Partnership Tax Problem -
Using the attach file, do the tax return of partnership.
FORM 1065 - U.S. RETURN OF PARTNERSHIP INCOME
Two individuals are engaged in business as partners under the firm name of Bilco Products. The address of the partnership is 131 Mill St., Chicago, Illinois 60600. The partners are George A. Morgan, 789 N. Code Drive, Chicago, Illinois 60600, and Malcolm Williams, 58 Forest Drive, Chicago, Illinois 60600. Williams devotes all his time to the partnership. Morgan, who is also the tax matters partner, devotes one-fourth of his time, but his capital account is larger. At the beginning of the 2016 tax year it was $63,674; Williams' was $23,674. The partners share all income and losses equally after guaranteed payments and the interest on Morgan's excess capital investment.
During 2016, Mr. Williams contributed land to the partnership worth $120,000, for which he had an adjusted basis of $70,000. The partners have agreed that Mr. Williams will be taxed on the first $50,000 of gain if the land is sold, Mr. Morgan contributed $120,000 in cash to the partnership during 2016. The partnership has no nonrecourse loan,
The partnership is on the calendar-year, accrual basis. It was formed on January 2, 1987. It is engaged in the manufacture of toys. The partnership's business code number is 339900. Mr. Morgan and Mr. Williams are both general partners and they are not related. The partnership employed Robert A. Landers, 1212 Lenix, Chicago, Illinois 60600, to prepare its return, which is filed on April 11, 2017. The preparer's tax identification number is P00330124. The partnership's employer identification number is 21-8253431. Mr. Morgan's social security number is 360-92-4501, and Mr. Williams' number is 364-02-4752. All applicable Form(s) 1099 were filed for 2016.
Attachment:- Partnership Tax Problem.rar