Tax Return 9: Partnership

Instructions:

Please complete the required federal partnership income tax return forms for AAA Fast Plumbing for the 2012 tax year, unless instructed otherwise, based upon the facts presented below. Also, if required information is missing, use reasonable assumptions to fill in the gaps.

Michael Rodriguez and Devontae Johnson have been life-long friends. Both Michael and Devontae started to work for the same national plumbing repair company immediately after graduating from technical college. After nearly a decade of working for that same company, Michael and Devontae decided to venture out on their own and form their own plumbing company called AAA Fast Plumbing Repair (AAA). They formed their business entity as a limited liability company (LLC). Michael and Devontae each own 50% of the company. The company has been successful primarily based upon reputation and the fact that AAA is available 24 hours a day, seven days a week. Although AAA charges a premium for after normal business hour calls, most of its competitors will not perform the services past 9 p.m. and as a result, AAA finds itself often as one of the only available choices for middle of the night emergencies.

AAA has several employees and, as a result of implementing technology solutions to aid in its call dispatch program, AAA has been able to better expand its service area to now include a three-county area instead of just one.

Information relating to AAA and its owners is as follows:

Name of Company: AAA Fast Plumbing Repair, LLC

Address: 1456 East Buena Vista Blvd.

Los Angeles, CA 90001 (has not changed since inception)

Company formed and started: January 1, 2010

Accounting Method: Cash

Tax-year end: December 31

Employer Identification Number: 34-1234567

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