Appendix P Partnership Tax Forms

Transcription

1 Appendix P Partnership Tax Forms The Garvs, LLC Phoenix Beach Training for Business Professionals P - 1

2 Table of Contents Partnership Tax Forms... 3 Form 1065 U.S. Return of Partnership Income... 3 Schedule K-1 (Form 1065) Partner s Share of Income, Deductions, Credits etc Form Rental Real Estate Income and Expenses of a Partnership or an S Corporation Schedule B-1 (Form 1065) - Information on Partners Owning 50% or More of the Partnership.. 13 Schedule D (Form 1065) Capital Gains & Losses The Garvs, LLC Phoenix Beach Training for Business Professionals P - 2

3 Form 1065 Department of the Treasury Internal Revenue Service A Principal business activity U.S. Return of Partnership Income For calendar year 2016, or tax year beginning, 2016, ending, 20. Information about Form 1065 and its separate instructions is at Name of partnership OMB No D Employer identification number B Principal product or service C Business code number Type or Print Number, street, and room or suite no. If a P.O. box, see the instructions. DRAFT AS OF June 21, 2016 DO NOT FILE City or town, state or province, country, and ZIP or foreign postal code E Date business started F Total assets (see the instructions) G Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address change (5) Amended return (6) Technical termination - also check (1) or (2) 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 Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information. Income Deductions (see the instructions for limitations) Sign Here 1a Gross receipts or sales a b Returns and allowances b c Balance. Subtract line 1b from line 1a c 2 Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) Net farm profit (loss) (attach Schedule F (Form 1040)) Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (attach statement) Total income (loss). Combine lines 3 through Salaries and wages (other than to partners) (less employment credits) Guaranteed payments to partners Repairs and maintenance Bad debts Rent Taxes and licenses Interest a Depreciation (if required, attach Form 4562) a b Less depreciation reported on Form 1125-A and elsewhere on return 16b 16c 17 Depletion (Do not deduct oil and gas depletion.) Retirement plans, etc Employee benefit programs Other deductions (attach statement) Total deductions. Add the amounts shown in the far right column for lines 9 through Ordinary business income (loss). Subtract line 21 from line Paid Preparer Use Only 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 general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Signature of general partner or limited liability company member manager Date Print/Type preparer s name Preparer s signature Date PTIN Check if self-employed Firm s name Firm s EIN Firm s address Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No Z Form 1065 (2016) $

4 Form 1065 (2016) Page 2 Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a Domestic general partnership b Domestic limited partnership c Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f Other 2 At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? DRAFT AS OF June 21, 2016 DO NOT FILE 3 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If Yes, attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If Yes, attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership At the end of the tax year, did the partnership: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If Yes, complete (i) through (iv) below (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorporation (iv) Percentage Owned in Voting Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If Yes, complete (i) through (v) below.. (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital 5 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details Does the partnership satisfy all four of the following conditions? a The partnership s total receipts for the tax year were less than $250,000. b The partnership s total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M If Yes, the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? At any time during calendar year 2016, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If Yes, enter the name of the foreign country. Yes No Form 1065 (2016)

5 Form 1065 (2016) Page 3 Schedule B Other Information (continued) 11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If Yes, the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions a Is the partnership making, or had it previously made (and not revoked), a section 754 election? See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If Yes, attach a statement showing the computation and allocation of the basis adjustment. See instructions.... DRAFT AS OF June 21, 2016 DO NOT FILE c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If Yes, attach a statement showing the computation and allocation of the basis adjustment. See instructions 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions 16 Does the partnership have any foreign partners? If Yes, enter the number of Forms 8805, Foreign Partner s Information Statement of Section 1446 Withholding Tax, filed for this partnership. 17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 18 a Did you make any payments in 2016 that would require you to file Form(s) 1099? See instructions..... b If Yes, did you or will you file required Form(s) 1099? Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. 20 Enter the number of partners that are foreign governments under section During the partnership s tax year, did the partnership make any payments that would require it to file Form 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)? Was the partnership a specified domestic entity required to file Form 8938 for the tax year (See the Instructions for Form 8938)? Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (TMP) for the tax year of this return: Yes No Name of designated TMP Identifying number of TMP If the TMP is an entity, name of TMP representative Phone number of TMP Address of designated TMP Form 1065 (2016)

6 Form 1065 (2016) Page 4 Schedule K Partners Distributive Share Items Total amount 1 Ordinary business income (loss) (page 1, line 22) Net rental real estate income (loss) (attach Form 8825) a Other gross rental income (loss) a b Expenses from other rental activities (attach statement) 3b c Other net rental income (loss). Subtract line 3b from line 3a c 4 Guaranteed payments Interest income Dividends: a Ordinary dividends a b Qualified dividends b Income (Loss) Deductions Self- Employment Credits Foreign Transactions Alternative Minimum Tax (AMT) Items Other Information DRAFT AS OF June 21, 2016 DO NOT FILE 7 Royalties Net short-term capital gain (loss) (attach Schedule D (Form 1065)) a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) a b Collectibles (28%) gain (loss) b c Unrecaptured section 1250 gain (attach statement).. 9c 10 Net section 1231 gain (loss) (attach Form 4797) Other income (loss) (see instructions) Type Section 179 deduction (attach Form 4562) a Contributions a b Investment interest expense b c Section 59(e)(2) expenditures: (1) Type (2) Amount 13c(2) d Other deductions (see instructions) Type 13d 14a Net earnings (loss) from self-employment a b Gross farming or fishing income b c Gross nonfarm income c 15a Low-income housing credit (section 42(j)(5)) a b Low-income housing credit (other) b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) 15c d Other rental real estate credits (see instructions) Type 15d e Other rental credits (see instructions) Type 15e f Other credits (see instructions) Type 15f 16a Name of country or U.S. possession b Gross income from all sources b c Gross income sourced at partner level c Foreign gross income sourced at partnership level d Passive category e General category f Other 16f Deductions allocated and apportioned at partner level g Interest expense h Other h Deductions allocated and apportioned at partnership level to foreign source income i Passive category j General category k Other 16k l Total foreign taxes (check one): Paid Accrued l m Reduction in taxes available for credit (attach statement) m n Other foreign tax information (attach statement) a Post-1986 depreciation adjustment a b Adjusted gain or loss b c Depletion (other than oil and gas) c d Oil, gas, and geothermal properties gross income d e Oil, gas, and geothermal properties deductions e f Other AMT items (attach statement) f 18a Tax-exempt interest income a b Other tax-exempt income b c Nondeductible expenses c 19a Distributions of cash and marketable securities a b Distributions of other property b 20a Investment income a b Investment expenses b c Other items and amounts (attach statement) Form 1065 (2016)

7 Form 1065 (2016) Page 5 Analysis of Net Income (Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 16l Analysis by partner type: (i) Corporate (ii) Individual (active) (iii) Individual (passive) (iv) Partnership (v) Exempt Organization DRAFT AS OF June 21, 2016 DO NOT FILE (vi) Nominee/Other a General partners b Limited partners Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash a Trade notes and accounts receivable... b Less allowance for bad debts Inventories U.S. government obligations Tax-exempt securities Other current assets (attach statement).. 7a Loans to partners (or persons related to partners) b Mortgage and real estate loans Other investments (attach statement)... 9a Buildings and other depreciable assets.. b Less accumulated depreciation a Depletable assets b Less accumulated depletion Land (net of any amortization) a Intangible assets (amortizable only)... b Less accumulated amortization Other assets (attach statement) Total assets Liabilities and Capital 15 Accounts payable Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach statement). 18 All nonrecourse loans a Loans from partners (or persons related to partners) b Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach statement) Partners capital accounts Total liabilities and capital Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. The partnership may be required to file Schedule M-3 (see instructions). 1 Net income (loss) per books Income included on Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not recorded on books this year (itemize): 3 Guaranteed payments (other than health insurance) Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16l (itemize): a Depreciation $ b Travel and entertainment $ 5 Add lines 1 through Schedule M-2 Analysis of Partners Capital Accounts 1 Balance at beginning of year... 2 Capital contributed: a Cash... b Property.. 3 Net income (loss) per books Other increases (itemize): 5 Add lines 1 through Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest $ 7 Deductions included on Schedule K, lines 1 through 13d, and 16l, not charged against book income this year (itemize): a Depreciation $ 8 Add lines 6 and Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5. 6 Distributions: a Cash b Property Other decreases (itemize): 8 Add lines 6 and Balance at end of year. Subtract line 8 from line 5 Form 1065 (2016)

8 This page is intentionally left blank The Garvs, LLC Phoenix Beach Training for Business Professionals P - 8

9 Schedule K-1 (Form 1065) 2015 Department of the Treasury Internal Revenue Service For calendar year 2015, or tax year beginning, 2015 ending, 20 Partner s Share of Income, Deductions, Credits, etc. See back of form and separate instructions. A Part I Information About the Partnership Partnership s employer identification number Part III Final K-1 Amended K OMB No Partner s Share of Current Year Income, Deductions, Credits, and Other Items 1 Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 15 Credits 16 Foreign transactions B Partnership s name, address, city, state, and ZIP code 6a Ordinary dividends 6b Qualified dividends C IRS Center where partnership filed return 7 Royalties D Check if this is a publicly traded partnership (PTP) 8 Net short-term capital gain (loss) Part II Information About the Partner 9a Net long-term capital gain (loss) 17 Alternative minimum tax (AMT) items E Partner s identifying number 9b Collectibles (28%) gain (loss) F Partner s name, address, city, state, and ZIP code 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 18 Tax-exempt income and nondeductible expenses G General partner or LLC member-manager Limited partner or other LLC member 11 Other income (loss) H Domestic partner Foreign partner I1 I2 What type of entity is this partner? If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here Section 179 deduction 19 Distributions J Partner s share of profit, loss, and capital (see instructions): Beginning Ending 13 Other deductions Profit % % 20 Other information Loss % % Capital % % K Partner s share of liabilities at year end: Nonrecourse $ 14 Self-employment earnings (loss) Qualified nonrecourse financing. $ Recourse $ L Partner s capital account analysis: Beginning capital account... $ Capital contributed during the year $ Current year increase (decrease). $ Withdrawals & distributions.. $ ( ) Ending capital account.... $ Tax basis GAAP Section 704(b) book Other (explain) *See attached statement for additional information. For IRS Use Only M Did the partner contribute property with a built-in gain or loss? Yes No If Yes, attach statement (see instructions) P - 9 For Paperwork Reduction Act Notice, see Instructions for Form IRS.gov/form1065 Cat. No R Schedule K-1 (Form 1065) 2015

10 Schedule K-1 (Form 1065) 2015 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form For detailed reporting and filing information, see the separate Partner s Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is Code } Report on passive or nonpassive and enter on your return as follows. L Empowerment zone Report on employment credit Passive loss M Credit for increasing research Passive income Schedule E, line 28, column (g) activities Nonpassive loss Schedule E, line 28, column (h) N Credit for employer social Nonpassive income Schedule E, line 28, column (j) security and Medicare taxes 2. Net rental real estate income (loss) O Backup withholding 3. Other net rental income (loss) P Other credits Net income Schedule E, line 28, column (g) Net loss 4. Guaranteed payments Schedule E, line 28, column (j) 5. Interest income Form 1040, line 8a 6a. Ordinary dividends Form 1040, line 9a 6b. Qualified dividends Form 1040, line 9b 7. Royalties Schedule E, line 4 8. Net short-term capital gain (loss) Schedule D, line 5 9a. Net long-term capital gain (loss) Schedule D, line 12 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D instructions) 9c. Unrecaptured section 1250 gain 10. Net section 1231 gain (loss) 11. Other income (loss) Code A Other portfolio income (loss) B Involuntary conversions C Sec contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Cancellation of debt Form 1040, line 21 or Form 982 F Other income (loss) 12. Section 179 deduction 13. Other deductions A Cash contributions (50%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) }See the Partner s E Capital gain property to a 50% Instructions organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense Form 4952, line 1 I Deductions royalty income Schedule E, line 19 J Section 59(e)(2) expenditures K Deductions portfolio (2% floor) Schedule A, line 23 L Deductions portfolio (other) Schedule A, line 28 M Amounts paid for medical insurance Schedule A, line 1 or Form 1040, line 29 N Educational assistance benefits O Dependent care benefits Form 2441, line 12 P Preproductive period expenses Q Commercial revitalization deduction from rental real estate activities See Form 8582 instructions R Pensions and IRAs S Reforestation expense deduction T Domestic production activities information See Form 8903 instructions U Qualified production activities income Form 8903, line 7b V Employer s Form W-2 wages Form 8903, line 17 W Other deductions 14. Self-employment earnings (loss) Note: If you have a section 179 deduction or any partner-level deductions, see the Partner s Instructions before completing Schedule SE. A Net earnings (loss) from self-employment Schedule SE, Section A or B B Gross farming or fishing income C Gross non-farm income } 15. Credits A Low-income housing credit (section 42(j)(5)) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings C Low-income housing credit (section 42(j)(5)) from post-2007 buildings D Low-income housing credit (other) from post-2007 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits G Other rental credits H Undistributed capital gains credit Form 1040, line 73; check box a I Biofuel producer credit J Work opportunity credit See the Partner's Instructions K Disabled access credit } P Foreign transactions A Name of country or U.S. possession B Gross income from all sources }Form 1116, Part I C Gross income sourced at partner level Foreign gross income sourced at partnership level D Passive category E General category Form 1116, Part I F Other } Deductions allocated and apportioned at partner level G Interest expense Form 1116, Part I H Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income I Passive category J General category Form 1116, Part I K Other } Other information L Total foreign taxes paid Form 1116, Part II M Total foreign taxes accrued Form 1116, Part II N Reduction in taxes available for credit Form 1116, line 12 O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions 17. Alternative minimum tax (AMT) items } A Post-1986 depreciation adjustment B Adjusted gain or loss See the Partner s C Depletion (other than oil & gas) Instructions and D Oil, gas, & geothermal gross income the Instructions for E Oil, gas, & geothermal deductions Form 6251 F Other AMT items 18. Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income C Nondeductible expenses 19. Distributions A Cash and marketable securities B Distribution subject to section 737 C Other property } 20. Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 D Qualified rehabilitation expenditures (other than rental real estate) E Basis of energy property F Recapture of low-income housing credit (section 42(j)(5)) Form 8611, line 8 G Recapture of low-income housing credit (other) Form 8611, line 8 H Recapture of investment credit See Form 4255 I Recapture of other credits J Look-back interest completed long-term contracts See Form 8697 K Look-back interest income forecast method See Form 8866 L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(l)(3) information P Section 453A(c) information Q Section 1260(b) information R Interest allocable to production expenditures S CCF nonqualified withdrawals T Depletion information oil and gas U Reserved V Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Net investment income Z Other information }See the Partner s Instructions

11 Form 8825 (Rev. December 2010) Department of the Treasury Internal Revenue Service Name Rental Real Estate Income and Expenses of a Partnership or an S Corporation See instructions on back. Attach to Form 1065, Form 1065-B, or Form 1120S. OMB No Employer identification number 1 Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. See page 2 to list additional properties. Physical address of each property street, city, Type Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code see page 2 for list A B C D Properties Rental Real Estate Income A B C D 2 Gross rents Rental Real Estate Expenses 3 Advertising Auto and travel Cleaning and maintenance Commissions Insurance Legal and other professional fees 8 9 Interest Repairs Taxes Utilities Wages and salaries Depreciation (see instructions) Other (list) Total expenses for each property. Add lines 3 through Income or (Loss) from each property. Subtract line 16 from line a Total gross rents. Add gross rents from line 2, columns A through H a b Total expenses. Add total expenses from line 16, columns A through H b ( ) 19 Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activities a Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) a b Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number 21 Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on: Form 1065 or 1120S: Schedule K, line 2, or Form 1065-B: Part I, line 4 For Paperwork Reduction Act Notice, see back of form. Cat. No Z Form 8825 ( ) P

12 Form 8825 ( ) Page 2 1 Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. E F G H Physical address of each property street, city, state, ZIP code Type Enter code 1-8; see below for list Fair Rental Days Personal Use Days Properties Rental Real Estate Income E F G H 2 Gross rents Rental Real Estate Expenses 3 Advertising Auto and travel Cleaning and maintenance Commissions Insurance Legal and other professional fees 8 9 Interest Repairs Taxes Utilities Wages and salaries Depreciation (see instructions) Other (list) 15 Total expenses for each property. 16 Add lines 3 through Income or (Loss) from each 17 property. Subtract line 16 from line 2 17 Allowable Codes for Type of Property 1 Single Family Residence 2 Multi-Family Residence 3 Vacation or Short-Term Rental 4 Commercial 5 Land 6 Royalties 7 Self-Rental 8 Other (include description with the code on Form 8825 or on a separate statement) Form 8825 ( ) P - 12

13 SCHEDULE B-1 (Form 1065) (Rev. December 2011) Department of the Treasury Internal Revenue Service Name of partnership Information on Partners Owning 50% or More of the Partnership Attach to Form See instructions on back. OMB No Employer identification number (EIN) Part I Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a) Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, tax-exempt organization, or any foreign government that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital Part II Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b) Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Individual or Estate (ii) Identifying Number (if any) (iii) Country of Citizenship (see instructions) (iv) Maximum Percentage Owned in Profit, Loss, or Capital For Paperwork Reduction Act Notice, see the Instructions for Form Cat. No K Schedule B-1 (Form 1065) (Rev ) P - 13

14 Schedule B-1 (Form 1065) (Rev ) Page 2 General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form Use Schedule B-1 (Form 1065) to provide the information applicable to certain entities, individuals, and estates that own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership. Who Must File Schedule B-1 (Form 1065) must be filed by all partnerships that answer Yes to question 3a or question 3b on Schedule B of Form Attach Schedule B-1 to Form Specific Instructions Part I Complete Part I if the partnership answered Yes to Form 1065, Schedule B, question 3a. List each corporation, partnership, trust, tax-exempt organization, or foreign government owning, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership at the end of the tax year. Enter the name, EIN, type of entity (corporation, partnership, trust, tax-exempt organization, or foreign government), country of organization, and the maximum percentage interests owned, directly or indirectly, in the profit, loss, or capital of the partnership. For an affiliated group filing a consolidated tax return, list the parent corporation rather than the subsidiary members. List the entity owner of a disregarded entity rather than the disregarded entity. If the owner of a disregarded entity is an individual rather than an entity, list the individual in Part II. In the case of a tax-exempt organization, enter tax-exempt organization in column (iii). Example 1. Corporation A owns, directly, an interest of 50% in the profit, loss, or capital of Partnership B. Corporation A also owns, directly, an interest of 15% in the profit, loss, or capital of Partnership C. Partnership B owns, directly, an interest of 70% in the profit, loss, or capital of Partnership C. Therefore, Corporation A owns, directly or indirectly, an interest of 50% in the profit, loss, or capital of Partnership C (15% directly and 35% indirectly through Partnership B). On Partnership C s Form 1065, it must answer Yes to question 3a of Schedule B. Partnership C must also complete Part I of Schedule B-1. In Part I, Partnership C must identify Corporation A, which includes entering 50% in column (v) (its maximum percentage owned). It also must identify Partnership B, and enter 70% in column (v). Part II Complete Part II if the partnership answered Yes to Form 1065, Schedule B, question 3b. List each individual or estate owning, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership at the end of the tax year. Enter the name, social security or employer identification number, country of citizenship (for an estate, the citizenship of the decedent), and the maximum percentage interests owned, directly or indirectly, in the profit, loss, or capital of the partnership. Example 2. A owns, directly, 50% of the profit, loss, or capital of Partnership X. B, the daughter of A, does not own, directly, any interest in X and does not own, indirectly, any interest in X through any entity (corporation, partnership, trust, or estate). Because family attribution rules apply only when an individual (in this example, B) owns a direct interest in the partnership or an indirect interest through another entity, A s interest in Partnership X is not attributable to B. On Partnership X s Form 1065, it must answer Yes to question 3b of Schedule B. Partnership X must also complete Part II of Schedule B-1. In Part II, Partnership X must identify A, which includes entering 50% in column (iv). Partnership X will not identify B in Part II. P - 14

15 SCHEDULE D (Form 1065) Department of the Treasury Internal Revenue Service Name of partnership Capital Gains and Losses Attach to Form 1065 or Form Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Information about Schedule D (Form 1065) and its separate instructions is at OMB No Employer identification number Part I Short-Term Capital Gains and Losses Assets Held One Year or Less See instructions for how to figure the amounts to enter on the lines below. (d) Proceeds This form may be easier to complete if you round off cents to (sales price) whole dollars. 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b. 1b Totals for all transactions reported on Form(s) 8949 with Box A checked Totals for all transactions reported on Form(s) 8949 with Box B checked Totals for all transactions reported on Form(s) 8949 with Box C checked (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 4 Short-term capital gain from installment sales from Form 6252, line 26 or Short-term capital gain or (loss) from like-kind exchanges from Form Partnership s share of net short-term capital gain (loss), including specially allocated short-term capital gains (losses), from other partnerships, estates, and trusts Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on Form 1065, Schedule K, line 8 or 11; or Form 8865, Schedule K, line 8 or Part II Long-Term Capital Gains and Losses Assets Held More Than One Year See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b. 8b Totals for all transactions reported on Form(s) 8949 with Box D checked Totals for all transactions reported on Form(s) 8949 with Box E checked Totals for all transactions reported on Form(s) 8949 with Box F checked (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g) 11 Long-term capital gain from installment sales from Form 6252, line 26 or (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 12 Long-term capital gain or (loss) from like-kind exchanges from Form Partnership s share of net long-term capital gain (loss), including specially allocated long-term capital gains (losses), from other partnerships, estates, and trusts Capital gain distributions (see instructions) Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter here and on Form 1065, Schedule K, line 9a or 11; or Form 8865, Schedule K, line 9a or For Paperwork Reduction Act Notice, see the Instructions for Form Cat. No G Schedule D (Form 1065) 2015 P - 15

16 This page is intentionally left blank The Garvs, LLC Phoenix Beach Training for Business Professionals P - 16