Assignment: Pass Through Assignment
To complete this assignment, read the information below and then complete the 2017 partnership tax return (form 1065) including the K-1's, and both individuals' 2018 1040 by hand. Yes, I know these are two different years, but the 1065 forms were not available at the start of the class. The tax forms themselves will not be turned in or graded, but you must complete them in order to answer the questions on D2L, which will be graded. Please refer to the flow through exercise we do to assist you in completing this assignment.
The questions that must be answered are shown below, but must be completed on D2L in order to receive credit. For fill in the blank questions, enter whole numbers only, with no commas, periods, or symbols.
This assignment has 35 questions and 35 points. All questions are weighted equally. This assignment may be completed individually, or with one other student. If completed in pairs, BOTH students must enter their answers in their own D2L account in order to receive credit. These questions must be answered on D2L by the deadline in order to receive credit. If you have extenuating circumstances, please let me know with ample time before the deadline so we can make alternate arrangements. Outside of extenuating circumstances, late assignments will not be accepted because solutions will be posted following the deadline.
Scenario
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Revenues
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681,000
|
|
Office Rent
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28,000
|
|
COGS
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198,000
|
|
Salaries
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238,000
|
|
ST Gain on Sale of Stock
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100,000
|
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LT Loss on Sale of Stock
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500,000
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|
Contributions to Charities
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60,000
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|
Investment Expenses
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6,000
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? Friends Dan and Lisa are each partners in the beer brewing partnership above.
o Dan owns 3%
o Lisa owns 6%
? Additional Information about Dan (not including partnership info)
o Married, 1 child
o Wages from job = $18,000
o Wages from wife's job = $31,000
? Additional Information about Lisa (not including partnership info)
o Single, no children
o Wages from job = 130,000
o Sold stock held LT at a gain of 25,000
o Paid state taxes of 8,900
o Paid qualified mortgage interest of 10,000
Questions to complete on D2L
1065, page 1
Line 1:
Line 3:
Line 8:
Line 21:
Line 22:
1065, page 4 (Schedule K)
Line 1:
Line 8:
Line 13a:
Line 13b:
Line 16b:
Line 18a:
Line 20b:
Dan's Schedule K-1, Part III
Line 1:
Line 8:
Line 18a:
Lisa's K-1
Line 1:
Line 13a:
Line 13k:
Line 20b:
Dan's 1040
Line 1:
Line 2b:
Line 6:
Line 7:
Line 8:
Line 9:
Line 10:
Schedule 1, Line 17:
Lisa's 1040
Line 6:
Line 7:
Line 8:
Line 9:
Line 10:
Schedule 1, Line 13:
Other Questions
By how much does Dan's AGI increase because of the partnership activities?
By how much does Lisa's taxable income decrease because of the partnership activities?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.