Partnership Tax Return Problem
Required:
- Using the information provided below, complete Arlington Building Supply's (ABS) 2016 Form 1065 and Schedule D. Also complete Jerry Johnson and Steve Stillwell's Schedule K-1.
- Form 4562 for depreciation is not required. Use the amount of tax depreciation and §179 expense provided in the income statement and the information in #4 below to complete the appropriate lines on the first page and on Schedule K of Form 1065.
- Form 4797 for the sale of trade or business property is not required. Use the amount of gain and loss from the sale of the truck and forklifts in the income statement and the information provided in #4 and #5 below to complete the appropriate lines on the first page and on Schedule K of Form 1065.
- If any information is missing, use reasonable assumptions to fill in any gaps.
- The forms, schedules, and instructions can be found at the IRS website. The instructions can be helpful in completing the forms.
Facts:
On January 1, 2006, two enterprising men in the community, Jerry Johnson and Steve "Swiss" Stillwell, anticipated a boom in the local construction industry. They decided to sell their small businesses and pool their resources as general partners in establishing a retail outlet for lumber and other building materials, including a complete line of specialty hardware for prefab tree houses. Their general partnership was officially formed under the name of Arlington Building Supply and soon became a thriving business.
- ABS is located at 2174 Progress Ave., Arlington, Illinois 64888.
- ABS's Employer Identification Number is 91-3697984.
- ABS's business activity is retail construction. Its business activity code is 444190.
- Both general partners are active in the management of ABS.
- Jerry Johnson's Social Security number is 500-23-4976. His address is 31 W. Oak Drive, Arlington. Illinois 648gS_
- Steve Stillwell's Social Security number is 374-68-3842. His address is 947 E. Linder Street, Arlington, Illinois 64888.
- ABS uses the accrual method of accounting and has a calendar year-end.
Attachment:- Partnership Tax Return.rar