Emily is part owner of Palmer Party Company. Add the following details to a tax return: She
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Emily is part owner of Palmer Party Company. Add the following details to a tax return:
She owns 40% of the stock and her basis in the stock is zero.
In addition, she received a K-1 from Palmer Party Company that lists the following items:
Line 1- Ordinary business income: $36,599
Line 11: Section 179 deduction: $8,000
Line 12: Charitable contributions: $499
Line 16C: Nondeductible expenses: $600
Line 16D: Distributions: $34,000
What tax forms do Emily need to fill out on her taxes for the above information?
How would this affect her tax return if she was not a part-owner?
Expert Answer:
Based on the information provided Emily would need to fill out the following tax forms Schedule E Fo... View the full answer
Related Book For 
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
