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Partnership Tax Return INSTRUCTIONS: Please use...

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Partnership Tax Return INSTRUCTIONS: Please use the information below to complete the Form 1065 and the Schedule K-1 for Malcolm Fox only. Blank forms can be found on the IRS site or Doc Sharing. If you have a tax- software package, please feel free to use the package, but be aware that I your instructor will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION Malcolm Fox and Rhonda Ford are equal partners in MFRF, LLP, a small business consulting firm. The partners are not related and are all U.S. citizens. Malcolm Fox lives at 415 Knight Court in Freeport, ME 04469 with a social Social security Security number of 123-45-6789. Rhonda Ford lives at 123 Main Street in Freeport, ME 04469 with a social Social security Security number of 456-12-4561. The limited liability partnership uses the cash basis and the calendar year and began operation on January 1, 2009. The Federal ID is 11-1111111, and the current address is 2835 Harbor View Drive, Freeport, ME 04469 for MFRF, LLP. The partnership placed its $65,000 of furniture and fixtures in service on January 1, 2009. This year, it claimed $8,119 of depreciation expense on for tax (line 16a and 16c) and financial purposes. No assets were placed in service in the current year. On October. 15, the partnership sold securities, creating a $4,000 long term capital loss. Please enter this directly onto schedule K;, there is not enough information to create the detail. Net income per books is $200,900. On January 1, 2010, the partners? capital accounts equal $120,000 each. No additional capital contributions were made in 2010, and each partner made withdrawals of $120,000 during the year. MFRF, LLP Income Statement Revenues: Fees Ccollected $ 800,000 Dividend Iincome (all qualified) 3,600 Taxable business interest 1,400 Tax-exempt interest 2,600 Long-term capital loss (4,000) Total Rrevenues $ 803,600 Expenses: Accounting Ffees $ 12,000 Advertising 5,000 Contribution to United Way 2,000 Depreciation Eexpense 8,119 Employee Ssalaries 340,000 Guaranteed payments 140,000 Entertainment 2,600 Travel 12,000 Equipment Rentalrental 6,000 Office rentals paid 7,000 Interest Expenseexpense 4,000 Insurance Premiumspremiums 2,200 Office Eexpenses 20,481 Payroll Ttaxes 25,600 Utilities 15,700 Total Eexpenses $ 602,700 MFRF, LLP Balance Sheet Assets January 1, 2011 December 31, 2011 Cash $86,576 $84,595 Tax-exempt securities 52,000 52,000 Marketable securities 120,000 76,000 Furniture and equipment 65,000 65,000 Accumulated depreciation (36,576) (44,695) Total aAssets $287,000 $232,900 ====== ====== Liabilities and Equity January 1, 2011 December 31, 2011 Nonrecourse debt on Equipment $47,000 $32,000 Capital, Fox 120,000 100,450 Capital, Ford 120,000 100,450 Total lLiabilities and Eequity $287,000 $232,900 ====== =======

 

Paper#4525 | Written in 18-Jul-2015

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