Partnership Practice Problem Solution

Taxation I $2023$

Partnership SJE Associates has three general partners, Spencer, Jean and Elise, who share profits equally.

During the year, Spencer and Elise each received $$300$ in guaranteed payments for services. Jean received $$500$ in guaranteed payments for services.

In addition to guaranteed payments, the partnership's had gross receipts of $$4,000,$ operating expenses of $$1,700.$ Qualified dividend income was $$120$ and Section $179$ expense was $$600.$

Please answer the following:

$1.$ Show the calculation of the amount of the partnership's ordinary income, Page $1,$ Line $22$ and Schedule K$,$ Line $1$ of the Form $1065$:

$2.$ Show the amount listed on the following lines of Spencer$$s K$-1.$

$$ Line $1$: Ordinary Income

$$ Lines $4$a$/4$c: Guaranteed Payments

$$ Lines $6$a$/6$b: Qualified Dividend Income

$$ Line $12$: Sec $179$ Expense

$3.$ Show the amount listed on each of the following lines of Jean's K$-1.$

$$ Line $1$: Ordinary Income

$$ Lines $4$a$/4$c: Guaranteed Payments

$$ Lines $6$a$/6$b: Qualified Dividend Income

$$ Line $12$: Sec $179$ Expense

$4.$ Show the calculation of the amount of income on which Jean will pay self$-$employment tax:

You may use a Form $1065$ and K$-1(1065)$ to work this out if it makes it easier. But to receive points for the assignment, you must submit this worksheet with the answers filled in by the posted due date.

'Show examples of forms $1065(2023$ FORM$)"$ Also fill out $1065$ and $1065$ K$-1$ forms because it is part of the assignment $.$ fill out what need to be filled to get the answers thank you PLEASE FILL IT U$.$S$.$ Return of Partnership Income

rom $1065$

Department of the Treasury For calendar year $2023,$ or tax year beginning

$,2023,$ ending

$,20$

OMB No$.1545-0123$

Internal Revenue Service

$(1)$

$]$

Cash

$(2)$

Accrual

$(3)$

Name change

$(4)$

Address change

I Number of Schedules K$-1.$ Attach one for each person who was a partner at any time during the tax year:

$J$ Check if Schedules $C$ and $M-3$ are attached

$K$ Check $if$ partnership: $(1)$ Aggregated activities for section $465at-$risk purposes $(2)$ Grouped activities for section $469$ passive activity purposes

Caution: Include only trade or business income and expenses on lines $1$a through $23$ below. See instructions for more information.