Partnership Practice Problem Solution

Taxation I $2023$

Partnership SJE Associates has three general partners, Spencer, Jean and Elise, who share profits equally.

During the year, Spencer and Elise each received $$300$ in guaranteed payments for services. Jean received $$500$ in guaranteed payments for services.

In addition to guaranteed payments, the partnership's had gross receipts of $$4,000,$ operating expenses of $$1,700.$ Qualified dividend income was $$120$ and Section $179$ expense was $$600.$

Please answer the following:

$1.$ Show the calculation of the amount of the partnership's ordinary income, Page $1,$ Line $22$ and Schedule K$,$ Line $1$ of the Form $1065$:

$2.$ Show the amount listed on the following lines of Spencer$$s K$-1.$

$$ Line $1$: Ordinary Income

$$ Lines $4$a$/4$c: Guaranteed Payments

$$ Lines $6$a$/6$b: Qualified Dividend Income

$$ Line $12$: Sec $179$ Expense

$3.$ Show the amount listed on each of the following lines of Jean's K$-1.$

$$ Line $1$: Ordinary Income

$$ Lines $4$a$/4$c: Guaranteed Payments

$$ Lines $6$a$/6$b: Qualified Dividend Income

$$ Line $12$: Sec $179$ Expense

$4.$ Show the calculation of the amount of income on which Jean will pay self$-$employment tax:

You may use a Form $1065$ and K$-1(1065)$ to work this out if it makes it easier. But to receive points for the assignment, you must submit this worksheet with the answers filled in by the posted due date.

'Show examples of forms $1065(2023$ FORM$)"$