Accounting Tax Return Analysis
Download the partnership tax return project instructions (Links to an external site.) and complete the IRS Form 1065 and two accompanying Schedule K-1s (one for each partner) for the fictitious Jamco Turf company. As part of this tax return, you will also need to prepare Schedule D, IRS Form 1125-A, and IRS Form 4797. Line items that indicate attach statement or reflect totals not directly computed on the same form must be accompanied by an attached statement. For example, for Form 1065, line 20 Other deductions, attach to your deliverable package a Word or PDF Statement document displaying the items and computations that result in the figure entered on line 20.
- Provide calculations for each partner’s inside and outside basis in Jamco at the beginning and end of the company’s first year of business. Display the calculations for Jamco’s basis in the new assets held at the beginning of the year and also show Jamcos revised basis at the end of the year of operation. Depreciation will be a value provided in the given data.
- Here are some check figures to assist as your group works on the partnership tax return.
-
- Form 1065, line 14: $133,300
- Form 1065, line 20: $229,256
- Form 1065, Schedule K, line 13d: $9,000 (should include an attached statement to show computation)
- Form 1065, Schedule K, line 14a: Hint: Use worksheet in Form 1065 Instructions to compute
- Form 1065, Schedule K, line 18c: $296,000 (should include an attached statement to show computation)
- Form 1065, Schedule L, line 9b: $75,400 in column (c) and $165,400 in column (d)
