Partnership Tax Return Problem Instructions 18/ Mr. Tom Owens and his partner Frank Klufa operate a firm that manufactures reproductions of antique furniture. The business name for this partnership is Faux Antiques 1012 East Main Widener, NY 42714 For 2019 the business records reflect the following items of revenue and expenses. Mr. Owens shares 60% of profit, losses and capital in Faux Antiques, Mr. Klufa owns the remaining 40%. Please prepare page 1 of the 2019 Form 1065 and any requires Schedule K-1 for the two partners' share of the partnership Revenue from furniture sales. 1,117,300 Sales Returns (21,000) Expenses: Advertising 6,200 Accounts written off as uncollectible 8,800 Attorney and CPA Fees 2,150 Business License Tax 2,500 Cost of Goods Sold 599,700 Interest in credit union 7,300 MACRS Depreciation 3,600 Payroll Taxes 9,250 Property and Liability Insurance 5,600 Rent on Workroom 23,200 Repairs to tools and Equipment 17,900 Supplies 18,000 Utilities 14,000 Wages 73,200 For several years Faux Antiques partnership invested its excess cash in a mutual fund. In 2019 the partnership received a $1,680 ordinary dividend from the fund and recognized a $3,710 capital gain on sale of fund shares. During 2019 Faux Antiques made a $3,000 donation to the United Way and distributed $250,000 cash to its partners. The dividend, capital gain, donation and distribution were not included in the computation of ordinary business income. Instead these items were separately stated on Schedule K form 1065. 1065 U.S. Return of Partnership Income MSN 1541-63 Fom Department of the Treasury Go to www.ira.govi Form 1065 for instructions and the latest Information Name of partnership 2019 Pro produtor Type Murer and room or waitero. WAPO box, intruction or Bed Print City of town, we courtyard DP or foreign code F Income 9252 Check apkalbos Fretum Name change Adress change Amended retum HCheck courting method Cash Acorul Other spect Number of Schedules K-1. Anach one for each person who was a partner at any time during the taxa J Check Schedules and are anched K Check partnere: Deted activities for action purposes Grouped activities for section 40 passive activity purpose Caution include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information 1a Gross receipts or sales ta b Returns and allowances 1b c Balance Subtract Ine 1b from line la. to 2 Cost of goods sold attach Form 1125-A) 2 Gross profit. Subtract line 2 from line 1 3 Ordinary income foss) from other partnerships, states, and trusts (attach statement) 4 5 Netfarm proft loss attach Schedule F Form 1040 or 1040-SR 5 Net gain foss) from Form 4797, Part 1, line 17 attach Form 4797) 6 7 Other Income (oss attach statement 7 Total income foss). Combine lines through 7 8 9 Salaries and wages (other than to partnera eso employment credits 9 10 Guaranteed payments to partners 10 11 Repairs and maintenance. 12 Bad debts 12 13 Rant. 13 14 Taxes and loss 15 Interesse instructions) 15 16 Depreciation required, attach Form 4562) 16 b Less depreciation reported on Form 1125-A and elsewhere on retum 16b 18 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc... 19 Employee benefit programs 19 20 Other deductions (attach statement 20 21 Total deductions. Add the amounts shown in the far right column for lines through 20 21 Ordinary business income foss). Subtract line 21 from line 8 23 Interest due under the look back muthod-completed long-term contracts (attach Form 3697) 24 Interest due under the look back method-Income forecast method (attach Form 8866) 24 25 BBA AAR imputed underpayments Instructions) 25 26 Other access Instructions) 20 27 Total balance due. Add lines 23 through 26 27 Payment is instructions) 28 Amount owed. If ine 28 is smaller than line 27. enter amount owed. 30 Overpayment. If line 28 is larger than line 27.enter overpayment 30 Under gerus ar perury. Gicleerathne manned this to including companying schedule and statements, and to the best towed udella true correct and completion of prepare the han partner or compared Sign which prepares now May them Here with the prepare? Sigue a part of your payment PrintType preparare Paid Preparer's sure welcomployed Preparer Use Only For Paperwork Reduction Act Notice, se separate instructions. Cat No. 113002 Fom 1065 2017 Deductions Tax and Payment Total amount Income (Loss) Employ Deductions Schedule K Partners Distributive Share items Ordinary business Income page 1. line 27 2 Net rontal real estate income och For 85 3 Other gross rental income. 1 b Expenses from other rental activities attach statement 2 2a Othernet rental income Subtract line from 3b 4 Guaranteed payments a Services La 30 Total. Add lines and 4 Capital 46 5 Interest Income 4 6 Dividends and dividend equivalents: a Ordinary dividends 5 b Qualified dividends 5b Ba 7 Royalties Dividend equivalents 60 B Net short-term capital gain foss) (attach Schedule D Form 1088 7 sa Netlong-term capital gain foss) attach Schedule Form 1065 b Collectibles (20) gain foss Sb c Unrecaptured section 1250 gain (attach statement 10 Net section 1231 gaindossatach Form 4797) 10 11 Other income fosse instructional Type 11 12 Section 179 deduction (attach Form 4562) 12 13a Contributions 13a b Investment interest expense 1:35 c Section 50 expenditures: (1) Type Amount d Other deductions (see Instructions Type 130 14a Net earrings ( loss from self-employment 14a b Gross farming or fishing income 146 cross nonform income 146 150 15a Low-income housing credit section 420658 15 b Low-income housing credit fother). 150 e Qualified rehabilitation expenditures frontal real estate attach Form 3468.pplicable 150 d Other rental real estate credits (see instructions Type 15 Other rental credits instructions Type 151 # Other credits Instructions Type 16 Name of country or U.S. possession 16 b Gross income from all sources 156 Gross income sourced at partner level Foreign gross income sourced at partnership level 18 d Reserved for future use e Foreign branch category + Passive category General category Other attachement Deductions allocated and apportioned at partner level interest expense 1 Other Deductions allocated and apportioned at partnership level to foreign source income 161 Foreign branchestegory k Reserved for future use 160 Other attach statement General ategory m Passive Category 10p Acordo P Total foreign taxes check ones Paid 169 Reduction in taxes available for credit attach statement Other foreign tax information attach statement 17a 17a Post-1986 depreciation adjustment b Adjusted gain or loss 17e 178 Depletion other than oil and gas) d Olgas, and geothermal properties-gross income 171 . Olgas, and geothermal properties -deductions 18 1 Other AMT Hemsttach statement 18 Tax-exempt interest income bOther tax-exempt income 10 Nondeductible expenses 16 1 Distributions of cash and marketable securities b Distributions of other property 20a Investment income Investment expenses o Other items and amounts otach statement Credits Foreign Transactions Alternative Minimum Tax (AMT) Items Other Information 20b For 1065 OMNI 651119 Part II Partners Share of Current Year Income, Deductions, Credits, and other items 2019 15 Credit Schedule K-1 Form 1065) Dortment the firsary income 3 Online 2019 Partner's Share of income, Deductions, Credits, etc. back at form and structions Part Information About the Partnership A da 4 Toward payment Orarios Part Information About the Partner Purt's Not Demo Torget Oddvards AAMIT Folyado parte interne 1 Royale Not what man Depart berger Dorother Betong- Text income and Foreign HE Bb C 20 anos 11 TIN What type of the water in ASEP check here Ending De captured section 120 gain 10 Newton 1231 19 Distribution Low * 11 Other income Check create or exchange of partner Other information 12 Section 179duction Beginning Ending 13 er deductions Qued 5 $ Partner's Capital Account Analysis 14 Srpantang Beginning capital Capital contributed during the year $ Current year net romeo 5 Other increase reach explanations Witwal & stone 3 Ending capital account 21 More than one for purpo "See attached statement for additional information N Did the contribute property with a built-in ganarla? Yes NO hement Sections Partner Share of Net Unrecognized Section 704 Gino Los Beging $ For IRS Use Only For Paperwork Reduction Act Noti, se natructions for Form 100 www.in.goworo Cat No. 1104 Schedulek 1 om 1065, 2018 mooooooo country United States Partnership Tax Return Problem Instructions 18/ Mr. Tom Owens and his partner Frank Klufa operate a firm that manufactures reproductions of antique furniture. The business name for this partnership is Faux Antiques 1012 East Main Widener, NY 42714 For 2019 the business records reflect the following items of revenue and expenses. Mr. Owens shares 60% of profit, losses and capital in Faux Antiques, Mr. Klufa owns the remaining 40%. Please prepare page 1 of the 2019 Form 1065 and any requires Schedule K-1 for the two partners' share of the partnership Revenue from furniture sales. 1,117,300 Sales Returns (21,000) Expenses: Advertising 6,200 Accounts written off as uncollectible 8,800 Attorney and CPA Fees 2,150 Business License Tax 2,500 Cost of Goods Sold 599,700 Interest in credit union 7,300 MACRS Depreciation 3,600 Payroll Taxes 9,250 Property and Liability Insurance 5,600 Rent on Workroom 23,200 Repairs to tools and Equipment 17,900 Supplies 18,000 Utilities 14,000 Wages 73,200 For several years Faux Antiques partnership invested its excess cash in a mutual fund. In 2019 the partnership received a $1,680 ordinary dividend from the fund and recognized a $3,710 capital gain on sale of fund shares. During 2019 Faux Antiques made a $3,000 donation to the United Way and distributed $250,000 cash to its partners. The dividend, capital gain, donation and distribution were not included in the computation of ordinary business income. Instead these items were separately stated on Schedule K form 1065. 1065 U.S. Return of Partnership Income MSN 1541-63 Fom Department of the Treasury Go to www.ira.govi Form 1065 for instructions and the latest Information Name of partnership 2019 Pro produtor Type Murer and room or waitero. WAPO box, intruction or Bed Print City of town, we courtyard DP or foreign code F Income 9252 Check apkalbos Fretum Name change Adress change Amended retum HCheck courting method Cash Acorul Other spect Number of Schedules K-1. Anach one for each person who was a partner at any time during the taxa J Check Schedules and are anched K Check partnere: Deted activities for action purposes Grouped activities for section 40 passive activity purpose Caution include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information 1a Gross receipts or sales ta b Returns and allowances 1b c Balance Subtract Ine 1b from line la. to 2 Cost of goods sold attach Form 1125-A) 2 Gross profit. Subtract line 2 from line 1 3 Ordinary income foss) from other partnerships, states, and trusts (attach statement) 4 5 Netfarm proft loss attach Schedule F Form 1040 or 1040-SR 5 Net gain foss) from Form 4797, Part 1, line 17 attach Form 4797) 6 7 Other Income (oss attach statement 7 Total income foss). Combine lines through 7 8 9 Salaries and wages (other than to partnera eso employment credits 9 10 Guaranteed payments to partners 10 11 Repairs and maintenance. 12 Bad debts 12 13 Rant. 13 14 Taxes and loss 15 Interesse instructions) 15 16 Depreciation required, attach Form 4562) 16 b Less depreciation reported on Form 1125-A and elsewhere on retum 16b 18 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc... 19 Employee benefit programs 19 20 Other deductions (attach statement 20 21 Total deductions. Add the amounts shown in the far right column for lines through 20 21 Ordinary business income foss). Subtract line 21 from line 8 23 Interest due under the look back muthod-completed long-term contracts (attach Form 3697) 24 Interest due under the look back method-Income forecast method (attach Form 8866) 24 25 BBA AAR imputed underpayments Instructions) 25 26 Other access Instructions) 20 27 Total balance due. Add lines 23 through 26 27 Payment is instructions) 28 Amount owed. If ine 28 is smaller than line 27. enter amount owed. 30 Overpayment. If line 28 is larger than line 27.enter overpayment 30 Under gerus ar perury. Gicleerathne manned this to including companying schedule and statements, and to the best towed udella true correct and completion of prepare the han partner or compared Sign which prepares now May them Here with the prepare? Sigue a part of your payment PrintType preparare Paid Preparer's sure welcomployed Preparer Use Only For Paperwork Reduction Act Notice, se separate instructions. Cat No. 113002 Fom 1065 2017 Deductions Tax and Payment Total amount Income (Loss) Employ Deductions Schedule K Partners Distributive Share items Ordinary business Income page 1. line 27 2 Net rontal real estate income och For 85 3 Other gross rental income. 1 b Expenses from other rental activities attach statement 2 2a Othernet rental income Subtract line from 3b 4 Guaranteed payments a Services La 30 Total. Add lines and 4 Capital 46 5 Interest Income 4 6 Dividends and dividend equivalents: a Ordinary dividends 5 b Qualified dividends 5b Ba 7 Royalties Dividend equivalents 60 B Net short-term capital gain foss) (attach Schedule D Form 1088 7 sa Netlong-term capital gain foss) attach Schedule Form 1065 b Collectibles (20) gain foss Sb c Unrecaptured section 1250 gain (attach statement 10 Net section 1231 gaindossatach Form 4797) 10 11 Other income fosse instructional Type 11 12 Section 179 deduction (attach Form 4562) 12 13a Contributions 13a b Investment interest expense 1:35 c Section 50 expenditures: (1) Type Amount d Other deductions (see Instructions Type 130 14a Net earrings ( loss from self-employment 14a b Gross farming or fishing income 146 cross nonform income 146 150 15a Low-income housing credit section 420658 15 b Low-income housing credit fother). 150 e Qualified rehabilitation expenditures frontal real estate attach Form 3468.pplicable 150 d Other rental real estate credits (see instructions Type 15 Other rental credits instructions Type 151 # Other credits Instructions Type 16 Name of country or U.S. possession 16 b Gross income from all sources 156 Gross income sourced at partner level Foreign gross income sourced at partnership level 18 d Reserved for future use e Foreign branch category + Passive category General category Other attachement Deductions allocated and apportioned at partner level interest expense 1 Other Deductions allocated and apportioned at partnership level to foreign source income 161 Foreign branchestegory k Reserved for future use 160 Other attach statement General ategory m Passive Category 10p Acordo P Total foreign taxes check ones Paid 169 Reduction in taxes available for credit attach statement Other foreign tax information attach statement 17a 17a Post-1986 depreciation adjustment b Adjusted gain or loss 17e 178 Depletion other than oil and gas) d Olgas, and geothermal properties-gross income 171 . Olgas, and geothermal properties -deductions 18 1 Other AMT Hemsttach statement 18 Tax-exempt interest income bOther tax-exempt income 10 Nondeductible expenses 16 1 Distributions of cash and marketable securities b Distributions of other property 20a Investment income Investment expenses o Other items and amounts otach statement Credits Foreign Transactions Alternative Minimum Tax (AMT) Items Other Information 20b For 1065 OMNI 651119 Part II Partners Share of Current Year Income, Deductions, Credits, and other items 2019 15 Credit Schedule K-1 Form 1065) Dortment the firsary income 3 Online 2019 Partner's Share of income, Deductions, Credits, etc. back at form and structions Part Information About the Partnership A da 4 Toward payment Orarios Part Information About the Partner Purt's Not Demo Torget Oddvards AAMIT Folyado parte interne 1 Royale Not what man Depart berger Dorother Betong- Text income and Foreign HE Bb C 20 anos 11 TIN What type of the water in ASEP check here Ending De captured section 120 gain 10 Newton 1231 19 Distribution Low * 11 Other income Check create or exchange of partner Other information 12 Section 179duction Beginning Ending 13 er deductions Qued 5 $ Partner's Capital Account Analysis 14 Srpantang Beginning capital Capital contributed during the year $ Current year net romeo 5 Other increase reach explanations Witwal & stone 3 Ending capital account 21 More than one for purpo "See attached statement for additional information N Did the contribute property with a built-in ganarla? Yes NO hement Sections Partner Share of Net Unrecognized Section 704 Gino Los Beging $ For IRS Use Only For Paperwork Reduction Act Noti, se natructions for Form 100 www.in.goworo Cat No. 1104 Schedulek 1 om 1065, 2018 mooooooo country United States