Question
ACNT 1347 Form 1065 Practice Tax Return Facts in 2019: ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002 EIN-74-1111111 Date Business
ACNT 1347
Form 1065 Practice Tax Return
Facts in 2019:
ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002
EIN-74-1111111
Date Business Started 1/1/2000
Business Activity: retail sales; Product: Family Clothing; Business code: 448140.
The partnership is a cash basis business
Total Assets $3,050,000
Gross Receipts $1,000,000
Cost of Goods Sold $400,000 (assume no beginning and ending inventory and
purchases are $400,000)
ABC LLP uses FIFO method for determining the cost of goods sold and the cash
method for all other income and expenses.
Guaranteed payment for services in the amount of $200,000 was paid to Bee
o
Hint: When using Tax Act, open up a Schedule K-1 for each partner.
Then, enter guaranteed payment on Bee Jones K-1. The amount will carry
over to the Form 1065, Schedule K.
Bee is also the Tax Matters partner.
Salaries and wages paid to employees was $50,000
Office Rent paid for home office was $10,000
Supplies expense totaled $40,000
Partner information is as follows:
Partner Capital Profit Loss Residency SSN Address
Bee Jones 40% 40% 40% TX 222-22-2222 124 Oak Dr, Hou. TX 77002
John Smith 40% 40% 40% TX 333-33-3333 125 Oak Dr, Hou. TX 77002
Julie Smart 20% 20% 20% TX 444-44-4444 126 Oak Dr Hou. TX 77002
All partners materially participate in the day-to-day partnership operations.
All partners use their tax basis as their capital account balances.
The partner's beginning Capital Balances at 1/1/2019 are as follows:
Partner Capital Balance
Bee Jones $1,100,000
John Smith $1,100,000
Julie Smart $ 550,000
pls, form 1065
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