Professional Documents
Culture Documents
3
Internal
Revenue
Service Exclusion From Partnership Rules .. 3
For use in preparing
Tax Year .............................................. 3
1999 Returns Partnership Return (Form 1065) ....... 4
Penalties .............................................. 4
Index .................................................... 26
Introduction
This publication explains how the tax law ap-
plies to partnerships and to partners. A part-
nership does not pay tax on its income but
“passes through” any profits or losses to its
partners. Partners must include partnership
items on their tax returns.
For a discussion of business expenses a
partnership can deduct, see Publication 535.
Members of oil and gas partnerships should
read about the deduction for depletion in
chapter 13 of that publication.
Certain partnerships must have a tax
matters partner (TMP) who is also a general
partner. For information on the rules for des-
ignating a TMP, see the instructions for
Schedule B of Form 1065 and section
301.6231(a)(7)–1 of the regulations.
than 0.5 when compared to the aggregate A partnership is not considered to engage all of the following applied.
deferral of the current tax year, the partner- in a trade or business, and is not required to
ship's current tax year is treated as the tax file a Form 1065, for any tax year in which it • All partners were individuals (other than
year with the least aggregate deferral. neither receives income nor pays or incurs nonresident aliens) or estates.
Page 4
• The partnership did not make a special • Net income or loss from other rental ac- business. The statement must provide all the
allocation of any partnership item. tivities. following information.
• Gains and losses from sales or ex- • A description of each organization ex-
The failure to file penalty is assessed changes of capital assets.
against the partnership. However, each pense incurred (whether or not paid).
partner is individually liable for the penalty to • Gains and losses from sales or ex- • The amount of each expense.
the extent the partner is liable for partnership changes of property described in section
1231 of the Internal Revenue Code. • The date each expense was incurred.
debts in general.
If the partnership wants to contest the • Charitable contributions. • The month the partnership began its
penalty, it must pay the penalty and sue for business.
refund in a U.S. District Court or the U.S. • Dividends (passed through to corporate
partners) that qualify for the dividends-
• The number of months (not less than 60)
Court of Federal Claims. over which the expenses are to be
received deduction.
amortized.
Failure to furnish copies to the partners. • Taxes paid or accrued to foreign coun-
The partnership must furnish copies of tries and U.S. possessions. Expenses less than $10 need not be
Schedule K–1 to the partners. A penalty for separately listed, provided the total amount is
each statement not furnished will be as- • Other items of income, gain, loss, de- listed with the dates on which the first and last
sessed against the partnership unless the duction, or credit, as provided by regu- of the expenses were incurred. A cash basis
failure to do so is due to reasonable cause lations. Examples include nonbusiness partnership must also indicate the amount
and not willful neglect. expenses, intangible drilling and devel- paid before the end of the year for each ex-
opment costs, and soil and water con- pense.
servation expenses. Amortizable expenses. Amortization
Trust fund recovery penalty. A person re-
sponsible for withholding, accounting for, or applies to expenses that are:
depositing or paying withholding taxes who Elections. The partnership makes most
choices about how to figure income. These 1) Incident to the creation of the partner-
willfully fails to do so can be held liable for a
include choices for the following items. ship,
penalty equal to the tax not paid.
“Willfully” in this case means voluntarily, 2) Chargeable to a capital account, and
consciously, and intentionally. Paying other • Accounting method.
expenses of the business instead of the taxes 3) The type that would be amortized if they
• Depreciation method. were incurred in the creation of a part-
due is considered willful behavior.
A responsible person can be a partner, • Method of accounting for specific items, nership having a fixed life.
an employee of the partnership, or an ac- such as depletion or installment sales.
To satisfy (1), an expense must be in-
countant. This may also include someone • Nonrecognition of gain on involuntary curred during the period beginning at a point
who signs checks for the partnership or oth- conversions of property. that is a reasonable time before the partner-
erwise has authority to cause the spending ship begins business and ending with the
of partnership funds. • Amortization of certain organization fees
date for filing the partnership return (not in-
and business start-up costs of the part-
cluding extensions) for the tax year in which
Other penalties. Criminal penalties can be nership.
the partnership begins business. In addition,
imposed for willful failure to file, tax evasion, the expense must be for creating the part-
or making a false statement. However, each partner chooses how to
treat the partner's share of foreign and U.S. nership and not for starting or operating the
Other penalties can be imposed for the partnership trade or business.
following actions. possessions taxes, certain mining exploration
expenses, and income from cancellation of To satisfy (3), the expense must be for a
debt. type of item normally expected to benefit the
• Not supplying a taxpayer identification partnership throughout its entire life.
number. More information. For more information
on the following topics, see the listed publi- Organization expenses that can be amor-
• Not furnishing information returns. cation. tized include the following.
• Overstating tax deposit claims. • Legal fees for services incident to the
• Accounting methods: Publication 538. organization of the partnership, such as
• Underpaying tax due to a valuation mis-
statement. • Depreciation methods: Publication 946. negotiation and preparation of a partner-
ship agreement.
• Not furnishing information on tax shelters. • Installment sales: Publication 537.
• Accounting fees for services incident to
• Promoting abusive tax shelters. • Amortization and depletion: Publication the organization of the partnership.
535, chapters 12 and 13.
However, certain penalties may not be • Filing fees.
• Involuntary conversions: Publication 544
imposed if there is reasonable cause for (condemnations) and Publication 547 Expenses not amortizable. Expenses
noncompliance. (casualties and thefts). that cannot be amortized (regardless of how
the partnership characterizes them) include
Organization expenses and syndication expenses connected with the following
fees. Neither the partnership nor any partner actions.
Partnership Income can deduct, as a current expense, amounts
• Acquiring assets for the partnership or
paid or incurred to organize a partnership or
or Loss to promote the sale of, or to sell, an interest transferring assets to the partnership.
A partnership computes its income and files in the partnership. • Admitting or removing partners other than
its return in the same manner as an individual. The partnership can choose to amortize at the time the partnership is first organ-
However, certain deductions are not allowed certain organization expenses over a period ized.
to the partnership. of not less than 60 months. The period must
start with the month the partnership begins • Making a contract relating to the opera-
business. This election is irrevocable and the tion of the partnership trade or business
Separately stated items. Certain items must (even if the contract is between the part-
be separately stated on the partnership return period the partnership chooses in this election
cannot be changed. If the partnership elects nership and one of its members).
and included as separate items on the part-
ners' returns. These items, listed on Sched- to amortize these expenses and is liquidated • Syndicating the partnership. Syndication
ule K (Form 1065), are the following. before the end of the amortization period, the expenses, such as commissions, profes-
remaining balance in this account is deduct- sional fees, and printing costs connected
ible as a loss. with the issuing and marketing of inter-
• Ordinary income or loss from trade or Making the election. The election to ests in the partnership are capitalized.
business activities.
amortize organization expenses is made by They can never be deducted by the
• Net income or loss from rental real estate attaching a statement to the partnership's re- partnership, even if the syndication is
activities. turn for the tax year the partnership begins its unsuccessful.
Page 5
share of the partnership items is determined Inconsistent treatment of items. Partners
by the partner's interest in the partnership. must generally treat partnership items the
Partner's Distributive Substantial economic effect. An allo- same way on their individual tax returns as
cation has substantial economic effect if both they are treated on the partnership return. If
Share of the following tests are met. a partner treats an item differently on his or
A partner's taxable income for a tax year in- her individual return, the IRS can immediately
cludes his or her distributive share of certain • There is a reasonable possibility that the assess and collect any tax and penalties that
partnership items for the partnership's tax allocation will substantially affect the dol- result from adjusting the item to make it con-
year ending with or within the partner's tax lar amount of the partners' shares of sistent with the partnership return. However,
year. partnership income or loss independently this rule will not apply if a partner identifies the
of tax consequences. different treatment by filing Form 8082, No-
tice of Inconsistent Treatment or Administra-
Gross income. When it is necessary to de- • The partner to whom the allocation is tive Adjustment Request (AAR), with his or
termine the gross income of a partner, the made actually receives the economic her return.
partner's gross income includes his or her benefit or bears the economic burden
distributive share of the partnership's gross corresponding to that allocation. Consolidated audit procedures. Under
income. For example, the partner's share of
current examination procedures, the tax
the partnership gross income is used in de-
Partner's interest in partnership. If a part- treatment of any partnership item is generally
termining whether an income tax return must
ner's distributive share of a partnership item determined at the partnership level in a con-
be filed by that partner.
cannot be determined under the partnership solidated audit proceeding, rather than at the
agreement, it is determined by his or her in- individual partner's level. After the proper
Estimated tax. Partners may have to make terest in the partnership. The partner's inter- treatment is determined at the partnership
payments of estimated tax as a result of est is determined by taking into account all level, the IRS can automatically make related
partnership income. of the following items. adjustments to the tax returns of the partners,
Generally, the required estimated tax based on their share of the adjusted items.
payment for individuals is the smaller of the • The partners' relative contributions to the The consolidated audit procedures do not
following amounts. partnership. apply to certain small partnerships (with 10
or fewer partners) if all partners are one of the
1) 90% of the tax to be shown on the cur- • The interests of all partners in economic following.
rent year's tax return. profits and losses (if different from inter-
ests in taxable income or loss) and in • An individual (other than a nonresident
2) 100% of the total tax shown on the prior cash flow and other nonliquidating distri- alien).
year's tax return. butions.
• A C corporation.
A different rule applies to individuals who • The rights of the partners to distributions
of capital upon liquidation. • An estate of a deceased partner.
receive at least two-thirds of their gross in-
come from farming or fishing. However, small partnerships can make an
See Publication 505 for more information. Nonrecourse liability. A nonrecourse li- election to have these procedures apply.
ability is one for which no partner or related
person has an economic risk of loss. An al- For partnership tax years ending be-
Self-employment income. A partner is not
an employee of the partnership. The partner's
location of a loss, deduction, or partnership
expense attributable to nonrecourse liabilities
! fore August 6, 1997, these proce-
CAUTION dures do not apply to small partner-
distributive share of ordinary income from a not deductible or chargeable to capital cannot ships if both of the following applied.
partnership is generally included in figuring have economic effect. Therefore, a partner's
net earnings from self-employment. How- share of nonrecourse deductions is deter- • All partners were individuals (other than
ever, a limited partner generally does not in- mined by his or her interest in the partnership. nonresident aliens) or estates.
clude his or her distributive share of income For the rules on allocating nonrecourse de-
or loss in computing net earnings from self- ductions, see section 1.704–2 of the regu- • The partnership did not make a special
employment. This exclusion does not apply lations. allocation of any partnership item.
to guaranteed payments made to a limited
partner for services actually rendered to or
on behalf of a partnership engaged in a trade Limits on Losses
or business. Reporting Distributive
Self-employment tax. If an individual Share Partner's adjusted basis. A partner's dis-
partner has net earnings from self-employ- tributive share of partnership loss is allowed
A partner must report his or her distributive
ment of $400 or more for the year, the partner only to the extent of the adjusted basis of the
share of partnership items on his or her tax
must figure self-employment tax on Schedule partner's partnership interest. The adjusted
return, whether or not it is actually distributed.
SE (Form 1040). For more information on basis is figured at the end of the partnership's
(However, a partner's deduction for his or her
self-employment tax, see Publication 533. tax year in which the loss occurred, before
distributive share of a loss may be limited.
See Limits on Losses, later.) These items are taking the loss into account. Any loss more
Alternative minimum tax. To figure alter- reported to the partner on Schedule K–1 than the partner's adjusted basis is not
native minimum tax, a partner must sepa- (Form 1065). deductible for that year. However, any loss
rately take into account any distributive share See the Partner's Instructions for Sched- not allowed for this reason will be allowed as
of items of income and deductions that enter ule K–1 (Form 1065) for more information. a deduction (up to the partner's basis) at the
into the computation of alternative minimum The following discussions explain how end of any succeeding year in which the
taxable income. For information on which partnership items are treated on a partner's partner increases his or her basis to more
items of income and deductions are affected, return. than zero. See Basis of Partner's Interest,
see the Form 6251 instructions. later.
Character of items. The character of each Example. Mike and Joe are equal part-
item of income, gain, loss, deduction, or credit ners in a partnership. Mike files his individual
Figuring Distributive Share included in a partner's distributive share is return on a calendar year basis. The partner-
Generally, the partnership agreement deter- determined as if the partner realized the item ship return is also filed on a calendar year
mines a partner's distributive share of any directly from the same source as the part- basis. The partnership incurred a $10,000
item or class of items of income, gain, loss, nership or incurred the item in the same loss last year and Mike's distributive share of
deduction, or credit. The allocations provided manner as the partnership. the loss is $5,000. The adjusted basis of his
for in the partnership agreement or any mod- For example, a partner's distributive share partnership interest before considering his
ification will be disregarded if they do not have of gain from the sale of partnership depre- share of last year's loss was $2,000. He could
substantial economic effect. If an allocation ciable property used in the trade or business claim only $2,000 of the loss on last year's
does not have substantial economic effect or of the partnership is treated as gain from the individual return. The adjusted basis of his
the partnership agreement does not provide sale of depreciable property the partner used interest at the end of last year was then re-
for the allocation, the partner's distributive in a trade or business. duced to zero.
Page 6
The partnership showed an $8,000 profit or businesses in which the partner mate- 2) The total adjusted bases of depreciable
for this year. Mike's $4,000 share of the profit rially participates. real property held by the partner imme-
increased the adjusted basis of his interest diately before the cancellation (other
by $4,000 (not taking into account the $3,000 Limited partners. Limited partners are than property acquired in contemplation
excess loss he could not deduct last year). generally not considered to materially partic- of the cancellation).
His return for this year will show his $4,000 ipate in trade or business activities conducted
distributive share of this year's profits and the through partnerships. Effect on partner's basis. Because of
$3,000 loss not allowable last year. The ad- More information. For more information offsetting adjustments, the cancellation of a
justed basis of his partnership interest at the on passive activities, see Publication 925 and partnership debt does not usually cause a net
end of this year is $1,000. the instructions for Forms 1065 and 8582. change in the basis of a partnership interest.
Each partner's basis is:
Not-for-profit activity. Deductions relating
Partner's Exclusions and 1) Increased by his or her share of the
to an activity not engaged in for profit are
partnership income from the cancellation
limited. For a discussion of the limits, see Deductions of debt (whether or not the partner ex-
chapter 1 in Publication 535.
To determine the allowable amount of any cludes the income), and
At-risk limits. At-risk rules apply to most exclusion or deduction subject to a limit, a 2) Reduced by the deemed distribution re-
trade or business activities, including activ- partner must combine any separate exclu- sulting from the reduction in his or her
ities conducted through a partnership. The sions or deductions on his or her income tax share of partnership liabilities.
at-risk rules limit a partner's deductible loss return with the distributive share of partner-
to the amounts for which that partner is con- ship exclusions or deductions before applying (See Adjusted Basis under Basis of Partner's
sidered at risk in the activity. the limit. Interest, later.) The basis of a partner's inter-
A partner is considered at risk for all of the est will change only if the partner's share of
following amounts. Cancellation of qualified real property income is different from the partner's share
business debt. A partner other than a C of debt.
• The money and adjusted basis of any corporation can elect to exclude from gross As explained earlier, however, a partner's
property he or she contributed to the ac- income the partner's distributive share of in- election to exclude income from the cancel-
tivity. come from cancellation of the partnership's lation of qualified real property business debt
qualified real property business debt. This is may reduce the basis of the partner's interest
• The partner's share of net income re- a debt (other than a qualified farm debt) in- to the extent the interest is treated as depre-
tained by the partnership. ciable real property.
curred or assumed by the partnership in
• Certain amounts borrowed by the part- connection with real property used in its trade Basis of depreciable real property re-
nership for use in the activity if the partner or business and secured by that property. A duced. If the basis of depreciable real prop-
is personally liable for repayment or the debt incurred or assumed after 1992 qualifies erty is reduced and the property is disposed
amounts borrowed are secured by the only if it was incurred or assumed to acquire, of, then the following rules apply for purposes
partner's property (other than property construct, reconstruct, or substantially im- of determining the ordinary income from re-
used in the activity). prove such property. A debt incurred to refi- capture of depreciation under section 1250
nance a qualified real property business debt of the Internal Revenue Code.
A partner is not considered at risk for qualifies, but only up to the refinanced debt.
amounts protected against loss through A partner who elects the exclusion must • Any such basis reduction is treated as a
guarantees, stop-loss agreements, or similar reduce the basis of his or her depreciable real deduction allowed for depreciation.
arrangements. Nor is the partner at risk for property by the amount excluded. For this
amounts borrowed if the lender has an inter- • The determination of what would have
purpose, a partnership interest is treated as been the depreciation adjustment under
est in the activity (other than as a creditor) depreciable real property to the extent of the
or is related to a person (other than the part- the straight line method is made as if
partner's share of the partnership's deprecia- there had been no such reduction.
ner) having such an interest. ble real property. However, a partnership in-
For more information on determining the terest cannot be treated as depreciable real Therefore, the basis reduction recaptured
amount at risk, see Publication 925. property unless the partnership makes a cor- as ordinary income is reduced over the time
responding reduction in the basis of its the partnership continues to hold the property,
Passive activities. Generally, section 469 depreciable real property with respect to that as the partnership forgoes depreciation de-
of the Internal Revenue Code limits the partner. ductions due to the basis reduction.
amount a partner can deduct for passive ac- To elect the exclusion, the partner must
tivity losses and credits. The passive activity file Form 982, Reduction of Tax Attributes Section 179 deduction. A partner can elect
limits do not apply to the partnership. Instead, Due To Discharge of Indebtedness, with his to deduct all or part of the cost of certain as-
they apply to each partner's share of income, or her original income tax return. However, if sets under section 179 of the Internal Reve-
loss, or credit from passive activities. Be- the partner timely filed the return without nue Code.
cause the treatment of each partner's share making the election, he or she can still make Limits. The section 179 deduction is
of partnership income, loss, or credit depends the election by filing an amended return within subject to certain limits that apply to the
on the nature of the activity that generated it, six months of the due date of the original re- partnership and to each partner. The part-
the partnership must report income, loss, and turn (excluding extensions). The election nership determines its section 179 deduction
credits separately for each activity. must be attached to the amended return with subject to the limits. It then allocates the de-
Generally, passive activities include a “Filed pursuant to section 301.9100–2” written duction among its partners.
trade or business activity in which the partner on the election statement. The amended re- Each partner adds the amount allocated
does not materially participate. The level of turn should be filed at the same address as from the partnership (shown on Schedule
each partner's participation must be deter- the original return. K–1) to his or her other nonpartnership sec-
mined by the partner. Exclusion limit. The partner's exclusion tion 179 costs and then applies the maximum
Rental activities. Passive activities also cannot be more than the smaller of the fol- dollar limit to this total. To determine if a
include rental activities, regardless of the lowing two amounts. partner has exceeded the $200,000 invest-
partner's participation. However, a rental real ment limit, the partner does not include any
estate activity in which the partner materially 1) The partner's share of the excess (if any) of the cost of section 179 property placed in
participates is not considered a passive ac- of: service by the partnership. After the maximum
tivity. The partner must also meet both of the dollar limit and investment limit are applied,
following conditions for the tax year. a) The outstanding principal of the
debt immediately before the can- the remaining cost of the partnership and
cellation, over nonpartnership section 179 property is sub-
• More than half of the personal services ject to the taxable income limit.
the partner performs in any trade or b) The fair market value (as of that Figuring partnership's taxable income.
business are in a real property trade or time) of the property securing the For purposes of the taxable income limit,
business in which the partner materially debt, reduced by the outstanding taxable income of a partnership is figured by
participates. principal of other qualified real adding together the net income (or loss) from
• The partner performs more than 750 property business debt secured by all trades or businesses actively conducted
hours of services in real property trades that property (as of that time). by the partnership during the tax year.
Page 7
Figuring partner's taxable income. For books, the partners can agree to estimate the partnership year ending June 30, 2000, Larry
purposes of the taxable income limit, the tax- distributive share by taking the prorated and his estate's distributive share is $3,000.
able income of a partner who is engaged in amount the partner would have included in Larry's self-employment income to be re-
the active conduct of one or more of a part- income if he or she had remained a partner ported on Schedule SE (Form 1040) for 1999
nership's trades or businesses includes his for the entire partnership tax year. is $2,500. This consists of his $2,000 distrib-
or her allocable share of taxable income de- A partner who sells or exchanges only part utive share for the partnership tax year ending
rived from the partnership's active conduct of of an interest in a partnership, or whose in- June 30, 1999, plus $500 (2/12 × $3,000) of the
any trade or business. terest is reduced (whether by entry of a new distributive share for the tax year ending June
Basis adjustment. A partner who is al- partner, partial liquidation of a partner's inter- 30, 2000.
located section 179 expenses from the part- est, gift, or otherwise), reports his or her dis-
nership must reduce the basis of his or her tributive share of partnership items by taking
partnership interest by the total section 179 into account his or her varying interests dur-
expenses allocated, regardless of whether ing the partnership year.
the full amount allocated can be currently
Example. ABC is a calendar year part-
Partnership
deducted. See Adjusted Basis under Basis
of Partner's Interest, later. If a partner dis- nership with three partners, Alan, Bob, and Distributions
poses of his or her interest in a partnership, Cathy. Under the partnership agreement, Partnership distributions include the following.
the partner's basis for determining gain or profits and losses are shared in proportion to
loss is increased by any outstanding carry- each partner's contributions. On January 1 • A withdrawal by a partner in anticipation
over of disallowed deductions of section 179 the ratio was 90% for Alan, 5% for Bob, and of the current year's earnings.
expenses allocated from the partnership. 5% for Cathy. On December 1 Bob and Cathy
The basis of a partnership's section 179 each contributed additional amounts. The • A distribution of the current year's or prior
property must be reduced by the section 179 new profit and loss sharing ratios were 30% years' earnings not needed for working
deduction elected by the partnership. This for Alan, 35% for Bob, and 35% for Cathy. capital.
reduction of basis must be made even if any For its tax year ended December 31, the • A complete or partial liquidation of a
partner cannot deduct his or her entire partnership had a loss of $1,200. This loss partner's interest.
allocable share of the section 179 deduction occurred equally over the partnership's tax
year. The loss is divided among the partners • A distribution to all partners in a complete
because of the limits. liquidation of the partnership.
More information. See Publication 946 as follows:
for more information on the section 179 de- A partnership distribution is not taken into
Profit Part
duction. or Loss of Year Total Share account in determining the partner's distribu-
Partner % × Held × Loss = of Loss tive share of partnership income or loss. If any
Partnership expenses paid by partner. In Alan ............ 90 × 11/12 × $1,200 = $990 gain or loss from the distribution is recognized
general, a partner cannot deduct partnership 30 × 1/12 × 1,200 = 30 by the partner, it must be reported on his or
expenses paid out of personal funds unless her return for the tax year in which the distri-
the partnership agreement requires the part- Bob ............. 5 × 11/12 × 1,200 = 55 bution is received. Money or property with-
ner to pay the expenses. These expenses are 35 × 1/12 × 1,200 = 35 drawn by a partner in anticipation of the cur-
usually considered incurred and deductible rent year's earnings is treated as a distribution
Cathy .......... 5 × 11/12 × 1,200 = 55
by the partnership. 35 × 1/12 × 1,200 = 35 received on the last day of the partnership's
If an employee of the partnership performs tax year.
part of a partner's duties and the partnership
agreement requires the partner to pay the Certain cash basis items prorated daily. Effect on partner's basis. A partner's ad-
employee out of personal funds, the partner If any partner's interest in a partnership justed basis in his or her partnership interest
can deduct the payment as a business ex- changes during the tax year, each partner's is decreased (but not below zero) by the
pense. share of certain cash basis items of the part- money and adjusted basis of property dis-
nership must be determined by prorating the tributed to the partner. See Adjusted Basis
Interest expense for distributed loan. If the items on a daily basis. That daily portion is under Basis of Partner's Interest, later.
partnership distributes borrowed funds to a then allocated to the partners in proportion to
partner, the partnership should list the part- their interests in the partnership at the close Effect on partnership. A partnership gen-
ner's share of interest expense for these of each day. This rule applies to the following erally does not recognize any gain or loss
funds as “Interest expense allocated to debt- items for which the partnership uses the cash because of distributions it makes to partners.
financed distributions” under “Other de- method of accounting. The partnership may be able to elect to adjust
ductions” on the partner's Schedule K–1. The the basis of its undistributed property, as ex-
partner deducts this interest on his or her tax • Interest. plained later under Adjusting the Basis of
return depending on how the partner uses the Partnership Property.
• Taxes.
funds. See chapter 8 in Publication 535 for
more information on the allocation of interest • Payments for services or for the use of Certain distributions treated as a sale or
expense related to debt-financed distribu- property. exchange. When a partnership distributes
tions. the following items, the distribution may be
Self-employment income of deceased treated as a sale or exchange of property
Debt-financed acquisitions. The interest partner. A different rule applies in computing rather than a distribution.
expense on loan proceeds used to purchase a deceased partner's self-employment in-
an interest in, or make a contribution to, a come for the year of death. The partner's • Unrealized receivables or substantially
partnership must be allocated as explained in self-employment income includes the part- appreciated inventory items to a partner
chapter 8 of Publication 535. ner's distributive share of income earned by in exchange for any part of the partner's
the partnership through the end of the month interest in other partnership property, in-
in which the partner's death occurs. This is cluding money.
Distributive Share in Year true even though the deceased partner's es- • Other property (including money) in ex-
tate or heirs may succeed to the decedent's change for any part of a partner's interest
of Disposition rights in the partnership. For this purpose, in unrealized receivables or substantially
If a partner's entire interest in a partnership partnership income for the year in which a appreciated inventory items.
is disposed of, whether by sale, exchange, partner dies is considered to be earned
liquidation, the partner's death, or otherwise, equally in each month. See Payments for Unrealized Receivables
his or her distributive share of partnership and Inventory Items under Disposition of
items must be included in the partner's in- Example. Larry, a partner in WoodsPar, Partner's Interest, later.
come for the tax year in which membership is a calendar year taxpayer. WoodsPar's fis- This treatment does not apply to the fol-
in the partnership ends. To compute the dis- cal year ends June 30. For the partnership lowing distributions.
tributive share of these items, the partner- year ending June 30, 1999, Larry's distribu-
ship's tax year is considered ended on the tive share of partnership profits is $2,000. On • A distribution of property to the partner
date the partner disposed of the interest. To August 18, 1999, Larry dies and his estate who contributed the property to the part-
avoid an interim closing of the partnership succeeds to his partnership interest. For the nership.
Page 8
• Certain payments made to a retiring Loss on distribution. A partner does not property to another partner under Con-
partner or successor in interest of a de- recognize loss on a partnership distribution tribution of Property, later.
ceased partner. unless all of the following requirements are
met. The character of the gain is determined
Inventory items that have appreciated by reference to the character of the net pre-
substantially in value. Inventory items of • The adjusted basis of the partner's inter- contribution gain. This gain is in addition to
the partnership are considered to have ap- est in the partnership exceeds the distri- any gain the partner must recognize if the
preciated substantially in value if, at the time bution. money distributed is more than his or her
of the sale or distribution, their total fair mar- basis in the partnership.
• The partner's entire interest in the part- For these rules, the term “money” includes
ket value is more than 120% of the partner- nership is liquidated.
ship's adjusted basis for the property. How- marketable securities treated as money, as
ever, if a principal purpose for acquiring • The distribution is in money, unrealized discussed earlier.
inventory property is to avoid ordinary income receivables, or inventory items. Effect on basis. The adjusted basis of
treatment by reducing the appreciation to less the partner's interest in the partnership is in-
There are exceptions to these general creased by any net precontribution gain rec-
than 120%, that property is excluded. rules. See the following discussions. Also, ognized by the partner. Other than for pur-
see Liquidation at Partner's Retirement or poses of determining the gain, the increase
Death under Disposition of Partner's Interest, is treated as occurring immediately before the
Partner's Gain or Loss later. distribution. See Basis of Partner's Interest,
A partner generally recognizes gain on a later.
partnership distribution only to the extent any Distribution of partner's debt. If a partner- The partnership must adjust its basis in
money (and marketable securities treated as ship acquires a partner's debt and extin- any property the partner contributed within 7
money) included in the distribution exceeds guishes the debt by distributing it to the part- years (5 years for property contributed before
the adjusted basis of the partner's interest in ner, the partner will recognize capital gain or June 9, 1997) of the distribution to reflect any
the partnership. Any gain recognized is gen- loss to the extent the fair market value of the gain that partner recognizes under this rule.
erally treated as capital gain from the sale of debt differs from the basis of the debt (deter- Exceptions. Any part of a distribution that
the partnership interest on the date of the mined under the rules discussed in Partner's is property the partner previously contributed
distribution. If partnership property (other than Basis for Distributed Property, later). to the partnership is not taken into account in
marketable securities treated as money) is The partner is treated as having satisfied determining the amount of the excess distri-
distributed to a partner, he or she generally the debt for its fair market value. If the issue bution or the partner's net precontribution
does not recognize any gain until the sale or price (adjusted for any premium or discount) gain. For this purpose, the partner's previ-
other disposition of the property. of the debt exceeds its fair market value when ously contributed property does not include a
For exceptions to these rules, see Distri- distributed, the partner may have to include contributed interest in an entity to the extent
bution of partner's debt and following dis- the excess amount in income as canceled its value is due to property contributed to the
cussions, later. Also, see Payments for Un- debt. entity after the interest was contributed to the
realized Receivables and Inventory Items Similarly, a deduction may be available to partnership.
under Disposition of Partner's Interest, later. a corporate partner if the fair market value of Recognition of gain under this rule also
the debt at the time of distribution exceeds its does not apply to a distribution of unrealized
Example. The adjusted basis of Jo's adjusted issue price. receivables or substantially appreciated in-
partnership interest is $14,000. She receives ventory items if the distribution is treated as
a distribution of $8,000 cash and land that has Net precontribution gain. A partner gener- a sale or exchange, as discussed earlier.
an adjusted basis of $2,000 and a fair market ally must recognize gain on the distribution
value of $3,000. Because the cash received of property (other than money) if the partner
does not exceed the basis of her partnership contributed appreciated property to the part- Partner's Basis for
interest, Jo does not recognize any income nership during the 7-year period before the Distributed Property
on the distribution. Any gain on the land will distribution.
be recognized when she sells or otherwise Unless there is a complete liquidation of a
disposes of it. The distribution decreases the A 5-year period applies to property partner's interest, the basis of property (other
adjusted basis of Jo's partnership interest to ! contributed before June 9, 1997, or
under a written binding contract:
than money) distributed to the partner by a
partnership is its adjusted basis to the part-
$4,000 [$14,000 − ($8,000 + $2,000)].
CAUTION
Page 19
Form 1065 U.S. Partnership Return of Income OMB No. 1545-0099
G Check applicable boxes: (1) Initial return (2) Final return (3) Change in address (4) Amended return
H Check accounting method: (1) Cash (2) ⻫ Accrual (3) Other (specify) 䊳
I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year 䊳 2
Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.
2 267,641
2 Cost of goods sold (Schedule A, line 8)
f 99
Income
138,459
o
3 Gross profit. Subtract line 2 from line 1c 3
4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) 4
5
6
a s 19
Net farm profit (loss) (attach Schedule F (Form 1040))
Net gain (loss) from Form 4797, Part II, line 18
5
6
o
7 Other income (loss) (attach schedule) f 1, e) 7 559
r o r
8 Total income (loss). Combine lines 3 through 7
P be cha n g 8 139,018
Deductions (see page 11 of the instructions for limitations)
9 Salaries and wages (other than to partners) (less employment credits) 9 29,350
10 Guaranteed payments to partners
m
e ect t o 10
11
25,000
1,125
v
11 Repairs and maintenance
12 250
No ubj
12 Bad debts
13 Rent 13 20,000
14 Taxes and licenses 14 3,295
(s
15 Interest 15 1,451
16a Depreciation (if required, attach Form 4562) 16a 1,174
b Less depreciation reported on Schedule A and elsewhere on return 16b –0– 16c 1,174
17 Depletion (Do not deduct oil and gas depletion.) 17
18 Retirement plans, etc. 18
19 Employee benefit programs 19
21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 21 89,648
22 Ordinary income (loss) from trade or business activities. Subtract line 21 from line 8 22 49,370
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member) is based on all
information of which preparer has any knowledge.
Please
Sign Frank W. Able
Here 䊳 Signature of general partner or limited liability company member 䊳 Date
3-12-00
䊳
Preparer’s Date Preparer’s SSN or PTIN
Check if
Paid signature
self-employed 䊳
Preparer’s
Use Only
Firm’s name (or
yours if self-employed)
and address
䊳 EIN
ZIP code
䊳
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (1999)
Page 20
Form 1065 (1999) Page 2
Schedule A Cost of Goods Sold (see page 14 of the instructions)
c
d f 99
Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)
o
Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? Yes
䊳
⻫ No
⻫ No
e
If “Yes,” attach explanation.
a s 19
Was there any change in determining quantities, cost, or valuations between opening and closing inventory? Yes
⻫
2
3
e m ct to
Are any partners in this partnership also partnerships?
Is this partnership a partner in another partnership?
⻫
4
o v bje
Is this partnership subject to the consolidated audit procedures of sections 6221 through 6233? If “Yes,” see
Designation of Tax Matters Partner below
⻫
5
a
b
N u
Does this partnership meet ALL THREE of the following requirements?
(s
The partnership’s total receipts for the tax year were less than $250,000;
The partnership’s total assets at the end of the tax year were less than $600,000; AND
c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including
extensions) for the partnership return.
If “Yes,” the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065;
or Item J on Schedule K-1 ⻫
6 Does this partnership have any foreign partners? ⻫
7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? ⻫
8 Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? ⻫
9 At any time during calendar year 1999, did the partnership have an interest in or a signature or other authority
over a financial account in a foreign country (such as a bank account, securities account, or other financial
account)? See page 14 of the instructions for exceptions and filing requirements for Form TD F 90-22.1. If “Yes,”
enter the name of the foreign country. 䊳 ⻫
10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a
foreign trust? If “Yes,” the partnership may have to file Form 3520. See page 15 of the instructions ⻫
11 Was there a distribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax
year? If “Yes,” you may elect to adjust the basis of the partnership’s assets under section 754 by attaching the
statement described under Elections Made By the Partnership on page 6 of the instructions ⻫
Designation of Tax Matters Partner (see page 15 of the instructions)
Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return:
Name of
designated TMP 䊳 Identifying
number of TMP 䊳
Address of
designated TMP 䊳
Form 1065 (1999)
Page 21
Form 1065 (1999) Page 3
Schedule K Partners’ Shares of Income, Credits, Deductions, etc.
(a) Distributive share items (b) Total amount
1 Ordinary income (loss) from trade or business activities (page 1, line 22) 1 49,370
2 Net income (loss) from rental real estate activities (attach Form 8825) 2
3a Gross income from other rental activities 3a
b Expenses from other rental activities (attach schedule) 3b
cNet income (loss) from other rental activities. Subtract line 3b from line 3a 3c
4 Portfolio income (loss):
Income (Loss)
a Interest income 4a
b Ordinary dividends 4b 150
cRoyalty income 4c
d Net short-term capital gain (loss) (attach Schedule D (Form 1065)) 4d
eNet long-term capital gain (loss) (attach Schedule D (Form 1065)):
(1) 28% rate gain (loss) 䊳 (2) Total for year 䊳 4e(2)
f Other portfolio income (loss) (attach schedule) 4f
5 Guaranteed payments to partners 5 25,000
o
7 Other income (loss) (attach schedule) f 99
6 Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) 6
7
8
s 19
Charitable contributions (attach schedule) 8 650
Deduc-
9
a
Section 179 expense deduction (attach Form 4562) 9
tions
10
11
o f 1, e)
Deductions related to portfolio income (itemize)
Other deductions (attach schedule)
10
11
12a Low-income housing credit:
r o
P be cha r n g
(1) From partnerships to which section 42(j)(5) applies for property placed in service before 1990
(2) Other than on line 12a(1) for property placed in service before 1990
12a(1)
12a(2)
Credits
(3) From partnerships to which section 42(j)(5) applies for property placed in service after 1989 12a(3)
e m ct to
(4) Other than on line 12a(3) for property placed in service after 1989
b Qualified rehabilitation expenditures related to rental real estate activities (attach Form 3468)
12a(4)
12b
o v bje
c Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities
d Credits related to other rental activities
12c
12d
13 Other credits
N u 13
Interest
(s
14a Interest expense on investment debts 14a
Invest-
Tax Preference Employ- ment
b (1) Investment income included on lines 4a, 4b, 4c, and 4f above 14b(1) 150
(2) Investment expenses included on line 10 above 14b(2)
15a Net earnings (loss) from self-employment 15a 74,370
ment
Adjustments and Self-
Page 22
Form 1065 (1999) Page 4
Analysis of Net Income (Loss)
1 Net income (loss). Combine Schedule K, lines 1 through 7 in column (b). From the result, subtract the
sum of Schedule K, lines 8 through 11, 14a, 17e, and 18b 1 73,870
2 Analysis by (i) Corporate (ii) Individual (iii) Individual (iv) Partnership (v) Exempt (vi) Nominee/Other
partner type: (active) (passive) organization
a General partners 73,870
b Limited partners
Schedule L Balance Sheets per Books (Not required if Question 5 on Schedule B is answered “Yes.”)
Beginning of tax year End of tax year
Assets (a) (b) (c) (d)
1 Cash 3,455 3,350
2a Trade notes and accounts receivable 7,150 10,990
b Less allowance for bad debts 7,150 10,990
3 Inventories 18,125 19,225
4 U.S. government obligations
5 Tax-exempt securities 1,000 1,000
6 Other current assets (attach schedule)
7 Mortgage and real estate loans
8
9a
o f 99
Other investments (attach schedule)
Buildings and other depreciable assets 15,000
1,000
15,000
1,000
10a
b
s 19
Less accumulated depreciation
a
Depletable assets
4,000 11,000 5,174 9,826
11
b
o f 1, e)
Less accumulated depletion
Land (net of any amortization)
12a
13
14
b
r o
Intangible assets (amortizable only)
r n g
Less accumulated amortization
P be cha
Other assets (attach schedule)
Total assets 41,730 45,391
15 m
e ect t o Liabilities and Capital
Accounts payable 10,180 10,462
16
v
Mortgages, notes, bonds payable in less than 1 year 4,000 3,600
No ubj
17 Other current liabilities (attach schedule)
18 All nonrecourse loans
7,739
(s
19 Mortgages, notes, bonds payable in 1 year or more
20 Other liabilities (attach schedule)
21 Partners’ capital accounts 27,550 23,590
22 Total liabilities and capital 41,730 45,391
Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Schedule M-1
(Not required if Question 5 on Schedule B is answered “Yes.” See page 23 of the instructions.)
1 Net income (loss) per books 48,920 6 Income recorded on books this year not included
2 Income included on Schedule K, lines 1 on Schedule K, lines 1 through 7 (itemize):
through 4, 6, and 7, not recorded on books a Tax-exempt interest $ 50
this year (itemize): 50
3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1
insurance) 25,000 through 11, 14a, 17e, and 18b, not charged
4 Expenses recorded on books this year not against book income this year (itemize):
included on Schedule K, lines 1 through a Depreciation $
11, 14a, 17e, and 18b (itemize):
a Depreciation $
b Travel and entertainment $ Add lines 6 and 7 8 50
9
Income (loss) (Analysis of Net Income (Loss),
5 Add lines 1 through 4 73,920 line 1). Subtract line 8 from line 5 73,870
Schedule M-2 Analysis of Partners’ Capital Accounts (Not required if Question 5 on Schedule B is answered “Yes.”)
1 Balance at beginning of year 27,550 6 Distributions: a Cash 52,880
2 Capital contributed during year b Property
3 Net income (loss) per books 48,920 7 Other decreases (itemize):
4 Other increases (itemize):
8 Add lines 6 and 7 52,880
5 Add lines 1 through 4 76,470 9 Balance at end of year. Subtract line 8 from line 5 23,590
Form 1065 (1999)
Page 23
SCHEDULE K-1 OMB No. 1545-0099
Partner’s Share of Income, Credits, Deductions, etc.
(Form 1065)
Department of the Treasury
Internal Revenue Service
䊳
A This partner is a ⻫ general partner limited partner F Partner’s share of liabilities (see instructions):
limited liability company member Nonrecourse $
B What type of entity is this partner? 䊳 Individual Qualified nonrecourse financing $
C Is this partner a ⻫ domestic or a foreign partner? Other $ 10,900
(i) Before change (ii) End of
D Enter partner’s percentage of: G Tax shelter registration number 䊳 N/A
or termination year
Profit sharing % 50 % H Check here if this partnership is a publicly traded
Loss sharing % 50 % partnership as defined in section 469(k)(2)
Ownership of capital % 50 %
E IRS Center where partnership filed return: Philadelphia I Check applicable boxes: (1) Final K-1 (2) Amended K-1
J Analysis of partner’s capital account:
(a) Capital account at
o f 99
(b) Capital contributed
(c) Partner’s share of lines
3, 4, and 7, Form 1065,
(d) Withdrawals and
(e) Capital account at end of
year (combine columns (a)
s 19
beginning of year during year distributions through (d))
Schedule M-2
14,050
a
f 1, e)
(a) Distributive share item
24,460 ( 26,440
(b) Amount
) 12,070
(c) 1040 filers enter the
o
amount in column (b) on:
o g 其
1 Ordinary income (loss) from trade or business activities 1 24,685 See page 6 of Partner’s
2
3
4
r
P be cha r n
Net income (loss) from rental real estate activities
Net income (loss) from other rental activities
Portfolio income (loss):
2
3
Instructions for Schedule K-1
(Form 1065).
a
b
Interest
Ordinary dividends
e m ct to 4a
4b 75
Sch. B, Part I, line 1
Sch. B, Part II, line 5
Income (Loss)
c
d
Royalties
o v bje
Net short-term capital gain (loss)
4c
4d
Sch. E, Part I, line 4
Sch. D, line 5, col. (f)
e
f
(2) Total for year
N u
Net long-term capital gain (loss):
(1) 28% rate gain (loss)
(s
Other portfolio income (loss) (attach schedule)
e(1)
e(2)
4f
Sch. D, line 12, col. (g)
Sch. D, line 12, col. (f)
Enter on applicable line of your return.
5
6
Guaranteed payments to partner
Net section 1231 gain (loss) (other than due to casualty or theft)
5
6
20,000
其 See page 6 of Partner’s
Instructions for Schedule K-1
(Form 1065).
7 Other income (loss) (attach schedule) 7 Enter on applicable line of your return.
其
8 Charitable contributions (see instructions) (attach schedule)
Deduc-
tions
其
12a Low-income housing credit:
(1) From section 42(j)(5) partnerships for property placed in
service before 1990 a(1)
(2) Other than on line 12a(1) for property placed in service before 1990 a(2)
Form 8586, line 5
(3) From section 42(j)(5) partnerships for property placed in
service after 1989 a(3)
Credits
(4) Other than on line 12a(3) for property placed in service after 1989 a(4)
其
b Qualified rehabilitation expenditures related to rental real estate
activities 12b
c Credits (other than credits shown on lines 12a and 12b) related See page 8 of Partner’s
to rental real estate activities 12c Instructions for Schedule K-1
(Form 1065).
d Credits related to other rental activities 12d
13 Other credits 13
For Paperwork Reduction Act Notice, see Instructions for Form 1065. Cat. No. 11394R Schedule K-1 (Form 1065) 1999
Page 24
Schedule K-1 (Form 1065) 1999 Page 2
(c) 1040 filers enter the
(a) Distributive share item (b) Amount
amount in column (b) on:
Investment
Interest
15a Net earnings (loss) from self-employment 15a 44,685 Sch. SE, Section A or B
b Gross farming or fishing income 15b
其 See page 9 of Partner’s
Instructions for Schedule K-1
其
c Gross nonfarm income 15c (Form 1065).
其
Foreign Taxes
其
See page 9 of Partner’s
18 Section 59(e)(2) expenditures: a Type 䊳 Instructions for Schedule K-1
b Amount 18b (Form 1065).
19 Tax-exempt interest income 19 25
其
Form 1040, line 8b
20 Other tax-exempt income 20
Other
b
a From section 42(j)(5) partnerships
Other than on line 24a
24a
24b 其 Form 8611, line 8
25 Supplemental information required to be reported separately to each partner (attach additional schedules if more space is
needed):
Supplemental Information
Page 25
Index
Page 26
See How To Get More Information for a variety of ways to get publications,
Tax Publications for Business Taxpayers including by computer, phone, and mail.
General Guides 463 Travel, Entertainment, Gift, and Car 597 Information on the United States-
Expenses Canada Income Tax Treaty
1 Your Rights as a Taxpayer 505 Tax Withholding and Estimated Tax 598 Tax on Unrelated Business Income
17 Your Federal Income Tax (For 510 Excise Taxes for 2000 of Exempt Organizations
Individuals) 515 Withholding of Tax on Nonresident 686 Certification for Reduced Tax Rates
225 Farmer’s Tax Guide Aliens and Foreign Corporations in Tax Treaty Countries
334 Tax Guide for Small Business 517 Social Security and Other 901 U.S. Tax Treaties
509 Tax Calendars for 2000 Information for Members of the 908 Bankruptcy Tax Guide
553 Highlights of 1999 Tax Changes Clergy and Religious Workers 911 Direct Sellers
595 Tax Highlights for Commercial 527 Residential Rental Property 925 Passive Activity and At-Risk Rules
Fishermen 533 Self-Employment Tax 946 How To Depreciate Property
910 Guide to Free Tax Services 534 Depreciating Property Placed in 947 Practice Before the IRS and Power
Service Before 1987 of Attorney
Employer’s Guides 535 Business Expenses 954 Tax Incentives for Empowerment
536 Net Operating Losses Zones and Other Distressed
15 Circular E, Employer’s Tax Guide 537 Installment Sales Communities
15-A Employer’s Supplemental Tax Guide 538 Accounting Periods and Methods 1544 Reporting Cash Payments of Over
51 Circular A, Agricultural Employer’s 541 Partnerships $10,000
Tax Guide 542 Corporations 1546 The Taxpayer Advocate Service of
80 Federal Tax Guide For Employers in 544 Sales and Other Dispositions of the IRS
the U.S. Virgin Islands, Guam, Assets
American Samoa, and the Spanish Language Publications
Commonwealth of the Northern 551 Basis of Assets
Mariana Islands (Circular SS) 556 Examination of Returns, Appeal
Rights, and Claims for Refund 1SP Derechos del Contribuyente
179 Circular PR Guía Contributiva 579SP Cómo Preparar la Declaración de
Federal Para Patronos 560 Retirement Plans for Small Business
(SEP, SIMPLE, and Keogh Plans) Impuesto Federal
Puertorriqueños 594SP Comprendiendo el Proceso de Cobro
926 Household Employer’s Tax Guide 561 Determining the Value of Donated
Property 850 English-Spanish Glossary of Words
583 Starting a Business and Keeping and Phrases Used in Publications
Specialized Publications Records Issued by the Internal Revenue
Service
378 Fuel Tax Credits and Refunds 587 Business Use of Your Home
(Including Use by Day-Care 1544SP Informe de Pagos en Efectivo en
Providers) Exceso de $10,000 (Recibidos en
una Ocupación o Negocio)
594 Understanding the Collection Process
Commonly Used Tax Forms See How To Get More Information for a variety of ways to get forms, including by computer, fax,
phone, and mail. Items with an asterisk are available by fax. For these orders only, use the catalog
numbers when ordering.
Catalog Catalog
Form Number and Title Number Form Number and Title Number
W-2 Wage and Tax Statement 10134 1120S U.S. Income Tax Return for an S Corporation 11510
W-4 Employee’s Withholding Allowance Certificate* 10220 Sch D Capital Gains and Losses and Built-In Gains 11516
940 Employer’s Annual Federal Unemployment 11234 Sch K-1 Shareholder’s Share of Income, Credits, 11520
(FUTA) Tax Return* Deductions, etc.
940EZ Employer’s Annual Federal Unemployment 10983 2106 Employee Business Expenses* 11700
(FUTA) Tax Return* 2106-EZ Unreimbursed Employee Business 20604
941 Employer’s Quarterly Federal Tax Return 17001 Expenses*
1040 U.S. Individual Income Tax Return* 11320 2210 Underpayment of Estimated Tax by 11744
Sch A & B Itemized Deductions & Interest and 11330 Individuals, Estates, and Trusts*
Ordinary Dividends* 2441 Child and Dependent Care Expenses* 11862
Sch C Profit or Loss From Business* 11334 2848 Power of Attorney and Declaration of 11980
Representative*
Sch C-EZ Net Profit From Business* 14374
Sch D Capital Gains and Losses* 11338 3800 General Business Credit 12392
Sch D-1 Continuation Sheet for Schedule D 10424 3903 Moving Expenses* 12490
Sch E Supplemental Income and Loss* 11344 4562 Depreciation and Amortization* 12906
Sch F Profit or Loss From Farming* 11346 4797 Sales of Business Property* 13086
Sch H Household Employment Taxes* 12187 4868 Application for Automatic Extension of Time To 13141
File U.S. Individual Income Tax Return*
Sch J Farm Income Averaging* 25513
5329 Additional Taxes Attributable to IRAs, Other 13329
Sch R Credit for the Elderly or the Disabled* 11359 Qualified Retirement Plans, Annuities, Modified
Sch SE Self-Employment Tax* 11358 Endowment Contracts, and MSAs*
1040-ES Estimated Tax for Individuals* 11340 6252 Installment Sale Income* 13601
1040X Amended U.S. Individual Income Tax Return* 11360 8283 Noncash Charitable Contributions* 62299
1065 U.S. Partnership Return of Income 11390 8300 Report of Cash Payments Over $10,000 62133
Sch D Capital Gains and Losses 11393 Received in a Trade or Business*
Sch K-1 Partner’s Share of Income, 11394 8582 Passive Activity Loss Limitations* 63704
Credits, Deductions, etc. 8606 Nondeductible IRAs* 63966
1120 U.S. Corporation Income Tax Return 11450 8822 Change of Address* 12081
1120-A U.S. Corporation Short-Form 11456 8829 Expenses for Business Use of Your Home* 13232
Income Tax Return
Page 27