Partnership Tax Return INSTRUCTIONS Please use the information below to complete the Form 1065 and the Schedule K-1 for Malcolm Fox only. Blank forms can be found on the IRS site or in Doc Sharing

Partnership Tax Return


Please use the information below to complete the Form 1065 and the

Schedule K-1 for Malcolm Fox only. Blank forms can be found on the IRS site or in Doc Sharing. Please feel free to use a tax software package if you have one, but be aware that I will not be able to answer specific questions about it.

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Malcolm Fox and Rhonda Ford are equal partners in MFRF LLP, a small business consulting firm. The partners are not related and are both U.S. citizens. Malcolm Fox lives at 415 Knight Court in Freeport, ME, 04469, with a Social Security number of 123-45-6789. Rhonda Ford lives at 123 Main Street in Freeport, ME, 04469, with a Social Security number of 456-12-4561.

The limited liability partnership uses the cash basis and the calendar year, and it began operation on January 1, 2009. The Federal ID for MFRF LLP is 11-1111111 and the current address is 2835 Harbor View Drive, Freeport, ME, 04469 for.

The partnership placed its $65,000 of furniture and fixtures in service on January 1, 2009. This year, it claimed $8,119 of depreciation expense for tax (line 16a and 16c) and financial purposes. No assets were placed in service in the current year.

On Oct. 15, the partnership sold securities, creating a $4,000 long-term capital loss. Please enter this directly onto schedule K; there is not enough information to create the detail.

Net income per books is $200,900. On January 1, 2012, the partners’ capital accounts equal $120,000 each. No additional capital contributions were made in 2012 and each partner made withdrawals of $120,000 during the year.

MFRF LLP Income Statement


Fees collected                             800,000

Dividend income (all qualified)       3,600

Taxable business interest              1,400

Tax-exempt interest                    2,600

Long-term capital loss                  (4,000)

Total revenues                    803,600


Accounting fees                           12,000

Advertising                                 5,000

Contribution to United Way           2,000

Depreciation expense                   8,119

Employee salaries                        340,000

Guaranteed payments                  140,000

Entertainment                             2,600

Travel                                        12,000

Equipment rental                         6,000

Office rentals paid                       7,000

Interest expense                         4,000

Insurance premiums                    2,200

Office expense                            20,481

Payroll taxes                               25,600

Utilities                                      15,700

Total expenses                    602,700

MFRF LLP Balance Sheet

Assets                                    January 1, 2012          December 31, 2012

Cash                                  $86,576                     $84,595

Tax-exempt securities          52,000                      52,000

Marketable securities           120,000 76,000

Furniture and equipment        65,000                      65,000

Accumulated depreciation     (36,576)                   (44,695)

Total assets                               $287,000                   $232,900

======                   ======

Liabilities and Equity                   January 1, 2012          December 31, 2012

Nonrecourse debt on

Equipment                          $47,000                     $32,000

Capital, Fox                                120,000                     100,450

Capital, Ford                       120,000                     100,450

Total Liabilities and Equity     $287,000                   $232,900

======                   =======

Certain Cash Contributions for Typhoon Haiyan Relief Effortsin the Philippines Can Be Deducted on Your 2013 Tax ReturnA new law allows you to choose to deduct certain charitable contributionsof money on your 2013 tax return instead of your 2014 return. Thecontributions must have been made after March 25, 2014, and before April15, 2014, for the relief of victims in the Republic of the Philippines affectedby the November 8, 2013, typhoon. Contributions of money includecontributions made by cash, check, money order, credit card, charge card,debit card, or via cell phone.The new law was enacted after the 2013 forms, instructions, andpublications had already been printed. When preparing your 2013 taxreturn, you may complete the forms as if these contributions were made onDecember 31, 2013, instead of in 2014.The contribution must be made to a qualified organization and meet allother requirements for charitable contribution deductions. However, if youmade the contribution by phone or text message, a telephone bill showingthe name of the donee organization, the date of the contribution, and theamount of the contribution will satisfy the recordkeeping requirement.Therefore, for example, if you made a $10 charitable contribution by textmessage that was charged to your telephone or wireless account, a billfrom your telecommunications company containing this informationsatisfies the recordkeeping requirement.
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