O Dependent care benefits Form 2441, line 12 P Preproductive period expenses See the Partner’s Instructions Q Commercial revitalization deduction from rental real estate activities See Form 8582 instructions R Pensions and IRAs See the Partner’s Instructions S Reforestation expense deduction See the Partner’s Instructions T through V Reserved for future use W Other deductions See the Partner’s Instructions X Section 965(c) deduction See the Partner’s Instructions 14. Self-employment earnings (loss) Note: If you have a section 179 deduction or any partner-level deductions, see the Partner’s Instructions before completing Schedule SE. A Net earnings (loss) from self-employment Schedule SE, Section A or B B Gross farming or fishing income See the Partner’s Instructions C Gross non-farm income See the Partner’s Instructions 15. Credits A Low-income housing credit (section 42(j)(5)) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings C Low-income housing credit (section 42(j)(5)) from post-2007 buildings D Low-income housing credit (other) from post-2007 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits G Other rental credits } H Undistributed capital gains credit Schedule 5 (Form 1040), line 74, box a I Biofuel producer credit See the Partner’s Instructions See the Partner’s Instructions Code Report on J Work opportunity credit K Disabled access credit L Empowerment zone employment credit M Credit for increasing research activities N Credit for employer social security and Medicare taxes O Backup withholding P Other credits } See the Partner’s Instructions 16. Foreign transactions A Name of country or U.S. possession B Gross income from all sources C Gross income sourced at partner level } Foreign gross income sourced at partnership level Form 1116, Part I D Section 951A category E Foreign branch category F Passive category G General category H Other }Form 1116, Part I Deductions allocated and apportioned at partner level I Interest expense Form 1116, Part I J Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income K Section 951A category L Foreign branch category M Passive category N General category O Other }Form 1116, Part I Other information P Total foreign taxes paid Form 1116, Part II Q Total foreign taxes accrued Form 1116, Part II R Reduction in taxes available for credit Form 1116, line 12 S Foreign trading gross receipts Form 8873 T Extraterritorial income exclusion Form 8873 U Section 951A(c)(1)(A) tested income V Tested foreign income tax W Section 965 information X Other foreign transactions }See the Partner’s Instructions 17. Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment B Adjusted gain or loss C Depletion (other than oil & gas) D Oil, gas, & geothermal—gross income E Oil, gas, & geothermal—deductions F Other AMT items } See the Partner’s Instructions and the Instructions for Form 6251 18. Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 2a B Other tax-exempt income See the Partner’s Instructions C Nondeductible expenses See the Partner’s Instructions 19. Distributions A Cash and marketable securities B Distribution subject to section 737 C Other property } See the Partner’s Instructions 20. Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 D Qualified rehabilitation expenditures (other than rental real estate) See the Partner’s Instructions E Basis of energy property See the Partner’s Instructions F Recapture of low-income housing credit (section 42(j)(5)) Form 8611, line 8 G Recapture of low-income housing credit (other) Form 8611, line 8 H Recapture of investment credit See Form 4255 I Recapture of other credits See the Partner’s Instructions J Look-back interest—completed long-term contracts See Form 8697 K Look-back interest—income forecast method See Form 8866 L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O through Y Z Section 199A income AA Section 199A W-2 wages AB Section 199A unadjusted basis AC Section 199A REIT dividends AD Section 199A PTP income AE Excess taxable income AF Excess business interest income AG Gross receipts for section 59A(e) AH Other information } See the Partner’s Instructions Version A, Cycle 17 Fillable Fields: Font=10pt Helvetica LT Std; Color=Black; Checkmark=Cross INTERNAL USE ONLY DRAFT AS OF November 28, 2018 Version A, Cycle 17 INTERNAL USE ONLY DRAFT AS OF November 28, 2018 2018 Schedule K-1 (Form 1065) SE:W:CAR:MP Partner's Share of Income, Deductions, Credits, etc. 651118 OMB No. 1545-0123 O M B No. 1545-0123. For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2018 2018. Cat. No. 11394R. Department of the Treasury Internal Revenue Service For calendar year 2018, or tax year beginning /   2018 ending Partner’s Share of Income, Deductions, Credits, etc.  ▶ See back of form and separate instructions.  Information About the Partnership Part I A Partnership’s employer identification number B Partnership’s name, address, city, state, and ZIP code C IRS Center where partnership filed return D Information About the Partner Part II E Partner’s identifying number F Partner’s name, address, city, state, and ZIP code G General partner or LLC member-manager Limited partner or other LLC member H I1 I2 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here  J Partner’s share of profit, loss, and capital (see instructions): Beginning Ending Profit Loss Capital K Partner’s share of liabilities: Beginning Ending Nonrecourse           Qualified nonrecourse financing           Recourse           L Partner’s capital account analysis: Withdrawals & distributions            $ ( ) M Did the partner contribute property with a built-in gain or loss? If “Yes,” attach statement (see instructions) Partner’s Share of Current Year Income, Deductions, Credits, and Other Items Part III *See attached statement for additional information. For IRS Use Only For Paperwork Reduction Act Notice, see Instructions for Form 1065. www.irs.gov/Form1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2018 Schedule K-1 (Form 1065) 2018 Page  2  This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040.  For detailed reporting and filing information, see the separate Partner’s Instructions for Schedule K-1 and the instructions for your income tax return.  1. Ordinary business income (loss). Determine whether the income (loss) is  passive or nonpassive and enter on your return as follows.  Passive loss Report on See the Partner’s Instructions Passive income Schedule E, line 28, column (h) Nonpassive loss See the Partner’s Instructions Nonpassive income Schedule E, line 28, column (k) 2. Net rental real estate income (loss) See the Partner’s Instructions 3. Other net rental income (loss) Net income Schedule E, line 28, column (h) Net loss See the Partner’s Instructions 4. Guaranteed payments Schedule E, line 28, column (k) 5. Interest income Form 1040, line 2b 6a. Ordinary dividends Form 1040, line 3b 6b. Qualified dividends Form 1040, line 3a 6c. Dividend equivalents See the Partner’s Instructions 7. Royalties Schedule E, line 4 8. Net short-term capital gain (loss) Schedule D, line 5 9a. Net long-term capital gain (loss) Schedule D, line 12 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D instructions) 9c. Unrecaptured section 1250 gain See the Partner’s Instructions 10. Net section 1231 gain (loss) See the Partner’s Instructions 11. Other income (loss) Code A Other portfolio income (loss) See the Partner’s Instructions B Involuntary conversions See the Partner’s Instructions C Sec. 1256 contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Cancellation of debt Schedule 1 (Form 1040), line 21 or Form 982 F Section 951A income G Section 965(a) inclusion H Subpart F income other than sections 951A and 965 inclusion I Other income (loss) } See the Partner’s Instructions 12. Section 179 deduction See the Partner’s Instructions 13. Other deductions A Cash contributions (60%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) E Capital gain property to a 50%organization (30%) F Capital gain property (20%) G Contributions (100%) } See the Partner’s Instructions  H Investment interest expense Form 4952, line 1 I Deductions—royalty income Schedule E, line 19 J Section 59(e)(2) expenditures See the Partner’s Instructions K Excess business interest expense See the Partner’s Instructions L Deductions—portfolio (other) Schedule A, line 16 M Amounts paid for medical insurance Schedule A, line 1 or Schedule 1 (Form 1040), line 29 N Educational assistance benefits See the Partner’s Instructions O Dependent care benefits Form 2441, line 12 P Preproductive period expenses See the Partner’s Instructions Q Commercial revitalization deduction from rental real estate activities See Form 8582 instructions R Pensions and IRAs See the Partner’s Instructions S Reforestation expense deduction See the Partner’s Instructions T through V Reserved for future use W Other deductions See the Partner’s Instructions X Section 965(c) deduction See the Partner’s Instructions 14. Self-employment earnings (loss) Note: If you have a section 179 deduction or any partner-level deductions, see the Partner’s Instructions before completing Schedule SE.  A Net earnings (loss) from self-employment  Schedule SE, Section A or B B Gross farming or fishing income See the Partner’s Instructions C Gross non-farm income See the Partner’s Instructions 15. Credits A Low-income housing credit (section 42(j)(5)) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings C Low-income housing credit (section 42(j)(5)) from post-2007 buildings D Low-income housing credit (other) from post-2007 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits G Other rental credits } H Undistributed capital gains credit Schedule 5 (Form 1040), line 74, box a I Biofuel producer credit See the Partner’s Instructions See the Partner’s Instructions Code Report on J Work opportunity credit K Disabled access credit L Empowerment zone employment credit M Credit for increasing research activities N Credit for employer social security and Medicare taxes O Backup withholding P Other credits } See the Partner’s Instructions  16. Foreign transactions A Name of country or U.S. possession B Gross income from all sources C Gross income sourced at partner level } Foreign gross income sourced at partnership level Form 1116, Part I D Section 951A category E Foreign branch category F Passive category G General category H Other } Form 1116, Part I Deductions allocated and apportioned at partner level I Interest expense Form 1116, Part I J Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income K Section 951A category L Foreign branch category M Passive category N General category O Other } Form 1116, Part I Other information P Total foreign taxes paid Form 1116, Part II Q Total foreign taxes accrued Form 1116, Part II R Reduction in taxes available for credit Form 1116, line 12 S Foreign trading gross receipts Form 8873 T Extraterritorial income exclusion Form 8873 U Section 951A(c)(1)(A) tested income V Tested foreign income tax W Section 965 information X Other foreign transactions } See the Partner’s Instructions 17. Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment B Adjusted gain or loss C Depletion (other than oil & gas) D Oil, gas, & geothermal—gross income E Oil, gas, & geothermal—deductions F Other AMT items } See the Partner’s Instructions and the Instructions for Form 6251  18. Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 2a B Other tax-exempt income See the Partner’s Instructions C Nondeductible expenses See the Partner’s Instructions 19. Distributions A Cash and marketable securities B Distribution subject to section 737 C Other property } See the Partner’s Instructions 20. Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 D Qualified rehabilitation expenditures (other than rental real estate) See the Partner’s Instructions E Basis of energy property See the Partner’s Instructions F Recapture of low-income housing credit (section 42(j)(5)) Form 8611, line 8 G Recapture of low-income housing credit (other) Form 8611, line 8 H Recapture of investment credit See Form 4255 I Recapture of other credits See the Partner’s Instructions J Look-back interest—completed long-term contracts See Form 8697 K Look-back interest—income forecast method See Form 8866 L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O through Y Z Section 199A income AA Section 199A W-2 wages AB Section 199A unadjusted basis AC Section 199A REIT dividends AD Section 199A PTP income AE Excess taxable income AF Excess business interest income AG Gross receipts for section 59A(e) AH Other information } See the Partner’s Instructions  f1_1: f1_2: f1_3: f1_4: f1_5: c1_1: 0 c1_2: 0 f1_6: f1_7: f1_8: c1_3: 0 f1_9: f1_10: c1_4: 0 c1_5: 0 f1_11: c1_6: 0 f1_12: f1_13: f1_14: f1_15: f1_16: f1_17: f1_18: f1_19: f1_20: f1_21: f1_22: f1_23: f1_24: f1_25: f1_26: f1_27: f1_28: c1_7: 0 f1_29: c1_8: 0 Line1: f1_30: Line2: f1_31: Line3: f1_32: Line4: f1_33: Line5: f1_34: Line6a: f1_35: Line6b: f1_36: Line6c: f1_37: Line7: f1_38: Line8: f1_39: Line9a: f1_40: Line9b: f1_41: Line9c: f1_42: Line10: f1_43: f1_44: f1_45: f1_46: f1_47: f1_48: f1_49: Line12: f1_50: f1_51: f1_52: f1_53: f1_54: f1_55: f1_56: f1_57: f1_58: f1_59: f1_60: f1_61: f1_62: f1_63: f1_64: f1_65: f1_66: f1_67: f1_68: f1_69: f1_70: f1_71: f1_72: f1_73: f1_74: f1_75: f1_76: f1_77: f1_78: f1_79: f1_80: f1_81: f1_82: f1_83: f1_84: f1_85: f1_86: f1_87: f1_88: f1_89: f1_90: f1_91: f1_92: f1_93: f1_94: f1_95: f1_96: f1_97: f1_98: f1_99: f1_100: f1_101: f1_102: ACCT 4221 Spring 2 2021 Tax Project Forms/f1120s--2018.pdf Form 1120S Department of the Treasury Internal Revenue Service U.S. Income Tax Return for an S Corporation ▶ Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. ▶ Go to www.irs.gov/Form1120S for instructions and the latest information. OMB No. 1545-0123 2018 For calendar year 2018 or tax year beginning , 2018, ending , 20 TYPE OR PRINT Name Number, street, and room or suite no. If a P.O. box, see instructions. City or town, state or province, country, and ZIP or foreign postal code A S election effective date B Business activity code number (see instructions) C Check if Sch. M-3 attached D Employer identification number E Date incorporated F Total assets (see instructions) $ G Is the corporation electing to be an S corporation beginning with this tax year? Yes No If “Yes,” attach Form 2553 if not already filed H Check if: (1) Final return (2) Name change (3) Address change (4) Amended return (5) S election termination or revocation I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . . ▶ Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information. In co m e 1a Gross receipts or sales . . . . . . . . . . . . . . . 1a b Returns and allowances . . . . . . . . . . . . . . 1b c Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . 1c 2 Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . 2 3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . 3 4 Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . . 4 5 Other income (loss) (see instructions—attach statement) . . . . . . . . . . . . . 5 6 Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . . ▶ 6 D ed uc ti o ns ( se e in st ru ct io ns fo r lim ita tio ns ) 7 Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . . 7 8 Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . 8 9 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . 9 10 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . 13 14 Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . . 14 15 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . 15 16 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . 17 18 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . 18 19 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . 19 20 Total deductions. Add lines 7 through 19 . . . . . . . . . . . . . . . . ▶ 20 21 Ordinary business income (loss). Subtract line 20 from line 6 . . . . . . . . . . . 21 T ax a nd P ay m en ts 22 a Excess net passive income or LIFO recapture tax (see instructions) . 22a b Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b c Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . . . 22c 23a 2018 estimated tax payments and 2017 overpayment credited to 2018 23a b Tax deposited with Form 7004 . . . . . . . . . . . . 23b c Credit for federal tax paid on fuels (attach Form 4136) . . . . . 23c d Refundable credit from Form 8827, line 8c . . . . . . . . 23d e Add lines 23a through 23d . . . . . . . . . . . . . . . . . . . . . . 23e 24 Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . ▶ 24 25 Amount owed. If line 23e is smaller than the total of lines 22c and 24, enter amount owed . . 25 26 Overpayment. If line 23e is larger than the total of lines 22c and 24, enter amount overpaid . . 26 27 Enter amount from line 26: Credited to 2019 estimated tax ▶ Refunded ▶ 27 Sign Here 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 taxpayer) is based on all information of which preparer has any knowledge. ▲ Signature of officer Date ▲ Title May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Paid Preparer Use Only Print/Type preparer’s name Preparer’s signature Date Check if self-employed PTIN Firm’s name ▶ Firm’s address ▶ Firm’s EIN ▶ Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11510H Form 1120S (2018) Form 1120S (2018) Page 2 Schedule B Other Information (see instructions) 1 Check accounting method: a Cash b Accrual Yes No c Other (specify) ▶ 2 See the instructions and enter the: a Business activity ▶ b Product or service ▶ 3 At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a nominee or similar person? If “Yes,” attach Schedule B-1, Information on Certain Shareholders of an S Corporation . . 4 At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorporation (iv) Percentage of Stock Owned (v) If Percentage in (iv) is 100%, Enter the Date (if any) a Qualified Subchapter S Subsidiary Election Was Made 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 5a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . . . If “Yes,” complete lines (i) and (ii) below. (i) Total shares of restricted stock . . . . . . . . . ▶ (ii) Total shares of non-restricted stock . . . . . . . . ▶ b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments? . If “Yes,” complete lines (i) and (ii) below. (i) Total shares of stock outstanding at the end of the tax year ▶ (ii) Total shares of stock outstanding if all instruments were executed ▶ 6 Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . 7 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . ▶ If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 8 If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation and (b) has net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see instructions) ▶ $ 9 Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . 10 Does the corporation satisfy one of the following conditions and the corporation doesn’t own a pass-through entity with current year, or prior year carryover, excess business interest expense? See instructions . . . . . . . . . . a The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year don’t exceed $25 million, and the corporation isn’t a tax shelter; or b The corporation only has business interest expense from (1) an electing real property trade or business, (2) an electing farming business, or (3) certain utility businesses under section 163(j)(7). If “No,” complete and attach Form 8990. 11 Does the corporation satisfy both of the following conditions? a The corporation’s total receipts (see instructions) for the tax year were less than $250,000 . . . . . . . . . . b The corporation’s total assets at the end of the tax year were less than $250,000 . . . . . . . . . . . . If “Yes,” the corporation is not required to complete Schedules L and M-1. Form 1120S (2018) Form 1120S (2018) Page 3 Schedule B Other Information (see instructions) (continued) Yes No 12 During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . If “Yes,” enter the amount of principal reduction . . . . . . . . ▶ $ 13 During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions . 14a Did the corporation make any payments in 2018 that would require it to file Form(s) 1099? . . . . . . . . . . b If “Yes,” did the corporation file or will it file required Forms 1099? . . . . . . . . . . . . . . . . . 15 Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . . . If “Yes,” enter the amount from Form 8996, line 13 . . . . . . . ▶ $ Schedule K Shareholders’ Pro Rata Share Items Total amount In co m e (L o ss ) 1 Ordinary business income (loss) (page 1, line 21) . . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . 2 3a Other gross rental income (loss) . . . . . . . . . . 3a b Expenses from other rental activities (attach statement) . . 3b c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . 3c 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . 5a b Qualified dividends . . . . . . . . . . 5b 6 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . . . 7 8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . . . 8a b Collectibles (28%) gain (loss) . . . . . . . . . . . 8b c Unrecaptured section 1250 gain (attach statement) . . . . 8c 9 Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . 9 10 Other income (loss) (see instructions) . . Type ▶ 10 D ed uc ti o ns 11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . 11 12 a Charitable contributions . . . . . . . . . . . . . . . . . . . . . 12a b Investment interest expense . . . . . . . . . . . . . . . . . . . . 12b c Section 59(e)(2) expenditures (1) Type ▶ (2) Amount ▶ 12c(2) d Other deductions (see instructions) . . . Type ▶ 12d C re d it s 13a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . 13a b Low-income housing credit (other) . . . . . . . . . . . . . . . . . . 13b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) . 13c d Other rental real estate credits (see instructions) Type ▶ 13d e Other rental credits (see instructions) . . . Type ▶ 13e f Biofuel producer credit (attach Form 6478) . . . . . . . . . . . . . . . 13f g Other credits (see instructions) . . . . . Type ▶ 13g Fo re ig n T ra ns ac ti o ns 14a Name of country or U.S. possession ▶ b Gross income from all sources . . . . . . . . . . . . . . . . . . . 14b c Gross income sourced at shareholder level . . . . . . . . . . . . . . . 14c Foreign gross income sourced at corporate level d Section 951A category . . . . . . . . . . . . . . . . . . . . . . 14d e Foreign branch category . . . . . . . . . . . . . . . . . . . . . 14e f Passive category . . . . . . . . . . . . . . . . . . . . . . . 14f g General category . . . . . . . . . . . . . . . . . . . . . . . 14g h Other (attach statement) . . . . . . . . . . . . . . . . . . . . . 14h Deductions allocated and apportioned at shareholder level i Interest expense . . . . . . . . . . . . . . . . . . . . . . . . 14i j Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 14j Deductions allocated and apportioned at corporate level to foreign source income k Section 951A category . . . . . . . . . . . . . . . . . . . . . . 14k l Foreign branch category . . . . . . . . . . . . . . . . . . . . . 14l m Passive category . . . . . . . . . . . . . . . . . . . . . . . 14m n General category . . . . . . . . . . . . . . . . . . . . . . . 14n o Other (attach statement) . . . . . . . . . . . . . . . . . . . . . 14o Other information p Total foreign taxes (check one): ▶ Paid Accrued . . . . . . . . . . 14p q Reduction in taxes available for credit (attach statement) . . . . . . . . . . . 14q r Other foreign tax information (attach statement) Form 1120S (2018) Form 1120S (2018) Page 4 Schedule K Shareholders’ Pro Rata Share Items (continued) Total amount A lt er na ti ve M in im um T ax (A M T ) I te m s 15 a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . 15a b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . 15b c Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . 15c d Oil, gas, and geothermal properties—gross income . . . . . . . . . . . . . 15d e Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . . . 15e f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . 15f It em s A ff ec ti ng S ha re ho ld er B as is 16 a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . 16a b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . 16b c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . 16c d Distributions (attach statement if required) (see instructions) . . . . . . . . . . 16d e Repayment of loans from shareholders . . . . . . . . . . . . . . . . . 16e O th er In fo rm at io n 17a Investment income . . . . . . . . . . . . . . . . . . . . . . . 17a b Investment expenses . . . . . . . . . . . . . . . . . . . . . . 17b c Dividend distributions paid from accumulated earnings and profits . . . . . . . . 17c d Other items and amounts (attach statement) R ec o n- ci lia ti o n 18 Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14p 18 Schedule L Balance Sheets per Books Beginning of tax year End of tax year ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) Assets (a) (b) (c) (d) 1 Cash . . . . . . . . . . . . . . 2a Trade notes and accounts receivable . . . . b Less allowance for bad debts . . . . . . . 3 Inventories . . . . . . . . . . . . 4 U.S. government obligations . . . . . . . 5 Tax-exempt securities (see instructions) . . . 6 Other current assets (attach statement) . . . . 7 Loans to shareholders . . . . . . . . . 8 Mortgage and real estate loans . . . . . . 9 Other investments (attach statement) . . . . 10a Buildings and other depreciable assets . . . . b Less accumulated depreciation . . . . . . 11a Depletable assets . . . . . . . . . . b Less accumulated depletion . . . . . . . 12 Land (net of any amortization) . . . . . . . 13a Intangible assets (amortizable only) . . . . . b Less accumulated amortization . . . . . . 14 Other assets (attach statement) . . . . . . 15 Total assets . . . . . . . . . . . . Liabilities and Shareholders’ Equity 16 Accounts payable . . . . . . . . . 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement) . . 19 Loans from shareholders . . . . . . . 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (attach statement) . . . . 22 Capital stock . . . . . . . . . . . 23 Additional paid-in capital . . . . . . . 24 Retained earnings . . . . . . . . . 25 Adjustments to shareholders’ equity (attach statement) 26 Less cost of treasury stock . . . . . . 27 Total liabilities and shareholders’ equity . . Form 1120S (2018) Form 1120S (2018) Page 5 Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: The corporation may be required to file Schedule M-3 (see instructions) 1 Net income (loss) per books . . . . . 2 Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded on books this year (itemize) 3 Expenses recorded on books this year not included on Schedule K, lines 1 through 12 and 14p (itemize): a Depreciation $ b Travel and entertainment $ 4 Add lines 1 through 3 . . . . . . . 5 Income recorded on books this year not included on Schedule K, lines 1 through 10 (itemize): a Tax-exempt interest $ 6 Deductions included on Schedule K, lines 1 through 12 and 14p, not charged against book income this year (itemize): a Depreciation $ 7 Add lines 5 and 6 . . . . . . . 8 Income (loss) (Schedule K, line 18). Line 4 less line 7 . . . . . . . . Schedule M-2 Analysis of Accumulated Adjustments Account, Shareholders’ Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account (see instructions) ( ) ( ) ( ) (a) Accumulated adjustments account (b) Shareholders’ undistributed taxable income previously taxed (c) Accumulated earnings and profits (d) Other adjustments account 1 Balance at beginning of tax year . . . . . . 2 Ordinary income from page 1, line 21 . . . . 3 Other additions . . . . . . . . . . . 4 Loss from page 1, line 21 . . . . . . . . 5 Other reductions . . . . . . . . . . . 6 Combine lines 1 through 5 . . . . . . . . 7 Distributions . . . . . . . . . . . . 8 Balance at end of tax year. Subtract line 7 from line 6 . . . . . . . . . . . . . . Form 1120S (2018) Version A, Cycle 9 INTERNAL USE ONLY DRAFT AS OF September 10, 2018 2018 Form 1120S SE:W:CAR:MP U.S. Income Tax Return for an S Corporation Form  1120S Department of the Treasury Internal Revenue Service U.S. Income Tax Return for an S Corporation ▶ Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation.▶ Go to www.irs.gov/Form1120S for instructions and the latest information. OMB No. 1545-0123 O M B No. 1545-0123. For Paperwork Reduction Act Notice, see separate instructions. 2018 2018. Cat. No. 11510H. TYPE OR PRINT C  Check if Sch. M-3 attached F  Total assets (see instructions)  G Is the corporation electing to be an S corporation beginning with this tax year? If “Yes,” attach Form 2553 if not already filed H Check if: (1) (2) (3) (4) (5) I Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.  Income 1 a Gross receipts or sales          1a b Returns and allowances           1b c  c. Balance. Balance. Subtract line 1b from line 1a          1c 2 Cost of goods sold (attach Form 1125-A)           2 3 Gross profit. Subtract line 2 from line 1c           3 4 Net gain (loss) from Form 4797, line 17 (attach Form 4797)           4 5 Other income (loss) (see instructions—attach statement)           5 6 Total income (loss). Add lines 3 through 5           ▶ 6 Deductions  (see instructions for limitations) 7 Compensation of officers (see instructions—attach Form 1125-E)           7 8 Salaries and wages (less employment credits)           8 9 Repairs and maintenance           9 10 Bad debts           10 11 Rents           11 12 Taxes and licenses           12 13 Interest (see instructions)          13 14 Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562)           14 15 Depletion (Do not deduct oil and gas depletion.)           15 16 Advertising           16 17 Pension, profit-sharing, etc., plans           17 18 Employee benefit programs           18 19 Other deductions (attach statement)           19 20 Total deductions. Add lines 7 through 19           ▶ 20 21 Ordinary business income (loss). Subtract line 20 from line 6           21 Tax and Payments 22 a Excess net passive income or LIFO recapture tax (see instructions)           22a b Tax from Schedule D (Form 1120S)           22b c Add lines 22a and 22b (see instructions for additional taxes)           22c 23 a 2018 estimated tax payments and 2017 overpayment credited to 2018 23a b Tax deposited with Form 7004           23b c Credit for federal tax paid on fuels (attach Form 4136)           23c d Refundable credit from Form 8827, line 8c           23d e Add lines 23a through 23d           23e 24 Estimated tax penalty (see instructions). Check if Form 2220 is attached           ▶ 24 25 Amount owed. If line 23e is smaller than the total of lines 22c and 24, enter amount owed           25 26 Overpayment. If line 23e is larger than the total of lines 22c and 24, enter amount overpaid           26 27 27 Sign Here 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 taxpayer) is based on all information of which preparer has any knowledge. ▲ Signature of officer Date ▲ May the IRS discuss this return with the preparer shown below (see instructions)?  Paid Preparer Use Only Preparer’s signature Date Check if self-employed For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11510H Form 1120S (2018)  Form 1120S (2018) Page  2  Schedule B Other Information  (see instructions)  1 Check accounting method: a b Yes No c 2 See the instructions and enter the: 3   At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a nominee or similar person? If “Yes,” attach Schedule B-1, Information on Certain Shareholders of an S Corporation           4 At the end of the tax year, did the corporation: a     Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below           (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorporation (iv) Percentage ofStock Owned (v) If Percentage in (iv) is 100%, Enter the Date (if any) a Qualified Subchapter S Subsidiary Election Was Made 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 5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock?            If “Yes,” complete lines (i) and (ii) below. (i) (ii) b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?            If “Yes,” complete lines (i) and (ii) below. (i) (ii) 6   Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction?           7 Check this box if the corporation issued publicly offered debt instruments with original issue discount           ▶ If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount  Instruments.  8       If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation and (b) has net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see instructions) ▶ 9   Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions           10   Does the corporation satisfy one of the following conditions and the corporation doesn’t own a pass-through entity with current year, or prior year carryover, excess business interest expense? See instructions           a   The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year don’t exceed $25 million, and the corporation isn’t a tax shelter; or b   The corporation only has business interest expense from (1) an electing real property trade or business, (2) an electing farming business, or (3) certain utility businesses under section 163(j)(7). If “No,” complete and attach Form 8990. 11 Does the corporation satisfy both of the following conditions? a The corporation’s total receipts (see instructions) for the tax year were less than $250,000           b The corporation’s total assets at the end of the tax year were less than $250,000           If “Yes,” the corporation is not required to complete Schedules L and M-1. Form 1120S (2018)  Form 1120S (2018) Page  3  Schedule B Other Information  (see instructions) (continued)  Yes No 12   During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt?           If “Yes,” enter the amount of principal reduction           ▶ 13 During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions           14 a Did the corporation make any payments in 2018 that would require it to file Form(s) 1099?           b If “Yes,” did the corporation file or will it file required Forms 1099?          15 Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?           If “Yes,” enter the amount from Form 8996, line 13           ▶ Schedule K Shareholders’ Pro Rata Share Items Total amount Income (Loss) 1 Ordinary business income (loss) (page 1, line 21)           1 2 Net rental real estate income (loss) (attach Form 8825)           2 3 a Other gross rental income (loss)           3a b Expenses from other rental activities (attach statement)           3b c Other net rental income (loss). Subtract line 3b from line 3a           3c 4 Interest income           4 5 Dividends: a Ordinary dividends           5a b Qualified dividends           5b 6 Royalties           6 7 Net short-term capital gain (loss) (attach Schedule D (Form 1120S))           7 8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S))           8a b Collectibles (28%) gain (loss)           8b c Unrecaptured section 1250 gain (attach statement)           8c 9 Net section 1231 gain (loss) (attach Form 4797)           9 10 Other income (loss) (see instructions)           10 Deductions 11 Section 179 deduction (attach Form 4562)           11 12 a Charitable contributions           12a b I Income Tax Project The income tax project is due no later than April 18, 2021. Each requirement will be worth 50 points each for a total of 100 points. Points will be awarded for correct responses only. Review the following accounting and tax data and complete the two requirements below: While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2019 and each contributed $50,000 in exchange for a 50 percent ownership interest. GTE also borrowed $200,000 from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE’s 2019 activities. · GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis. · GTE received $450,000 of sales revenue and reported $210,000 of cost of goods sold (it did not have any ending inventory). · GTE paid $30,000 compensation to James, $30,000 compensation to Paul, and $40,000 of compensation to other employees (assume these amounts include applicable payroll taxes if any). · GTE paid $15,000 of rent for a building and equipment, $20,000 for advertising, $14,000 in interest expense, $4,000 for utilities, and $2,000 for supplies. · GTE contributed $5,000 to charity. · GTE received a $1,000 qualified dividend from a great stock investment (it owned 2 percent of the corporation distributing the dividend) and it recognized $1,500 in short-term capital gain when it sold some of the stock. · On December 1, 2019, GTE distributed $20,000 to James and $20,000 to Paul. · GTE has qualified property of $300,000 (unadjusted basis). Requirements: a. Assume James and Paul formed GTE as an S corporation. · Complete GTE’s Form 1120S page 1, Form 1120 S, Schedule K, and Paul’s Form 1120S Schedule K-1 (note that you should use 2019 tax forms). (25 points) · Compute the tax basis of Paul’s stock in GTE at the end of 2019. (10 points) · What amount of Paul’s income from GTE is subject to FICA or self-employment taxes? (5 points) · What amount of income, including its character, will Paul recognize on the $20,000 distribution he receives on December 1? (5 points) · What amount of tax does GTE pay on the $1,000 qualified dividend it received? (5 points) b. Assume James and Paul formed GTE as an LLC. · Complete GTE’s Form 1065 page 1, Form 1065, Schedule K, and Paul’s Form 1065, Schedule K-1 (note that you should use 2019 tax forms). (25 points) · Compute the tax basis of Paul’s ownership interest in GTE at the end of 2019. (10 points) · What amount of Paul’s income from GTE is subject to FICA or self-employment taxes? (5 points) · What amount of income, including its character, will Paul recognize on the $20,000 distribution he receives on December 1? (5 points) · What amount of tax does GTE pay on the $1,000 qualified dividend it received? (5 points)