2016 TAX INSTRUCTION BOOKLET

Transcription

1 GF TTN: Investor Relations One edar Point rive Sandusky, OH Phone (866) Fax (866) TX INSTRUTION OOKLET OWNLO YOUR TX INFORMTION FROM THE ER FIR INVESTOR RELTIONS WESITE IR.ERFIR.OM This instruction booklet is intended to address the most common tax reporting situations encountered by our partners. These instructions are not intended to address every situation. onsultation with a qualified tax advisor is strongly recommended. PRT I GENERL TX INFORMTION edar Fair, L.P. (the Partnership), doing business as edar Fair Entertainment ompany, is a Publicly Traded Limited Partnership (PTP). Its units are traded on the New York Stock Exchange under the ticker symbol FUN. For tax purposes it is a partnership, not a corporation, and cash distributions are not treated as dividends. In a partnership, partners are allocated taxable income or loss, deductions and adjustments based upon their pro rata ownership of Partnership units and the number of months during the current tax year that these units are owned. The amount of your taxable income or loss does not directly correspond to the Partnership s financial reporting income or the amount of cash distributed to you during the year. Your current year taxable income or loss from the Partnership is reported on the Federal Schedule K-1 that is included with your Income Tax Reporting Package that you received in the mail or online. The Tax Reporting Package includes all income or loss amounts needed to complete your current year Federal and State Income Tax Returns and contains references to the federal forms used in preparing your Federal Individual Income Tax Return. n example of how to complete your federal return is illustrated in Part V of the Tax Instruction ooklet, the Graphic Guide. If you sold units during the year see I of the Tax Instruction ooklet on reporting your gain or loss. Partners who need additional federal schedules or forms may contact the IRS at or download forms from the IRS website The Partnership will electronically file a copy of each partner s Schedule K-1 with the IRS in Ogden, UT with its Partnership Tax Return unless notified by each partner of necessary corrections prior to May 31, Partners are required to treat Partnership items on their individual returns consistently with the treatment on the Partnership s return, unless the IRS is properly notified of the inconsistency. hanges made to the partner s information after May 31 st must be reported by the partner to the IRS on Form 8082 Notice of Inconsistent Treatment or dministrative djustment Request. n audit of the Partnership s tax returns could result in an adjustment of the tax liability of a partner without any examination of the partner s tax return. ny such audit could also result in an audit of a partner s entire tax return and cause adjustments to be made to non-partnership items. Limitations on Losses Including Passive ctivity Losses Many partners will be allocated net taxable income rather than net tax losses for the tax year. However, the basis adjustment rules under IR Section 743 provide additional allocations of depreciation and amortization expenses that may result in net tax loss allocations to some partners. If you have an overall gain from the Partnership, the net gain (total gain minus losses) is nonpassive income. If you have an overall loss, and did not dispose of your entire interest in the Partnership, the loss is considered a passive loss. urrent deduction of net tax losses from the Partnership may be limited. Please see the IRS Partner s Instructions for Schedule K-1 (Form 1065), specifically the section labeled Limitations on Losses, eductions, and redits. Pay particular attention to the specific instructions for Publicly Traded Partnerships. If you are filing a Form 1040, you may also refer to the IRS Instructions for Schedule E (Form 1040) under t-risk Rules and Passive ctivity Loss Rules. summary of how to report items of net tax income or loss is provided in. Please contact your tax advisor if you need additional information. Individuals, Trusts and Estates (Line 20 ode Y and Gains on Unit Sales) bsent material participation in the operations of edar Fair, L.P. or another exception, edar Fair, L.P. expects that all of the items of income, gain, loss and deduction reported to you on the Schedule K-1 and any gains on the sale of Partnership units would be considered net investment income for purposes of IR Section 1411 and potentially subject to a 3.8% surtax. See IRS Form 8960 Net Investment Income Tax and its instructions for further explanation of who is subject to the surtax. Please contact your tax advisor if you need additional information. Individual Retirement ccounts (IR) and Tax Exempt Entities (Line 20 odes V and Z) IRs and tax-exempt entities with more than $1,000 of Unrelated usiness Gross Income (UGI) are required to file a tax return (Form 990-T). UGI is identified as Line 20 code Z on your Schedule K-1 and is located on the Federal Supplemental Information Schedule that is included in your tax package. Income from edar Fair, L.P. is considered Unrelated usiness Taxable Income (UTI) and is reported on Line 20 code V of your Schedule K-1. o not report income or loss allocated to units held in your IR on your individual tax return. ontact your IR ustodian or tax advisor for more information regarding federal and state filing requirements.

2 PRT II WHT TO INLUE ON YOUR FEERL INIVIUL INOME TX RETURN ombine any current year income, gains and losses, and any prior year unallowed losses to see if you have an overall gain or loss from the Partnership. If the sum of the amounts on Lines 1 and 10 of your Federal Schedule K-1 combine to result in a loss, do not include the amounts reported on Lines 1, 9c, 10, or 17 codes and of your Schedule K-1 on your Individual Income Tax Return unless you disposed of your entire interest in the Partnership during the year. However, report the amount on Line 5 of your Schedule K-1 on your Individual Income Tax Return regardless of the result of the sum of Lines 1 and 10 of your Schedule K-1. loss resulting from the sum of the amounts on Lines 1 and 10 of your Schedule K-1 is considered passive and is only deductible in the current year to the extent that you have income from the same Partnership. ny edar Fair, L.P. unallowed loss is suspended and carried forward to offset future taxable income from edar Fair, L.P. ny unused losses can be recognized upon disposition of your entire interest in the Partnership. Retain your Schedule K-1 and maintain a record of all unallowed losses from this Partnership to support your tax reporting in future years. The Partnership cannot keep such records for you. See the instructions to IRS Form 8582 for worksheets that may assist you in keeping track of your suspended losses. bsent material participation in the operation of edar Fair, L.P. or another exception, edar Fair, L.P. expects that all of the items of income, gain, loss and deduction reported to you on the Schedule K-1 and any gains on the sale of Partnership units would be considered net investment income for purposes of IR Section 1411 and potentially subject to a 3.8% surtax. See IRS Form 8960 Net Investment Income Tax and its instructions for further explanation of who is subject to the surtax. The Graphic Guide in Part V of this instruction booklet is an illustrated example of how to transfer the information from your Schedule K-1 to your Federal Individual Income Tax Return. Steps (1) (4) below explain how to insert the numbers on the tax forms. Step (1) SHEULE E (FORM 1040) Supplemental Income and Loss and FORM 4797 Sales of usiness Property First, the following information must be completed: On Schedule E,, Line 27: if you have carryforward losses from a prior year check the Yes box. On Schedule E,, Line 28, insert edar Fair, L.P. PTP in olumn (a), insert P in olumn (b), and insert in olumn (d). Next, if the sum of the amounts reported on Lines 1 and 10 of your Schedule K-1, less any prior year unallowed edar Fair, L.P. losses carried forward, is positive, you have overall net tax income and you should follow Step (1a) below. If the sum is negative, you have overall net tax loss and should instead follow Step (1b) below: Step (1a) OVERLL NET TX INOME/GIN NONPSSIVE If you do not have prior year unallowed losses carried forward : O THIS: On Schedule E,, Line 28, olumn (j), insert the positive amount reported on Line 1 of your Schedule K-1, listed as the Ordinary business income (loss). on the Graphic Guide. lso insert From PTP to the left of the amount, and: O THIS: On Form 4797, Part I, Line 2, olumn (g), insert the amount, if applicable, reported on Line 10 of your Schedule K-1, listed as Net section 1231 gain (loss). on the Graphic Guide. lso insert From edar Fair, L.P. K-1 PTP for the description. GO TO STEP (2). If you do have prior year unallowed losses carried forward : O THIS: For this part only, enter all amounts as positive amounts. On Schedule E,, Line 28, olumn (g), insert the prior year Ordinary loss carryforward amount but not more than the income amount reported on Line 1 of your Schedule K-1. On Schedule E,, Line 28, olumn (j), insert the amount by which Line 1 of the K-1 exceeds the amount reported in Line 28, olumn (g). On Schedule E,, Line 28, olumn (f), insert the prior year Ordinary loss carryforward amount. lso insert PY From PTP in olumn (a) for Line 28. In olumn (b) for Line 28 insert P. In olumn (d) for Line 28 insert , and : O THIS: On Form 4797, Part I, Line 2, olumn (g), insert the amount reported on Line 10 of your Schedule K-1, listed as Net section 1231 gain (loss). on the Graphic Guide. lso insert From edar Fair, L.P. K-1 PTP for the description. On the next Line in olumn (g) insert any Net section 1231 loss carryforward amount. lso insert From edar Fair, L.P. K-1 PTP Passive Loss llowed for the description. Step (1b) OVERLL NET TX LOSS PSSIVE Prior year suspended losses may be deductible in the current year only to the extent you have been allocated income from the Partnership, and any excess loss is carried forward to use in a future year when either you have edar Fair, L.P. income to offset it or you sell your entire interest in edar Fair, L.P. Unallowed losses cannot be carried back. If you did not own any units at ecember 31 st and you sold all of your units during the year, see UNITS SOL section. bsent material participation in the operation of edar Fair, L.P. or another exception, edar Fair, L.P. expects that all of the items of income, gain, loss and deduction reported to you on the Schedule K-1 and any gains on the sale of Partnership units would be considered net investment income for purposes of IR Section 1411 and potentially subject to a 3.8% surtax. See IRS Form 8960 Net Investment Income Tax and its instructions for further explanation of who is subject to the surtax. If the sum of amounts reported on Lines 1 and 10 are negative: The overall loss is not deductible in the current year and you do not need to file Schedule E (Form 1040) or Form 4797 for your interest in edar Fair, L.P. Instead, you should keep a record of the overall loss allocated to you from edar Fair, L.P. to support the tax reporting in future years when you may be allocated income from the Partnership or when you dispose of your entire interest in the Partnership. GO TO STEP (2).

3 If the amount reported on Line 1 is positive and the amount reported on Line 10 is negative: O THIS: On Line 28, of Schedule E, olumn (g), insert the positive amount of Ordinary business income on Line 1 of the Schedule K-1. On Line 28, of Schedule E, olumn (f) insert any ordinary loss carryforward, but only up to the amount of income reported on Line 28, olumn (g). lso insert on Line 28, olumn (a) PY From PTP. In olumn (b) for Line 28 insert P. In olumn (d) for Line 28 insert , and O THIS: If you still have income from edar Fair on Schedule E after the ordinary loss carryforward, on Line 2 of Part I of Form 4797, olumn (g), insert the amount on Line 10 of your Schedule K-1 listed as Net section 1231 gain (loss), and on the next line any Net section 1231 (loss) carryforward, but only to the extent of the excess income on Schedule E. lso insert From edar Fair, L.P. K-1 PTP and From edar Fair, L.P. K-1 PTP Passive Loss llowed for the descriptions. GO TO STEP (2). UNITS SOL If you sold your entire interest in edar Fair, L.P. on or before ecember 31 st, any losses reported on Lines 1 and 10 of your Schedule K-1 and all prior year unallowed losses carried forward are fully deductible in the current year. O THIS: On Schedule E,, Line 28, olumn (g), insert the amount of Ordinary business income from Line 1 of the Schedule K-1. On Line 28, of Schedule E, olumn (f) insert any ordinary loss carryforward. lso insert in Line 28, olumn (a) PY From PTP. In olumn (b) for Line 28 insert P. In olumn (d) for Line 28 insert , and O THIS: On Form 4797, Part I, Line 2, olumn (g), insert the amount reported on Line 10 of your Schedule K-1, listed as Net section 1231 gain (loss). on the Graphic Guide. lso insert From edar Fair, L.P. K-1 PTP for the description. On the next line in olumn (g) insert any Net section 1231 loss carryforward amount. lso insert From edar Fair, L.P. K-1 PTP Passive Loss llowed for the description. IF NO MOUNTS RE REPORTE S NET SETION 1231 GIN (LOSS), GO TO STEP (2). Step (2) SHEULE OF IRS FORM 1040 Interest Income You may have been allocated a share of interest income earned by the Partnership. If no amount is reported as Interest Income, GO TO STEP (3). If an amount is reported as Interest Income: O THIS: On Schedule, Part I, Line 1 list edar Fair, L.P. as the name of payer and insert the amount reported on Line 5 of your Schedule K-1, listed as the Interest Income. on the Graphic Guide. Step (3) IRS FORM 4952 Investment Interest Expense eduction Individuals with investment income may be able to claim a deduction for investment interest expense and should complete Form Individuals generally must itemize deductions to claim an investment interest deduction. Note that for edar Fair, L.P. the investment income amount is actually the sum of Lines 1, 5, and 10. Line 20 or G on the Graphic Guide. If you have an overall net tax loss or are utilizing prior year suspended losses, you will have to adjust your Net Investment Income accordingly. Please contact your tax advisor if you need additional information. If you are claiming investment interest expense: O THIS: On Form 4952,, Line 4a include the amount reported on Line 20 code of your Schedule K-1, together with any other investment income. G on the Graphic Guide. NOTE: If you sold units during the year, the Ordinary Gain on olumn (8) of the Sales Schedule should be included on Form 4952, Line 4(a). N on the Graphic Guide. Step (4) IRS FORM 6251 lternative Minimum Tax Individuals ertain individuals may be subject to the Federal lternative Minimum Tax (MT). Since the Partnership has tax adjustments from the use of accelerated depreciation methods, complete Form 6251 to determine if you are subject to MT. If you claimed deductible investment interest expense in Step (3), there may be an adjustment for MT. Please refer to the instructions for Form 6251 lternative Minimum Tax and contact your tax advisor. Step (4a) OVERLL NET TX INOME/GIN NONPSSIVE O THIS: On Form 6251, Part I, Lines 17 and 18 (isposition of property and Post-1986 depreciation) insert the amount reported on Lines 17 code and, respectively, of your Schedule K-1 listed as djusted gain or loss and Post 1986 epreciation adjustment. F & E on the Graphic Guide. If applicable, include any MT loss carryforward from edar Fair, L.P. to the extent allowable, see instructions for Line 19. omplete the other applicable lines on the form to see if you are subject to the alternative minimum tax.

4 Step (4b) OVERLL NET TX LOSS PSSIVE O THIS: dd the amounts reported on Lines 17 codes and of your Schedule K-1 to the amounts reported on Lines 1 and 10 of your Schedule K-1. The net amount should be carried forward as an MT adjustment. See the instructions to Form 6251 for further information. PRT III IF YOU SOL UNITS See the Graphic Guide in Part V of this instruction booklet for an illustration of how to report the gain or loss on your Federal Individual Income Tax Return. Partners who had a sale of Partnership units during the year should receive a partially completed Sales Schedule containing instructions and information necessary to determine your gain or loss. If you did not sell Partnership units during the year, you may disregard this section of the instructions. You should recognize a gain from the sale of Partnership units if the sales proceeds exceed your adjusted tax basis in the units sold. onversely, you should recognize a loss if your adjusted tax basis in the units sold exceeds the sales proceeds. If you have a loss and you disposed of only a portion of units you may still be subject to the loss limitation rules. bsent material participation in the operation of edar Fair, L.P. or another exception, edar Fair, L.P. expects that all of the items of income, gain, loss and deduction reported to you on the Schedule K-1 and any gains on the sale of Partnership units would be considered net investment income for purposes of IR Section 1411 and potentially subject to a 3.8% surtax. See IRS Form 8960 Net Investment Income Tax and its instructions for further explanation of who is subject to the surtax. Please contact your tax advisor for the appropriate tax treatment. Note Regarding Purchase mount, olumn (5) If you acquired your units by some means other than purchase, consult your tax advisor and refer to the summary below: Gift Use the donor s basis increased by any gift tax paid on the appreciation at the date of the gift or the depreciation recapture recognized as ordinary income under IR Section 751. However, if you will recognize a loss on your sale of Partnership units, use the lesser of the donor s adjusted basis or the fair market value of the units at the date of the gift. Inheritance Use the fair market value on the date of death or alternative valuation date, whichever the estate used. How To Report Your Sale On Your Federal Individual Income Tax Return Follow Steps (1) (5) Step (1) SLES SHEULE O THIS: ased on the instructions on the schedule, complete the isposition Worksheet in order to calculate your gain or loss. Step (2) IRS FORM 4797 Sales of usiness Property O THIS: Include the total Ordinary Gain, olumn (8) from your Sales Schedule, on page 2 of Form 4797, I, Lines 24, 25a, and 25b. N on the Graphic Guide. arry the number down to Lines 30 and 31 and over to Line 13 on page 1. arry down this amount to Line 18 and report the number on Form 1040, Line 14. Step (3) IRS FORM 8949, Sales and Other ispositions of apital ssets O THIS: On Form 8949, prepare a separate entry for each sale listed on your Sales Schedule. SHORT-TERM PITL GIN OR LOSS: If you held the units less than one year, report the sale on Part I of Form 8949, in olumns (a through h). olumn (f) should be completed by inserting code. LONG-TERM PITL GIN OR LOSS: If you held the units longer than one year, report the sale on of Form 8949, in olumns (a through h). H through M on the Graphic Guide. olumn (f) should be completed by inserting code. Transfer resulting amounts to IRS Form 1040, Schedule apital Gains and Losses and complete the remainder of the form according to the IRS Instructions. UNREPTURE SETION 1250 GIN: Report the amount in olumn (10) of your Sales Schedule on Schedule s 1250 worksheet, Line 10. O on the Graphic Guide. The worksheet is part of the Schedule instructions. omplete the worksheet and enter the result on Schedule, Line 19. Step (4) IRS FORM 6251 lternative Minimum Tax Individuals O THIS: mounts entered in the MT djustment olumns should be considered when completing Form On Form 6251, Part I, Line 17 (isposition of property), include the amount reported in olumn (11) of your Sales Schedule. P on the Graphic Guide.

5 Step (5) IR SETION 751 STTEMENT O THIS: You should complete and attach IR Section 751 Statement to your current year Federal Income Tax Return. TXPYER NME: IR Section 751 Statement TXPYER I.. NO.: The amount of ordinary income reported as a result of the sale of edar Fair, L.P. units was computed in accordance with IR Section 751. etailed information is available at the office of the General Partner, located at One edar Point rive, Sandusky, Ohio, PRT IV STTE N LOL FILING INFORMTION Nonresident State Tax Filing Information The Partnership s income or loss allocated to you is earned in the states listed in the table below. For most partners, the information reported on the Schedule K-1 will provide you with the information necessary to prepare your Nonresident State Income Tax Returns. The Pennsylvania information presented is a substitute for Pennsylvania Form NRK-1. The laws of these states vary as to whether investors must file income tax returns (and pay taxes) even if they do not reside in the states. The Partnership does NOT pay state income taxes on its partners behalf. Each partner s portion of the Partnership s Ordinary Income or Loss, Net Section 1231 Gain or Loss and Interest Income from the states are reported on the State Schedule, Nonresident State Information Section, olumns (1) through (3) instead of on the actual state forms. The total apportioned state amounts may not agree with the total Federal amount reported. The chart below details where to order forms for the states. STTE INIVIUL TX FORMS REQUESTING FORMS 540 and 540NR Phone:(800) or MN M-1 and M-1NR Phone:(651) or MO MO-1040 and MO-NRI Phone:(800) or N 400- Phone:(877) or OH IT-1040 Phone:(800) or P P-40 Phone:(888) or S S-1040 and S-1040 NR Phone:(800) or V 760 and 763 Phone:(804) or NOTE: Partners can access our website for additional information relating to the entity s share of the Partnership s State and ity apportionment factors. Resident State Tax Filing Information Pennsylvania Residents must use the information reported on the State Schedule, Resident State Information Section, as substitute for Pennsylvania Form RK-1, which reflects depreciation and amortization differences under Pennsylvania law. dditional State and Local Tax Information The Partnership derives income in the following jurisdictions where the Partnership paid taxes on apportioned income: ity of Sandusky, Ohio, ity of urora, Ohio, ity of Kansas ity, Missouri and State of South arolina. Please visit our website to access additional information regarding state and local taxes paid by the partnership. This information may be necessary to properly compute your state and local tax liability. The Partnership is not required to pay income taxes for its other locations. ue to frequent changes in state and local tax laws, edar Fair, L.P. suggests you consult the state and/or your tax advisor with respect to your particular situation and tax consequences arising from your investment in the Partnership. IMPORTNT NOTIE: The information in the enclosed tax package is provided by the Partnership to assist you in preparing your personal tax return. The information reflects the application of various assumptions and conventions, as disclosed by the Partnership to you in various SE filings and other offering documents. It is anticipated that the Partnership may provide disclosure of certain of these assumptions and conventions in the preparation of the Partnership return as required by the Internal Revenue Service and/or other taxing authorities. We suggest that you refer to the appropriate federal and state income tax laws, instructions, and SE filings and other offering documents, and that you consult your tax advisor with any questions. You should discuss with your tax advisor whether the treatment of any items in the enclosed tax package may subject you and/or your tax advisor to a penalty by a taxing authority and the need to adequately disclose any items in order to avoid such penalty.

6 OM No Schedule K-1 (Form 1065) 2016 epartment of the Treasury Internal Revenue Service For calendar year 2016, or tax year beginning, 2016 ending, 20 Partner s Share of Income, eductions, redits, etc. See back of form and separate instructions Final K-1 mended K-1 Information bout the Partnership Part I Partnership s employer identification number Partnership s name, address, city, state, and ZIP code IRS enter where partnership filed return heck if this is a publicly traded partnership (PTP) Information bout the Partner E Partner s identifying number F Partner s name, address, city, state, and ZIP code G General partner or LL member-manager Limited partner or other LL member H omestic partner Foreign partner I1 What type of entity is this partner? I2 If this partner is a retirement plan (IR/SEP/Keogh/etc.), check here J Partner s share of profit, loss, and capital (see instructions): eginning Ending Profit % % Loss % % apital % % K Partner s share of liabilities at year end: Nonrecourse $ Qualified nonrecourse financing. $ Recourse $ L Partner s capital account analysis: eginning capital account... $ apital contributed during the year $ urrent year increase (decrease). $ Withdrawals & distributions.. $ ( ) Ending capital account.... $ Tax basis GP Section 704(b) book Other (explain) M id the partner contribute property with a built-in gain or loss? Yes No If Yes, attach statement (see instructions) Partner s Share of urrent Year Income, eductions, redits, and Other Items I 1 Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 6b Qualified dividends 7 Royalties 8 Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 9b ollectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income (loss) 12 Section 179 deduction 13 Other deductions 14 Self-employment earnings (loss) 15 redits 16 Foreign transactions 17 lternative minimum tax (MT) items 18 Tax-exempt income and nondeductible expenses 19 istributions 20 Other information *See attached statement for additional information. For IRS Use Only For Paperwork Reduction ct Notice, see Instructions for Form IRS.gov/form1065 at. No R Schedule K-1 (Form 1065) 2016 Form 4797 epartment of the Treasury Internal Revenue Service Sales of usiness Property (lso Involuntary onversions and Recapture mounts Under Sections 179 and 280F(b)(2)) ttach to your tax return. Information about Form 4797 and its separate instructions is at OM No ttachment Sequence No. 27 Name(s) shown on return Identifying number 1 Enter the gross proceeds from sales or exchanges reported to you for 2016 on Form(s) or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. See instructions Part I Sales or Exchanges of Property Used in a Trade or usiness and Involuntary onversions From Other Than asualty or Theft Most Property Held More Than 1 Year (see instructions) 2 (a) escription of property (b) ate acquired (mo., day, yr.) (c) ate sold (mo., day, yr.) (d) Gross sales price (e) epreciation allowed or allowable since acquisition (f) ost or other basis, plus improvements and expense of sale (g) Gain or (loss) Subtract (f) from the sum of (d) and (e) 3 Gain, if any, from Form 4684, line Section 1231 gain from installment sales from Form 6252, line 26 or Section 1231 gain or (loss) from like-kind exchanges from Form Gain, if any, from line 32, from other than casualty or theft ombine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: Partnerships (except electing large partnerships) and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below. Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you didn t have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule filed with your return and skip lines 8, 9, 11, and 12 below. 8 Nonrecaptured net section 1231 losses from prior years. See instructions Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule filed with your return. See instructions Ordinary Gains and Losses (see instructions) 10 Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less): 11 Loss, if any, from line ( ) 12 Gain, if any, from line 7 or amount from line 8, if applicable Gain, if any, from line Net gain or (loss) from Form 4684, lines 31 and 38a Ordinary gain from installment sales from Form 6252, line 25 or Ordinary gain or (loss) from like-kind exchanges from Form ombine lines 10 through For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below: a If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the part of the loss from income-producing property on Schedule (Form 1040), line 28, and the part of the loss from property used as an employee on Schedule (Form 1040), line 23. Identify as from Form 4797, line 18a. See instructions.. 18a b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Form 1040, line 14 18b For Paperwork Reduction ct Notice, see separate instructions. at. No I Form 4797 (2016) Page: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) TOTL GIN OR LOSS LSSIFITION LTERNTIVE UNITS ISPOSE TE PURHSE TE SOL SLES PROEES PURHSE MOUNT JUSTMENTS TO SIS GIN OR LOSS (-) =(4)-[(5)+(6)] ORINRY GIN PITL GIN OR LOSS (-) =(7)-(8) UNREPTURE SETION 1250 GIN MINIMUM TX GIN OR LOSS (-) JUSTMENT FORM 8949, OLUMN (a) FORM 8949, OLUMN (b) FORM 8949, OLUMN (c) FORM 8949, OLUMN (d) FORM 8949, OLUMN (e) FORM 8949, OLUMN (g) FORM 4797, PRT III, LINES 24, 25a, 25b FORM 1040, SHEULE, OLUMN (h) FORM 1040, SH., 1250 WORKSHEET LINE 10 FORM 6251, PRT I, LINE 17 Unless you have advised the Partnership to use a different method this sales schedule reflects unit dispositions on a first in first out basis so that you are considered to sell units in the order in which they were acquired. This approach has been applied solely for administrative convenience and is not consistent with IRS Revenue Ruling 84-53, which provides that a partner has one unified basis in its total partnership interest and would generally yield a different result than that presented. Each partner must make his or her own determination of the amount of basis to be associated with units that are sold. The partnership expresses no opinion on the appropriate methodology to be used in making this determination, and has provided this schedule solely as a courtesy. Please consult your tax advisor to obtain advice on how this determination should be made, and update the sales schedule as appropriate to reflect the basis attributed to the units sold as you have determined. SHEULE E (Form 1040) epartment of the Treasury Internal Revenue Service (99) Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMIs, etc.) ttach to Form 1040, 1040NR, or Form Information about Schedule E and its separate instructions is at OM No ttachment Sequence No. 13 Name(s) shown on return Your social security number Part I Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule or -EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. id you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) Yes No If Yes, did you or will you file required Forms 1099? Yes No 1a Physical address of each property (street, city, state, ZIP code) 1b Type of Property (from list below) 2 For each rental real estate property listed above, report the number of fair rental and personal use days. heck the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions. Fair Rental ays Personal Use ays QJV Type of Property: 1 Single Family Residence 2 Multi-Family Residence 3 Vacation/Short-Term Rental 4 ommercial 5 Land 6 Royalties 7 Self-Rental 8 Other (describe) Income: Properties: 3 Rents received Royalties received Expenses: 5 dvertising uto and travel (see instructions) leaning and maintenance issions e Schedule E (Form 1040) 2016 ttachment Sequence No. 13 Page 2 Name(s) shown on return. o not enter name and social security number if shown on other side. Your social security number aution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. Income or Loss From Partnerships and S orporations Note: If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (e) on line 28 and attach Form See instructions. 27 re you reporting any loss not allowed in a prior year due to the at-risk, excess farm loss, or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered Yes, see instructions before completing this section. Yes No 28 (a) Name (b) Enter P for partnership; S for S corporation (c) heck if foreign partnership (d) Employer identification number (e) heck if any amount is not at risk Passive Income and Loss Nonpassive Income and Loss (f) Passive loss allowed (attach Form 8582 if required) (g) Passive income from Schedule K-1 (h) Nonpassive loss from Schedule K-1 (i) Section 179 expense deduction from Form 4562 (j) Nonpassive income from Schedule K-1 29a Totals b Totals 30 dd columns (g) and (j) of line 29a dd columns (f), (h), and (i) of line 29b ( ) 32 Total partnership and S corporation income or (loss). ombine lines 30 and 31. Enter the result here and include in the total on line 41 below I Income or Loss From Estates and Trusts GRPHI GUIE The Partnership has included this Graphic Guide to assist you in preparing your Federal Income Tax Return. The amounts reported in the Federal Information Section of your Schedule K-1 and also your Sales Schedule are represented by letters. Follow the arrows for each letter to locate the line on the appropriate federal form in which to report your federal amounts. For example, the letter represents the amount of Ordinary Income or Loss (-), which should be reported on page 2, column (j) of Schedule E, Supplemental Income and Loss Schedule. lso, fill out the forms and schedules as indicated in red. On your Schedule K-1 Line 20 odes V and Z are used by IR s and Tax-Exempt entities only. Form 4797 (2016) Page 2 I Gain From isposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255 (see instructions) 19 (a) escription of section 1245, 1250, 1252, 1254, or 1255 property: (b) ate acquired (mo., day, yr.) (c) ate sold (mo., day, yr.) These columns relate to the properties on lines 19 through 19. Property Property Property Property 20 Gross sales price (Note: See line 1 before completing.) ost or other basis plus expense of sale epreciation (or depletion) allowed or allowable djusted basis. Subtract line 22 from line Total gain. Subtract line 23 from line If section 1245 property: a epreciation allowed or allowable from line a b Enter the smaller of line 24 or 25a b 26 If section 1250 property: If straight line depreciation was used, enter -0- on line 26g, except for a corporation subject to section 291. a dditional depreciation after See instructions. 26a b pplicable percentage multiplied by the smaller of line 24 or line 26a. See instructions b c Subtract line 26a from line 24. If residential rental property or line 24 isn t more than line 26a, skip lines 26d and 26e 26c d dditional depreciation after 1969 and before d e Enter the smaller of line 26c or 26d e f Section 291 amount (corporations only) f g dd lines 26b, 26e, and 26f g 27 If section 1252 property: Skip this section if you didn t dispose of farmland or if this form is being completed for a partnership (other than an electing large partnership). a Soil, water, and land clearing expenses a b Line 27a multiplied by applicable percentage. See instructions 27b c Enter the smaller of line 24 or 27b c 28 If section 1254 property: a Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration costs, and depletion. See instructions a b Enter the smaller of line 24 or 28a b 29 If section 1255 property: a pplicable percentage of payments excluded from income under section 126. See instructions a b Enter the smaller of line 24 or 29a. See instructions. 29b Summary of I Gains. omplete property columns through through line 29b before going to line Total gains for all properties. dd property columns through, line dd property columns through, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than casualty or theft on Form 4797, line Part IV Recapture mounts Under Sections 179 and 280F(b)(2) When usiness Use rops to 50% or Less (see instructions) (a) Section (b) Section SHEULE (Form 1040 or 1040) epartment of the Treasury Internal Revenue Service (99) Interest and Ordinary ividends ttach to Form 1040 or Information about Schedule and its instructions is at OM No ttachment Sequence No. 08 Name(s) shown on return Your social security number Part I Interest (See instructions on back and the instructions for Form 1040, or Form 1040, line 8a.) Note: If you received a Form 1099-INT, Form 1099-OI, or substitute statement from a brokerage firm, list the firm s name as the payer and enter the total interest shown on that form. 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see instructions on back and list this interest first. lso, show that buyer s social security number and address 1 mount 2 dd the amounts on line Excludable interest on series EE and I U.S. savings bonds issued after ttach Form Subtract line 3 from line 2. Enter the result here and on Form 1040, or Form 1040, line 8a Note: If line 4 is over $1,500, you must complete I. mount Ordinary ividends (See instructions on back and the instructions for Form 1040, or Form 1040, line 9a.) Note: If you received a Form 5 List name of payer 5 Form 6251 epartment of the Treasury Internal Revenue Service (99) lternative Minimum Tax Individuals Information about Form 6251 and its separate instructions is at ttach to Form 1040 or Form 1040NR. OM No ttachment Sequence No. 32 Name(s) shown on Form 1040 or Form 1040NR Your social security number Part I lternative Minimum Taxable Income (See instructions for how to complete each line.) 1 If filing Schedule (Form 1040), enter the amount from Form 1040, line 41, and go to line 2. Otherwise, enter the amount from Form 1040, line 38, and go to line 7. (If less than zero, enter as a negative amount.) 1 2 Medical and dental. If you or your spouse was 65 or older, enter the smaller of Schedule (Form 1040), line 4, or 2.5% (0.025) of Form 1040, line 38. If zero or less, enter Taxes from Schedule (Form 1040), line Enter the home mortgage interest adjustment, if any, from line 6 of the worksheet in the instructions for this line 4 5 Miscellaneous deductions from Schedule (Form 1040), line If Form 1040, line 38, is $155,650 or less, enter -0-. Otherwise, see instructions ( ) 7 Tax refund from Form 1040, line 10 or line ( ) 8 Investment interest expense (difference between regular tax and MT) epletion (difference between regular tax and MT) Net operating loss deduction from Form 1040, line 21. Enter as a positive amount lternative tax net operating loss deduction ( ) 12 Interest from specified private activity bonds exempt from the regular tax Qualified small business stock, see instructions Exercise of incentive stock options (excess of MT income over regular tax income) Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code ) Electing large partnerships (amount from Schedule K-1 (Form 1065-), box 6) isposition of property (difference between MT and regular tax gain or loss) epreciation on assets placed in service after 1986 (difference between regular tax and MT) Passive activities (difference between MT and regular tax income or loss) Loss limitations (difference between MT and regular tax income or loss) irculation costs (difference between regular tax and MT) Long-term contracts (difference between MT and regular tax income) Mining costs (difference between regular tax and MT) Research and experimental costs (difference between regular tax and MT) Income from certain installment sales before January 1, ( ) 26 Intangible drilling costs preference Form 4952 epartment of the Treasury Internal Revenue Service (99) Investment Interest Expense eduction Information about Form 4952 and its instructions is at ttach to your tax return. OM No ttachment Sequence No. 51 Name(s) shown on return Identifying number Part I Total Investment Interest Expense 1 Investment interest expense paid or accrued in 2016 (see instructions) isallowed investment interest expense from 2015 Form 4952, line Total investment interest expense. dd lines 1 and Net Investment Income 4 a Gross income from property held for investment (excluding any net gain from the disposition of property held for investment)... 4a b Qualified dividends included on line 4a b c Subtract line 4b from line 4a c d Net gain from the disposition of property held for investment.. 4d e Enter the smaller of line 4d or your net capital gain from the disposition of property held for investment (see instructions).. 4e f Subtract line 4e from line 4d f g Enter the amount from lines 4b and 4e that you elect to include in investment income (see instructions) g h Investment income. dd lines 4c, 4f, and 4g h 5 Investment expenses (see instructions) Net investment income. Subtract line 5 from line 4h. If zero or less, enter I Investment Interest Expense eduction 7 isallowed investment interest expense to be carried forward to Subtract line 6 from line 3. If zero or less, enter Form 8949 (2016) ttachment Sequence No. 12 Page 2 Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side Social security number or taxpayer identification number efore you check ox, E, or F below, see whether you received any Form(s) or substitute statement(s) from your broker. substitute statement will have the same information as Form Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term transactions, see page 1. Note: You may aggregate all long-term transactions reported on Form(s) showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must check ox, E, or F below. heck only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. () Long-term transactions reported on Form(s) showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) showing basis wasn't reported to the IRS (F) Long-term transactions not reported to you on Form (a) escription of property (Example: 100 sh. XYZ o.) (b) ate acquired (Mo., day, yr.) (c) ate sold or disposed of (Mo., day, yr.) (d) Proceeds (sales price) (see instructions) (e) ost or other basis. See the Note below and see olumn (e) in the separate instructions djustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions. (f) ode(s) from instructions (g) mount of adjustment (h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g) 2 Totals dd the amounts in columns (d) (e) (g) and (h) (subtract Unrecaptured Section 1250 Gain Worksheet Line 19 Keep for Your Records If you are not reporting a gain on Form 4797, line 7, skip lines 1 through 9 and go to line If you have a section 1250 property in I of Form 4797 for which you made an entry in Part I of Form 4797 (but not on Form 6252), enter the smaller of line 22 or line 24 of Form 4797 for that property. If you did not have any such property, go to line 4. If you had more than one such property, see instructions Enter the amount from Form 4797, line 26g, for the property for which you made an entry on line Subtract line 2 from line Enter the total unrecaptured section 1250 gain included on line 26 or line 37 of Form(s) 6252 from installment sales of trade or business property held more than 1 year (see instructions) Enter the total of any amounts reported to you on a Schedule K-1 from a partnership or an S corporation as unrecaptured section 1250 gain dd lines 3 through Enter the smaller of line 6 or the gain from Form 4797, line Enter the amount, if any, from Form 4797, line Subtract line 8 from line 7. If zero or less, enter Enter the amount of any gain from the sale or exchange of an interest in a partnership attributable to unrecaptured section 1250 gain (see instructions) Enter the total of any amounts reported to you as unrecaptured section 1250 gain on a Schedule K-1, Form 1099-IV, or Form 2439 from an estate, trust, real estate investment trust, or mutual fund (or other regulated investment company) or in connection with a Form 1099-R Enter the total of any unrecaptured section 1250 gain from sales (including installment sales) or other dispositions of section 1250 property held more than 1 year for which you did not make an entry in Part I of Form 4797 for the year of sale (see instructions) dd lines 9 through If you had any section 1202 gain or collectibles gain or (loss), enter the total of lines 1 through 4 of the 28% Rate Gain Worksheet. Otherwise, enter Enter the (loss), if any, from Schedule, line 7. If Schedule, line 7, is zero or a gain, enter ( ) 16. Enter your long-term capital loss carryovers from Schedule, line 14, and Schedule K-1 (Form 1041), box 11, code * ( ) 17. ombine lines 14 through 16. If the result is a (loss), enter it as a positive amount. If the result is zero or a gain, enter Unrecaptured section 1250 gain. Subtract line 17 from line 13. If zero or less, enter -0-. If more than zero, enter the result here and on Schedule, line The above example assumes that you held the units longer than one year. If you held the units less than one year, report the sale on Part I, Line1 instead of, Line 3 of Form E F G Y V H I J K O P M N N N N E F P G O H I J L M Part V - Graphic Guide edar Fair, L.P. - PTP P From edar Fair, L.P. K-1-PTP From edar Fair, L.P. K-1-PTP ##/##/## ##/##/## (6) + (8) L K N From PTP edar Fair, L.P.