Because it is important for accountants to demonstrate the filing requirements for specialized tax returns, for this final project you will be completing a partnership tax return and then analyzing this experience.
Key Component:
- Use the financial data from below to complete Form 1065.
- Complete the below Student Template that has the respective tax forms and schedules required to complete the return. Do all the parts of your respective business tax return for which there is information.
- In the space at the bottom of the template, Need a write-up on:The purpose of some questions on Form 1065 Schedule B with the exception of line 1.
- The challenges (identify three to five) your faced, both anticipated and unexpected, when completing the partnership tax return.
- Solutions you can provide to those challenges.
You will need the 2016 FORM 1065 and FORM 1120. I have the answers and have completed assignment but want to compare for correctness.
96cm E E Anal v H] v A' A' I' '1' EWrame General v Neutral Calmlatiml ' '- 'V :t zhmnsm\" V '2'? p A '30!\" v . ' ' : : a . 7 cm W _ Paste {Ermpaim' I H V l., ., madam.\" 5 of, , H N Sung-'13: F2311? Explanatory _ Linkadcell Note ' '15th Delete roman 'OEV 2125:1133 Cllllhllal '1 Font G Allgnmlm G Mumhrl Gr SINK} CHIS EIIlllllg 017 v E x J L A A E c D E F G I K L M II _ Q R S T 1 Enlity Tune: Pannershlp 2 Sub-Entity Type: General 3 Entity Marne: BADEC I State of Formation (3901ng 5 Enlity Siarl Bate mme 5 7 Tax VearSlarl Date: mme 3 Tax Year End Date: 12/31t2016 9 11) Book Maintained By: Andrew Anderson 11 Address: 10 Sysco Way Atlanta, GA 30039 12 13 Purpose of Entity Acqulle, renamlltate and resale resldentral real pmpeny 14 15 1a Alloeation or Separately Stated |Iems(pel Pannersirip Agreement) - llem lumen Pereenlaoe _ 1a Interes'tlnoome BlH Bacon 100% 19 Contiibulions Cathy Cox 20% 2|) Cnnuihulinns Cathy Cox 60% 21 let Lnngleml Capital Ga'ns(Lnues) Dons Day 100% 22 Mel ShorHeml Calpilnl Gains (Losses) Elroy Elders 100% z: Interes'tlnoome Faran Fawcect 100% 24 Qualied Dividends Gomez Gonzalez 100% 75 Unqualied Dividends Andrew Anderson 100% 25 Real Blalelnllsirlg Credits BlH Bacon 100% 27 Tu Exemmlntelestlnmmellems Cathy Cox 25% 2:; Tax Exempt Inlelenlnonme lterns Dons Day 75% 29 30 31 32 I! 34 35 36 37 33 39 w 41 42 43 u v 45 T x Entity Information Pannerslrip Agreement lmesior lnlonnalion Comribulions Balance sheerueginning income stalemem aalance sheen G) a 1 a A i a c l D l E l 1_ Partnership Agieement of BADEC Partneiship LTHI S AGREEMENT DF PARTNERSHIP, eeive as 0' 0410212016 by and between [he undersigned, lo mil: 3 how, THEREFORE, IT is AGREED: , The undersigned hereoyrorm a General Partnership in accordance With and suhject to the laws orthe State of Georgia, 4 1 Formation The name oflhe annershl shall he BADEC 5 2 Name P P 3 T The partnership shall liegin on 04/02/2014 and shall continue until December 31,2014 oithe same year and therealter lrom year to year 6 9"" unless earlierterminated as hererrralter prorrided Ac uh'e rehahllltate and lesale leSldeMlal leal lo en 7 4 M q i P P y 5 tings Periodic meetings shall he held as determined Irythe partnership 8 6 caprisr The partners may make capital cohirlhullons to the partnership on the date or each periodic meeting in such amounts as the partnership 9 Contiibulions Shall 7 Value Dune Tile current value ofme assets ofme partnership less the current value olthe lialailities ofthe partnership (hereinalter Iefelred as to value of in ownership. the partnership) shall be determined as oithe time orsecurities marketclose on the last Fllday oieach month Acapitai account shall he maintained in the name or each partner Any increase ordecrease in the value orthe partnership on any valuallorl date shall he credited ordelaited, respectively, to each panhel's capital account in proportion to the sum or all partner capital accounts on 3 capital Accounts that date Arly other method orraluating each partner-s capital account may be substituted ror this method, pronded the substituted method results in exactly the same valuation as prevrously promded herein Each partners capital contribution to, or capital Withdrawal lrom, the 11 partnership, shall he credited, ordelaited, respectively, to that panhel's capital account, Each partner shall participate in the management and conduct orthe arrairs orthe partnership in proportion to the value orhislher capital 9 "gunmen. account Swept as othenuise determined, all decisions shall he made laythe partners whose capital accounts total a majority orthe value of 12 the capital accounts of all the partners 10 Schedule oI Sharing pl Proms, Lms and Seprately Stated Items. Ordinary Business Income is allocated according to individual pannerslrip 13 interest. Separaieiy slated items are allocated as follows: 14 Interest lncome are allocated 100% to Investov 15 Cohulhullohs are allocated 20% Lo Blll Bacol'l 16 contributions are allocated ones to Cathy Cox 17 Net Longterlll Capltal Galhs (tossesi are allocated mun/u to Doris Day 15 Net Shonelelm Capital Gains (Lossesl are allocated 100% to Elloy Elders 19 Interest lncome are allocated 100% to Farah Fawcett 20 Qualiied Dmdends are allocated 100% to Gomez Gonzalez 21 Unqualiied Dmdends are allocated 100% to Andrew Anderson 22 Real Estate/Houslrlg Cledlts are allocated 100% to Blll Bacol'l B Tax aempt interest lncome items are allocated 25% to Cathy Cox 24 Tax Exempt lnterest lncome items are allocated 75% to Doris Day All separaleely slated ms that me not addresed in this semioll ollhe agteelrlelll are allocaled accmding Io individual l Ehtftylrlfurmatluh Partners pgmment lnvestorlnlorrnation Cantrlbmluhs Ealancesheet-Eeginnlng lncomestaternent Balance Sheet-I \fM32 v E'x -/ t: H A A E i c D E i F G i H I i .I K i t N I Invemr Cannihuiion Contributionl Conuibulianl CanlrihulionJ Conuihuiianl rlet Partnership 2 Fimrlame Lanname 5er Date ltem Value ltem Value item Value ltem Value Contributions interest a Anden Anderson 7561271111 4.2.2016 Cash 550.000 550.000 1016 I Bill Bacon 75612222 4272016 Casrr 5150.000 5150.000 3115 5 (3wa Cox 7561273333 4.1272016 Casrr 5100.000 5100.000 20% 6 Dons Day 756124444 4.2.2016 Cash 550.000 550.000 1016 7 Bray Elders 756125555 4.1272016 Cash 340.000 540.000 8% u Faran Fenced 7561213666 4.1272016 Casrr 330.000Land 550.000 580.000 1616 9 Gomez (5011an 756127777 4.2.2016 Cash $10.0(X)Campllle1 57.000Fumlltlle 33.000 520.000 415 10 10015 11 12 13 1-1 15 1E 17 1a 19 20 21 H 21 2-1 75 26 27 2:1 29 30 31 - . 33 34 35 36 37 311 39 40 41 42 43 u v 45 4 > ' Enlrtylrnurmatrun pennerslnpngreement investurlnlurmatrun BalancEShEmVlmglnning lneumesratement Kalanmshnmrl... (9 x \f_A A c D F H I .I K l M N 1 BADEC Partnership 0470212016 - 121'311'2016 2 Gross Income 4 T 5 Repair Revenue $100,000 6 Interest Income $600 7 Dividends (Qualied) $2,000 a Net Shorttenn Capital Gain $5,000 9 Total Income from all sources $107,600 10 Expenses 11 12 13 Guaranteed payments $10,000 11 Renovation Expense $5,500 15 Rent $1,500 15 Depreciaton expense $2,066 1? Licenses $500 18 Travel Expenses $800 19 Supplies Expenses $700 20 Net Long-tenn Capital Loss $10,000 21 Charitable Contributions $5,000 22 Total Expenses $36,066 23 Net Income 21 $71,534 25 26 21' Partners withdrawal Elders $5,000 28 Partners withdrawal- Fawcett $6,000 29 Partners withdrawal Gonzalez $7,000 30 31 32 33 34 35 36 v 3? 4 D I EntityI lntonnation Partnership Agreement Investor lntonnation Contributions Balance SheetReginning Income Slaternent Balance Sheetl G) A_ B | c D E F G I J K L 1 BADEC Partnership 2 1213112016 4 Assets ' 5 Cash :5 485,600 6 Cormuter $ 7,000 1' AchepConpler $ {1 .745) 8 Furniture 15 3,000 9 AchepFurn'rIure $ {321 ) 10 Land 35 50,000 11 Total Assets $ 543,534 12 \"abilities 15 Cap'rIaLAnderson $ 57,299 16 Capital-Bacon $ 171 .898 1? CapitalCox $ 1 14,599 CapitalDay $ 57,299 CapitalElders $ 40,840 CapilalFawcett $ 85,679 CapitalGonzalez $ 15,920 Totai Liabiiities pins Equity $ 543,534 HHESEEEBEEBEBr-fa Partnership Agreement Investor Information Contributions Balance Sheet-Beginning Income Statement Balance SheetEnding
