Tax Form Preparation

1. Please help with Schedule K for the current year from page 4 of Form 1065.
2. Please help with Andrew's Schedule K-1.

Please use form

This project covers general partnership basis issues including computation of partners' adjusted basis, determination of current-year tax position, preparation of tax forms, and creation of a memo to the partners with an analysis of their current-year tax issues and changes to basis.

In the current year, Mary, Andrew, and Paul formed Venezia General Partnership. Mary contributed $55,000 cash, Andrew contributed $55,000, and Paul contributed land with a cash basis of $70,000 and a fair market value of $180,000. The partnership assumed a $70,000 mortgage on the land; no partner is personally liable for the mortgage. At the end of the current year, Venezia made a $7,000 payment on the mortgage. Mary, Andrew, and Paul will split all profits and losses equally.

Current-year operations had the following results:

• Sales revenue: $260,000
• Cost of goods sold: $205,000
• Operating expenses: $35,000
• Long-term capital gains: $1,200
• Section 1231 Gains: $450
• Charitable contributions: $350
• Municipal bond interest: $150
• Salary paid as a guaranteed payment to Andrew (not included in expense): $1,500

Form 1065 (2022) Page 4 Schedule K Partners' Distributive Share Items Total amount 1 Ordinary business income (loss) (page 1, line 22) Net rental real estate income (loss) (attach Form 8825) 2 3a Other gross rental income (loss) . b Expenses from other rental activities (attach statement) 3b C Other net rental income (loss). Subtract line 3b from line 3a 3c 4 Guaranteed payments: a Services |4a b Capital 4b c Total. Add lines 4a and 4b 4c Interest income 5 Dividends and dividend equivalents: a Ordinary dividends . 6a Income (Loss) b Qualified dividends |6b c Dividend equivalents 6c Royalties 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . B 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) 9a b Collectibles (28%) gain (loss) . c Unrecaptured section 1250 gain (attach statement) 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 c Section 59(e)(2) expenditures: (1) Type:_. (2) Amount: 13cl21 Employ- Deductions d Other deductions (see instructions) Type: 13d 14a Net earnings (loss) from self-employment . 14a ment Self- b Gross farming or fishing income . 14b C Gross nonfarm income . 14c 15a Low-income housing credit (section 42()(5)) 15a b Low-income housing credit (other) . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) 15c Credits Other rental real estate credits (see instructions) Type: 15d Other rental credits (see instructions) Type:.. 15e Other credits (see instructions) Type:. 15f 16 Attach Schedule K-2 (Form 1065), Partners' Distributive Share Items-International, and check Inter- national this box to indicate that you are reporting items of international tax relevance 17a Post-1986 depreciation adjustment . 17a b Adjusted gain or loss 17b Depletion (other than oil and gas) 17c [AMT) Items Alternative Minimum Tax 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 tax-exempt income 18b c Nondeductible expenses 18c 19a Distributions of cash and marketable securities 19a Other Information Distributions of other property 19b 20a Investment income 20a b Investment expenses 20b C Other items and amounts (attach statement) 21 Total foreign taxes paid or accrued 21 Form 1065 (2022)651121 Final K-1 Amended K-1 OMB No. 1545-0123 Schedule K-1 2022 Part Ill Partner's Share of Current Year Income, (Form 1065) Deductions, Credits, and Other Items Department of the Treasury Ordinary business income (loss) 14 Self-employment earnings (loss) Internal Revenue Service For calendar year 2022, or tax year beginning / 2022 ending 2 Net rental real estate income (loss) Partner's Share of Income, Deductions, Other net rental income (loss Credits Credits, etc. See separate instructions. Part I Information About the Partnership 43 Guaranteed payments for services A Partnership's employer identification number 4b Guaranteed payments for capital 16 Schedule K-3 is attached if B Partnership's name, address, city, state, and ZIP code checked Total guaranteed payments 17 Alternative minimum tax [AM 1) items Interest income C IRS center where partnership filed return: Ga Ordinary dividends D Check if this is a publicly traded partnership (PTP) Part II Information About the Partner Qualified dividends 18 Tax exempt income and nondeductible expenses E Partner's SSN or TIN (Do not use TIN of a disregarded entity. Soo instructions.) Go Dividend equivalents F Name, address, city, state, and ZIP code for partner entered in E. See instructions. Royalties Not short-term capital gain (loss) 19 Distributions G General partner or LLC Limited partner or other LLC Net long-term capital gain (loss) member-manager member Hi Domestic partner Foreign partner 9b Collectibles (2836) gain (loss) H2 if the partner is a disregarded entity (DE), enter the partner's: 20 Other information TIN Name go Unrecaptured section 1250 gain 1 What type of entity is this partner? 12 If this partner is a re ment plan (IPW/SEP/Keogh/etc.), check here .0 10 Net section 1231 gain (loss Partner's share of profit, loss, and capital (see instructions): Beginning Ending 11 Other income (loss) Profit Loss Capital Check if decrease is due to sale or exchange of partnership interest 12 Section 179 deduction 21 Foreign taxes paid or accrued Partner's share of liabilities: Beginning Ending 13 Other deductions Nonrecourse Qualified nonrecourse financing Recourse Check this box if he K includes liability amounts from lower-tier partnerships Partner's Capital Account Analysis 2 More than one activity for at-risk purposes" Beginning capital account More than one activity for passive activity purposes' Capital contributed during the year . "See attached statement for additional information Current year not income (loss) . Other increase (decrease) (attach explanation) $ Withdrawals and distributions Ending capital account For IRS Use Only M Did the partner contribute property with a built-in gain (loss)? Yes No If "Yes," attach statement. See Partner's Share of Net Unrecognized Section 704(c] Gain or (Loss) Ending For Paperwork Reduction Aot Notice, see the Instructions for Form 1065. www.irs.gow/Form1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2022