Read the return (form 1065 this should be under the Oregon Tax Jurisdiction for the year 2021) including the individual K-1's, and both individuals' 2021 1040 & 1040 Schedule 1 b hand. For fill in the blank questions, enter whole numbers only, with no commas, periods, or symbols the questions that must be answered are shown below: Scenario

Craft Beer Brewing Partnership
Revenues	740,000
Office Rent	45,000
COGS	249,000
Salaries	280,000
ST Gain on Sale of Stock	120,000
LT Loss on Sale of Stock	550,000
Contributions to Charities	68,000

?Friends Dan and Lisa are each partners in the beer brewing partnership above.

-Dan owns 3%

-Lisa owns 6% ?Additional Information about Dan (not including partnership info) -Married, 1 child

-Wages from job = $25,000

-Wages from wife's job = $40,000 ?Additional Information about Lisa (not including partnership info)

-Single, no children

-Wages from job = 142,000 -Sold stock held LT at a gain of 30,000 -Paid state taxes of 11,000 -Paid qualified mortgage interest of 10,000 Questions on the 1065, page 1 Line 1a: Line 3: Line 8: Line 21: Line 22: 1065, page 4 (Schedule K) Line 1: Line 8: Line 13a: Line 13b: Line 16: Line 18a: Line 20b: Dan's Schedule K-1 Line 1: Line 8: Line 18a: Lisa's K-1 Line 1: Line 13a: Line 14: Line 20:

Dan's 1040 Line 1: Line 2b: Line 9: Line 11: Line 12a: Line 13: Line 14: Schedule 1, Line 5: Lisa's 1040 Line 9: Line 11: Line 12a: Line 13: Line 15: Schedule 1, Line 5: Other Questions 1. By how much does Dan's AGI increase because of the partnership activities? 2. By how much does Lisa's taxable income decrease because of the partnership activities?

Reference Pages

1065 Page 1

1065 U.S. Return of Partnership Income OMB NO. 1545-0123 Form For calendar year 20 16, or tax year beginning . 2016, anding . 20 Department of the Treasury Information about Form 1005 and its sepe rate instructions is at www.irs gov/form1063. 2016 A Principal business acavt Type Number, street, and room a wit no. If a P. O. box, see fa histutor C Date buniram started OF G Busines cada numba Print Olya boon sak a porincs, county, and 2Pa bong pold ads Total ames (see the Check applicable boxes: (1) [ Initial retum p) ) Final return (3) ) Name change (4) Address change () [ Amended return (6) Technical termination - also check (1) or () H Check accounting method: (1) |) Cash () ) Accrual (3) )Other (specify) Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year Check if Schedules C and M-3 are attached Caution Include only trade or business income and expenses on Mines 1a through 22 below. See the instructions for more information. 1a Gross receipts or sales . 1a Returns and allowances Balance. Subtract line 1b from line fa . 10 Cost of goods sold (attach Form 1125-A) 2 Gross profit. Subtract line 2 from line ic . 3 Ordinary income foss) from other partnerships, estates, and trusts (attach statement), 4 Not farm profit (loss) (attach Schedule F (Form 1040)) 5 Income Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6 Other Income (loss) (attach statement) 7 Total income (loss). Combine lines 3 through 7 . . 8 Salaries and wages (other than to partners) (ess employment credits) 9 Guaranteed payments to partners , 10 Repairs and maintenance . 11 Bad debts . 12 Rent . 13 Taxes and licenses 14 15 Interest . 15 Deductions pos the instructions for limitations 168 Depreciation (# required, attach Form 4562). 168 b Less depreciation reported on Form 1125-A and elsewhere on retum 16b 16c 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc. . 18 19 Employee benefit programs 19 Other deductions (attach statement) 20 NNB Total deductions. Add the amounts shown in the far right column for lines 9 through 20. 21 Ordinary business income (loss). Subtract line 21 from line 8 22 Under perallies of perjury, I declare that I have suamined ties return, induding accompanying schedules and statement, and to he beat of my owledge and belet, it is true, correct, and complete. Declaration of preparer other than general partner or limited liability company member manager) Sign is based on all information of which prepare has any knowledge Here mirudia ? Yes No Signature of general partner or limited liability company member manager Paid Print/Type pregant's name Prepara's signature Dala Check it PTIN Preparer sell-employed Use Only Firm's name Firm's ENG For Paperwork Reduction Act Notice, see separate instructions. Cat, No. 1 130 02 Form 1065 2015Form 1065 (2011) Page 4 Schedule K Partners' Distributive Share Items Total amount Ordinary business income (loss) (page 1, line 22) . 1 50 N - Net rental real estate income (loss) (attach Form 8825) 2 3a Other gross rental income (loss) . 3a Expenses from other rental activities (attach statement) 3b Other net rental income (loss). Subtract line 3b from line 3a 3c Guaranteed payments 4 Interest income 5 Dividends: a Ordinary dividends . 6a Income (Loss b Qualified dividends Royalties . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) ga Collectibles (28%) gain (loss) . 9b Unrecaptured section 1250 gain (attach statement) 9c 10 Net section 1231 gain (loss) (attach Form 4797) 10 11 Other income (loss) (see instructions) Type 11 12 Section 179 deduction (attach Form 4562) 12 13a Contributions 13a b Investment interest expense 13b Section 59(e)(2) expenditures: (1) Type (2) Amount 13c(2) Employ- Deductions Other deductions (see instructions) Type 13d 14a Net earnings (loss) from self-employment 14a 50 b Gross farming or fishing income 14b ment Self- c Gross nonfarm income 14c 500 15a Low-income housing credit (section 42()(5)) 15a Low-income housing credit (other) 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) 15c Credits Other rental real estate credits (see instructions) Type 15d Other rental credits (see instructions) Type 15e f Other credits (see instructions) Type 15f 16a Name of country or U.S. possession b Gross income from all sources . 16b Gross income sourced at partner level 16c Foreign gross income sourced at partnership level d Passive category e General category f Other 16f Deductions allocated and apportioned at partner level Foreign Transactions g Interest expense h Other 16h Deductions allocated and apportioned at partnership level to foreign source income Passive category j General category k Other 16k Total foreign taxes (check one): Paid Accrued 161 m Reduction in taxes available for credit (attach statement) 16m Other foreign tax information (attach statement) 17a Post-1986 depreciation adjustment 17a Adjusted gain or loss . 17b Depletion (other than oil and gas) . 17c (AMT) Items Alternative Oil, gas, and geothermal properties-gross income 17d Oil, gas, and geothermal properties-deductions . 17e f Other AMT items (attach statement) . 17f 18a Tax-exempt interest income . 18a Other Information |Minimum Tax b Other tax-exempt income 18b c Nondeductible expenses . 18c 19a Distributions of cash and marketable securities 19a b Distributions of other property 19b 20a Investment income . 20a b Investment expenses . 20b c Other items and amounts (attach statement) Form 1065 (2011)$ 1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status _ Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only if you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box. person is a child but not your dependent Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign country name Foreign province/state/county Foreign postal code your tax or refund. You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? _ Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: | Were born before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 Is blind Dependents (see instructions): (2) Social security (3) Relationship (4) if qualifies for (see instructions): If more (1) First name Last name number to you Child tax credit Credit for other dependents than four dependents, see instructions 0OO and check here Wages, salaries, tips, etc. Attach Form(s) W-2 1 Attach 2a Tax-exempt interest 2a b Taxable interest 2b Sch. B if 3a Qualified dividends 3a b Ordinary dividends 3b required. 4a IRA distributions 4a b Taxable amount . 4b 5a Pensions and annuities 5a b Taxable amount . 5b Standard 6a Social security benefits 6a b Taxable amount . 6b Deduction for- Capital gain or (loss). Attach Schedule D if required. If not required, check here 7 . Single or Married filing Other income from Schedule 1, line 9 . 8 separately, Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income a $12,400 Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 10a widow(er), $24,800 b Charitable contributions if you take the standard deduction. See instructions 10b . Head of C Add lines 10a and 10b. These are your total adjustments to income 10c household, Subtract line 10c from line 9. This is your adjusted gross income 11 $18,650 11 . If you checked 12 Standard deduction or itemized deductions (from Schedule A) 12 any box under Standard 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 13 Deduction, 14 14 see instructions. Add lines 12 and 13 . 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions Cat. No. 11320B Form 1040 (2020)