Form 1065 Tax Return Facts In 2017 Please Read Entire Document Carefully 2770450

form 1065 Tax Return Facts in 2017- Please read entire document carefully. Document Preview:

ACNT 1347 Form 1065 Practice Tax Return Tax Return Facts in 2017- Please read entire document carefully. ABC LLP, a limited liability partnership, 123 Oak Dr Houston TX 77002 EIN-74-11111111 Date Business Started 1/1/2000 Business Activity, retail sales Business Code 99999 The partnership is a cash basis business The partnership manufacturers clothing. Total Assets $5,000,000 Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000) ABC LLP uses the lower of cost or market method for valuing inventory and uses the FIFO method for determining the cost of goods sold Guaranteed payment paid to Bee Jones, 40% partner, SSN-222-22-2222, was $200,000 Salaries and wages paid to employees was $50,000 Office Rent paid for office was $10,000 Supplies expense totaled $40,000 Interest income on US Treasury Bond $10,000 (Hint – Separately stated item) Charitable contribution to the Salvation Army of $60,000 (Hint – Separately stated item) Partner ownership (capital, profit and loss) is as follows: Bee Jones40% John Smith40% Julie Smart20% All partners materially participate in the partnership business. General Instructions- The partnership has engaged you to prepare the 2017 Form 1065. At a minimum, you need to prepare – -Form 1065 pages 1, 2 and 4, and -Schedule K-1 for Bee Jones, 40% partner. You will not be preparing the Form 1125-A for Cost of Goods Sold. Assume the partnership has no debts. All of the partners had a beginning capital balance of $10,000. Be sure to sign the return as the preparer. Do not put your SSN # on the Form 1065. Please email me a PDF file of your return by the due date. You are not required to prepare the return using Tax Act, but you may if you prefer. If you would like an optional draft review, please email me a PDF of your completed tax return by Friday, July 7, 2018. Additional Information Since partnerships are a flow through entity,…