Schedule K1: Francesca -
Schedule K1: Lance -
[The following information applies to the questions displayed below.) The TimpRiders LP has operated a motorcycle dealership for a number of years. Lance is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Lance and Francesca had bases of $10,000 and $3,000, respectively, and the partnership did not carry any debt. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest $1231 gain $650,000 $500,000 $160,000 $ 2,000 $ 2,000 $ 6,000 On the last day of the year, the partnership distributed $3,000 each to Lance and Francesca. d. Using the information provided, prepare TimpRiders' page 1 and Schedule K to be included with its Form 1065 for the current year. Also, prepare a Schedule K-1 for Lance and Francesca. (Use 2020 tax rules regardless of year on tax form. Losses should be entered as negative numbers and input all other values as positive numbers) OMB No. 1545-0123 Form 1065 Department of the Treasury Internal Revenue Service A Principal business activity U.S. Return of Partnership Income For calendar year 2019, or tax year beginning 2018, ending 20 Go to www.lrs.gov/Form 1065 for instructions and the latest Information. Name of Partnership 2019 D Employer identification number B Principal product or service Number, street, and room or suite no. If a P.O. box, see instructions. E Date business started Type or Print C Business code number City or town, state or province, country, and ZIP or foreign postal code Total assets (see Instructions) 4 5 11 G Check applicable boxes: (1) Initial Return (2) Final Return 2 (3) Name Change (4) Address Change (5) Amended Return H Check accounting method: (1) Cash (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 - K Check if partnership: (1) Aggregated activities for section 465 at-risk purposes (2) Grouped activities for section 469 passive activity purposes 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 1a b Retums and allowances 1b c Balance. Subtract line 1b from line 1a 1c 0 2 Cost of goods sold (attach Form 1125-A) 2 3 Gross profit. Subtract line 2 from line 10 3 0 Income 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) 5 Net farm profit (loss) (attach Schedule F (Form 1040 or 1040-SR)) 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6 7 Other income (loss) (attach statement) 7 8 Total income (loss). Combine lines 3 through 7 8 0 9 Salaries and wages (other than to partners) (less employment credits) 9 10 Guaranteed payments to partners 10 11 Repairs and maintenance 12 Bad debts 12 13 Rent 13 Deductions 14 Taxes and licenses 14 (see the 15 Interest (see instructions) 15 instructions 16a Depreciation (if required, attach Form 4562) 16a for b Less depreciation reported on Form 1125-A and elsewhere on 16b 160 return limitations) 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc. 18 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 9 through 20 21 0 22 Ordinary business Income (loss). Subtract line 21 from line 8 22 0 23 Interest due under the look back method-completed long-term contracts (attach Form 8697) 23 24 Interest due under the look-back method-income forecast method (attach Form 8866) 24 25 BBA AAR imputed underpayment (see instructions) 25 26 Other taxes (see instructions) Tax and 26 Payment 27 Total balance due. Add lines 23 through 26 27 27 28 Payment (see instructions) 28 29 Amount owed. If line 28 is smaller than line 27, enter amount owed 29 30 Overpayment. If line 28 is larger than line 27, enter overpayment 30 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than partner or limited liability company member) is based on all information of which preparer has any knowledge. Sign May the IRS discuss this return with the Here preparer shown below? See instructions. Signature of partner or limited liability company member Date Yes Check if self- Print/Type preparer's name Preparer's signature Date PTIN employed Paid Preparer Firm's name Firm's EIN Use Only Firm's address Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (2018) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education. No Total amount 1 2 3c 4 4c 5 ba 7 7 8 9a 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: a Services a 4a b Capital 4b c Total. Add lines 4a and 4b 5 Interest income Income (Loss) 6 Dividends and dividend equivalents: a Ordinary dividends b Qualified dividends 6b c Dividend equivalents Gc 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 Deductions b Investment interest expense C Section 59(e)(2) expenditures: (1) Type d Other deductions (see instructions) Type - 14a Net eamings (loss) from self-employment Self-Employment b Gross farming or fishing income c Gross nonfarm income 15a Low-income housing credit (section 420/(5)) b Low-income housing credit (other) Credits 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 - 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 Reserved for future use e Foreign branch category e 10 11 12 13a 13b 130(2) (2) Amount 13d 14a 14b 14c 15a 15b 15c 150 15e 15f 16b 160 161 h Other (attach statement). Foreign Transactions f Passive category g General category Deductions allocated and apportioned at partner level i i Interest expense j Other Deductions allocated and apportioned at partnership level to foreign source income k Reserved for future use I Foreign branch category 16h o Other attach statement) 16k Accrued 161 16m Alternative Minimum Tax (AMT) Items m Passive category n General category P Total foreign taxes (check one): Paid 9 Reduction in taxes available for credit (attach statement) r 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 properties-gross income d e Oil, gas, and geothermal properties--deductions 1 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) 17a 17b 17c 170 17e 171 18a 18b 18C 19a 19b 20a 20b Other Information Form 1065 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX Final K-1 Amended K-1 OMB No. 1545-0123 Part III Partner's Share of Current Year Income, Deductions, Credits, and Other Items 1 Ordinary business income (loss) 15 Credits Schedule K-1 2019 (Form 1065) Department of the Treasury For calendar year 2019. or tax Internal Revenue Service year 2019 beginning ,20 Partner's Share of Income, Deductions, Credits, etc. , See back of form and separate instructions. ending 2 Net rental real estate Income (loss) 3 Other net rental income (loss) ) 16 Foreign transactions 4 Guaranteed payments for services Part 1 Information About the Partnership A Partnership's employer identification number 4b Guaranteed payments for capital B Partnership's name, address, city, state, and ZIP code 4c Total guaranteed payments 5 Interest income CIRS Center where partnership filed return 6a Ordinary dividends D Check if this is a publicly traded partnership (PTP) 6b Qualified dividends 6c Dividend equivalents 17 Alternative minimum tax (AMT) items Part II Information About the Partner Partner's SSN or TIN (Do not use TIN of a disregarded entity. See inst.) E 7 Royalties 8 Net short-term capital gain (loss) F Name, address, city, state, and ZIP code for partner entered in E. See instructions. 9a Net long-term capital gain (loss) G General partner or LLC member-manager Limited partner or other LLC 9b 18 Tax-exempt Income and nondeductible expenses H1 Domestic partner Foreign partner 9c Unrecaptured section 1250 gain A H2 if the partner is a disregarded entity (DE), enter the partner's: TIN Name 10 Net section 1231 gain (loss) 11 Other Income (loss) 11 What type of entity is this partner? 12 If this partner is a retirement plan (IRA/SEP/Keogh etc.), check here 19 Distributions A J Partner's share of profit, loss, and capital (see instructions): Beginning Profit % Ending 12 Section 179 deduction % 20 Other Information Z QBL = Loss % % 13 Other deductions Capital % % Check if decrease is due to sale or exchange of partnership interest K Partner's share of liabilities: Beginning Ending Nonrecourse 5 Qualified nonrecourse financing $ 14 Self-employment earnings (loss) Recourse $ Check this box if Item k includes liability amounts from lower tier partnerships IA L $ Not Provided 21 More than one activity for at-risk purposes* $ Partner's Capital Account Analysis Beginning capital account Capital contributed during the year Current year net income (loss) Other increase (decrease) (attach explanation) Withdrawals & distributions $ 22 More than one activity for passive activity purposes* $ $ *See attached statement for additional information. Ending capital account $ For IRS Use Only M Did the partner contribute property with a built-in gain or loss? OYes ONO If "Yes," attach statement (see instructions) N Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning $ Ending $ For Paperwork Reduction Act Notice, see Instructions for Form 1065. www.irs.gov/Form 1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2019 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education. Final K-1 Amended K-1 OMB No. 1545-0123 Schedule K-1 Part III Partner's Share of Current Year Income, 2019 Deductions, Credits, and Other Items 1 Ordinary business income (loss) 15 Credits (Form 1065) Department of the Treasury For calendar year 2019, or tax Internal Revenue Service year beginning 2019 ending 20 Partner's Share of income, Deductions, Credits, etc. See back of form and separate instructions. 2 Net rental real estate income (loss) 3 Other net rental income (loss) 16 Foreign transactions 4a Guaranteed payments for services Parti Information About the Partnership A Partnership's employer identification number 4b Guaranteed payments for capital B Partnership's name, address, city, state, and ZIP code 4c Total guaranteed payments 5 Interest income CIRS Center where partnership filed return 6a Ordinary dividends D Check if this is a publicly traded partnership (PTP) 6b Qualified dividends 6c Dividend equivalents 17 Alternative minimum tax (AMT) items Part II Information About the Partner E Partner's SSN or TIN (Do not use TIN of a disregarded entity. See inst.) 7 Royalties 8 Net short-term capital gain (loss) F Name, address, city, state, and ZIP code for partner entered in E. See instructions. 9a Net long-term capital gain (loss) 18 Tax-exempt income and nondeductible expenses 9b Collectibles (28%) gain (loss) G General partner or LLC Limited partner or member-manager other LLC member H1 Domestic partner Foreign partner H2 If the partner is a disregarded entity (DE), enter the partner's: TIN Name 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income (loss) 11 What type of entity is this partner? 12 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here 19 Distributions AY J Partner's share of profit, loss, and capital (see Instructions): Beginning Profit % Ending 12 Section 179 deduction % 20 Other information Loss % % 13 Other deductions Capital % % Check if decrease is due to sale or exchange of partnership interest K Partner's share of liabilities: Beginning Ending Nonrecourse Qualified nonrecourse financing Recourse Check this box if Item K includes liability amounts from lower tier partnerships. 14 Self-employment earnings (loss) $ Not Provided 21 More than one activity for at-risk purposes $ L Partner's capital account analysis: Beginning capital account Capital contributed during the year Current year net income (loss) Other increase (decrease) (attach explanation) Withdrawals & distributions $ 22 More than one activity for passive activity purposes* $ $ (3,000) *See attached statement for additional information. For IRS Use Only Ending capital account $ Yes M Did the partner contribute property with a built-in gain or loss? ONO If "Yes," attach statement (see instructions) N Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning $ Ending $ For Paperwork Reduction Act Notice, see Instructions for Form 1065. www.irs.gov/Form 1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2018 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education
