Scenario

Craft Beer Brewing Partnership

Revenue 681,000

Office Rent 28,000

COGS 198,000

Salaries 238,000

ST Gain on Sale of Stock 100,000

LT Loss on Sale of Stock 500,000

Contributions to Charities 60,000

Investment Expenses 6,000

Friends Dan and Lisa are each partners in the beer brewing partnership above.

oDan owns 3%

oLisa owns 6%

Additional Information about Dan (not including partnership info)

oMarried, 1 child

oWages from job = $18,000

oWages from wife's job = $31,000

Additional Information about Lisa (not including partnership info)

oSingle, no children

oWages from job = 130,000

oSold stock held LT at a gain of 25,000

oPaid state taxes of 8,900

oPaid qualified mortgage interest of 10,000

1065, page 1

Line 1:

Line 3:

Line 8:

Line 21:

Line 22:

1065, page 4 (Schedule K)

Line 1:

Line 8:

Line 13a:

Line 13b:

Line 16b:

Line 18a:

Line 20b:

Dan's Schedule K-1, Part III

Line 1:

Line 8:

Line 18a:

Lisa's K-1

Line 1:

Line 13a:

Line 13k:

Line 20b:

Dan's 1040

Line 1:

Line 2b:

Line 6:

Line 7:

Line 8:

Line 9:

Line 10:

Schedule 1, Line 17:

Lisa's 1040

Line 6:

Line 7:

Line 8:

Line 9:

Line 10:

Schedule 1, Line 13:

Other Questions

By how much does Dan's AGI increase because of the partnership activities?

By how much does Lisa's taxable income decrease because of the partnership activities?