Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person.

At the beginning of the current tax year, Amy's tax basis capital account has a balance of $980,000, and the LLC has debts of $637,000 payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. The following information about AM's operations for the current year is obtained from the LLC's records.

Operating income*	$1,470,000
W-2 wages	200,000
Depreciation expense	300,000
Interest income	14,700
Long-term capital loss	9,800
Long-term capital gain	29,400
Charitable contribution (cash)	14,750
Cash distribution to Amy	73,500
Unadjusted basis of partnership property immediately after acquisition	1,600,000

Year-end LLC debt payable to unrelated parties is $445,900. Assume that all transactions are reflected in Amy's beginning capital and basis in the same manner. Also assume that all AM Products' activities are eligible for the qualified business income deduction.

a. Calculate Amy's basis in her LLC interest at the beginning and end of the tax year. Use her capital account as a starting point. LLC interest at the beginning of the year: $fill in the blank b52efc06df90031_1 LLC interest at the end of the year: $fill in the blank b52efc06df90031_2.

b. What income, gains, losses, and deductions does Amy report on her income tax return?

If an amount is zero, enter "0".

Ordinary income	$fill in the blank 9e76edffafdffb1_1
Net long-term capital gain	$fill in the blank 9e76edffafdffb1_2
Interest income	$fill in the blank 9e76edffafdffb1_3
Charitable contribution deduction	$fill in the blank 9e76edffafdffb1_4
Cash distribution	$fill in the blank 9e76edffafdffb1_5

c. Based on the information provided, what other calculations is Amy required to make?

Amy may be eligible to deduct up to fill in the blank 53400d07d00afd9_1% of the ordinary income as qualified business income under 199A and will make that calculation on her return.

d. Prepare Amy's tax basis capital account roll forward from the beginning to the end of the tax year. How does her ending capital account differ from her ending tax basis in the LLC interest as calculated in part (a)?

Capital account balance, beginning year			$fill in the blank d511d50b8f85007_1
Ordinary income	$fill in the blank d511d50b8f85007_2
Interest income	fill in the blank d511d50b8f85007_3
Net long-term capital gain	fill in the blank d511d50b8f85007_4
			fill in the blank d511d50b8f85007_5
			$fill in the blank d511d50b8f85007_6
Less:
Charitable contribution	$fill in the blank d511d50b8f85007_7
Cash distribution to Amy	fill in the blank d511d50b8f85007_8
			fill in the blank d511d50b8f85007_9
Capital account balance, end of year			$fill in the blank d511d50b8f85007_10

e. Using the information from parts (a) to (d), prepare Amy's Schedule K1 as if you were the preparer of AM Products LLC's tax return. Provide all information that Amy needs to the extent you can.

Enter all amounts as positive numbers.

1	Ordinary business income (loss) fill in the blank e81592fc2f8107b_1	14 A	Self-employment earnings (loss) fill in the blank e81592fc2f8107b_2
5	Interest income fill in the blank e81592fc2f8107b_3
9a	Net long-term capital gain (loss) fill in the blank e81592fc2f8107b_4	19 A	Distributions fill in the blank e81592fc2f8107b_5
9c	Unrecaptured section 1250 gain	20 A	Other information fill in the blank e81592fc2f8107b_6
10	Net section 1231 gain (loss)	Z*	STMT QBI fill in the blank e81592fc2f8107b_7
11	Other income (loss)		W-2 wages fill in the blank e81592fc2f8107b_8
			UBIA fill in the blank e81592fc2f8107b_9
13 A	Other deductions fill in the blank e81592fc2f8107b_10

J	Partner's share of profit, loss, and capital (see instructions):
	Beginning		Ending
	Profit	fill in the blank e81592fc2f8107b_12 %	fill in the blank e81592fc2f8107b_13 %
	Loss	fill in the blank e81592fc2f8107b_14 %	fill in the blank e81592fc2f8107b_15 %
	Capital	fill in the blank e81592fc2f8107b_16 %	fill in the blank e81592fc2f8107b_17 %

K	Partner's share of liabilities:
		Beginning		Ending
	Nonrecourse	$	fill in the blank e81592fc2f8107b_18	$	fill in the blank e81592fc2f8107b_19

L	Partner's capital account analysis:
	Beginning capital account . . . . . .	$	fill in the blank e81592fc2f8107b_20
	Current year net income (loss) . . . . .	$	fill in the blank e81592fc2f8107b_21
	Withdrawals & distributions . . . . . . .	$	(fill in the blank e81592fc2f8107b_22)
	Ending capital account . . . . . . . . .	$	fill in the blank e81592fc2f8107b_23