CAN YOU PLEASE MAKE SURE YOU USE THE ATTACHMENT I PUT ITS FOR 2016 PLEASE DON'T GIVE ME THE 2015 ONE

Comprehensive Problem 10-1 Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first year of operation is 2016. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Broadway, New York, NY 10004, and its Federal ID number is 95-6767676. The 2016 financial statements for the partnership are presented below. J&S Barbers Income Statement for the Year Ending December 31, 2016 Gross income from operations $371,600 Deductions: Salaries to employees 94,000 Payroll taxes 10,000 Supplies 9,000 Rent 45,000 Depreciation 5,100 Short-term capital loss 2,000 Charitable contributions 500 Net income $206,000 Partners' withdrawals (each partner) $80,000 J&S Barbers Balance Sheet as of December 31, 2016 Assets: Cash $100,850 Accounts receivable Equipment Accum. depreciation 10,000 $32,000 (5,100) 26,900 $137,750 Liabilities and Capital: Accounts payable $29,750 Notes payable 22,000 Partners' capital ($20,000 contributed by each partner) 86,000 $137,750 Emily lives at 456 E. 70th Street, New York, NY 10006, and James lives at 436 E. 63rd Street, New York, NY 10012. Required: Complete J&S Barbers' Form 1065 and Emily and James' Schedule K-1. Do not fill in Schedule D for the capital loss, Form 4562 for depreciation, or Schedule B-1 related to ownership of the partnership. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "0". If required, round your answers to nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Form 1065 Department of the Treasury Internal Revenue Service U.S. Return of Partnership Income For calendar year 2016, or tax year beginning _ _ _ _ , 2016, ending _ _ _ , 20_ _ _ . Information about Form 1065 and its separate instructions is at www.irs.gov/form1065. A Principal business activity Name of partnership Barber Service B Principal product or service Barber Service D Employ number J&S Barbers 95-6767 Number, street, and room or suite no. If a P.O. box, see the Type instructions. or Print 1023 Broadway E Date bu City or town, state or province, country, and ZIP or foreign postal code F Total as instructi C Business code number 812111 G Check applicable boxes: New York, NY 10004 (1) Initial return (2) Final return (5) Amended return H Check accounting method: 1/01/16 (1) Cash (3) Name change ( (6) Technical termination (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 the instructions 1a Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a b Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b c Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . 5 Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . 16a b Less depreciation reported on Form 1125-A and elsewhere on return . . 16b 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . 18 Retirement plans, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplies . . . . . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . Sign Here Under penalties of perjury, I declare that I have examined this return, including accompanying schedu to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (othe or limited liability company member manager) is based on all information of which preparer has any May the IRS discuss this ret shown below (see instructio Signature of general partner or limited liability company member manager Paid Preparer Use Only Date Print/Type preparer's name Preparer's signature Date Check employed Firm's name Firm's EIN Firm's address Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (2016) Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: a Domestic general partnership b c Domestic limited liability company d e Foreign partnership f 2 At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (includ treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule BInformation 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 capi partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Informatio Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 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 class entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorpor b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the pro 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) thro (v) below . . . (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization 5 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement u section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 889 details. 6 Does the partnership satisfy all four of the following conditions? a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including ex 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 Item L on Schedule K-1. 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . 8 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms mo as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to pro information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2016, did the partnership have an interest in or a signature or other authori financial account in a foreign country (such as a bank account, securities account, or other financial account instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Fina Accounts (FBAR). If "Yes," enter the name of the foreign country. Form 1065 (2016) Schedule B Other Information (continued) 11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transac Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under s 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in exchange or contributed such property to another entity (other than disregarded entities wholly owned by t partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or othe interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Fore Disregarded Entities, enter the number of Forms 8858 attached. See instructions 16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partne Information Statement of Section 1446 Withholding Tax, filed for this partnership. 17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, at this return. 18a Did you make any payments in 2016 that would require you to file Form(s) 1099? See instructions . . b If "Yes," did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. 20 Enter the number of partners that are foreign governments under section 892. 21 During the partnership's tax year, did the partnership make any payments that would require it to file Form 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)? . . . . 22 Was the partnership a specified domestic entity required to file Form 8938 for the tax year (See the Instruc Form 8938)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (TMP) for the tax year Name of designate d TMP Identifying number of TMP If the TMP is an entity, name of TMP representative Address of designate d TMP Phone number of TMP Form 1065 (2016) Schedule K Partners' Distributive Share Items 1 Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . 4 Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Qualified dividends . . . . . . . . . . . . . . . . . . . . 6b 7 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . b Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . 9b c Unrecaptured section 1250 gain (attach statement) . . . . . . . . . 9c 10 Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Other income (loss) (see instructions) Type 12 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Section 59(e)(2) expenditures: (1) Type _ _ _ _ _ _ _ _ _ _ _ _ _ (2) Amount d Other deductions (see instructions) Type 14a Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a Low-income housing credit (section 42(j)(5)). . . . . . . . . . . . . . . . . . . . . . . . . . . . b Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) d Other rental real estate credits (see instructions) Type _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ e Other rental credits (see instructions) Type _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ f Other credits (see instructions) Type 13 16a 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 d Passive category _ _ _ _ _ _ _ _ e General category _ _ _ _ _ _ _ _ _ f Other Deductions allocated and apportioned at partner level g Interest expense _ _ _ _ _ _ _ _ _ _ _ _ _ _ h Other . . . . . . . . . . . . . . . . . . . . . . . . Deductions allocated and apportioned at partnership level to foreign source income i Passive category _ _ _ _ _ _ _ _ j General category _ _ _ _ _ _ _ _ _ k Other l Total foreign taxes (check one): Paid Accrued . . . . . . . . . . . . . . . . . . . . m Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . n Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Oil, gas, and geothermal propertiesgross income . . . . . . . . . . . . . . . . . . . . . . . . e Oil, gas, and geothermal propertiesdeductions . . . . . . . . . . . . . . . . . . . . . . . . . f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . b Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Form 1065 (2016) 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 16l . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Analysis by partner type: (i) Corporate (ii) Individual (active) (iii) Individual (passive) (iv) Partnership 1 (v) Exempt Organiza a General partners b Limited partners Schedule L Balance Sheets per Books Assets 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 . . . . . . . . . . . Beginning of tax year (a) (b) En (c) 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 16l (itemize): a Depreciation $ _ _ _ _ _ _ _ _ _ _ _ _ _ _ b Travel and entertainment $ _ _ _ _ _ _ _ 5 Add lines 1 through 4 . . . . . . . . . . . . . . . . Schedule M-2 6 Income recorded on books this year not included on Schedule K, lines 1 through (itemize): a Tax-exempt interest $ _ _ _ _ _ _ _ _ _ _ _____________________ 7 Deductions included on Schedule K, line through 13d, and 16l, not charged agains 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 Analysis of Partners' Capital Accounts 1 Balance at beginning of year . . . . . . . . . . . 2 Capital contributed: a Cash . . . . . . . . . . . 6 Distributions: a Cash . . . . . . . . . . . . . . . . b Property . . . . . . . . . . . . . b Property . . . . . . . . 7 Other decreases (itemize):_ _ _ _ _ _ _ _ _ 3 Net income (loss) per books . . . . . . . . . . . _______________________ 4 Other increases (itemize): _ _ _ _ _ _ _ _ 8 Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . 5 Add lines 1 through 4 . . . . . . . . . . . . . . . . 9 Balance at end of year. Subtract line 8 from Final K-1 Schedule K-1 (Form 1065) 2016 Department of the Treasury Internal Revenue Service For calendar year 2016, or tax year beginning , 2016 ending , 20 Partner's Share of Income, Deductions, Credits, etc. See back of form and separate instructions. Part I Information About the Partnership Part III Amended K-1 Partner's Share of Curre Deductions, Credits, and 1 Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) A Partnership's employer identification number 95-6767676 B Partnership's name, address, city, state, and ZIP code J&S Barbers 1023 Broadway New York, NY 10004 15 Credits 16 Foreign 4 Guaranteed payments 5 Interest income C IRS Center where partnership filed return Cincinnati, OH 6a Ordinary dividends D Check if this is a publicly traded partnership (PTP) 6b Qualified dividends 7 Royalties Part II Information About the Partner E Partner's identifying number 765-12-4326 8 Net short-term capital gain (loss) F Partner's name, address, city, state, and ZIP code Emily Jackson 456 E. 70th Street New York, NY 10006 9a Net long-term capital gain (loss) G General partner or LLC member-manager Limited partner or other LLC member 9b Collectibles (28%) gain (loss) H Domestic partner Foreign partner 9c Unrecaptured section 1250 gain 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 10 Net section 1231 gain (loss) 17 Alterna (AMT) 18 Tax-exe nonded 11 Other income (loss) 12 Section 179 deduction 19 Distribu Profit Loss Capital % % % % % % K Partner's share of liabilities at year end: A $ Nonrecourse . . . . . . . . . . . . . . . . . 13 Other deductions 20 Other i $ Qualified nonrecourse financing . . . . A $ Recourse . . . . . . . . . . . . . . . . . . . 14 Self-employment earnings (loss) *See attached statement for additional info L Partner's capital account analysis: $ Beginning capital account . . . . . . . . . $ Capital contributed during the year $ Current year increase (decrease) . . . $ Withdrawals & distributions . . . . . . . GAAP ) $ Ending capital account . . . . . . . . . . . Tax basis ( 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) For Paperwork Reduction Act Notice, see Instructions for Form 1065. Note: Page 2 of Emily Jackson's K-1 has intentionally been omitted. IRS.gov/form1065 Cat. No. 11394R S Final K-1 Schedule K-1 (Form 1065) 2016 Department of the Treasury Internal Revenue Service For calendar year 2016, or tax year beginning , 2016 ending , 20 Partner's Share of Income, Deductions, Credits, etc. See back of form and separate instructions. Part I Information About the Partnership Part III Amended K-1 Partner's Share of Curre Deductions, Credits, and 1 Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) A Partnership's employer identification number 95-6767676 B Partnership's name, address, city, state, and ZIP code J&S Barbers 1023 Broadway New York, NY 10004 15 Credits 16 Foreign 4 Guaranteed payments 5 Interest income C IRS Center where partnership filed return Cincinnati, OH 6a Ordinary dividends D Check if this is a publicly traded partnership (PTP) 6b Qualified dividends 7 Royalties Part II Information About the Partner E Partner's identifying number 466-74-9932 8 Net short-term capital gain (loss) F Partner's name, address, city, state, and ZIP code James Stewart 436 E. 63rd Street New York, NY 10012 9a Net long-term capital gain (loss) G General partner or LLC member-manager Limited partner or other LLC member 9b Collectibles (28%) gain (loss) H Domestic partner Foreign partner 9c Unrecaptured section 1250 gain 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 10 Net section 1231 gain (loss) 17 Alterna (AMT) 18 Tax-exe nonded 11 Other income (loss) 12 Section 179 deduction 19 Distribu Profit Loss Capital % % % % % % K Partner's share of liabilities at year end: A $ Nonrecourse . . . . . . . . . . . . . . . . . . 13 Other deductions 20 Other i $ Qualified nonrecourse financing . . . . A $ Recourse . . . . . . . . . . . . . . . . . . . . 14 Self-employment earnings (loss) *See attached statement for additional info L Partner's capital account analysis: $ Beginning capital account . . . . . . . . . $ Capital contributed during the year $ Current year increase (decrease) . . . $ Withdrawals & distributions . . . . . . . GAAP ) $ Ending capital account . . . . . . . . . . Tax basis ( 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) For Paperwork Reduction Act Notice, see Instructions for Form 1065. IRS.gov/form1065 Cat. No. 11394R S Schedule K-1 (Form 1065) 2016 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting inf who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and 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. Report on Passive loss See the Partner's Instructions Passive income Schedule E, line 28, column (g) Nonpassive loss Schedule E, line 28, column (h) Nonpassive income Schedule E, line 28, column (j) 2. Net rental real estate income See the Partner's (loss) Instructions 3. Other net rental income (loss) Net income Schedule E, line 28, column (g) Net loss See the Partner's Instructions 4. Guaranteed payments Schedule E, line 28, column (j) 5. Interest income Form 1040, line 8a 6a. Ordinary dividends Form 1040, line 9a 6b. Qualified dividends Form 1040, line 9b 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 Code 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 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 pa D Passive category E General category } F Other Deductions allocated and apportion G Interest expense H Other Deductions allocated and apportion foreign source income I Passive category J General category } K Other Other information L Total foreign taxes paid M Total foreign taxes accrued N Reduction in taxes available for credit O Foreign trading gross receipts P Extraterritorial income exclusion Instructions See the Partner's Instructions C Sec. 1256 contracts & straddles Form 6781, line 1 D Mining exploration costs See Pub. 535 recapture E Cancellation of debt Form 1040, line 21 or Form 982 F Other income (loss) See the Partner's Instructions 12. Section 179 deduction See the Partner's Instructions 13. Other deductions A Cash contributions (50%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) See the Partner's } Instructions E Capital gain property to a 50% organization (30%) F Capital gain property (20%) G Contributions (100%) 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 Deductions-portfolio (2% Schedule A, line 23 floor) L Deductions-portfolio (other) Schedule A, line 28 M Amounts paid for medical Schedule A, line 1 or insurance 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 See Form 8582 deduction from rental real estate instructions activities R Pensions and IRAs See the Partner's Instructions S Reforestation expense See the Partner's deduction Instructions T Domestic production activities See Form 8903 Q Other foreign transactions B Involuntary conversions 17. Alternative minimum tax (AMT) 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 18. Tax-exempt income and nondeduc A Tax-exempt interest income B Other tax-exempt income C Nondeductible expenses 19. Distributions A Cash and marketable securities B Distribution subject to section 737 C Other property 20. Other information A Investment income B Investment expenses C Fuel tax credit information D Qualified rehabilitation expenditures (other than rental real estate) E Basis of energy property F Recapture of low-income housing credit (section 42(j) (5)) G Recapture of low-income housing credit (other) H Recapture of investment credit I Recapture of other credits } information U Qualified production activities income V Employer's Form W-2 wages W Other deductions instructions Form 8903, line 7b Form 8903, line 17 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- Schedule SE, Section A employment or B B Gross farming or fishing See the Partner's income Instructions C Gross non-farm income See the Partner's Instructions 15. Credits A Low-income housing credit (section 42(j)(5)) from pre2008 buildings B Low-income housing credit (other) from pre-2008 buildings C Low-income housing credit (section 42(j)(5)) from post2007 buildings See the Partner's D Low-income housing credit } Instructions (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 Form 1040, line 73, credit check box a I Biofuel producer credit the Partner's J Work opportunity credit } See Instructions K Disabled access credit J Look-back interest completed long-term contracts K Look-back interestincome forecast method L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(l)(3) information P Section 453A(c) information Q Section 1260(b) information R Interest allocable to production expenditures } S CCF nonqualified withdrawals T Depletion informationoil and gas U Reserved V Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Net investment income Z Other information