Kylo and Anakin are equal partners in Sith, LLC, an LLC taxed as a partnership. The Sith LLC agreement provides that all allocations of income, gain, loss, and deduction are to be made equally between Kylo and Anakin. Sith had the following items of income and expense for the current tax year: Description Amount Gross receipts from lightsaber sales $1,000,000 Cost of goods sold $100,000 Salaries $250,000 Depreciation $40,000 Amortization $20,000 Utility expenses $30,000 Investment interest expense $20,000 Gain from the sale of equipment (held 3 years) Section 1245 gain (recapture) $50,000 Section 1231 gain $10,000 Dividends received (US Corp) $35,000 Charitable contributions $5,000 Tax-exempt interest $5,000 Long-term capital gain on sale of Alderaan $30,000 Long-term capital gain on sale of Jedi stock $20,000 Short-term capital loss on sale of Endor $10,000 Short-term capital gain on sale of Lando stock $50,000 Additional Transactions during Tax Year: Sith, LLC purchased a large tract of land on Kashyyyk for $1,000,000 by paying $100,000 cash and taking out a non-recourse mortgage for $900,000. As a condition to making the loan, the bank required Anakin to issue a personal guarantee for 50% of the debt. Complete Anakin’s K-1 and submit the completed K-1 in PDF. For purposes of the K-1, assume Anakin’s beginning of the year capital account was $100,000 and that Sith, LLC has no debt other than the non-recourse mortgage mentioned above. https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf. It may be helpful to complete other portions of the return (for example, Page 1 of Form 1065/Schedule K), but you only need to submit Anakin’s K-1. Submit the completed K-1 in PDF.
Kylo and Anakin are equal partners in Sith, LLC, an LLC taxed as a partnership. The Sith LLC agreement provides that all allocations of income, gain, loss, and deduction are to be made equally between Kylo and Anakin. Sith had the following items of income and expense for the current tax year:
|
Description |
Amount |
|
Gross receipts from lightsaber sales |
$1,000,000 |
|
Cost of goods sold |
$100,000 |
|
Salaries |
$250,000 |
|
Depreciation |
$40,000 |
|
Amortization |
$20,000 |
|
Utility expenses |
$30,000 |
|
Investment interest expense |
$20,000 |
|
Gain from the sale of equipment (held 3 years) |
|
|
Section 1245 gain (recapture) |
$50,000 |
|
Section 1231 gain |
$10,000 |
|
Dividends received (US Corp) |
$35,000 |
|
Charitable contributions |
$5,000 |
|
Tax-exempt interest |
$5,000 |
|
Long-term |
$30,000 |
|
Long-term capital gain on sale of Jedi stock |
$20,000 |
|
Short-term capital loss on sale of Endor |
$10,000 |
|
Short-term capital gain on sale of Lando stock |
$50,000 |
Additional Transactions during Tax Year:
- Sith, LLC purchased a large tract of land on Kashyyyk for $1,000,000 by paying $100,000 cash and taking out a non-recourse mortgage for $900,000. As a condition to making the loan, the bank required Anakin to issue a personal guarantee for 50% of the debt.
Complete Anakin’s K-1 and submit the completed K-1 in PDF. For purposes of the K-1, assume Anakin’s beginning of the year capital account was $100,000 and that Sith, LLC has no debt other than the non-recourse mortgage mentioned above.
https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf. It may be helpful to complete other portions of the return (for example, Page 1 of Form 1065/Schedule K), but you only need to submit Anakin’s K-1. Submit the completed K-1 in PDF.
Step by step
Solved in 2 steps
