EVALUATING the Self-Employed Borrower

Transcription

CASE STUDY – BORROWER
tax years 2015 and 2014
ABOUT JOHN AND GINNY BORROWER:
Filed joint tax returns
Married with no dependents
f f Own three rental properties
ff
ff
JOHN IS A:
Sole proprietor of Tech in a Sec
computer service
f f 20% partner in Tanglewood Realty
f f 50% owner and nonactive participant
in management of Creative Network
Design Services, an S-Corp
ff
GINNY IS AN:
Owner and manager of Interior
Innovations, Incorporated, a regular
corporation
f f Part-time sales representative for
Creative Greetings Cards, 40% of
income from commissions
f f 50% partner in Westchester
Development, LLC
ff
Mortgage Guaranty Insurance Corporation
MGIC Plaza, Milwaukee, Wisconsin 53202 • www.mgic.com
© 2010-2016 Mortgage Guaranty Insurance Corporation. All rights reserved.
71-40325 2/16
Form
W-2
Wage and Tax Statement
2015
G Keep for your records
Name
Social Security Number
Ginny Borrower
000-00-0001
X Spouseʼs W-2
Military: Complete Part VI on Page 2 below
Do not transfer this W-2 to next year
a Employeeʼs social security No 000-00-0001
b Employerʼs ID number
00-0000000
c Employerʼs name, address, and ZIP code
1 Wages, tips, other
2 Federal income
compensation
50,000.00
tax withheld
12,500.00
Interior Innovations, Incorporated
3 Social security wages
4 Social security tax withheld
Street
1000 Heaven's
City
Jackson
State
TN
ZIP Code
Foreign Country
Way
5 Medicare wages and tips
6 Medicare tax withheld
38301
7 Social security tips
8 Allocated tips
54,000.00
11 Nonqualified plans
X Transfer employee information from
the Federal Information Worksheet
e Employeeʼs name
First Ginny
Last Borrower
f Employeeʼs address and ZIP code
Street 3412 W Silverwood Dr
City Jackson
State TN
ZIP Code 38305
Foreign Country
Amount
D
4,000.00
Box 15
State
13
Suff.
Statutory employee
Retirement plan
Third-party sick pay
14 Enter box 14 below after entering boxes 18, 19, and 20.
NOTE: Enter box 15 before entering box 14.
If Box 12 code is:
A: Enter amount attributable to RRTA Tier 2 tax
M: Enter amount attributable to RRTA Tier 2 tax
P: Double click to link to Form 3903, line 4
R: Enter MSA contribution for Taxpayer
Spouse
W: Enter HSA contribution for Taxpayer
Spouse
G:
Employer is not a state or local government
Box 16
Employerʼs state I.D. no.
Box 20
State wages, tips, etc.
Box 18
Locality name
Local wages, tips, etc.
Box 14
Description or Code
on Actual Form W-2
783.00
Distributions from sect. 457
and nonqualified plans
(Important, see Help)
12 Enter box 12 below
M.I.
Box 12
Code
3,348.00
10 Dependent care benefits
Verification Code
d Control number
Box 12
54,000.00
Amount
Box 19
Local income tax
Box 17
State income tax
Associated
State
TurboTax Identification of Description or Code
(Identify this item by selecting the identification from
the drop down list. If not on the list, select Other).
-1-
Form
W-2
2015
Name
Ginny Borrower
000-00-0001
X Spouseʼs W-2
00-0000000
2 Federal income
compensation
15,000.00
tax withheld
3,000.00
Creative Greetings Cards
1101 Commerce
Street
City
Jackson
TN
State
ZIP Code
Foreign Country
Dr
38301
8 Allocated tips
16,000.00
16,000.00
e Employeeʼs name
First Ginny
Last Borrower
City Jackson
State TN
ZIP Code 38305
Foreign Country
Box 12
Amount
D
1,000.00
Box 15
State
13
Suff.
Box 12
Code
Statutory employee
Retirement plan
If Box 12 code is:
Spouse
Spouse
G:
Box 16
Box 20
Box 18
Locality name
Box 14
Description or Code
on Actual Form W-2
M.I.
233.00
Verification Code
d Control number
992.00
Amount
Box 19
Local income tax
Box 17
State income tax
Associated
State
-2-
Form
1040
2015
(99)
Department of the Treasury—Internal Revenue Service
U.S. Individual Income Tax Return
For the year Jan. 1–Dec. 31, 2015, or other tax year beginning
Your first name and initial
OMB No. 1545-0074
, 2015, ending
IRS Use Only—Do not write or staple in this space.
See separate instructions.
, 20
Your social security number
Last name
Borrower
John
000-00-0000
Spouse’s social security number
Last name
If a joint return, spouse’s first name and initial
Borrower
Ginny
000-00-0001
Apt. no.
Home address (number and street). If you have a P.O. box, see instructions.
c
3412 W Silverwood Dr
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Jackson TN 38305
Foreign country name
Filing Status
Check only one
box.
Exemptions
1
4
c
Head of household (with qualifying person). (See instructions.) If
the qualifying person is a child but not your dependent, enter this
child’s name here. a
Married filing separately. Enter spouse’s SSN above
and full name here. a
6a
b
Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code
a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
Single
Married filing jointly (even if only one had income)
2
3
5
Qualifying widow(er) with dependent child
Yourself. If someone can claim you as a dependent, do not check box 6a .
Spouse
.
Dependents:
(1) First name
.
.
.
.
.
.
.
.
.
.
.
(2) Dependent’s
social security number
Last name
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
}
(4) if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
If you did not
get a W-2,
see instructions.
Adjusted
Gross
Income
2
Dependents on 6c
not entered above
d
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Boxes checked
on 6a and 6b
No. of children
on 6c who:
• lived with you
• did not live with
you due to divorce
or separation
(see instructions)
If more than four
dependents, see
instructions and
check here a
Income
Make sure the SSN(s) above
and on line 6c are correct.
Total number of exemptions claimed
.
.
.
.
.
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7
.
8b
. .
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.
8a
65,000.
500.
.
.
.
.
.
.
.
9a
500.
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here a
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . .
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
23
Educator expenses
24
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
25
Health savings account deduction. Attach Form 8889
.
24
25
26
27
28
Moving expenses. Attach Form 3903 . . . . . .
Deductible part of self-employment tax. Attach Schedule SE .
Self-employed SEP, SIMPLE, and qualified plans
. .
26
27
28
29
30
31a
Self-employed health insurance deduction
Penalty on early withdrawal of savings . .
.
.
.
.
.
.
.
.
32
33
34
Alimony paid b Recipient’s SSN a
IRA deduction . . . . . . .
Student loan interest deduction . .
Tuition and fees. Attach Form 8917 .
29
30
31a
.
.
.
.
.
.
.
.
.
.
.
.
32
33
34
35
36
37
Domestic production activities deduction. Attach Form 8903
35
Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
Wages, salaries, tips, etc. Attach Form(s) W-2
.
.
.
.
8a
b
9a
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
.
.
.
.
.
.
.
b
.
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.
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.
. . . . . .
. . . . . .
b Taxable amount
.
.
.
.
.
.
.
a
21
22
37,200.
-1,000.
24,800.
127,000.
23
2,360.
3,500.
.
.
.
.
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. BAA
-3-
.
.
.
500.
.
2
.
7
.
Add numbers on
lines above a
.
.
.
.
.
.
a
36
37
REV 12/30/15 TTW
5,860.
121,140.
Form 1040 (2015)
Page 2
121,140.
Form 1040 (2015)
38
Amount from line 37 (adjusted gross income)
Tax and
Credits
39a
Check
if:
If your spouse itemizes on a separate return or you were a dual-status alien, check here a
39b
Standard
Deduction
for—
• People who
check any
box on line
39a or 39b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Married filing
separately,
$6,300
Married filing
jointly or
Qualifying
widow(er),
$12,600
Head of
household,
$9,250
40
41
Itemized deductions (from Schedule A) or your standard deduction (see left margin)
Subtract line 40 from line 38
. . . . . . . . . . . . . . . . .
.
.
42
43
Exemptions. If line 38 is $154,950 or less, multiply $4,000 by the number on line 6d. Otherwise, see instructions
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . .
Form 4972 c
Tax (see instructions). Check if any from: a
Form(s) 8814 b
Other
Taxes
b
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60a
64
65
66a
b
Paid
Preparer
Use Only
Blind.
Blind.
}
.
.
.
.
.
Total boxes
checked a 39a
.
.
.
.
.
.
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.
.
48
.
.
.
.
.
.
52
Residential energy credits. Attach Form 5695 . . . .
53
3800 b
8801 c
Other credits from Form: a
54
Add lines 48 through 54. These are your total credits . . . . .
Subtract line 55 from line 47. If line 55 is more than line 47, enter -0-
.
.
.
.
.
.
.
.
.
.
.
.
.
Self-employment tax. Attach Schedule SE
.
.
.
.
.
.
.
8919
.
.
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Unreported social security and Medicare tax from Form:
a
.
Household employment taxes from Schedule H
.
.
.
.
43
44
45
46
47
.
.
a
.
.
.
b
4137
.
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55
56
57
a
.
.
.
67
American opportunity credit from Form 8863, line 8 .
Net premium tax credit. Attach Form 8962 . . . .
Amount paid with request for extension to file . . .
.
.
.
.
.
.
68
69
70
71
72
Credit for federal tax on fuels. Attach Form 4136
.
.
.
.
61
62
63
20,738.
74
20,500.
0.
71
72
Credits from Form: a
2439 b
Reserved c
8885 d
73
Add lines 64, 65, 66a, and 67 through 73. These are your total payments .
.
.
16,019.
4,719.
58
59
60a
60b
Health care: individual responsibility (see instructions) Full-year coverage
. . . . .
Form 8960 c
Taxes from: a
Form 8959 b
Instructions; enter code(s)
a
Add lines 56 through 62. This is your total tax . . . . . . . . . . . . .
15,500.
64
Federal income tax withheld from Forms W-2 and 1099 . .
5,000.
2015 estimated tax payments and amount applied from 2014 return
65
Earned income credit (EIC) . . . No. . . . . . . 66a
Excess social security and tier 1 RRTA tax withheld
16,019.
49
50
51
First-time homebuyer credit repayment. Attach Form 5405 if required
.
15,197.
105,943.
8,000.
97,943.
16,019.
40
41
42
.
.
.
.
.
.
38
.
.
.
68
69
70
75
76a
.
.
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.
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.
.
.
a
If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid
Amount of line 75 you want refunded to you. If Form 8888 is attached, check here
75
76a
Routing number
Type:
Checking
Savings
X X X X X X X X X
X X X X X X X X X X X X X X X X X
Account number
Amount of line 75 you want applied to your 2016 estimated tax a 77
77
78
Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions a 78
79
Estimated tax penalty (see instructions) . . . . . . .
79
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Yes. Complete below.
b
d
.
a
ac
238.
No
Personal identification
a
number (PIN)
Phone
no. a
Designee’s
name a
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
F
Joint return? See
instructions.
Keep a copy for
your records.
.
Nontaxable combat pay election
66b
Additional child tax credit. Attach Schedule 8812 .
Direct deposit?
See
a
instructions.
Sign
Here
.
67
a
Third Party
Designee
.
Credit for child and dependent care expenses. Attach Form 2441
73
74
Amount
You Owe
.
Education credits from Form 8863, line 19 . . . . .
Retirement savings contributions credit. Attach Form 8880
Child tax credit. Attach Schedule 8812, if required . . .
62
63
Refund
.
You were born before January 2, 1951,
Spouse was born before January 2, 1951,
Add lines 44, 45, and 46
. . . . . . .
Foreign tax credit. Attach Form 1116 if required .
61
If you have a
qualifying
child, attach
Schedule EIC.
.
Alternative minimum tax (see instructions). Attach Form 6251 .
Excess advance premium tax credit repayment. Attach Form 8962
b
Payments
{
.
Daytime phone number
Self-Employed
Spouse’s signature. If a joint return, both must sign.
Print/Type preparer’s name
Firm’s name
Your occupation
a
Date
Spouse’s occupation
Self-Employed
Preparer’s signature
Date
Self-Prepared
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check
if
self-employed
Firm's EIN
Firm’s address a
a
Phone no.
www.irs.gov/form1040
REV 12/30/15 TTW
-4-
Form 1040 (2015)
SCHEDULE A
(Form 1040)
OMB No. 1545-0074
Itemized Deductions
Department of the Treasury
Internal Revenue Service (99)
a Information
about Schedule A and its separate instructions is at www.irs.gov/schedulea.
a Attach to Form 1040.
Name(s) shown on Form 1040
John & Ginny Borrower
Medical
and
Dental
Expenses
Taxes You
Paid
1
2
3
4
5
6
7
8
Interest
You Paid
Note:
Your mortgage
interest
deduction may
be limited (see
instructions).
Caution: Do not include expenses reimbursed or paid by others.
Medical and dental expenses (see instructions) . . . . .
121,140.
Enter amount from Form 1040, line 38
2
Multiply line 2 by 10% (.10). But if either you or your spouse was
born before January 2, 1951, multiply line 2 by 7.5% (.075) instead
Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- .
State and local (check only one box):
a
Income taxes, or
. . . . . . . . . . .
b
General sales taxes
Real estate taxes (see instructions) . . . . . . . . .
Personal property taxes . . . . . . . . . . . . .
Other taxes. List type and amount a
}
2015
Attachment
Sequence No. 07
000-00-0000
533.
1
3
.
12,114.
.
.
.
.
.
.
5
5,200.
6
7
1,500.
8
9 Add lines 5 through 8 . . . . . . . . . . . . . . . .
10 Home mortgage interest and points reported to you on Form 1098 10
11 Home mortgage interest not reported to you on Form 1098. If paid
to the person from whom you bought the home, see instructions
and show that person’s name, identifying no., and address a
11
12 Points not reported to you on Form 1098. See instructions for
special rules . . . . . . . . . . . . . . . . .
12
13 Mortgage insurance premiums (see instructions) . . . . .
13
14 Investment interest. Attach Form 4952 if required. (See instructions.) 14
15 Add lines 10 through 14 . . . . . . . . . . . . . . .
Gifts to
16 Gifts by cash or check. If you made any gift of $250 or more,
see instructions . . . . . . . . . . . . . . . .
16
Charity
17 Other than by cash or check. If any gift of $250 or more, see
If you made a
gift and got a
instructions. You must attach Form 8283 if over $500 . . .
17
benefit for it,
18 Carryover from prior year . . . . . . . . . . . .
18
see instructions.
.
.
.
.
.
.
4,500.
4
0.
9
6,700.
15
4,500.
19
1,000.
27
2,997.
0.
.
.
.
.
.
.
1,000.
.
.
.
.
.
.
Casualty and
Theft Losses 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . .
20
Job Expenses 21 Unreimbursed employee expenses—job travel, union dues,
and Certain
job education, etc. Attach Form 2106 or 2106-EZ if required.
Miscellaneous
5,420.
21
(See instructions.) a Deductible expenses from Form 2106
Deductions
22 Tax preparation fees . . . . . . . . . . . . .
22
23 Other expenses—investment, safe deposit box, etc. List type
and amount a
Other
Miscellaneous
Deductions
24
25
26
27
28
23
Add lines 21 through 23 . . . . . . . . . . . .
24
121,140.
Enter amount from Form 1040, line 38 25
Multiply line 25 by 2% (.02) . . . . . . . . . . .
26
Other—from list in instructions. List type and amount a
5,420.
.
.
.
2,423.
.
.
28
29 Is Form 1040, line 38, over $154,950?
Total
Itemized
No. Your deduction is not limited. Add the amounts in the far right column
for lines 4 through 28. Also, enter this amount on Form 1040, line 40.
Deductions
}
.
Yes. Your deduction may be limited. See the Itemized Deductions
Worksheet in the instructions to figure the amount to enter.
30 If you elect to itemize deductions even though they are less than your standard
deduction, check here . . . . . . . . . . . . . . . . . . . a
For Paperwork Reduction Act Notice, see Form 1040 instructions. BAA
-5-
REV 12/30/15 TTW
.
29
15,197.
Schedule A (Form 1040) 2015
2106
2106
2106
Department
Department
Department
of of
the
of
the
Treasury
the
Treasury
Treasury
Internal
Internal
Internal
Revenue
Revenue
Revenue
Service
Service
Service
(99)
(99)
(99)
2015
2015
2015
aa
a
Attach
Attach
Attach
toto
Form
to
Form
Form
1040
1040
1040
oror
Form
or
Form
Form
1040NR.
1040NR.
1040NR.
Information
Information
Information
about
about
about
Form
Form
Form
2106
2106
2106
and
and
and
itsits
separate
its
separate
separate
instructions
instructions
instructions
is is
available
is
available
available
atat
www.irs.gov/form2106.
at
aa
a
Attachment
Attachment
Attachment
Sequence
. No
.129
.129
Sequence
Sequence
NoNo
129
Occupation
Occupation
Occupation
in in
which
in
which
which
you
you
you
incurred
incurred
incurred
expenses
expenses
expenses
Social
Social
Social
security
security
security
number
number
number
Your
Your
Your
name
name
name
Ginny
Ginny
Ginny
Borrower
Borrower
Borrower
Part
Part
Part
III
OMB
No.
1545-0074
OMB
OMB
No.
No.
1545-0074
1545-0074
Employee
Employee
Employee
Business
Business
Business
Expenses
Expenses
Expenses
Form
Form
Form
Sales
Sales
Sales
Represenative
Represenative
Represenative
000-00-0001
000-00-0001
000-00-0001
Employee
Employee
Business
Business
Expenses
Expenses
and
and
Reimbursements
Reimbursements
Employee
Business
Expenses
and
Reimbursements
Column
Column
Column
AAA
Other
Other
Other
Than
Than
Than
Meals
Meals
Meals
and
and
and
Entertainment
Entertainment
Entertainment
Step
Step
1 1Enter
1Enter
Enter
Your
Your
Expenses
Expenses
Step
Your
Expenses
1 11
Vehicle
Vehicle
Vehicle
expense
expense
expense
from
from
from
line
line
line
222222
ororor
line
line
line
29.
29.
29.
(Rural
(Rural
(Rural
mail
mail
mail
carriers:
carriers:
carriers:
See
See
See
instructions.)
instructions.)
instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 22
Parking
Parking
fees,
fees,
tolls,
tolls,
and
and
transportation,
transportation,
including
including
train,
train,
bus,
bus,
etc.,
etc.,
that
that
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fees,
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and
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3 33
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Travel
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expense
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away
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Travel
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while
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including
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car
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Do
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include
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meals
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and
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. ..
airplane,
car
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Do
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and
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4 44
Business
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ononon
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lines
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1 11
3,355.
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3,355.
2 22
65.
65.
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3 33
1,300.
1,300.
1,300.
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BBB
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and
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4 44
5 55
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. .. .. .. .. ..
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6 66
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instructions.
BAA
BAA
BAA
-6-
REV
REV
REV
01/06/16
01/06/16
01/06/16
TTW
TTW
TTW
700.
700.
700.
5,420.
5,420.
5,420.
2106
2106
2106
Form
Form
Form
(2015)
(2015)
(2015)
Form 2106 (2015)
Part II
Page
Section A—General Information (You must complete this section if you
are claiming vehicle expenses.)
11
12
13
14
15
16
17
18
19
20
21
2
Vehicle Expenses
Enter the date the vehicle was placed in service . . . . . . . .
Total miles the vehicle was driven during 2015
. . . . . . . .
Business miles included on line 12 . . . . . . . . . . . .
Percent of business use. Divide line 13 by line 12 . . . . . . . .
Average daily roundtrip commuting distance . . . . . . . . .
Commuting miles included on line 12
. . . . . . . . . . .
Other miles. Add lines 13 and 16 and subtract the total from line 12
.
Was your vehicle available for personal use during off-duty hours? . .
Do you (or your spouse) have another vehicle available for personal use?
Do you have evidence to support your deduction? . . . . . . .
If “Yes,” is the evidence written? . . . . . . . . . . . . .
(a) Vehicle 1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
12
13
14
15
16
17
.
.
.
.
(b) Vehicle 2
06/15/2013
5,000 miles
3,214 miles
64.28 %
miles
6 miles
1,780 miles
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
Yes
Yes
Yes
miles
miles
%
miles
miles
miles
No
No
No
No
Section B—Standard Mileage Rate (See the instructions for Part II to find out whether to complete this section or Section C.)
22
Multiply line 13 by 57.5¢ (.575). Enter the result here and on line 1 . .
(a) Vehicle 1
Gasoline, oil, repairs, vehicle
23
insurance, etc. . . . . . .
23
24a Vehicle rentals . . . . . .
24a
b Inclusion amount (see instructions) .
24b
c Subtract line 24b from line 24a .
24c
Value of employer-provided vehicle
25
(applies only if 100% of annual
lease value was included on Form
W-2—see instructions) . . . .
25
26
Add lines 23, 24c, and 25. . .
26
Multiply line 26 by the percentage
27
on line 14 . . . . . . . .
27
28
Depreciation (see instructions) .
28
Add lines 27 and 28. Enter total
29
here and on line 1 . . . . .
29
.
.
.
.
Section C—Actual Expenses
.
.
.
.
22
(b) Vehicle 2
2,168.
2,168.
1,394.
1,961.
3,355.
Section D—Depreciation of Vehicles (Use this section only if you owned the vehicle and are completing Section C for the vehicle.)
(a) Vehicle 1
30
Enter cost or other basis (see
instructions) . . . . . . .
30
31
Enter section 179 deduction and
special allowance (see instructions)
31
32
33
34
Multiply line 30 by line 14 (see
instructions if you claimed the
section 179 deduction or special
allowance). . . . . . . .
Enter depreciation method and
percentage (see instructions) .
on line 33 (see instructions) . .
35
36
Add lines 31 and 34 . . . .
Enter the applicable limit explained
in the line 36 instructions . . .
37
on line 14 . . . . . . . .
38
Enter the smaller of line 35 or line
37. If you skipped lines 36 and 37,
enter the amount from line 35.
Also enter this amount on line 28
above . . . . . . . . .
32
33
18,000.
11,570.
SL
20.00
2,314.
2,314.
34
35
36
(b) Vehicle 2
3,050.
1,961.
37
1,961.
38
REV 01/06/16 TTW
-7-
Form 2106 (2015)
SCHEDULE C
(Form 1040)
Profit or Loss From Business
OMB No. 1545-0074
2015
(Sole Proprietorship)
a Information about Schedule C and its separate instructions is at www.irs.gov/schedulec.
a Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.
Attachment
Sequence No. 09
Name of proprietor
Social security number (SSN)
A
Principal business or profession, including product or service (see instructions)
B Enter code from instructions
C
Business name. If no separate business name, leave blank.
D Employer ID number (EIN), (see instr.)
E
Business address (including suite or room no.)
John Borrower
000-00-0000
Computer Repair Service
a
Tech in a Sec
a
8 1 1 4 9 0
1400 W Commercial Ave
F
G
H
Jackson, TN 38305
City, town or post office, state, and ZIP code
Cash
(2)
Accrual
(3)
Other (specify) a
Accounting method:
(1)
Did you “materially participate” in the operation of this business during 2015? If “No,” see instructions for limit on losses
If you started or acquired this business during 2015, check here . . . . . . . . . . . . . . . . .
I
J
Did you make any payments in 2015 that would require you to file Form(s) 1099? (see instructions) .
If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . .
Part I
.
.
Income
.
.
.
.
.
.
.
.
.
.
.
Yes
No
Yes
Yes
No
No
a
.
.
2
3
Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . a
Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . .
4
5
6
Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . .
Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .
.
.
.
.
.
.
.
.
.
4
5
6
7
Gross income. Add lines 5 and 6 .
.
.
a
7
82,000.
28,000.
54,000.
3,500.
57,500.
8
Advertising .
50.
9
Car and truck expenses (see
instructions) . . . . .
Commissions and fees .
1
Part II
10
11
12
13
.
.
.
.
Contract labor (see instructions)
Depletion . . . . .
Depreciation and section 179
expense
deduction
(not
included in Part III) (see
14
Employee benefit programs
(other than on line 19) . .
Insurance (other than health)
15
16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Expenses. Enter expenses for business use of your home only on line 30.
8
9
10
1,000.
13
Office expense (see instructions)
18
19
20
Pension and profit-sharing plans .
Rent or lease (see instructions):
Vehicles, machinery, and equipment
19
20a
Other business property . . .
Repairs and maintenance . . .
Supplies (not included in Part III) .
20b
21
22
Taxes and licenses . . . . .
Travel, meals, and entertainment:
Travel . . . . . . . . .
23
24a
25
Deductible meals and
entertainment (see instructions) .
Utilities . . . . . . . .
24b
25
26
27a
b
Wages (less employment credits) .
Other expenses (from line 48) . .
Reserved for future use . . .
26
27a
27b
b
21
22
2,400.
23
24
a
14
15
.
2
3
18
a
11
12
.
1
b
1,000.
17
Interest:
Mortgage (paid to banks, etc.)
Other . . . . . .
Legal and professional services
28
Total expenses before expenses for business use of home. Add lines 8 through 27a .
.
.
.
.
.
a
28
29
30
Tentative profit or (loss). Subtract line 28 from line 7 .
.
.
.
.
.
.
29
a
b
16a
16b
3,800.
600.
17
.
.
.
.
.
.
.
.
.
.
.
. Use the Simplified
. . . . . . .
Net profit or (loss). Subtract line 30 from line 29.
• If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2.
(If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.
• If a loss, you must go to line 32.
32
2,000.
1,000.
1,650.
6,000.
800.
20,300.
37,200.
Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method (see instructions).
Simplified method filers only: enter the total square footage of: (a) your home:
and (b) the part of your home used for business:
Method Worksheet in the instructions to figure the amount to enter on line 30
31
.
82,000.
If you have a loss, check the box that describes your investment in this activity (see instructions).
• If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and
on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and
trusts, enter on Form 1041, line 3.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.
For Paperwork Reduction Act Notice, see the separate instructions.
BAA
-8-
}
}
REV 12/07/15 TTW
30
31
32a
32b
37,200.
All investment is at risk.
Some investment is not
at risk.
Schedule C (Form 1040) 2015
Page 2
Part III
Cost of Goods Sold (see instructions)
33
Method(s) used to
value closing inventory:
34
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . .
a
b
Cost
c
Lower of cost or market
Other (attach explanation)
Yes
.
No
35
Inventory at beginning of year. If different from last year’s closing inventory, attach explanation .
.
.
35
26,000.
36
Purchases less cost of items withdrawn for personal use
.
.
.
.
.
.
.
.
.
.
.
.
.
.
36
15,000.
37
Cost of labor. Do not include any amounts paid to yourself .
.
.
.
.
.
.
.
.
.
.
.
.
.
37
38
Materials and supplies
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
38
39
Other costs .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
39
40
Add lines 35 through 39 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
40
43,000.
41
Inventory at end of year .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
41
15,000.
42
Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 .
Part IV
.
.
.
2,000.
. . . . .
28,000.
42
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9
and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must
file Form 4562.
43
When did you place your vehicle in service for business purposes? (month, day, year)
44
Of the total number of miles you drove your vehicle during 2015, enter the number of miles you used your vehicle for:
a
a
b Commuting (see instructions)
Business
c Other
Yes
No
45
Was your vehicle available for personal use during off-duty hours?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
46
Do you (or your spouse) have another vehicle available for personal use?.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
47a
Do you have evidence to support your deduction?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
If “Yes,” is the evidence written?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
b
Part V
.
.
.
.
.
.
Other Expenses. List below business expenses not included on lines 8–26 or line 30.
Dues
100.
Laundry
400.
Casualty Loss
300.
48
Total other expenses. Enter here and on line 27a .
.
.
.
.
.
.
REV 12/07/15 TTW
-9-
.
.
.
.
.
.
.
.
.
48
800.
SCHEDULE D
(Form 1040)
OMB No. 1545-0074
Capital Gains and Losses
a
Attachment
Sequence No. 12
Name(s) shown on return
Part I
2015
a Attach to Form 1040 or Form 1040NR.
Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
a Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
000-00-0000
Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part I,
line 2, column (g)
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 1b .
1b Totals for all transactions reported on Form(s) 8949 with
Box A checked . . . . . . . . . . . . .
2 Totals for all transactions reported on Form(s) 8949 with
Box B checked . . . . . . . . . . . . .
Box C checked . . . . . . . . . . . . .
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . .
Part II
4
5
6
(
)
7
Long-Term Capital Gains and Losses—Assets Held More Than One Year
lines below.
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
(h) Gain or (loss)
Adjustments
Subtract column (e)
from column (d) and
Form(s) 8949, Part II, combine the result with
line 2, column (g)
column (g)
8a Totals for all long-term transactions reported on Form
5,000.
6,000.
Box D checked . . . . . . . . . . . . .
Box E checked . . . . . . . . . . . . .
Box F checked . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss)
from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . .
11
12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
12
13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . .
14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover
. . . . . . . . . . . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
For Paperwork Reduction Act Notice, see your tax return instructions. BAA
- 10 -
REV 12/09/15 TTW
-1,000.
14 (
15
)
-1,000.
Schedule D (Form 1040) 2015
Page 2
Part III
16
Summary
Combine lines 7 and 15 and enter the result
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
16
-1,000.
• If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line
14. Then go to line 17 below.
• If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete
line 22.
• If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form
1040NR, line 14. Then go to line 22.
17
Are lines 15 and 16 both gains?
Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.
18
Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions
a
18
19
Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . a
19
20
.
.
Are lines 18 and 19 both zero or blank?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Do not complete lines
21 and 22 below.
No. Complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21
and 22 below.
21
If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of:
• The loss on line 16 or
• ($3,000), or if married filing separately, ($1,500)
}
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
21 (
1,000. )
Note: When figuring which amount is smaller, treat both amounts as positive numbers.
22
Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42).
No. Complete the rest of Form 1040 or Form 1040NR.
REV 12/09/15 TTW
- 11 -
Attachment Sequence No. 12A
Form 8949 (2015)
Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side
Page 2
Social security number or taxpayer identification number
000-00-0000
Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your
broker and may even tell you which box to check.
Part II
Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term
transactions, see page 1.
Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported
to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line
8a; you aren't required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete
a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or
more of the boxes, complete as many forms with the same box checked as you need.
(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E) Long-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS
(F) Long-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
IBM
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
(e)
(h)
enter a code in column (f).
Cost or other basis.
Gain or (loss).
See the Note below See the separate instructions.
Subtract column (e)
and see Column (e)
from column (d) and
(f)
(g)
in the separate
combine the result
Code(s) from
instructions
with column (g)
Amount of
instructions
adjustment
(c)
Date sold or
disposed of
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
05/05/13 12/17/15
5,000.
6,000.
-1,000.
5,000.
6,000.
-1,000.
(b)
Date acquired
(Mo., day, yr.)
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
Schedule D, line 8b (if Box D above is checked), line 9 (if Box E
above is checked), or line 10 (if Box F above is checked) a
Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
Form 8949 (2015)
REV 12/07/15 TTW
- 12 -
SCHEDULE
SCHEDULEEE
(Form
(Form1040)
1040)
Department
Department
of of
thethe
Treasury
Treasury
Internal
Internal
Revenue
Revenue
Service
Service
(99)
(99)
Name(s)
Name(s)
shown
shown
onon
return
return
Supplemental
SupplementalIncome
Incomeand
andLoss
Loss
OMB
OMB
No.
No.
1545-0074
1545-0074
(From
(From
rental
rental
real
real
estate,
estate,
royalties,
royalties,
partnerships,
partnerships,
SS
corporations,
corporations,
estates,
estates,
trusts,
trusts,
REMICs,
REMICs,
etc.)
etc.)
aa
Attach
Attach
toto
Form
Form
1040,
1040,
1040NR,
1040NR,
oror
Form
Form
1041.
1041.
2015
2015
Attachment
Attachment
aa
Information
Information
about
about
Schedule
Schedule
EE
and
and
itsits
separate
separate
instructions
instructions
isis
atat
www.irs.gov/schedulee.
www.irs.gov/schedulee.
Sequence
Sequence
No.
No.
1313
Your
social
security
number
Your
social
security
number
John& &Ginny
GinnyBorrower
Borrower
John
IncomeororLoss
LossFrom
FromRental
RentalReal
RealEstate
Estateand
andRoyalties
Royalties
Part
PartI I Income
000-00-0000
000-00-0000
Note:
Note:If If
you
you
are
are
inin
the
the
business
business
ofof
renting
renting
personal
personal
property,
property,
use
use
Schedule
Schedule
CC
oror
C-EZ
C-EZ
(see
(see
instructions).
instructions).
If If
you
you
are
are
anan
individual,
individual,
report
report
farm
farm
rental
rental
income
income
oror
loss
loss
from
from
Form
Form
4835
4835
onon
page
page
2,2,
line
line
40.
40.
AADid
Didyou
youmake
makeany
anypayments
paymentsinin2015
2015that
thatwould
wouldrequire
requireyou
youtotofile
fileForm(s)
Form(s)1099?
1099?(see
(seeinstructions)
instructions)
Yes
Yes
No
No
BBIf If“Yes,”
“Yes,”did
didyou
youororwill
willyou
youfile
filerequired
requiredForms
Forms1099?
1099?
Yes
Yes
No
No
1a1a Physical
Physicaladdress
addressofofeach
eachproperty
property(street,
(street,city,
city,state,
state,ZIP
ZIPcode)
code)
AA 111
111State
StateStreet
StreetJackson
JacksonTN
TN38301
38301
BB 229
229N N9th
9thSt
StJackson
JacksonTN
TN38301
38301
CC 321
321Ridley
RidleyBlvd
BlvdMemphis
MemphisTN
TN38111
38111
Fair
FairRental
Rental
Personal
PersonalUse
Use
TypeofofProperty
Property 2 2 For
1b1b Type
Foreach
eachrental
rentalreal
realestate
estateproperty
propertylisted
listed
QJV
QJV
above,
above,report
reportthe
thenumber
numberofoffair
fairrental
rentaland
and
Days
Days
Days
Days
(fromlist
listbelow)
below)
(from
personal
personaluse
usedays.
days.Check
Checkthe
theQJV
QJVbox
box
365
365
00
AA 1 1
only
onlyif ifyou
youmeet
meetthe
therequirements
requirementstotofile
fileasas AA
a aqualified
qualifiedjoint
jointventure.
venture.See
Seeinstructions.
instructions.
BB 4 4
365
365
00
BB
CC 1 1
90
90
00
CC
Type
TypeofofProperty:
Property:
1 1Single
3 3Vacation/Short-Term
7 7Self-Rental
SingleFamily
FamilyResidence
Residence
Vacation/Short-TermRental
Rental 5 5Land
Land
Self-Rental
2 2Multi-Family
4 4Commercial
6 6Royalties
Multi-FamilyResidence
Residence
Commercial
Royalties
8 8Other
Other(describe)
(describe)
Income:
Properties:
AA
BB
Income:
Properties:
CC
4,000.
17,500.
17,500.
4,000.
6,200.
6,200.
3 3 Rents
Rentsreceived
received . . . . . . . . . . . . . . . . . . . . . . . . . .
33
4 4 Royalties
44
Royaltiesreceived
received. . . . . . . . . . . . . . . . . . . . . . . .
Expenses:
Expenses:
100.
100.
5 5 Advertising
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
Autoand
andtravel
travel(see
(seeinstructions)
instructions) . . . . . . . . . . . . . .
6 6 Auto
66
400.
400.
750.
750.
150.
150.
Cleaningand
andmaintenance
maintenance . . . . . . . . . . . . . . . . . .
7 7 Cleaning
77
Commissions. . . . . . . . . . . . . . . . . . . . . . . . . . .
8 8 Commissions.
88
Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 9 Insurance
99
50.
2,300.
2,300.
50.
300.
300.
Legaland
andother
otherprofessional
professionalfees
fees. . . . . . . . . . . . . .
1010 Legal
1010
Managementfees
fees . . . . . . . . . . . . . . . . . . . . . . . .
1111 Management
1111
5,300.
5,300.
4,400.
4,400.
Mortgageinterest
interestpaid
paidtotobanks,
banks,etc.
etc.(see
(seeinstructions)
instructions) 1212
1212 Mortgage
Otherinterest.
interest. . . . . . . . . . . . . . . . . . . . . . . . . . .
1313 Other
1313
Repairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1414 Repairs.
1414
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1515 Supplies
1515
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1616 Taxes
1616
350.
1,200.
1,200.
350.
1,200.
1,200.
2,500.
2,500.
Utilities
1717 Utilities
. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .
1717
2,000.
2,000.
2,500.
2,500.
1818 Depreciation
Depreciationexpense
expenseorordepletion
depletion. . . . . . . . . . . . . .
1818
HomeOwners
OwnersAssoc.
Assoc.Fees
Fees
Other(list)
(list)aa Home
1919 Other
1919
600.
600.
Totalexpenses.
expenses.Add
Addlines
lines5 5through
through1919. . . . . . . . . .
2020 Total
2020
14,050.
14,050.
1,500.
1,500.
8,550.
8,550.
Subtractline
line2020from
fromline
line3 3(rents)
(rents)and/or
and/or4 4(royalties).
(royalties).If If
2121 Subtract
resultisisa a(loss),
(loss),see
seeinstructions
instructionstotofind
findout
outif ifyou
youmust
must
result
-2,350.
-2,350.
3,450.
3,450.
fileForm
Form6198
6198 . . . . . . . . . . . . . . . . . . . . . . . . . .
file
2121
Deductiblerental
rentalreal
realestate
estateloss
lossafter
afterlimitation,
limitation,if ifany,
any,
2222 Deductible
) () (
2,350.
2,350.) () (
ononForm
Form8582
8582(see
(seeinstructions)
instructions) . . . . . . . . . . . . . .
2222 ( (
27,700.
27,700.
23a
23a Total
Totalofofallallamounts
amountsreported
reportedononline
line3 3forforallallrental
rentalproperties
properties . . . . . . . .
23a
23a
b b Total
amountsreported
reportedononline
line4 4forforallallroyalty
royaltyproperties
properties . . . . . . . .
23b
23b
9,700.
9,700.
amountsreported
reportedononline
line1212forforallallproperties
properties . . . . . . . . . . . .
23c
c c Total
23c
4,500.
4,500.
amountsreported
reportedononline
properties . . . . . . . . . . . .
23d
d d Total
23d
24,100.
24,100.
amountsreported
reportedononline
properties . . . . . . . . . . . .
23e
e e Total
23e
Income.Add
Addpositive
positiveamounts
amountsshown
shownononline
line21.
21.Do
Donot
notinclude
includeany
anylosses
losses . . . . . . . . . . . . . . 2424
2424 Income.
2525 Losses.
Losses.Add
Addroyalty
royaltylosses
lossesfrom
fromline
line2121and
andrental
rentalreal
realestate
estatelosses
lossesfrom
fromline
line22.
22.Enter
Entertotal
totallosses
losseshere
here 2525 ( (
Totalrental
rentalreal
realestate
estateand
androyalty
royaltyincome
incomeoror(loss).
(loss).Combine
Combinelines
lines2424and
and25.
25.Enter
Enterthe
theresult
resulthere.
here.
2626 Total
If IfParts
PartsII,II,III,III,IV,IV,and
andline
line4040ononpage
page2 2dodonot
notapply
applytotoyou,
you,also
alsoenter
enterthis
thisamount
amountononForm
Form1040,
1040,line
line
17,
17,ororForm
Form1040NR,
1040NR,line
line18.
18.Otherwise,
Otherwise,include
includethis
thisamount
amountininthe
thetotal
totalononline
line4141ononpage
page2 2
. . . . . . . . 2626
For
For
Paperwork
Paperwork
Reduction
Reduction
Act
Act
Notice,
Notice,
see
see
the
the
separate
separate
instructions.
instructions. BAA
BAA
- 13 -
REV
REV
12/23/15
12/23/15
TTW
TTW
2,500.
2,500.
) )
5,950.
5,950.
2,350.
2,350.) )
3,600.
3,600.
Schedule
Schedule
EE
(Form
(Form
1040)
1040)
2015
2015
Attachment Sequence No. 13
Page 2
Schedule E (Form 1040) 2015
Name(s) shown on return. Do not enter name and social security number if shown on other side.
000-00-0000
Caution. The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1.
Income or Loss From Partnerships and S Corporations
Part II
Note: If you report a loss from an at-risk activity for which
any amount is not at risk, you must check the box in column (e) on line 28 and attach Form 6198. See instructions.
27
Are you reporting any loss not allowed in a prior year due to the at-risk, excess farm loss, or basis limitations, a prior year
unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If
you answered “Yes,” see instructions before completing this section.
Yes
No
28
(b) Enter P for
partnership; S
for S corporation
(a) Name
A Tanglewood Realty
B Westchester Development, LLC
C Creative Network Design Systems
D
Passive Income and Loss
(f) Passive loss allowed
(attach Form 8582 if required)
A
B
C
D
29a
b
30
31
32
P
P
S
(g) Passive income
from Schedule K-1
(e) Check if
any amount is
not at risk
00-0000000
00-0000000
00-0000000
(h) Nonpassive loss
from Schedule K-1
(i) Section 179 expense
deduction from Form 4562
(j) Nonpassive income
from Schedule K-1
5,800.
2,000.
25,000.
Totals
5,800.
Totals
Add columns (g) and (j) of line 29a . . . . . . . . . . . . . . .
Add columns (f), (h), and (i) of line 29b . . . . . . . . . . . . .
Total partnership and S corporation income or (loss). Combine lines 30
result here and include in the total on line 41 below . . . . . . . . .
2,000.
. . .
. . .
and 31.
. . .
. .
. .
Enter
. .
.
.
the
.
Income or Loss From Estates and Trusts
33
30
31 (
27,000.
5,800. )
32
21,200.
(b) Employer
identification number
(a) Name
A
B
(c) Passive deduction or loss allowed
Totals
Totals
Add columns (d) and (f) of line 34a
Add columns (c) and (e) of line 34b
Total estate and trust income or
include in the total on line 41 below
Part IV
38
39
(d) Employer
identification
number
Nonpassive Income and Loss
21,000.
4,000.
Part III
A
B
34a
b
35
36
37
(c) Check if
foreign
partnership
(d) Passive income
from Schedule K-1
. .
. .
(loss).
. .
. . . . . . . .
. . . . . . . .
Combine lines 35 and
. . . . . . . .
(e) Deduction or loss
from Schedule K-1
. . . . .
. . . . .
36. Enter the
. . . . .
. .
. .
result
. .
. . .
. . .
here and
. . .
35
36 (
)
37
Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)—Residual Holder
(a) Name
(b) Employer identification
number
(c) Excess inclusion from
Schedules Q, line 2c
(see instructions)
(d) Taxable income (net loss)
from Schedules Q, line 1b
Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below
Part V
(f) Other income from
Schedule K-1
(e) Income from
Schedules Q, line 3b
39
Summary
40
41
Net farm rental income or (loss) from Form 4835. Also, complete line 42 below . . . . . .
Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17, or Form 1040NR, line 18 a
42
Reconciliation of farming and fishing income. Enter your gross
farming and fishing income reported on Form 4835, line 7; Schedule K-1
(Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code
V; and Schedule K-1 (Form 1041), box 14, code F (see instructions) . .
42
43
Reconciliation for real estate professionals. If you were a real estate
professional (see instructions), enter the net income or (loss) you reported
anywhere on Form 1040 or Form 1040NR from all rental real estate activities
in which you materially participated under the passive activity loss rules . .
43
REV 12/23/15 TTW
- 14 -
40
41
24,800.
Form
8582
Passive Activity Loss Limitations
a See
OMB No. 1545-1008
separate instructions.
a Attach
to Form 1040 or Form 1041.
a Information about Form 8582 and its instructions is available at www.irs.gov/form8582.
2015
Attachment
Sequence No. 88
Identifying number
Part I
2015 Passive Activity Loss
000-00-0000
Caution: Complete Worksheets 1, 2, and 3 before completing Part I.
Rental Real Estate Activities With Active Participation (For the definition of active
Special Allowance for Rental Real Estate Activities in the instructions.)
1a Activities with net income (enter the amount from Worksheet 1,
column (a)) . . . . . . . . . . . . . . . . . .
1a
b Activities with net loss (enter the amount from Worksheet 1, column
(b)) . . . . . . . . . . . . . . . . . . . . .
1b (
c Prior years unallowed losses (enter the amount from Worksheet 1,
1c (
column (c)) . . . . . . . . . . . . . . . . . .
d Combine lines 1a, 1b, and 1c . . . . . . . . . . . . . . . .
Commercial Revitalization Deductions From Rental Real Estate Activities
2a Commercial revitalization deductions from Worksheet 2, column (a) .
2a (
b Prior year unallowed commercial revitalization deductions from
2b (
Worksheet 2, column (b) . . . . . . . . . . . . . .
c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . .
All Other Passive Activities
column (a)) . . . . . . . . . . . . . . . . . .
3a
(b)) . . . . . . . . . . . . . . . . . . . . .
3b (
3c (
column (c)) . . . . . . . . . . . . . . . . . .
participation, see
3,450.
2,350. )
)
.
.
.
.
.
1d
.
1,100.
)
)
.
.
.
.
.
2c (
.
)
27,500.
0. )
)
.
.
.
.
.
.
3d
27,500.
4
Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with
your return; all losses are allowed, including any prior year unallowed losses entered on line 1c,
28,600.
2b, or 3c. Report the losses on the forms and schedules normally used . . . . . . . .
4
If line 4 is a loss and:
• Line 1d is a loss, go to Part II.
• Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III.
• Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15.
Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete
Part II or Part III. Instead, go to line 15.
Part II
5
6
7
8
9
10
Note: Enter all numbers in Part II as positive amounts. See instructions for an example.
Enter the smaller of the loss on line 1d or the loss on line 4 . . . . . . . . . . . .
6
Enter $150,000. If married filing separately, see instructions . .
Enter modified adjusted gross income, but not less than zero (see instructions)
7
Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9,
enter -0- on line 10. Otherwise, go to line 8.
Subtract line 7 from line 6 . . . . . . . . . . . . .
8
Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see instructions
Enter the smaller of line 5 or line 9 . . . . . . . . . . . . . . . . . . . .
If line 2c is a loss, go to Part III. Otherwise, go to line 15.
Part III
11
12
13
14
5
9
10
0.
Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities
Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions.
Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions
11
Enter the loss from line 4 . . . . . . . . . . . . . . . . . . . . . . . .
12
Reduce line 12 by the amount on line 10 . . . . . . . . . . . . . . . . . .
13
Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . .
14
Part IV
15
16
Special Allowance for Rental Real Estate Activities With Active Participation
Total Losses Allowed
Add the income, if any, on lines 1a and 3a and enter the total . . . . . . . . . . . .
Total losses allowed from all passive activities for 2015. Add lines 10, 14, and 15. See
instructions to find out how to report the losses on your tax return . . . . . . . . . . .
For Paperwork Reduction Act Notice, see instructions. BAA
REV 12/04/15 TTW
- 15 -
15
16
Form 8582 (2015)
651113
Final K-1
2015
Schedule K-1
(Form 1065)
Internal Revenue Service
Part III Partner’s Share of Current Year Income,
Deductions, Credits, and Other Items
1
For calendar year 2015, or tax
Code
year beginning
Net rental real estate income (loss)
3
Other net rental income (loss)
4
Guaranteed payments
00-0000000
5
Interest income
TANGLEWOOD REALTY
6a
Ordinary dividends
42 WILLOW BLVD
JACKSON
6b
Qualified dividends
Part I
A
B
Addr
City
Partnership’s employer identification number
Addr
Foreign transactions
17
Alternative minimum tax (AMT) items
Tax-exempt income and
nondeductible expenses
2,000
St
38305
Zip Code
Royalties
8
Net short-term capital gain (loss)
9a
Net long-term capital gain (loss)
000-00-0000
9b
Collectibles (28% ) gain (loss)
JOHN BORROWER
9c
Unrecaptured section 1250 gain
10
Net section 1231 gain (loss)
18
11
Other income (loss)
C
Check if this is a publicly traded partnership (PTP)
Information About the Partner
E
Partner’s identifying number
F
Partner’s name, address, city, state, and ZIP code
3412 W. SILVERWOOD DR
JACKSON
G
X General partner or LLC
TN
St
38305
Zip Code
member-manager
Limited partner or other LLC
member
Domestic partner
Foreign partner
H
X
I1
What type of entity is this partner?
I2
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
. . . . . . . . . . . . . . . . . .
J
Loss
Capital
K
.
.
$
Qualified nonrecourse financing
.
$
Recourse
.
$
.
$
Current year increase (decrease)
.
$
Withdrawals & distributions
.
.
$ (
.
.
$
.
.
.
.
.
.
.
.
.
12
Section 179 deduction
13
Other deductions
20 %
20 %
20 %
.
14
19
Distributions
20
Other information
.
Capital contributed during the year
Ending capital account .
Tax basis
Other (explain)
X
.
GAAP
Self-employment earnings (loss)
A
Partner’s capital account analysis:
Beginning capital account .
M
.
Partner’s share of liabilities at year end:
Nonrecourse
L
INDIVIDUAL
20 %
20 %
20 %
500
STMT
Partner’s share of profit, loss, and capital (see instructions):
Beginning
Ending
Profit
ISA
TN
IRS Center where partnership filed return
Part II
City
16
Partnership’s name, address, city, state, and ZIP code
D
Name
Credits
7
C
Name
Information About the Partnership
15
Code
41,300
2,400
(5,100)
$
)
38,600
Section 704(b) book
(3,800)
*See attached statement for additional information.
For IRS Use Only
Name
(5,800)
2
, 20
Partner’s Share of Income, Deductions,
See back of form and separate instructions.
Credits, etc.
Name
Ordinary business income (loss)
, 2015
ending
OMB No. 1545-0123
Amended K-1
Did the partner contribute property with a built-in gain or loss?
X No
Yes
If “Yes,” attach statement (see instructions)
For Paperwork Reduction Act Notice, see Instructions for Form 1065.
IRS.gov/form1065
- 16 -
Schedule K-1 (Form 1065) 2015
Schedule K-1 (Form 1065)
Line 18 – Nondeductible Expenses
Meals and entertainment
500
Total
500
STATEMENT
- 17 -
651113
Final K-1
2015
Schedule K-1
(Form 1065)
1
2
3
4
Guaranteed payments
00-0000000
5
Interest income
WESTCHESTER DEVELOPMENT, LLC
6a
Ordinary dividends
JACKSON
6b
Qualified dividends
Code
year beginning
, 20
Credits, etc.
Name
Addr
City
B
Addr
City
38305
Zip Code
Royalties
8
9a
000-00-0001
9b
GINNY BORROWER
9c
10
11
Other income (loss)
12
13
Other deductions
Part II
Name
St
D
Name
TN
E
F
JACKSON
G
TN
St
38305
Zip Code
member-manager
member
Domestic partner
Foreign partner
H
X
I1
I2
. . . . . . . . . . . . . . . . . .
J
50 %
50 %
50 %
Loss
Capital
K
.
.
$
.
$
Recourse
.
$
.
$
.
$
.
.
$ (
.
.
$
.
.
.
.
.
.
.
.
.
.
50 %
50 %
50 %
.
14
17
18
19
Distributions
20
Other information
.
Tax basis
.
GAAP
$
)
Section 704(b) book
Other (explain)
M
16
Nonrecourse
L
INDIVIDUAL
Beginning
Ending
Profit
ISA
21,000
7
C
Credits
For IRS Use Only
Name
A
15
Code
, 2015
ending
Part I
OMB No. 1545-0123
Amended K-1
X No
Yes
IRS.gov/form1065
- 18 -
671113
Schedule K-1
(Form 1120S)
2015
year beginning
, 20
Shareholder’s Share of Income, Deductions,
Credits, etc.
Part I
A
Information About the Corporation
Name
City
CREATIVE NETWORK DESIGN SYSTEMS
42000 N. EXECUTIVE DR
JACKSON
C
TN
St
38301
Zip Code
D
Name
Name
Addr
City
4
Interest income
6
Royalties
7
9
Shareholder’s name, address, city, state, and ZIP code
JACKSON
Shareholder’s percentage of stock
ownership for tax year . . . .
3
14
4,000
8c Unrecaptured section 1250 gain
Shareholder’s identifying number
JOHN BORROWER
F
Credits
8b Collectibles (28% ) gain (loss)
Information About the Shareholder
000-00-0000
E
2
13
Code
8a Net long-term capital gain (loss)
IRS Center where corporation filed return
Part II
5b Qualified dividends
Corporation’s name, address, city, state, and ZIP code
Name
Addr
1
5a Ordinary dividends
Corporation’s employer identification number
00-0000000
B
OMB No. 1545-0123
Amended K-1
Part III Shareholder’s Share of Current Year Income,
Code
, 2015
ending
Final K-1
TN
St
.
.
10
Other income (loss)
15
11
16
Items affecting shareholder basis
D
2,500
38305
Zip Code
.
50 %
Other deductions
For IRS Use Only
12
17
Other information
* See attached statement for additional information.
For Paperwork Reduction Act Notice, see Instructions for Form 1120S.
IRS.gov/form1120s
ISA
- 19 -
Schedule K-1 (Form 1120S) 2015
1065
U.S. Return of Partnership Income
Form
A Principal business activity
For calendar year 2015, or tax year beginning
B Principal product or service
Type
or
Print
C Business code number
H
I
J
, 20
2015
.
Information about Form 1065 and its separate instructions is at www.irs.gov/form1065.
Name of partnership
D Employer identification number
Number, street, and room or suite no. If a P.O. box, see the instructions.
E Date business started
City or town, state or province, country, and ZIP or foreign postal code
F Total assets (see the
instructions)
TANGLEWOOD REALTY
00-0000000
42 WILLOW BLVD
JACKSON, TN
G
OMB No. 1545-0123
, 2015, ending
01/01/2003
38305
364,300
$
Initial return (2)
Final return (3)
Name change (4)
Address change (5)
Technical termination - also check (1) or (2)
(6)
Other (specify)
Check accounting method: (1) X Cash
(2)
Accrual
(3)
Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year
Check applicable boxes:
(1)
Check if Schedules C and M-3 are attached
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Amended return
.
.
.
.
.
5
Deductions
(see the instructions for limitations)
Income
Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.
1a
b
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16a
b
17
18
19
20
21
22
Sign
Here
1a
Gross receipts or sales . . . . . . . . . . . . .
80,500
Returns and allowances . . . . . . . . . . . .
1b
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . .
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . .
Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . .
Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . .
Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . .
Other income (loss) (attach statement) . . . . . . . . . . . . . . . . .
Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . .
Salaries and wages (other than to partners) (less employment credits) . . . . . . .
Guaranteed payments to partners . . . . . . . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation (if required, attach Form 4562) . . . . . .
16a
16,000
Less depreciation reported on Form 1125-A and elsewhere on return 16b
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . .
Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . . . . . .
SEE STATEMENT 1
Other deductions (attach statement) . . . . . . . . . . . . . . . . . .
Total deductions. Add the amounts shown in the far right column for lines 9 through 20 .
Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . .
16c
17
18
19
20
21
22
16,000
80,500
80,500
40,000
10,000
13,000
6,000
1,000
21,000
2,500
109,500
(29,000)
May the IRS discuss this return with the
preparer shown below (see
instructions)?
Yes
No
Firm’s name
Firm’s address
V.I.P. TAX INC.
3 PEACHTREEE LANE, JACKSON, TN
For Paperwork Reduction Act Notice, see separate instructions.
ISA
80,500
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager)
is based on all information of which preparer has any knowledge.
Signature of general partner or limited liability company member manager
Paid
Preparer
Use Only
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
- 20 -
Date
Date
38305
Check
if
self-employed
Firm's EIN
Phone no.
PTIN
00-0000000
Form 1065 (2015)
Form 1065 (2015)
Schedule B
1
a
c
e
2
3
a
Page
2
Other Information
What type of entity is filing this return? Check the applicable box:
Domestic general partnership
b
Domestic limited partnership
Domestic limited liability company
d
Domestic limited liability partnership
Foreign partnership
f
Other
At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including
an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner),
or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yes
No
At the end of the tax year:
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit,
loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule
B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . .
b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of
the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information
on Partners Owning 50% or More of the Partnership
. . . . . . . . . . . . . . . . . . . .
4
a
At the end of the tax year, did the partnership:
Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of
stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see
instructions. If “Yes,” complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . .
(i) Name of Corporation
(ii) Employer Identification
Number (if any)
(iii) Country of
Incorporation
(iv) Percentage
Owned in Voting Stock
b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss,
or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial
interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . .
(i) Name of Entity
(ii) Employer
Identification
Number (if any)
(iii) Type of
Entity
(iv) Country of
Organization
(v) Maximum
Percentage Owned in
Profit, Loss, or Capital
Yes
5
No
Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under
section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for
more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
a
b
c
Does the partnership satisfy all four of the following conditions?
The partnership’s total receipts for the tax year were less than $250,000.
The partnership’s total assets at the end of the tax year were less than $1 million.
Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including
extensions) for the partnership return.
d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . .
If “Yes,” the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065;
or Item L on Schedule K-1.
7
Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . .
During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms
8
modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . .
Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
9
information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . .
10
At any time during calendar year 2015, did the partnership have an interest in or a signature or other authority over a financial
account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for
exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If “Yes,”
enter the name of the foreign country.
Form 1065 (2015)
- 21 -
Form 1065 (2015)
Schedule B
Page
Yes
11
3
Other Information (continued)
No
At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or
transferor to, a foreign trust? If “Yes,” the partnership may have to file Form 3520, Annual Return To Report
Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . .
12a
Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . .
See instructions for details regarding a section 754 election.
b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If “Yes,”
attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . .
c
13
14
15
16
17
Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a
substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section
734(d))? If “Yes,” attach a statement showing the computation and allocation of the basis adjustment. See instructions
Check this box if, during the current or prior tax year, the partnership distributed any property received in a
like-kind exchange or contributed such property to another entity (other than disregarded entities wholly
owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . .
At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other
undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . .
If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign
Disregarded Entities, enter the number of Forms 8858 attached. See instructions
Does the partnership have any foreign partners? If “Yes,” enter the number of Forms 8805, Foreign Partner’s
Information Statement of Section 1446 Withholding Tax, filed for this partnership.
Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached
to this return.
18a Did you make any payments in 2015 that would require you to file Form(s) 1099? See instructions . . . . .
b If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . .
Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign
19
Corporations, attached to this return.
20
Enter the number of partners that are foreign governments under section 892.
Designation of Tax Matters Partner (see instructions)
Enter below the general partner or member-manager designated as the tax matters partner (TMP) for the tax year of this return:
Name of
designated
TMP
Identifying
number of TMP
If the TMP is an
entity, name
of TMP representative
Phone number
of TMP
Address of
designated
TMP
Form 1065 (2015)
- 22 -
Form 1065 (2015)
Schedule K
1
2
3a
Income (Loss)
b
c
4
5
6
7
8
9a
Alternative
Other Information Minimum Tax
(AMT) Items
Foreign Transactions
Credits
SelfEmploy- Deductions
ment
b
c
10
11
12
13a
b
c
d
14a
b
c
15a
b
c
d
e
f
16a
b
c
d
g
i
l
m
n
17a
b
c
d
e
f
18a
b
c
19a
b
20a
b
c
Page
Partners’ Distributive Share Items
4
Total amount
Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . .
Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . .
3a
Other gross rental income (loss) . . . . . . . .
Expenses from other rental activities (attach statement)
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . .
Guaranteed payments
. . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
Dividends:
a Ordinary dividends . . . . . . . . . . . . . . . . .
. . . . . .
6b
b Qualified dividends
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . .
Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . .
Collectibles (28%) gain (loss) . . . . . . . . .
9b
Unrecaptured section 1250 gain (attach statement) . .
9c
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . .
Other income (loss) (see instructions) Type
Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . .
Contributions . . . . . . . . . . . . . . . . . . . . . . . .
Investment interest expense
. . . . . . . . . . . . . . . . . . .
(1) Type
Section 59(e)(2) expenditures:
(2) Amount
Other deductions (see instructions) Type
Net earnings (loss) from self-employment . . . . . . . . . . . . . . .
Gross farming or fishing income . . . . . . . . . . . . . . . . . .
Gross nonfarm income . . . . . . . . . . . . . . . . . . . . .
Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . .
Low-income housing credit (other)
. . . . . . . . . . . . . . . . .
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable)
Type
Other rental real estate credits (see instructions)
Type
Other rental credits (see instructions)
Other credits (see instructions)
Type
Name of country or U.S. possession
Gross income from all sources . . . . . . . . . . . . . . . . . . .
Gross income sourced at partner level . . . . . . . . . . . . . . . .
Foreign gross income sourced at partnership level
e General category
f Other
Passive category
Deductions allocated and apportioned at partner level
h Other . . . . . . . . . .
Interest expense
Deductions allocated and apportioned at partnership level to foreign source income
k Other
Passive category
j General category
Total foreign taxes (check one):
Paid
Accrued
. . . . . . . .
Reduction in taxes available for credit (attach statement) . . . . . . . . . .
Other foreign tax information (attach statement) . . . . . . . . . . . . .
Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . .
Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . .
Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . .
Oil, gas, and geothermal properties—gross income . . . . . . . . . . . .
Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . .
Other AMT items (attach statement) . . . . . . . . . . . . . . . . .
Tax-exempt interest income . . . . . . . . . . . . . . . . . . . .
Other tax-exempt income . . . . . . . . . . . . . . . . . . . .
SEE STATEMENT 1
Nondeductible expenses . . . . . . . . . . . . . . . . . . . . .
Distributions of cash and marketable securities . . . . . . . . . . . . .
Distributions of other property . . . . . . . . . . . . . . . . . . .
Investment income . . . . . . . . . . . . . . . . . . . . . . .
Investment expenses . . . . . . . . . . . . . . . . . . . . . .
Other items and amounts (attach statement) . . . . . . . . . . . . . .
1
2
3c
4
5
6a
(29,000)
10,000
7
8
9a
10
11
12
13a
13b
13c(2)
13d
14a
14b
14c
15a
15b
15c
15d
15e
15f
(19,000)
16b
16c
16f
16h
16k
16l
16m
17a
17b
17c
17d
17e
17f
18a
18b
18c
19a
19b
20a
20b
2,500
Form 1065 (2015)
- 23 -
Form 1065 (2015)
Page
5
Analysis of Net Income (Loss)
1
2
Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of
Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . .
1
Analysis by
(ii) Individual
(iii) Individual
(v) Exempt
(i) Corporate
(iv) Partnership
(active)
(passive)
Organization
partner type:
(19,000)
(vi)
Nominee/Other
a General partners
b Limited partners
Schedule L
1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19a
b
20
21
22
Assets
Cash . . . . . . . . . . . . .
Trade notes and accounts receivable . . .
Less allowance for bad debts . . . . .
Inventories . . . . . . . . . . .
U.S. government obligations . . . . .
Tax-exempt securities
. . . . . . .
Other current assets (attach statement) . .
Loans to partners (or persons related to partners)
Mortgage and real estate loans
. . . .
Other investments (attach statement) . . .
Buildings and other depreciable assets . .
Less accumulated depreciation . . . .
Depletable assets . . . . . . . . .
Less accumulated depletion
. . . . .
Land (net of any amortization) . . . . .
Intangible assets (amortizable only) . . .
Less accumulated amortization
. . . .
Other assets (attach statement) . . . .
Total assets . . . . . . . . . . .
Liabilities and Capital
Accounts payable . . . . . . . . .
2
Beginning of tax year
(a)
(b)
60,000
16,000
Other current liabilities (attach statement)
All nonrecourse loans . . . . . . .
425,000
131,200
.
.
Loans from partners (or persons related to partners)
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) .
Partners’ capital accounts . . .
Total liabilities and capital . . .
.
.
.
.
.
.
7,500
(d)
67,500
8,000
44,000
.
.
.
NONE
59,500
21,000
425,000
141,200
293,800
283,800
376,300
364,300
16,340
30,000
27,840
26,000
123,460
117,460
206,500
376,300
Reconciliation of Income (Loss) per Books With Income (Loss) per Return
193,000
364,300
Note. The partnership may be required to file Schedule M-3 (see instructions).
(25,500) 6 Income recorded on books this year not included
Net income (loss) per books . . . .
on Schedule K, lines 1 through 11 (itemize):
Income included on Schedule K, lines 1, 2, 3c,
5, 6a, 7, 8, 9a, 10, and 11, not recorded on
books this year (itemize):
3
Guaranteed payments (other than
health insurance) . . . . . . .
4
Expenses recorded on books this year
not included on Schedule K, lines 1
through 13d, and 16l (itemize):
a Depreciation $
b Travel and entertainment $
5
Add lines 1 through 4 . . .
a
7
a
8
9
2,500
(23,000)
Analysis of Partners’ Capital Accounts
Schedule M-2
1
Balance at beginning of year . . .
206,500 6
12,000
2
Capital contributed: a Cash
. . .
3
4
5
End of tax year
(c)
31,000
Mortgages, notes, bonds payable in less than 1 year
Schedule M-1
1
Balance Sheets per Books
2,500
.
b Property
Net income (loss) per books . .
Other increases (itemize):
Add lines 1 through 4 . . . .
.
.
.
.
.
.
.
.
(25,500)
193,000
Tax-exempt interest $
Deductions included on Schedule K, lines
1 through 13d, and 16l, not charged
against book income this year (itemize):
Depreciation $
6,000
Add lines 6 and 7 . . . . . . . .
Income (loss) (Analysis of Net Income
(Loss), line 1). Subtract line 8 from line 5 .
.
.
.
.
.
.
.
.
7
Distributions: a Cash
. .
b Property .
Other decreases (itemize):
8
9
Add lines 6 and 7 .
.
.
.
.
Balance at end of year. Subtract line 8 from line 5
- 24 -
.
.
.
6,000
6,000
(29,000)
193,000
Form 1065 (2015)
Form 1065, Page 1 Detail
Line 20 – Other deductions
2,500
Total
2,500
Line 18c – Nondeductible Expenses
2,500
Total
2,500
STATEMENT 1
- 25 -
1065
Form
H
I
J
, 20
2015
.
Type
or
Print
Name of partnership
instructions)
00-0000000
3412 WEST SILVERWOOD DR
JACKSON, TN
G
OMB No. 1545-0123
, 2015, ending
05/20/2012
38305
$
(1)
Initial return (2)
Final return (3)
Name change (4)
Address change (5)
(6)
Other (specify)
(2)
Accrual
(3)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Amended return
.
.
.
.
.
2
Deductions
Income
1a
b
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16a
b
17
18
19
20
21
22
Sign
Here
1a
1b
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16a
16c
17
18
19
20
21
22
instructions)?
Yes
No
Paid
Preparer
Use Only
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Firm’s name
Firm’s address
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN
ISA
- 26 -
Date
Date
38305
Check
if
self-employed
Firm's EIN
Phone no.
PTIN
00-0000000
Form 1065 (2015)
Form 1065 (2015)
Schedule B
1
a
c
e
2
3
a
Page
2
Other Information
b
d
Foreign partnership
f
Other
Yes
No
. . . . . . . . . . . . . . . . . . . .
4
a
Number (if any)
(iii) Country of
Incorporation
(iv) Percentage
(i) Name of Entity
(ii) Employer
Identification
Number (if any)
(iii) Type of
Entity
(iv) Country of
Organization
(v) Maximum
Percentage Owned in
Yes
5
No
more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
a The partnership’s total receipts for the tax year were less than $250,000.
b The partnership’s total assets at the end of the tax year were less than $1 million.
c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including
7
8
9
10
Form 1065 (2015)
- 27 -
Form 1065 (2015)
Schedule B
Page
Yes
11
3
No
12a
c
13
14
15
16
17
to this return.
19
20
Name of
designated
TMP
Identifying
number of TMP
If the TMP is an
entity, name
Phone number
of TMP
Address of
designated
TMP
Form 1065 (2015)
- 28 -
Form 1065 (2015)
Schedule K
1
2
3a
Income (Loss)
b
c
4
5
6
7
8
9a
Alternative
(AMT) Items
Credits
ment
b
c
10
11
12
13a
b
c
d
14a
b
c
15a
b
c
d
e
f
16a
b
c
d
g
i
l
m
n
17a
b
c
d
e
f
18a
b
c
19a
b
20a
b
c
Page
4
Total amount
3a
3b
Guaranteed payments
. . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
Dividends:
. . . . . .
6b
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
9b
9c
Contributions . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
(1) Type
(2) Amount
. . . . . . . . . . . . . . . . .
Type
Type
Type
e General category
f Other
Passive category
h Other . . . . . . . . . .
Interest expense
k Other
Passive category
j General category
Paid
Accrued
. . . . . . . .
1
2
42,000
3c
4
5
6a
7
8
9a
10
11
12
13a
13b
13c(2)
13d
14a
14b
14c
15a
15b
15c
15d
15e
15f
16b
16c
16f
16h
16k
16l
16m
17a
17b
17c
17d
17e
17f
18a
18b
18c
19a
19b
20a
20b
Form 1065 (2015)
- 29 -
Form 1065 (2015)
Page
5
1
2
1
Analysis by
(ii) Individual
(iii) Individual
(v) Exempt
(i) Corporate
(iv) Partnership
(active)
(passive)
Organization
partner type:
42,000
(vi)
Nominee/Other
a General partners
b Limited partners
Schedule L
1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19a
b
20
21
22
Assets
Cash . . . . . . . . . . . . .
Inventories . . . . . . . . . . .
. . . . . . .
. . . .
. . . . .
. . . .
Total assets . . . . . . . . . . .
2
.
.
.
(d)
.
.
.
.
.
.
.
.
42,000 6 Income recorded on books this year not included
4
a Depreciation $
5
Schedule M-2
3
4
5
End of tax year
(c)
3
1
2
(a)
(b)
Schedule M-1
1
a
7
a
42,000
. . .
Balance at beginning of year .
.
b Property
.
.
.
.
.
.
.
.
.
.
Depreciation $
8
9
Add lines 6 and 7 . . . . . . . .
6
.
.
.
.
.
.
.
.
7
. .
b Property .
8
9
Add lines 6 and 7 .
.
.
.
.
- 30 -
.
.
.
42,000
Form 1065 (2015)


  
       
    

  


  
   
        
   
  
00-0000000
                      
               
Ð¸§·½¿´ ¿¼¼®» ±º »¿½¸ °®±°»®¬§¬®»»¬ô ½·¬§ô
Ì§°»Û²¬»® ½±¼» ïóèå
  
  
  
    
321 Sunview Terrace,
Memphis, TN 38111
1
365
0





   
        













   
       
       
    
      
       
    
        
        

       
        
      
  
 



57,200












700


600
1,100
5,800
4,200
400
2,400



    
       
    
      

15,200

42,000
                      
                    
                  
                           
               
                 

 
57,200
15,200 


                 
       
 

   
               
         
      

42,000
  
        

- 31 -
Form
4562
Depreciation and Amortization
OMB No. 1545-0172
(Including Information on Listed Property)
Attach to your tax return.
Information about Form 4562 and its separate instructions is at www.irs.gov/ form4562.
Identifying number
Business or activity to which this form relates
321 SUNVIEW TERRACE
Part I
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1
2
3
4
5
Maximum amount (see instructions) . . . . . . . . . . . . . . . . . .
Total cost of section 179 property placed in service (see instructions) . . . . . .
Threshold cost of section 179 property before reduction in limitation (see instructions) .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . .
Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If
separately, see instructions . . . . . . . . . . . . . . . . . . . .
6
(a) Description of property
(b) Cost (business use only)
. . .
. . .
. . .
. . .
married
. . .
00-0000000
. .
. .
. .
. .
filing
. .
(c) Elected cost
7 Listed property. Enter the amount from line 29 . . . . . . . . .
7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
. . . . . .
9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . .
10 Carryover of disallowed deduction from line 13 of your 2014 Form 4562 . . . . . . . . . . .
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . .
13
13 Carryover of disallowed deduction to 2016. Add lines 9 and 10, less line 12
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
Part II
Attachment
Sequence No. 179
1
2
3
4
5
8
9
10
11
12
Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . .
15 Property subject to section 168(f)(1) election .
16 Other depreciation (including ACRS) . . .
.
.
.
.
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.
.
.
.
.
.
.
.
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.
Part III MACRS Depreciation (Do not include listed property.) (See instructions.)
.
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.
.
.
.
.
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.
14
15
16
Section A
17
17 MACRS deductions for assets placed in service in tax years beginning before 2015 . . . . . . .
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here . . . . . . . . . . . . . . . . . . . . . .
Section B—Assets Placed in Service During 2015 Tax Year Using the General Depreciation System
(a) Classification of property
(b) Month and year
placed in
service
(c) Basis for depreciation
(business/investment use
only—see instructions)
19a
b
c
d
e
f
g
h
3-year property
5-year property
7-year property
10-year property
15-year property
20-year property
25-year property
Residential rental
property
i Nonresidential real
property
5,600
(d) Recovery
period
(e) Convention
(f) Method
7.0
HY
S/L
MM
MM
MM
MM
S/L
S/L
S/L
S/L
S/L
25 yrs.
27.5 yrs.
27.5 yrs.
39 yrs.
2,000
(g) Depreciation deduction
400
Section C—Assets Placed in Service During 2015 Tax Year Using the Alternative Depreciation System
S/L
20a Class life
12 yrs.
S/L
b 12-year
40 yrs.
MM
S/L
c 40-year
Part IV Summary (See instructions.)
21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . .
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions .
23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs
. . . . . . .
23
ISA
- 32 -
21
22
2,400
Form 4562 (2015)
Form
1120S
U.S. Income Tax Return for an S Corporation
For calendar year 2015 or tax year beginning
A S election effective date
, 2015, ending
2015
, 20
Name
TYPE
B Business activity code
number (see instructions)
OMB No. 1545-0123
Do not file this form unless the corporation has filed or is
attaching Form 2553 to elect to be an S corporation.
Information about Form 1120S and its separate instructions is at www.irs.gov/form1120s.
OR
PRINT
09/01/2005
F Total assets (see instructions)
JACKSON, TN
C Check if Sch. M-3 attached
00-0000000
E Date incorporated
Number, street, and room or suite no. If a P.O. box, see instructions.
38301
101,000
$
Yes
No
If “Yes,” attach Form 2553 if not already filed
G Is the corporation electing to be an S corporation beginning with this tax year?
(4)
(3)
(5)
Name change
Address change
S election termination or revocation
Final return (2)
Amended return
H Check if: (1)
I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . .
Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.
1a
. . . . . . . . . . . . . .
1a
210,000
. . . . . . . . . . . . . .
1b
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . .
Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . .
Other income (loss) (see instructions—attach statement) . . . . . . . . . . . .
Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . .
Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . .
Bad debts
. . . . . . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . .
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 7 through 19
. . . . . . . . . . . . . . . .
Ordinary business income (loss). Subtract line 20 from line 6 . . . . . . . . . .
Excess net passive income or LIFO recapture tax (see instructions) . . 22a
Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b
Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . .
2015 estimated tax payments and 2014 overpayment credited to 2015 23a
Tax deposited with Form 7004 . . . . . . . . . . . . 23b
Credit for federal tax paid on fuels (attach Form 4136) . . . . . 23c
Add lines 23a through 23c
. . . . . . . . . . . . . . . . . . . . .
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . .
Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed .
Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid .
Enter amount from line 26 Credited to 2016 estimated tax
Refunded
Gross receipts or sales .
Tax and Payments
Deductions (see instructions for limitations)
Income
b Returns and allowances
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 a
b
c
23 a
b
c
d
24
25
26
27
Sign
Here
.
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
.
22c
.
23d
24
25
26
27
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210,000
210,000
210,000
146,000
8,000
24,000
2,000
10,000
4,000
8,000
202,000
8,000
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
May the IRS discuss this return
with the preparer shown below
(see instructions)?
Paid
Preparer
Use Only
Date
Signature of officer
Print/Type preparer's name
Firm's name
Firm's address
V.I.P TAX INC.
3 PEACHTREE LANE, JACKSON, TN 38305
ISA
- 33 -
Yes
Title
Preparer's signature
Date
Check
if
self-employed
Firm's EIN
Phone no.
No
PTIN
00-0000000
Form 1120S (2015)
Form 1120S (2015)
Schedule B
1
2
3
4
Page
2
Other Information (see instructions)
a
c
See the instructions and enter the:
a Business activity
Check accounting method:
Cash
b
Other (specify)
Yes No
Accrual
b Product or service
At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a
nominee or similar person? If "Yes," attach Schedule B-1, Information on Certain Shareholders of an S Corporation . .
At the end of the tax year, did the corporation:
a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any
foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v)
below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ii) Employer Identification Number
(if any)
(iii) Country of
Incorporation
(iv) Percentage of Stock
Owned
(v) If Percentage in (iv) is 100%, Enter the
Date (if any) a Qualified Subchapter S
Subsidiary Election Was Made
b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or
capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a
trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . .
(i) Name of Entity
(if any)
(iii) Type of Entity
(iv) Country of
Organization
(v) Maximum Percentage Owned in Profit,
Loss, or Capital
5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . .
If “Yes,” complete lines (i) and (ii) below.
(i)
Total shares of restricted stock. . . . . . . . . .
(ii) Total shares of non-restricted stock . . . . . . . .
b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?
.
.
(i)
Total shares of stock outstanding at the end of the tax year
(ii) Total shares of stock outstanding if all instruments were executed
6
7
Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
information on any reportable transaction?
. . . . . . . . . . . . . . . . . . . . . . . .
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . .
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount
Instruments.
If the corporation: (a) was a C corporation before it elected to be an S corporation or the corporation acquired an
asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in
the hands of a C corporation and (b) has net unrealized built-in gain in excess of the net recognized built-in gain
from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see
$
instructions) . . . . . . . . . . . . . . .
$
9
Enter the accumulated earnings and profits of the corporation at the end of the tax year.
10
Does the corporation satisfy both of the following conditions?
a The corporation’s total receipts (see instructions) for the tax year were less than $250,000 . . . . . . . . . .
b The corporation’s total assets at the end of the tax year were less than $250,000
. . . . . . . . . . . .
If “Yes,” the corporation is not required to complete Schedules L and M-1.
8
11
During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had
terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . .
If “Yes,” enter the amount of principal reduction $
12
During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions
13 a Did the corporation make any payments in 2015 that would require it to file Form(s) 1099? . . . . . . . . .
b If “Yes,” did the corporation file or will it file required Forms 1099? . . . . . . . . . . . . . . . .
the
.
.
.
.
Form 1120S (2015)
- 34 -
Form 1120S (2015)
Credits
Deductions
Income (Loss)
Schedule K
3a
Other gross rental income (loss) . . . . . . . . . .
. .
3b
Interest income . . . . . . . . . . . . . . . . . . . . . . .
Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . .
b Qualified dividends . . . . . . . . . .
5b
6
Royalties . . . . . . . . . . . . . . . . . . . . . . . . .
7
Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . .
8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . .
b Collectibles (28%) gain (loss) . . . . . . . . . . .
8b
c Unrecaptured section 1250 gain (attach statement) . . . .
8c
9
10
Other income (loss) (see instructions) . . Type
11
12a Charitable contributions . . . . . . . . . . . . . . . . . . . .
b Investment interest expense . . . . . . . . . . . . . . . . . . .
c Section 59(e)(2) expenditures (1) Type
(2) Amount
d Other deductions (see instructions) . . .
Type
13a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . .
b Low-income housing credit (other) . . . . . . . . . . . . . . . . .
c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) .
d Other rental real estate credits (see instructions) Type
e Other rental credits (see instructions) . . . Type
Alternative
Minimum Tax
(AMT) Items
Biofuel producer credit (attach Form 6478)
Other credits (see instructions) . . . .
.
.
3
Total amount
1
2
3a
b
c
4
5
f
g
14a
b
c
Items Affecting
Shareholder
Basis
Page
Shareholders’ Pro Rata Share Items
. . .
Type
.
.
.
.
.
.
1
2
.
.
.
3c
4
5a
.
.
.
6
7
8a
.
9
10
11
12a
12b
.
.
.
8,000
12c(2)
.
.
.
12d
13a
13b
13c
13d
13e
13f
13g
.
.
.
.
Gross income from all sources . . . . . . . . . . . . . . . .
Gross income sourced at shareholder level . . . . . . . . . . . .
Foreign gross income sourced at corporate level
d Passive category
. . . . . . . . . . . . . . . . . . . .
e General category
. . . . . . . . . . . . . . . . . . . .
f Other (attach statement) . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at shareholder level
g Interest expense . . . . . . . . . . . . . . . . . . . . .
h Other . . . . . . . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at corporate level to foreign source income
i Passive category
. . . . . . . . . . . . . . . . . . . .
j General category
. . . . . . . . . . . . . . . . . . . .
k Other (attach statement) . . . . . . . . . . . . . . . . . .
Other information
l Total foreign taxes (check one):
Paid
Accrued . . . . . . .
m Reduction in taxes available for credit (attach statement) . . . . . . . .
n Other foreign tax information (attach statement)
15a Post-1986 depreciation adjustment . . . . . . . . . . . . . . .
b Adjusted gain or loss . . . . . . . . . . . . . . . . . . .
c Depletion (other than oil and gas)
. . . . . . . . . . . . . . .
d Oil, gas, and geothermal properties—gross income . . . . . . . . . .
e Oil, gas, and geothermal properties—deductions . . . . . . . . . . .
f Other AMT items (attach statement) . . . . . . . . . . . . . . .
16a Tax-exempt interest income . . . . . . . . . . . . . . . . .
b Other tax-exempt income . . . . . . . . . . . . . . . . . .
c Nondeductible expenses . . . . . . . . . . . . . . . . . .
d Distributions (attach statement if required) (see instructions) . . . . . . .
e Repayment of loans from shareholders . . . . . . . . . . . . . .
.
.
.
.
.
.
14b
14c
.
.
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.
14d
14e
14f
.
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.
14g
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14i
14j
14k
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14l
14m
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15a
15b
15c
15d
15e
15f
16a
16b
16c
16d
16e
- 35 -
.
.
.
14h
5,000
Form 1120S (2015)
Form 1120S (2015)
ReconOther
ciliation Information
Schedule K
Page
17a
b
c
d
Investment income . . . . . . . . . . . . . . .
Investment expenses . . . . . . . . . . . . . .
Dividend distributions paid from accumulated earnings and profits
Other items and amounts (attach statement)
18
Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right
column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14l
Schedule L
.
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.
17a
17b
17c
.
.
.
Assets
(a)
1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15
Cash . . . . . . . . . . . .
Trade notes and accounts receivable . .
Inventories
. . . . . . . . . .
Tax-exempt securities (see instructions) .
Loans to shareholders . . . . . . .
Mortgage and real estate loans . . . .
Other investments (attach statement) . .
Depletable assets . . . . . . . .
Less accumulated depletion . . . . .
Less accumulated amortization . . . .
Total assets . . . . . . . . . .
Liabilities and Shareholders’ Equity
16
17
18
19
20
21
22
23
24
25
26
27
Other current liabilities (attach statement) . .
Loans from shareholders . . . . . . .
Other liabilities (attach statement) . . . .
Capital stock . . . . . . . . . . .
Additional paid-in capital . . . . . . .
Retained earnings . . . . . . . . .
Adjustments to shareholders’ equity (attach statement)
Less cost of treasury stock . . . . . .
Total liabilities and shareholders’ equity
. .
.
.
.
.
.
.
.
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.
.
.
.
.
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.
.
.
.
(
(c)
2,000
5,000
5,000 (
)
18
End of tax year
(b)
3,000
9,716
9,716
)
132,000
44,000 )
88,000 (
132,284
44,000 )
(
)
(
)
(
)
(
)
(
8,000
(d)
(
88,284
95,000
101,000
12,000
2,000
50,000
31,000
17,000
2,000
50,000
32,000
)
95,000
- 36 -
4
Total amount
Shareholders’ Pro Rata Share Items (continued)
(
)
101,000
Form 1120S (2015)
Form 1120S (2015)
Schedule M-1
Page
5
Note: The corporation may be required to file Schedule M-3 (see instructions)
1
Net income (loss) per books
2
Income included on Schedule K, lines 1, 2, 3c, 4,
5a, 6, 7, 8a, 9, and 10, not recorded on books this
year (itemize)
3
Expenses recorded on books this year not
included on Schedule K, lines 1 through 12 and
14l (itemize):
Depreciation $
Travel and entertainment $
2,000
a
b
4
Add lines 1 through 3
Schedule M-2
.
.
.
.
.
.
.
.
.
.
.
.
.
.
a Tax-exempt interest $
6 Deductions included on Schedule K,
lines 1 through 12 and 14l, not charged
a Depreciation $
2,000 7 Add lines 5 and 6 . . . . .
8,000 8 Income (loss) (Schedule K, line 18). Line 4 less line 7
Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’
Undistributed Taxable Income Previously Taxed (see instructions)
(a) Accumulated
adjustments account
1
2
3
4
5
6
7
8
NONE
8,000
(b) Other adjustments
account
31,000
8,000
Balance at beginning of tax year . . . . .
Ordinary income from page 1, line 21 . . .
Other additions . . . . . . . . . .
(
Loss from page 1, line 21 . . . . . . .
(
Other reductions . . . . . . . . . .
Combine lines 1 through 5 . . . . . . .
Distributions other than dividend distributions
Balance at end of tax year. Subtract line 7 from line 6
(c) Shareholders’ undistributed
taxable income previously taxed
NONE
)
2,000 ) (
37,000
5,000
32,000
- 37 -
)
NONE
NONE
NONE
NONE
Form 1120S (2015)
1120
U.S. Corporation Income Tax Return
Form
A Check if:
1a Consolidated return
(attach Form 851)
.
b Life/nonlife consolidated return .
.
.
2 Personal holding co.
(attach Sch. PH) .
.
3 Personal service corp.
(see instructions) .
Income
Deductions (See instructions for limitations on deductions.)
2015
, 20
B Employer identification number
Name
INTERIOR INNOVATIONS, INCORPORATED
00-0000000
TYPE
OR
PRINT 1000 HEAVEN'S WAY
.
4 Schedule M-3 attached
Tax, Refundable Credits, and
Payments
OMB No. 1545-0123
, 2015, ending
C Date incorporated
01/31/2004
D Total assets (see instructions)
City or town, state, or province, country, and ZIP or foreign postal code
JACKSON, TN 38301
259,736
$
Initial return
E Check if: (1)
Final return
(2)
Name change
(3)
(4)
Address change
534,000
1a
.
.
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.
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.
.
.
1a
b
c
2
3
4
Returns and allowances . . . . . .
Balance. Subtract line 1b from line 1a
.
Cost of goods sold (attach Form 1125-A) .
Gross profit. Subtract line 2 from line 1c .
Dividends (Schedule C, line 19)
. . .
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1b
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.
1c
2
3
4
5
6
7
Interest
. .
Gross rents .
Gross royalties
.
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.
.
5
6
7
8
9
10
Capital gain net income (attach Schedule D (Form 1120)) . . . .
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see instructions—attach statement) . . . . . .
.
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8
9
10
11
12
13
Total income. Add lines 3 through 10 . . . . . . . .
Compensation of officers (see instructions—attach Form 1125-E)
.
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credits)
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14
15
16
Salaries and wages (less employment
Bad debts . . . . . . . .
Rents . . . . . . . . .
11
12
13
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14
15
16
17
18
19
Taxes and licenses . .
Interest
. . . . .
Charitable contributions .
.
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.
17
18
19
20
21
22
Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) .
Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advertising
. . . . . . . . . . . . . . . . . . . . . . . . . . .
.
.
.
20
21
22
23
24
25
23
24
25
26
27
28
Pension, profit-sharing, etc., plans
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
Domestic production activities deduction (attach Form 8903) . . . . . . . . . . . . . .
SEE STATEMENT 1
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . .
Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11.
29a
b
Net operating loss deduction (see instructions) .
Special deductions (Schedule C, line 20) . . .
.
.
.
.
.
.
.
.
.
.
c
30
Add lines 29a and 29b . . . . . . . . . . . . .
Taxable income. Subtract line 29c from line 28 (see instructions)
.
.
.
.
.
.
.
.
.
.
.
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.
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.
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.
.
.
.
29c
30
31
32
33
34
35
Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . .
Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . .
Estimated tax penalty (see instructions). Check if Form 2220 is attached
. . . . .
Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
.
31
32
33
34
Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid
Enter amount from line 35 you want: Credited to 2016 estimated tax
.
. . . .
Refunded
35
36
36
Sign
Here
.
.
.
.
.
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26
27
28
29a
29b
.
.
.
.
534,000
390,000
144,000
144,000
54,000
40,000
1,000
1,200
7,200
100
7,000
1,000
3,000
1,800
1,700
118,000
26,000
26,000
3,900
2,400
NONE
1,500
NONE
NONE
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,
and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Date
Paid
Preparer
Use Only
Firm’s name
Firm's address
(see instructions)?
Yes
No
Title
V.I.P. TAX INC.
3 PEACHTREE LANE, JACKSON, TN 38305
ISA
- 38 -
Date
Check
if
self-employed
Firm's EIN
Phone no.
PTIN
00-0000000
Form 1120 (2015)
Page 2
Form 1120 (2015)
Schedule C
Dividends and Special Deductions (see instructions)
(a) Dividends
received
(b) %
1
Dividends from less-than-20% -owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
70
2
Dividends from 20% -or-more-owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
80
3
Dividends on debt-financed stock of domestic and foreign corporations .
.
.
.
.
4
Dividends on certain preferred stock of less-than-20% -owned public utilities
.
.
.
42
5
Dividends on certain preferred stock of 20% -or-more-owned public utilities .
.
.
.
48
6
Dividends from less-than-20% -owned foreign corporations and certain FSCs
.
.
.
70
7
Dividends from 20% -or-more-owned foreign corporations and certain FSCs
.
.
.
80
8
Dividends from wholly owned foreign subsidiaries
100
9
.
.
.
Total. Add lines 1 through 8. See instructions for limitation
.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
see
instructions
10
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 . . . . .
100
11
Dividends from affiliated group members .
.
.
.
.
.
.
.
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.
100
12
Dividends from certain FSCs
.
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.
100
13
Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12
.
.
.
14
Income from controlled foreign corporations under subpart F (attach Form(s) 5471)
15
Foreign dividend gross-up
.
.
.
.
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.
16
IC-DISC and former DISC dividends not included on lines 1, 2, or 3
.
.
.
.
.
.
17
Other dividends
.
.
.
.
.
.
18
Deduction for dividends paid on certain preferred stock of public utilities
.
.
.
.
19
Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 .
.
.
20
Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b .
.
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- 39 -
(c) Special deductions
(a) × (b)
.
.
.
.
.
.
.
Form 1120 (2015)
Page 3
Form 1120 (2015)
Schedule J
Tax Computation and Payment (see instructions)
Part I–Tax Computation
1
2
3
Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) .
Income tax. Check if a qualified personal service corporation (see instructions)
. . . .
Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
4
5a
b
Add lines 2 and 3 . . . . . . . .
Foreign tax credit (attach Form 1118) . .
Credit from Form 8834 (see instructions) .
.
.
.
.
.
3
4
.
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6
7
. .
9a
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8
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.
.
.
General business credit (attach Form 3800) . . .
Credit for prior year minimum tax (attach Form 8827)
Bond credits from Form 8912 . . . . . . .
.
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6
7
Total credits. Add lines 5a through 5e
Subtract line 6 from line 4 . . . .
.
.
.
.
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.
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.
.
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8
9a
Personal holding company tax (attach Schedule PH (Form 1120)) .
Recapture of investment credit (attach Form 4255) . . . . .
.
.
.
.
.
.
.
.
.
.
.
b
Recapture of low-income housing credit (attach Form 8611)
.
.
.
.
.
c
Interest due under the look-back method—completed long-term contracts (attach
Form 8697) . . . . . . . . . . . . . . . . . . . . . .
9c
d
Interest due under the look-back method—income forecast method
8866) . . . . . . . . . . . . . . . . . . .
Alternative tax on qualifying shipping activities (attach Form 8902)
.
Other (see instructions—attach statement) . . . . . . . .
9d
9e
9f
c
d
e
e
f
.
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(attach
. .
. .
. .
.
. .
5a
5b
3,900
2
3,900
5c
5d
5e
.
.
3,900
9b
Form
. .
. .
. .
10
11
Total. Add lines 9a through 9f . . . . . . . . . . . .
Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 .
.
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10
11
3,900
12
13
2014 overpayment credited to 2015
2015 estimated tax payments . .
.
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.
12
13
14
15
16
2015 refund applied for on Form 4466 .
Combine lines 12, 13, and 14 . . .
Tax deposited with Form 7004 . . .
.
.
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14 (
2,400
15
16
17
18
Withholding (see instructions) . . . .
Total payments. Add lines 15, 16, and 17
.
.
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.
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.
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17
18
19
Refundable credits from:
Form 2439 . . . . .
2,400
.
.
.
.
.
.
.
.
.
.
.
.
.
20
Form 4136 . . . . . . . . . .
Form 8827, line 8c
. . . . . . .
Other (attach statement—see instructions).
Total credits. Add lines 19a through 19d .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
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.
.
.
19a
19b
19c
19d
. . .
21
Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 .
20
21
2,400
Part II–Payments and Refundable Credits
a
b
c
d
Schedule K
.
.
.
.
1
Check accounting method: a
2
Business activity code no.
5700
Business activity
RETAIL TRADE
a
b
c
Product or service
Cash
b
Accrual
c
FURNITURE
.
.
.
.
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.
.
Other (specify)
3
Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group?
If “Yes,” enter name and EIN of the parent corporation
4
Yes
.
.
.
.
.
.
.
.
)
2,400
.
X
.
a
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt
organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the
corporation’s stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . .
b
Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all
classes of the corporation’s stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) .
No
X
X
Form 1120 (2015)
- 40 -
Page 4
Form 1120 (2015)
Schedule K
5
Other Information continued (see instructions)
Yes
No
a
Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of
any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions.
If “Yes,” complete (i) through (iv) below.
(ii) Employer
Identification Number
(if any)
X
(iv) Percentage
Owned in Voting
Stock
(iii) Country of
Incorporation
b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership
(including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions.
(ii) Employer
(if any)
(i) Name of Entity
6
X
(iv) Maximum
Percentage Owned in
(iii) Country of
Organization
During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in
excess of the corporation’s current and accumulated earnings and profits? (See sections 301 and 316.) . . . . . . .
X
If "Yes," file Form 5452, Corporate Report of Nondividend Distributions.
If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.
7
At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all
classes of the corporation’s stock entitled to vote or (b) the total value of all classes of the corporation’s stock?
. . . .
X
For rules of attribution, see section 318. If “Yes,” enter:
(i) Percentage owned
and (ii) Owner’s country
8
(c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . .
9
10
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments.
Enter the amount of tax-exempt interest received or accrued during the tax year $
Enter the number of shareholders at the end of the tax year (if 100 or fewer)
11
If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here
12
If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached
or the election will not be valid.
Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) $
13
.
.
.
.
.
Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the
tax year less than $250,000?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
X
If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions
$
and the book value of property distributions (other than cash) made during the tax year
14
15a
b
Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)?
If “Yes,” complete and attach Schedule UTP.
Did the corporation make any payments in 2015 that would require it to file Form(s) 1099? . . . . . . .
If “Yes,” did or will the corporation file required Forms 1099? . . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
16
During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its
own stock?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value)
of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . .
18
Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair
market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form
- 41 -
X
X
X
X
X
X
1120 (2015)
Page 5
Form 1120 (2015)
Schedule L
Cash
2a
b
3
4
Trade notes and accounts receivable
Less allowance for bad debts . .
Inventories . . . . . . . .
U.S. government obligations
. .
b
14
15
(a)
Assets
1
5
6
7
8
9
10a
b
11a
b
12
13a
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Tax-exempt securities (see instructions)
Other current assets (attach statement)
Loans to shareholders . . . . .
Mortgage and real estate loans . . .
Other investments (attach statement) .
Buildings and other depreciable assets
Less accumulated depreciation . . .
Depletable assets . . . . . . .
Less accumulated depletion . . . .
Land (net of any amortization) . . .
Intangible assets (amortizable only)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Less accumulated amortization .
Other assets (attach statement) .
Total assets
. . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
(
23
24
25
26
27
28
Capital stock: a Preferred stock . . . .
b Common stock . . . .
Retained earnings—Appropriated (attach statement)
Retained earnings—Unappropriated . . .
Total liabilities and shareholders’ equity . .
Schedule M-1
40,000
95,327
NONE )
95,327
40,000
(
(d)
.
.
.
.
.
2
Federal income tax per books
.
.
.
.
.
3
Excess of capital losses over capital gains
4
Income subject to tax not recorded on books
this year (itemize):
5
deducted on this return (itemize):
15,000
3,000
(
18,854
5,345 )
(
)
(
600
500 )
13,509
15,000
3,000
(
72,854
11,345 )
(
)
(
600
600 )
NONE
100
30,000
61,509
20,000
NONE
206,936
259,736
10,000
15,000
10,663
52,863
30,000
30,000
30,000
156,273
(
161,873
)
(
)
259,736
Depreciation . . . . $
Charitable contributions . $
Travel and entertainment . $
.
5,600
6,000
7
Income recorded on books this year
not included on this return (itemize):
8
Deductions on this return not charged
a Depreciation . . $
1,000
b Charitable contributions $
400
15,000
15,400 9 Add lines 7 and 8 . . . . . .
6
Add lines 1 through 5 . . . . . . . .
27,000 10 Income (page 1, line 28)—line 6 less line 9
Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L)
156,273 5 Distributions: a Cash . . . .
1
Balance at beginning of year
. . . . .
5,600
2
Net income (loss) per books . . . . . .
b Stock . . . .
4
81,000
50,000
Note: The corporation may be required to file Schedule M-3 (see instructions).
Net income (loss) per books .
3
29,227
96,000
15,000 )
206,936
Reconciliation of Income (Loss) per Books With Income per Return
1
a
b
c
(c)
(b)
16
17
18
19
20
21
22
End of tax year
SEE STATEMENT 1
Add lines 1, 2, and 3 .
.
.
.
.
.
.
.
161,873
- 42 -
6
c Property
7
8
Add lines 5 and 6 . . . . . .
Balance at end of year (line 4 less line 7)
.
.
1,000
1,000
26,000
.
161,873
Form 1120 (2015)
Amortization
100
400
Travel and Lodging
1,200
Total
1,700
Sch M-1, Line 5 – Expenses on books not deducted on return
Bad Debts
15,000
Total
15,000
STATEMENT 1
- 43 -
Form
1125-E
(Rev. December 2013)
Compensation of Officers
Attach to Form 1120, 1120-C, 1120-F, 1120-REIT, 1120-RIC, or 1120S.
Information about Form 1125-E and its separate instructions is at www.irs.gov/form1125e.
OMB No. 1545-2225
Name
Employer identification number
00-0000000
Note. Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts.
(c) Percent of
time devoted to
business
(b) Social security number
(see instructions)
(a) Name of officer
1 GINNY BORROWER
000-00-0001
Percent of stock owned
(d) Common
(e) Preferred
100 %
100 %
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
2
Total compensation of officers .
.
.
.
.
.
.
.
.
.
2
3
Compensation of officers claimed on Form 1125-A or elsewhere on return
.
.
.
.
.
.
.
.
3
4
Subtract line 3 from line 2. Enter the result here and on Form 1120, page 1, line 12 or the
appropriate line of your tax return . . . . . . . . . . . . . . . . . . . . . .
4
.
.
.
.
.
.
.
.
.
.
.
.
.
(f) Amount of
compensation
54,000
54,000
54,000
Form 1125-E (Rev. 12-2013)
ISA
- 44 -
Form
W-2
2014
Name
Ginny Borrower
000-00-0001
X Spouseʼs W-2
00-0000000
2 Federal income
compensation
46,000.00
tax withheld
11,500.00
Interior Innovations, Incorporated
Street
1000 Heaven's
City
Jackson
State
TN
ZIP Code
Foreign Country
Way
38301
8 Allocated tips
49,000.00
9
d Control number
e Employeeʼs name
First Ginny
Last Borrower
City Jackson
State TN
ZIP Code 38305
Foreign Country
Amount
D
3,000.00
Box 15
State
13
Suff.
Statutory employee
Retirement plan
If Box 12 code is:
Spouse
Spouse
G:
Box 16
Box 20
Box 18
Locality name
Box 14
Description or Code
on Actual Form W-2
711.00
M.I.
Box 12
Code
3,038.00
Box 12
49,000.00
Amount
Box 19
Local income tax
Box 17
State income tax
Associated
State
- 45 -
Form
W-2
2014
Name
Ginny Borrower
000-00-0001
X Spouseʼs W-2
00-0000000
2 Federal income
compensation
10,000.00
tax withheld
2,500.00
Creative Greetings Cards
1101 Commerce
Street
City
Jackson
TN
State
ZIP Code
Foreign Country
Dr
38301
8 Allocated tips
11,000.00
11,000.00
9
d Control number
e Employeeʼs name
Box 12
Amount
D
1,000.00
Box 15
State
13
Suff.
Box 12
Code
Statutory employee
Retirement plan
If Box 12 code is:
Spouse
Spouse
G:
Box 16
Box 20
Box 18
Locality name
Box 14
Description or Code
on Actual Form W-2
M.I.
160.00
First Ginny
Last Borrower
City Jackson
State TN
ZIP Code 38305
Foreign Country
682.00
Amount
Box 19
Local income tax
Box 17
State income tax
Associated
State
- 46 -
Form
1040
2014
(99)
Department of the Treasury—Internal Revenue Service
U.S. Individual Income Tax Return
For the year Jan. 1–Dec. 31, 2014, or other tax year beginning
Your first name and initial
OMB No. 1545-0074
, 2014, ending
IRS Use Only—Do not write or staple in this space.
See separate instructions.
, 20
Last name
John
Borrower
000-00-0000
Spouse’s social security number
Last name
If a joint return, spouse’s first name and initial
Ginny
Borrower
000-00-0001
Apt. no.
Home address (number and street). If you have a P.O. box, see instructions.
c
3412 W Silverwood Dr
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Jackson TN 38305
Foreign country name
Filing Status
Check only one
box.
Exemptions
1
2
3
4
c
Head of household (with qualifying person). (See instructions.) If
the qualifying person is a child but not your dependent, enter this
child’s name here. a
Married filing separately. Enter spouse’s SSN above
and full name here. a
6a
b
Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code
a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
Single
Married filing jointly (even if only one had income)
5
Qualifying widow(er) with dependent child
Yourself. If someone can claim you as a dependent, do not check box 6a .
Spouse
.
Dependents:
(1) First name
.
.
.
.
.
.
.
.
.
.
.
(2) Dependent’s
social security number
Last name
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
}
(4) if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
If you did not
get a W-2,
see instructions.
Adjusted
Gross
Income
2
Dependents on 6c
not entered above
d
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Boxes checked
on 6a and 6b
No. of children
on 6c who:
• lived with you
• did not live with
you due to divorce
or separation
(see instructions)
If more than four
dependents, see
instructions and
check here a
Income
Make sure the SSN(s) above
and on line 6c are correct.
Total number of exemptions claimed
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7
.
8b
. .
.
.
.
.
.
.
.
8a
56,000.
2,000.
.
.
.
.
.
.
.
9a
3,500.
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here a
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . .
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
23
Educator expenses
24
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
25
26
Health savings account deduction. Attach Form 8889
Moving expenses. Attach Form 3903 . . . . .
27
28
29
Deductible part of self-employment tax. Attach Schedule SE .
Self-employed SEP, SIMPLE, and qualified plans
. .
Self-employed health insurance deduction
. . . .
30
31a
32
Penalty on early withdrawal of savings .
7
Wages, salaries, tips, etc. Attach Form(s) W-2
.
.
.
.
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
.
.
.
.
.
.
.
b
.
.
.
.
Alimony paid b Recipient’s SSN
IRA deduction . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
a
.
.
. . . . . .
. . . . . .
b Taxable amount
.
.
.
3,500.
.
.
.
.
.
.
.
.
.
.
a
.
21
22
32,000.
-2,000.
21,350.
112,850.
24
25
26
27
28
1,555.
3,250.
29
30
31a
32
33
34
.
.
.
.
.
.
.
Student loan interest deduction . .
Tuition and fees. Attach Form 8917 .
.
.
.
.
.
.
.
.
.
.
.
.
36
37
Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
35
.
.
.
.
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. BAA
- 47 -
.
23
33
34
35
Domestic production activities deduction. Attach Form 8903
.
2
.
8a
b
9a
.
Add numbers on
lines above a
.
.
.
.
.
.
a
36
37
REV 03/04/15 TTW
4,805.
108,045.
Form 1040 (2014)
Page 2
108,045.
Form 1040 (2014)
38
Amount from line 37 (adjusted gross income)
Tax and
Credits
39a
Check
if:
If your spouse itemizes on a separate return or you were a dual-status alien, check here a
39b
Standard
Deduction
for—
• People who
check any
box on line
39a or 39b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Married filing
separately,
$6,200
Married filing
jointly or
Qualifying
widow(er),
$12,400
Head of
household,
$9,100
40
41
Itemized deductions (from Schedule A) or your standard deduction (see left margin)
Subtract line 40 from line 38
. . . . . . . . . . . . . . . . .
.
.
42
43
Exemptions. If line 38 is $152,525 or less, multiply $3,950 by the number on line 6d. Otherwise, see instructions
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . .
Form 4972 c
Tax (see instructions). Check if any from: a
Form(s) 8814 b
Other
Taxes
b
53
54
55
56
57
58
59
60a
64
65
66a
b
Paid
Preparer
Use Only
.
}
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
48
.
.
.
.
.
.
52
Residential energy credits. Attach Form 5695 . . . .
53
3800 b
8801 c
Other credits from Form: a
54
Add lines 48 through 54. These are your total credits . . . . .
Subtract line 55 from line 47. If line 55 is more than line 47, enter -0-
.
.
.
.
.
.
.
.
.
.
.
.
.
Self-employment tax. Attach Schedule SE
.
.
.
.
.
.
.
8919
.
.
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Unreported social security and Medicare tax from Form:
a
.
Household employment taxes from Schedule H
.
.
.
.
43
44
45
46
47
.
.
a
.
.
.
b
4137
.
.
First-time homebuyer credit repayment. Attach Form 5405 if required
.
.
.
.
.
.
.
.
.
.
.
.
55
56
57
a
Nontaxable combat pay election
66b
Additional child tax credit. Attach Schedule 8812 .
.
.
.
67
68
69
70
American opportunity credit from Form 8863, line 8 .
Net premium tax credit. Attach Form 8962 . . . .
Amount paid with request for extension to file . . .
.
.
.
.
.
.
68
69
70
71
72
71
72
Credits from Form: a
2439 b
Reserved c
Reserved d
73
Add lines 64, 65, 66a, and 67 through 73. These are your total payments .
Excess social security and tier 1 RRTA tax withheld
Credit for federal tax on fuels. Attach Form 4136
.
.
.
.
.
.
12,706.
3,109.
58
59
60a
60b
Health care: individual responsibility (see instructions) Full-year coverage
. . . . .
Form 8960 c
Taxes from: a
Form 8959 b
Instructions; enter code(s)
a
Add lines 56 through 62. This is your total tax . . . . . . . . . . . . .
14,000.
64
Federal income tax withheld from Forms W-2 and 1099 . .
2,000.
2014 estimated tax payments and amount applied from 2013 return
65
Earned income credit (EIC) . . . . . . . . . . 66a
.
12,706.
49
50
51
Credit for child and dependent care expenses. Attach Form 2441
.
14,747.
93,298.
7,900.
85,398.
12,706.
0.
40
41
42
.
.
.
.
.
.
38
.
Total boxes
checked a 39a
67
75
76a
.
.
.
61
62
63
15,815.
74
16,000.
185.
185.
0.
.
.
.
.
.
.
a
If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid
Amount of line 75 you want refunded to you. If Form 8888 is attached, check here
75
76a
Routing number
Type:
Checking
Savings
X X X X X X X X X
X X X X X X X X X X X X X X X X X
Account number
Amount of line 75 you want applied to your 2015 estimated tax a 77
77
78
Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions a 78
79
Estimated tax penalty (see instructions) . . . . . . .
79
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Yes. Complete below.
b
d
.
a
ac
No
Personal identification
a
number (PIN)
Phone
no. a
Designee’s
name a
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
F
Joint return? See
instructions.
Keep a copy for
your records.
.
Blind.
Blind.
Education credits from Form 8863, line 19 . . . . .
Retirement savings contributions credit. Attach Form 8880
Child tax credit. Attach Schedule 8812, if required . . .
Direct deposit?
See
a
instructions.
Sign
Here
You were born before January 2, 1950,
Spouse was born before January 2, 1950,
.
49
50
51
52
a
Third Party
Designee
.
Add lines 44, 45, and 46
. . . . . . .
Foreign tax credit. Attach Form 1116 if required .
73
74
Amount
You Owe
.
47
48
62
63
Refund
.
Alternative minimum tax (see instructions). Attach Form 6251 .
Excess advance premium tax credit repayment. Attach Form 8962
61
If you have a
qualifying
child, attach
Schedule EIC.
.
44
45
46
b
Payments
{
.
Daytime phone number
Self-Employed
Spouse’s signature. If a joint return, both must sign.
Firm’s name
Your occupation
a
Date
Spouse’s occupation
Self-Employed
Date
Self-Prepared
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check
if
self-employed
Firm's EIN
Firm’s address a
a
Phone no.
www.irs.gov/form1040
REV 03/04/15 TTW
- 48 -
Form 1040 (2014)
SCHEDULE A
(Form 1040)
OMB No. 1545-0074
Itemized Deductions
a Information
about Schedule A and its separate instructions is at www.irs.gov/schedulea.
a Attach to Form 1040.
Name(s) shown on Form 1040
Medical
and
Dental
Expenses
Taxes You
Paid
1
2
3
4
5
6
7
8
Interest
You Paid
Note.
Your mortgage
interest
deduction may
be limited (see
instructions).
Caution. Do not include expenses reimbursed or paid by others.
Medical and dental expenses (see instructions) . . . . .
108,045.
Enter amount from Form 1040, line 38
2
Multiply line 2 by 10% (.10). But if either you or your spouse was
born before January 2, 1950, multiply line 2 by 7.5% (.075) instead
State and local (check only one box):
a
Income taxes, or
. . . . . . . . . . .
b
General sales taxes
Real estate taxes (see instructions) . . . . . . . . .
Personal property taxes . . . . . . . . . . . . .
Other taxes. List type and amount a
}
2014
Attachment
Sequence No. 07
000-00-0000
587.
1
3
.
10,805.
.
.
.
.
.
.
5
5,000.
6
7
1,500.
8
9 Add lines 5 through 8 . . . . . . . . . . . . . . . .
10 Home mortgage interest and points reported to you on Form 1098 10
11 Home mortgage interest not reported to you on Form 1098. If paid
to the person from whom you bought the home, see instructions
and show that person’s name, identifying no., and address a
11
12 Points not reported to you on Form 1098. See instructions for
special rules . . . . . . . . . . . . . . . . .
12
13 Mortgage insurance premiums (see instructions) . . . . .
13
14 Investment interest. Attach Form 4952 if required. (See instructions.) 14
Gifts to
16 Gifts by cash or check. If you made any gift of $250 or more,
see instructions . . . . . . . . . . . . . . . .
16
Charity
17 Other than by cash or check. If any gift of $250 or more, see
If you made a
gift and got a
instructions. You must attach Form 8283 if over $500 . . .
17
benefit for it,
18 Carryover from prior year . . . . . . . . . . . .
18
see instructions.
4
0.
.
.
.
.
.
.
9
6,500.
.
.
.
.
.
.
15
5,000.
19
1,000.
27
2,247.
5,000.
1,000.
.
.
.
.
.
.
Casualty and
Theft Losses 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . .
20
Job Expenses 21 Unreimbursed employee expenses—job travel, union dues,
and Certain
job education, etc. Attach Form 2106 or 2106-EZ if required.
Miscellaneous
4,408.
21
(See instructions.) a Deductible expenses from Form 2106
Deductions
22 Tax preparation fees . . . . . . . . . . . . .
22
23 Other expenses—investment, safe deposit box, etc. List type
and amount a
Other
Miscellaneous
Deductions
24
25
26
27
28
23
Add lines 21 through 23 . . . . . . . . . . . .
24
108,045.
Enter amount from Form 1040, line 38 25
Multiply line 25 by 2% (.02) . . . . . . . . . . .
26
Other—from list in instructions. List type and amount a
4,408.
.
.
.
2,161.
.
.
28
29 Is Form 1040, line 38, over $152,525?
Total
Itemized
No. Your deduction is not limited. Add the amounts in the far right column
for lines 4 through 28. Also, enter this amount on Form 1040, line 40.
Deductions
}
.
Yes. Your deduction may be limited. See the Itemized Deductions
Worksheet in the instructions to figure the amount to enter.
30 If you elect to itemize deductions even though they are less than your standard
deduction, check here . . . . . . . . . . . . . . . . . . . a
For Paperwork Reduction Act Notice, see Form 1040 instructions. BAA
- 49 -
REV 12/30/14 TTW
.
29
14,747.
Schedule A (Form 1040) 2014
2106
2106
2106
Department
Department
of of
the
ofthe
Treasury
theTreasury
Treasury
Department
Internal
Internal
Revenue
Revenue
Service
Service
(99)
(99)
Internal
Revenue
Service
(99)
2014
2015
2015
aa
a
Attach
1040
1040NR.
Attach
Attach
toto
Form
toForm
Form
1040
1040
oror
Form
orForm
Form
1040NR.
1040NR.
Information
about
Form
2106
and
instructions
Information
Information
about
about
Form
Form
2106
2106
and
and
itsits
separate
itsseparate
separate
instructions
instructions
is is
available
isavailable
available
at at
atwww.irs.gov/form2106.
aa
a
Attachment
Attachment
Attachment
. No
. 129
Sequence
Sequence
NoNo
129
Sequence
.129
Occupation
Occupation
in in
which
inwhich
which
you
you
incurred
incurred
expenses
expenses
Social
Social
security
security
number
number
Occupation
you
incurred
expenses
Social
security
number
Your
Your
name
name
Your
name
Ginny
Ginny
Borrower
Borrower
Ginny
Borrower
Part
Part
Part
I II
OMB
OMB
No.
No.
1545-0074
1545-0074
OMB
No.
1545-0074
Employee
Business
Expenses
Employee
Employee
Business
Business
Expenses
Expenses
Form
Form
Form
Sales
Sales
Represenative
Represenative
Sales
Represenative
000-00-0001
000-00-0001
000-00-0001
Employee
Business
Expenses
and
Reimbursements
Employee
Employee
Business
Business
Expenses
Expenses
and
and
Reimbursements
Reimbursements
Column
Column
Column
A AA
Other
Than
Meals
Other
Other
Than
Than
Meals
Meals
and
Entertainment
and
and
Entertainment
Entertainment
Step
Step
1 1Enter
1 Enter
Enter
Your
Your
Expenses
Expenses
Step
Your
Expenses
Vehicle
expense
from
line
line
29.
(Rural
mail
carriers:
See
1 11
Vehicle
Vehicle
expense
expense
from
from
line
line
2222
22
ororor
line
line
29.
29.
(Rural
(Rural
mail
mail
carriers:
carriers:
See
See
instructions.)
instructions.)
instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 22
Parking
Parking
fees,
fees,
tolls,
tolls,
and
and
transportation,
transportation,
including
including
train,
train,
bus,
bus,
etc.,
etc.,
that
that
Parking
fees,
tolls,
and
transportation,
including
train,
bus,
etc.,
that
did
did
not
not
involve
involve
overnight
overnight
travel
travel
ororcommuting
orcommuting
commuting
totoand
toand
and
from
from
work
work. . .
did
not
involve
overnight
travel
from
work
3 33
Travel
Travel
expense
expense
while
while
away
away
from
from
home
home
overnight,
overnight,
including
including
lodging,
lodging,
Travel
expense
while
away
from
home
overnight,
including
lodging,
airplane,
airplane,
car
car
rental,
rental,
etc.
etc.
Do
Do
not
not
include
include
meals
meals
and
and
entertainment
entertainment
. ..
airplane,
car
rental,
etc.
Do
not
include
meals
and
entertainment
4 44
Business
Business
expenses
expenses
not
not
included
included
onon
on
lines
lines
1 1through
1through
through
3.3.Do
3.Do
Do
not
not
include
include
Business
expenses
not
included
lines
not
include
meals
meals
and
and
entertainment
entertainment. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
meals
and
entertainment
1 11
3,355.
3,355.
2,358.
2 22
65.
65.
50.
3 33
1,300.
1,300.
1,400.
Column
Column
Column
B BB
Meals
and
Meals
Meals
and
and
Entertainment
Entertainment
Entertainment
4 44
5 55
Meals
Meals
and
and
entertainment
entertainment
expenses
expenses
(see
(see
instructions)
instructions)
. .. .. .. .. ..
5 55
Meals
and
entertainment
expenses
(see
instructions)
Total
expenses.
add
lines
enter
the
6 66
Total
Total
expenses.
expenses.
InInColumn
InColumn
Column
A,A,A,
add
add
lines
lines
1 1through
1through
through
4 4and
4and
and
enter
enter
the
the
result.
the
amount
from
line
result.
result.
InInColumn
InColumn
Column
B,B,enter
B,enter
enter
the
the
amount
amount
from
from
line
line
5 55. . . . . . . . . . . . .
6 66
1,400.
1,400.
1,200.
4,720.
4,720.
3,808.
1,400.
1,400.
1,200.
Note.
Note.
If Ifyou
Ifyou
you
were
were
not
not
reimbursed
reimbursed
forfor
for
any
any
expenses
expenses
ininStep
inStep
Step
1,1,skip
1,skip
skip
line
line
7 7and
7and
and
enter
enter
the
the
amount
amount
from
from
line
line
6 6on
6on
on
line
line
8.8.8.
Note.
were
not
reimbursed
any
expenses
line
enter
the
amount
from
line
line
Step
Reimbursements
Received
From
Your
Employer
for
Expenses
Listed
Step
Step
2 2Enter
2 Enter
Enter
Reimbursements
Reimbursements
Received
Received
From
From
Your
Your
Employer
Employer
for
for
Expenses
Expenses
Listed
Listed
ininStep
inStep
Step
1 11
Enter
reimbursements
received
from
your
employer
that
were
not
7 77
Enter
Enter
reimbursements
reimbursements
received
received
from
from
your
your
employer
employer
that
that
were
were
not
not
reported
W-2.
Include
any
reimbursements
reported
reported
totoyou
toyou
you
ininbox
inbox
box
1 1of1ofForm
ofForm
Form
W-2.
W-2.
Include
Include
any
any
reimbursements
reimbursements
reported
under
code
“L”
box
your
Form
W-2
(see
reported
reported
under
under
code
code
“L”
“L”
ininin
box
box
1212
12
ofofof
your
your
Form
Form
W-2
W-2
(see
(see
instructions)
instructions)
instructions)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 77
Step
Expenses
To
Deduct
on
Schedule
1040
Form
1040NR)
Step
Step
3 3Figure
3 Figure
Figure
Expenses
Expenses
To
To
Deduct
Deduct
on
on
Schedule
Schedule
AA(Form
A(Form
(Form
1040
1040
oror
or
Form
Form
1040NR)
1040NR)
Subtract
line
line
enter
-0-.
However,
8 88
Subtract
Subtract
line
line
7 7from
7from
from
line
line
6.6.If6.Ifzero
Ifzero
zero
ororless,
orless,
less,
enter
enter
-0-.
-0-.
However,
However,
if ifline
if line
line
7 77
than
line
the
excess
income
is isgreater
isgreater
greater
than
than
line
line
6 6in6inColumn
inColumn
Column
A,A,report
A,report
report
the
the
excess
excess
asasas
income
income
onon
on
Form
1040,
line
Form
1040NR,
line
Form
Form
1040,
1040,
line
line
7 7(or
7(or
(or
onon
on
Form
Form
1040NR,
1040NR,
line
line
8)8)8). . . . . . . . . . . . . . .
8 88
4,720.
4,720.
3,808.
1,400.
1,400.
1,200.
Note.
columns
zero,
you
cannot
deduct
Note.
Note.
If Ifboth
Ifboth
both
columns
columns
ofofline
ofline
line
8 8are
8are
are
zero,
zero,
you
you
cannot
cannot
deduct
deduct
employee
business
expenses.
Stop
here
and
attach
Form
2106
employee
employee
business
business
expenses.
expenses.
Stop
Stop
here
here
and
and
attach
attach
Form
Form
2106
2106
tototo
your
return.
your
your
return.
return.
the
amount
from
line
line
InInColumn
InColumn
Column
A,A,enter
A,enter
enter
the
the
amount
amount
from
from
line
line
8.8.In
8.InColumn
InColumn
Column
B,B,multiply
B,multiply
multiply
line
line
9 99
50%
(.50).
(Employees
subject
8 8by
8by
by
50%
50%
(.50).
(.50).
(Employees
(Employees
subject
subject
totoDepartment
toDepartment
Department
ofofTransportation
ofTransportation
Transportation
(DOT)
hours
limits:
Multiply
meal
expenses
incurred
while
(DOT)
(DOT)
hours
hours
ofofservice
ofservice
service
limits:
limits:
Multiply
Multiply
meal
meal
expenses
expenses
incurred
incurred
while
while
away
from
home
business
80%
(.80)
instead
50%.
For
away
away
from
from
home
home
onon
on
business
business
byby
by
80%
80%
(.80)
(.80)
instead
instead
ofofof
50%.
50%.
For
For
details,
see
instructions.)
details,
details,
see
see
instructions.)
instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,720.
4,720.
3,808.
9 99
Add
the
amounts
line
both
columns
and
enter
the
total
here.
Also,
enter
the
total
Add
Add
the
the
amounts
amounts
onon
on
line
line
9 9of
9ofof
both
both
columns
columns
and
and
enter
enter
the
the
total
total
here.
here.
Also,
Also,
enter
enter
the
the
total
total
onon
on
1010
10
Schedule
1040),
line
Schedule
1040NR),
line
(Armed
Forces
Schedule
Schedule
A A(Form
A(Form
(Form
1040),
1040),
line
line
2121
21
(or(or
(or
onon
on
Schedule
Schedule
A A(Form
A(Form
(Form
1040NR),
1040NR),
line
line
7).7).
7).
(Armed
(Armed
Forces
Forces
reservists,
qualified
performing
artists,
fee-basis
state
government
officials,
and
individuals
reservists,
reservists,
qualified
qualified
performing
performing
artists,
artists,
fee-basis
fee-basis
state
state
ororlocal
orlocal
local
government
government
officials,
officials,
and
and
individuals
individuals
with
disabilities:
See
the
instructions
special
rules
where
the
total.)
with
with
disabilities:
disabilities:
See
See
the
the
instructions
instructions
forfor
for
special
special
rules
rules
onon
on
where
where
totoenter
toenter
enter
the
the
total.)
total.). . . . . . . . . . a
. aa 1010
10
For
Paperwork
Reduction
Act
Notice,
see
your
tax
return
instructions.
For
For
Paperwork
Paperwork
Reduction
Reduction
Act
Act
Notice,
Notice,
see
see
your
your
tax
tax
return
return
instructions.
instructions.
BAA
BAA
BAA
- 50 -
REV
REV
01/06/16
01/06/16
TTW
TTW
REV
11/14/14
TTW
700.
700.
600.
5,420.
5,420.
4,408.
2106
Form
(2014)
2106
2106
Form
Form
(2015)
(2015)
Form 2106 (2014)
Part II
Page
Section A—General Information (You must complete this section if you
are claiming vehicle expenses.)
11
12
13
14
15
16
17
18
19
20
21
2
Vehicle Expenses
Enter the date the vehicle was placed in service . . . . . . . .
Total miles the vehicle was driven during 2014
. . . . . . . .
Business miles included on line 12 . . . . . . . . . . . .
Percent of business use. Divide line 13 by line 12 . . . . . . . .
Average daily roundtrip commuting distance . . . . . . . . .
Commuting miles included on line 12
. . . . . . . . . . .
Other miles. Add lines 13 and 16 and subtract the total from line 12
.
Was your vehicle available for personal use during off-duty hours? . .
Do you (or your spouse) have another vehicle available for personal use?
Do you have evidence to support your deduction? . . . . . . .
If “Yes,” is the evidence written? . . . . . . . . . . . . .
(a) Vehicle 1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
12
13
14
15
16
17
.
.
.
.
.
.
.
.
(b) Vehicle 2
06/15/2013
7,000 miles
4,211 miles
60.16 %
3 miles
1,000 miles
1,789 miles
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
Yes
Yes
Yes
miles
miles
%
miles
miles
miles
No
No
No
No
Section B—Standard Mileage Rate (See the instructions for Part II to find out whether to complete this section or Section C.)
2,358.
22
Multiply line 13 by 56¢ (.56). Enter the result here and on line 1 . . . . . . . . . . .
22
Section C—Actual Expenses
(a) Vehicle 1
(b) Vehicle 2
23
Gasoline, oil, repairs, vehicle
insurance, etc. . . . . . .
24a
b
c
25
Vehicle rentals . . . . . .
Inclusion amount (see instructions) .
Subtract line 24b from line 24a .
Value of employer-provided vehicle
(applies only if 100% of annual
lease value was included on Form
W-2—see instructions) . . . .
26
27
Add lines 23, 24c, and 25. . .
on line 14 . . . . . . . .
28
29
Depreciation (see instructions) .
Add lines 27 and 28. Enter total
here and on line 1 . . . . .
23
24a
24b
24c
25
26
27
28
29
Section D—Depreciation of Vehicles (Use this section only if you owned the vehicle and are completing Section C for the vehicle.)
(a) Vehicle 1
30
Enter cost or other basis (see
30
31
Enter section 179 deduction (see
31
32
33
34
Multiply line 30 by line 14 (see
instructions if you claimed the
section 179 deduction) . . .
Enter depreciation method and
percentage (see instructions) .
on line 33 (see instructions) . .
35
36
Add lines 31 and 34 . . . .
Enter the applicable limit explained
in the line 36 instructions . . .
37
on line 14 . . . . . . . .
38
Enter the smaller of line 35 or line
37. If you skipped lines 36 and 37,
enter the amount from line 35.
Also enter this amount on line 28
above . . . . . . . . .
(b) Vehicle 2
32
33
34
35
36
37
38
REV 11/14/14 TTW
- 51 -
Form 2106 (2014)
SCHEDULE B
OMB No. 1545-0074
Interest and Ordinary Dividends
(Form 1040A or 1040)
a Information
a Attach to Form 1040A or 1040.
about Schedule B and its instructions is at www.irs.gov/scheduleb.
Part I
1
Interest
000-00-0000
Part II
Colonial Federal
2
3
Add the amounts on line 1 . . . . . . . . . .
Excludable interest on series EE and I U.S. savings
Attach Form 8815 . . . . . . . . . . . . .
4
Subtract line 3 from line 2. Enter the result here and
1040, line 8a . . . . . . . . . . . . . .
Note. If line 4 is over $1,500, you must complete Part III.
List name of payer a
5
IBM
. . . . . . . .
bonds issued after 1989.
. . . . . . . .
on Form 1040A, or Form
. . . . . . . . a
(See
instructions on
back.)
2,000.
2
3
4
2,000.
Amount
1,500.
500.
1,500.
Mobil Oil
Creative Network Design Systems
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 9a.)
Part III
Foreign
Accounts
and Trusts
2,000.
1
Ordinary
Dividends
Note. If you
received a Form
1099-DIV or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the ordinary
dividends shown
on that form.
Amount
List name of payer. If any interest is from a seller-financed mortgage and the
buyer used the property as a personal residence, see instructions on back and list
this interest first. Also, show that buyer’s social security number and address a
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 8a.)
Note. If you
received a Form
1099-INT, Form
1099-OID, or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the total interest
shown on that
form.
2014
Attachment
Sequence No. 08
5
6
Add the amounts on line 5. Enter the total here and on Form 1040A, or Form
6
1040, line 9a . . . . . . . . . . . . . . . . . . . . . . a
Note. If line 6 is over $1,500, you must complete Part III.
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a
foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.
7a
3,500.
Yes No
At any time during 2014, did you have a financial interest in or signature authority over a financial
account (such as a bank account, securities account, or brokerage account) located in a foreign
country? See instructions . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial
Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114
and its instructions for filing requirements and exceptions to those requirements . . . . . .
b If you are required to file FinCEN Form 114, enter the name of the foreign country where the
financial account is located a
8
During 2014, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520. See instructions on back . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
BAA
- 52 -
REV 11/10/14 TTW
Schedule B (Form 1040A or 1040) 2014
SCHEDULE C
(Form 1040)
Profit or Loss From Business
OMB No. 1545-0074
2014
(Sole Proprietorship)
a Information about Schedule C and its separate instructions is at www.irs.gov/schedulec.
a Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.
Attachment
Sequence No. 09
Name of proprietor
Social security number (SSN)
A
Principal business or profession, including product or service (see instructions)
B Enter code from instructions
C
Business name. If no separate business name, leave blank.
D Employer ID number (EIN), (see instr.)
E
Business address (including suite or room no.)
John Borrower
000-00-0000
Computer Repair Service
a
Tech in a Sec
a
8 1 1 4 9 0
1400 W Commercial Ave
F
G
H
Jackson, TN 38305
City, town or post office, state, and ZIP code
Cash
(2)
Accrual
(3)
Other (specify) a
Accounting method:
(1)
Did you “materially participate” in the operation of this business during 2014? If “No,” see instructions for limit on losses
If you started or acquired this business during 2014, check here . . . . . . . . . . . . . . . . .
I
J
Did you make any payments in 2014 that would require you to file Form(s) 1099? (see instructions) .
If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . .
Part I
.
.
Income
.
.
.
.
.
.
.
.
.
.
.
Yes
No
Yes
Yes
No
No
a
.
.
2
3
Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . a
Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . .
4
5
6
Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . .
Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .
.
.
.
.
.
.
.
.
.
4
5
6
7
Gross income. Add lines 5 and 6 .
.
.
a
7
51,000.
200.
1
Part II
Advertising .
9
Car and truck expenses (see
Commissions and fees .
11
12
13
.
.
.
.
Contract labor (see instructions)
Depletion . . . . .
Depreciation and section 179
expense
deduction
(not
included in Part III) (see
14
(other than on line 19) . .
Insurance (other than health)
15
16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2
3
Expenses. Enter expenses for business use of your home only on line 30.
8
10
.
1
8
9
10
1,000.
Office expense (see instructions)
18
19
20
Pension and profit-sharing plans .
Rent or lease (see instructions):
Vehicles, machinery, and equipment
19
20a
Other business property . . .
Supplies (not included in Part III) .
20b
21
22
Taxes and licenses . . . . .
Travel, meals, and entertainment:
Travel . . . . . . . . .
23
24a
25
Deductible meals and
entertainment (see instructions) .
Utilities . . . . . . . .
24b
25
26
27a
b
Wages (less employment credits) .
Other expenses (from line 48) . .
Reserved for future use . . .
26
27a
27b
a
11
12
13
18
b
21
22
2,000.
23
24
a
14
15
b
500.
17
Interest:
Mortgage (paid to banks, etc.)
Other . . . . . .
Legal and professional services
28
Total expenses before expenses for business use of home. Add lines 8 through 27a .
.
.
.
.
.
a
28
29
30
Tentative profit or (loss). Subtract line 28 from line 7 .
.
.
.
.
.
.
29
a
b
16a
16b
4,000.
300.
17
.
.
.
.
.
.
.
.
.
.
.
. Use the Simplified
. . . . . . .
Net profit or (loss). Subtract line 30 from line 29.
• If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2.
(If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.
• If a loss, you must go to line 32.
32
71,000.
20,000.
51,000.
2,000.
1,000.
1,500.
6,000.
500.
19,000.
32,000.
Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method (see instructions).
Simplified method filers only: enter the total square footage of: (a) your home:
and (b) the part of your home used for business:
Method Worksheet in the instructions to figure the amount to enter on line 30
31
.
71,000.
If you have a loss, check the box that describes your investment in this activity (see instructions).
• If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and
on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and
trusts, enter on Form 1041, line 3.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.
BAA
- 53 -
}
}
REV 01/08/15 TTW
30
31
32a
32b
32,000.
All investment is at risk.
Some investment is not
at risk.
Page 2
Part III
Cost of Goods Sold (see instructions)
33
Method(s) used to
value closing inventory:
34
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . .
a
b
Cost
c
Lower of cost or market
Other (attach explanation)
Yes
.
No
35
Inventory at beginning of year. If different from last year’s closing inventory, attach explanation .
.
.
35
35,000.
36
Purchases less cost of items withdrawn for personal use
.
.
.
.
.
.
.
.
.
.
.
.
.
.
36
10,000.
37
Cost of labor. Do not include any amounts paid to yourself .
.
.
.
.
.
.
.
.
.
.
.
.
.
37
38
Materials and supplies
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
38
39
Other costs .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
39
40
Add lines 35 through 39 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
40
46,000.
41
Inventory at end of year .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
41
26,000.
42
Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 .
Part IV
.
.
.
1,000.
. . . . .
20,000.
42
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9
and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must
file Form 4562.
43
When did you place your vehicle in service for business purposes? (month, day, year)
44
Of the total number of miles you drove your vehicle during 2014, enter the number of miles you used your vehicle for:
a
a
b Commuting (see instructions)
Business
c Other
Yes
No
45
Was your vehicle available for personal use during off-duty hours?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
46
Do you (or your spouse) have another vehicle available for personal use?.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
47a
Do you have evidence to support your deduction?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
If “Yes,” is the evidence written?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes
No
b
Part V
.
.
.
.
.
.
Other Expenses. List below business expenses not included on lines 8–26 or line 30.
Dues
100.
Laundry
400.
48
Total other expenses. Enter here and on line 27a .
.
.
.
.
.
.
REV 01/08/15 TTW
- 54 -
.
.
.
.
.
.
.
.
.
48
500.
SCHEDULE D
(Form 1040)
OMB No. 1545-0074
Capital Gains and Losses
a
Attachment
Sequence No. 12
Part I
2014
a Attach to Form 1040 or Form 1040NR.
Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
a Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
000-00-0000
Short-Term Capital Gains and Losses—Assets Held One Year or Less
lines below.
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
Form(s) 8949, Part I,
line 2, column (g)
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported on Form
Box A checked . . . . . . . . . . . . .
Box B checked . . . . . . . . . . . . .
Box C checked . . . . . . . . . . . . .
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
. . . . . . . . . . . . . . . . . . . . . . .
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . .
Part II
4
5
6
(
)
7
Long-Term Capital Gains and Losses—Assets Held More Than One Year
lines below.
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
(h) Gain or (loss)
Adjustments
Subtract column (e)
from column (d) and
Form(s) 8949, Part II, combine the result with
line 2, column (g)
column (g)
8a Totals for all long-term transactions reported on Form
10,000.
12,000.
Box D checked . . . . . . . . . . . . .
Box E checked . . . . . . . . . . . . .
Box F checked . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss)
from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . .
11
12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
12
13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . .
14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover
. . . . . . . . . . . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
For Paperwork Reduction Act Notice, see your tax return instructions. BAA
- 55 -
REV 11/26/14 TTW
-2,000.
14 (
15
)
-2,000.
Page 2
Part III
16
Summary
Combine lines 7 and 15 and enter the result
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
16
-2,000.
• If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line
14. Then go to line 17 below.
• If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete
line 22.
• If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form
1040NR, line 14. Then go to line 22.
17
Are lines 15 and 16 both gains?
Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.
18
Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions
a
18
19
Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . a
19
20
.
.
Are lines 18 and 19 both zero or blank?
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Do not complete lines
21 and 22 below.
No. Complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21
and 22 below.
21
If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of:
• The loss on line 16 or
• ($3,000), or if married filing separately, ($1,500)
}
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
21 (
2,000. )
Note. When figuring which amount is smaller, treat both amounts as positive numbers.
22
Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42).
No. Complete the rest of Form 1040 or Form 1040NR.
REV 11/26/14 TTW
- 56 -
Attachment Sequence No. 12A
Form 8949 (2014)
Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side
Page 2
Social security number or taxpayer identification number
000-00-0000
Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either may show your basis (usually your cost) even if your broker did not report it to the IRS.
Brokers must report basis to the IRS for most stock you bought in 2011 or later (and for certain debt instruments you bought in 2014 or later).
Part II
Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term
transactions, see page 1.
Note. You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported
to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a;
you are not required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete
a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or
more of the boxes, complete as many forms with the same box checked as you need.
(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E) Long-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS
(F) Long-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
IBM
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
(e)
(h)
enter a code in column (f).
Cost or other basis.
Gain or (loss).
See the Note below See the separate instructions.
Subtract column (e)
and see Column (e)
from column (d) and
(f)
(g)
in the separate
combine the result
Code(s) from
instructions
with column (g)
Amount of
instructions
adjustment
(c)
Date sold or
disposed
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
04/01/11 12/18/14
10000.00
12000.00
-2000.00
10000.00
12000.00
-2000.00
(b)
Date acquired
(Mo., day, yr.)
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
Schedule D, line 8b (if Box D above is checked), line 9 (if Box E
above is checked), or line 10 (if Box F above is checked) a
Note. If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
Form 8949 (2014)
REV 12/11/14 TTW
- 57 -
SCHEDULE E
(Form 1040)
Supplemental Income and Loss
OMB No. 1545-0074
(From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Attach to Form 1040, 1040NR, or Form 1041.
a Information about Schedule E and its separate instructions is at www.irs.gov/schedulee.
a
2014
Attachment
Sequence No. 13
000-00-0000
Income or Loss From Rental Real Estate and Royalties Note. If you are in the business of renting personal property, use
Part I
Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.
A Did you make any payments in 2014 that would require you to file Form(s) 1099? (see instructions)
Yes
No
B If “Yes,” did you or will you file required Forms 1099?
Yes
No
1a Physical address of each property (street, city, state, ZIP code)
A
111 State Street Jackson TN 38301
B
229 N 9th St Jackson TN 38301
C
Fair Rental
Personal Use
2 For each rental real estate property listed
1b
Type of Property
QJV
above, report the number of fair rental and
Days
Days
(from list below)
personal use days. Check the QJV box
1
365
0
A
A
only if you meet the requirements to file as
a qualified joint venture. See instructions.
4
B
365
0
B
C
C
Type of Property:
1 Single Family Residence
3 Vacation/Short-Term Rental 5 Land
7 Self-Rental
2 Multi-Family Residence
4 Commercial
6 Royalties
8 Other (describe)
Income:
Properties:
A
B
C
17,200.
6,000.
3 Rents received . . . . . . . . . . . . .
3
4 Royalties received . . . . . . . . . . . .
4
Expenses:
5
Advertising . . . . . . . . . . . . . .
5
6
Auto and travel (see instructions) . . . . . . .
6
700.
100.
7
Cleaning and maintenance . . . . . . . . .
7
8
Commissions. . . . . . . . . . . . . .
8
9
Insurance . . . . . . . . . . . . . . .
9
2,150.
300.
10
Legal and other professional fees . . . . . . .
10
11
Management fees . . . . . . . . . . . .
11
5,500.
4,500.
12
Mortgage interest paid to banks, etc. (see instructions)
12
13
Other interest. . . . . . . . . . . . . .
13
14
Repairs. . . . . . . . . . . . . . . .
14
15
Supplies . . . . . . . . . . . . . . .
15
16
Taxes . . . . . . . . . . . . . . . .
16
1,000.
1,100.
2,000.
17
Utilities . . . . . . . . . . . . . . . .
17
2,500.
2,000.
18
Depreciation expense or depletion . . . . . . .
18
Other (list) a
19
19
20
Total expenses. Add lines 5 through 19 . . . . .
20
8,000.
13,850.
Subtract line 20 from line 3 (rents) and/or 4 (royalties). If
result is a (loss), see instructions to find out if you must
-2,000.
3,350.
file Form 6198 . . . . . . . . . . . . .
21
Deductible rental real estate loss after limitation, if any,
22
)(
2,000. ) (
on Form 8582 (see instructions) . . . . . . .
22 (
23,200.
23a Total of all amounts reported on line 3 for all rental properties
. . . .
23a
b Total of all amounts reported on line 4 for all royalty properties . . . .
23b
10,000.
c Total of all amounts reported on line 12 for all properties . . . . . .
23c
4,500.
d Total of all amounts reported on line 18 for all properties . . . . . .
23d
21,850.
e Total of all amounts reported on line 20 for all properties . . . . . .
23e
24
Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . .
24
25
Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 (
21
26
Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here.
If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line
17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . .
BAA
- 58 -
REV 12/31/14 TTW
26
)
3,350.
2,000. )
1,350.
Attachment Sequence No. 13
Page 2
Name(s) shown on return. Do not enter name and social security number if shown on other side.
000-00-0000
Caution. The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1.
Income or Loss From Partnerships and S Corporations
Part II
Note. If you report a loss from an at-risk activity for which
any amount is not at risk, you must check the box in column (e) on line 28 and attach Form 6198. See instructions.
27
Are you reporting any loss not allowed in a prior year due to the at-risk, excess farm loss, or basis limitations, a prior year
unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If
Yes
No
you answered “Yes,” see instructions before completing this section.
28
(b) Enter P for
partnership; S
for S corporation
(a) Name
A Tanglewood Realty
Westchester Development,
B Westchester
Development,LLC
LLC
C Creative Network Design Systems
D
(f) Passive loss allowed
A
B
C
D
29a
b
30
31
32
P
P
S
(g) Passive income
from Schedule K–1
(e) Check if
any amount is
not at risk
00-0000000
00-0000000
00-0000000
(h) Nonpassive loss
from Schedule K–1
(i) Section 179 expense
deduction from Form 4562
(j) Nonpassive income
from Schedule K–1
12,000.
2,000.
30,000.
Totals
12,000.
Totals
Add columns (g) and (j) of line 29a . . . . . . . . . . . . . . .
Add columns (f), (h), and (i) of line 29b . . . . . . . . . . . . .
Total partnership and S corporation income or (loss). Combine lines 30
result here and include in the total on line 41 below . . . . . . . . .
2,000.
. . .
. . .
and 31.
. . .
. .
. .
Enter
. .
.
.
the
.
Income or Loss From Estates and Trusts
33
30
31 (
(b) Employer
identification number
(c) Passive deduction or loss allowed
Totals
Totals
Add columns (d) and (f) of line 34a .
Add columns (c) and (e) of line 34b
Total estate and trust income or
include in the total on line 41 below
Part IV
38
(d) Passive income
from Schedule K–1
. .
. .
(loss).
. .
. . . . . . . .
. . . . . . . .
Combine lines 35 and
. . . . . . . .
(e) Deduction or loss
from Schedule K–1
. . . . .
. . . . .
36. Enter the
. . . . .
. .
. .
result
. .
. . .
. . .
here and
. . .
(f) Other income from
Schedule K–1
35
36 (
)
37
Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)—Residual Holder
(a) Name
(b) Employer identification
number
(c) Excess inclusion from
Schedules Q, line 2c
(see instructions)
(d) Taxable income (net loss)
from Schedules Q, line 1b
Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below
Part V
32,000.
12,000. )
20,000.
32
(a) Name
A
B
39
(d) Employer
identification
number
20,000.
10,000.
Part III
A
B
34a
b
35
36
37
(c) Check if
foreign
partnership
(e) Income from
Schedules Q, line 3b
39
Summary
40
41
Net farm rental income or (loss) from Form 4835. Also, complete line 42 below . . . . . .
Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17, or Form 1040NR, line 18 a
42
Reconciliation of farming and fishing income. Enter your gross
farming and fishing income reported on Form 4835, line 7; Schedule K-1
(Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code
V; and Schedule K-1 (Form 1041), box 14, code F (see instructions) . .
42
43
Reconciliation for real estate professionals. If you were a real estate
professional (see instructions), enter the net income or (loss) you reported
anywhere on Form 1040 or Form 1040NR from all rental real estate activities
in which you materially participated under the passive activity loss rules . .
43
REV 12/31/14 TTW
- 59 -
40
41
21,350.
Form
8582
Passive Activity Loss Limitations
a See
OMB No. 1545-1008
separate instructions.
a Attach
to Form 1040 or Form 1041.
a Information about Form 8582 and its instructions is available at www.irs.gov/form8582.
2014
Attachment
Sequence No. 88
Identifying number
Part I
2014 Passive Activity Loss
000-00-0000
Caution: Complete Worksheets 1, 2, and 3 before completing Part I.
Rental Real Estate Activities With Active Participation (For the definition of active
Special Allowance for Rental Real Estate Activities in the instructions.)
column (a)) . . . . . . . . . . . . . . . . . .
1a
(b)) . . . . . . . . . . . . . . . . . . . . .
1b (
1c (
column (c)) . . . . . . . . . . . . . . . . . .
Commercial Revitalization Deductions From Rental Real Estate Activities
2a Commercial revitalization deductions from Worksheet 2, column (a) .
2a (
b Prior year unallowed commercial revitalization deductions from
2b (
Worksheet 2, column (b) . . . . . . . . . . . . . .
c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . .
All Other Passive Activities
column (a)) . . . . . . . . . . . . . . . . . .
3a
(b)) . . . . . . . . . . . . . . . . . . . . .
3b (
3c (
column (c)) . . . . . . . . . . . . . . . . . .
participation, see
3,350.
2,000. )
)
.
.
.
.
.
1d
.
1,350.
)
)
.
.
.
.
.
.
2c (
)
30,000.
0. )
0. )
.
.
.
.
.
.
3d
30,000.
4
Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with
your return; all losses are allowed, including any prior year unallowed losses entered on line 1c,
31,350.
2b, or 3c. Report the losses on the forms and schedules normally used . . . . . . . .
4
If line 4 is a loss and:
• Line 1d is a loss, go to Part II.
• Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III.
• Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15.
Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete
Part II or Part III. Instead, go to line 15.
Part II
5
6
7
8
9
10
Note: Enter all numbers in Part II as positive amounts. See instructions for an example.
Enter the smaller of the loss on line 1d or the loss on line 4 . . . . . . . . . . . .
6
Enter $150,000. If married filing separately, see instructions . .
Enter modified adjusted gross income, but not less than zero (see instructions)
7
Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9,
enter -0- on line 10. Otherwise, go to line 8.
Subtract line 7 from line 6 . . . . . . . . . . . . .
8
Multiply line 8 by 50% (.5). Do not enter more than $25,000. If married filing separately, see instructions
Enter the smaller of line 5 or line 9 . . . . . . . . . . . . . . . . . . . .
If line 2c is a loss, go to Part III. Otherwise, go to line 15.
Part III
11
12
13
14
5
9
10
0.
Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities
Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions.
Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions
11
Enter the loss from line 4 . . . . . . . . . . . . . . . . . . . . . . . .
12
Reduce line 12 by the amount on line 10 . . . . . . . . . . . . . . . . . .
13
Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . .
14
Part IV
15
16
Special Allowance for Rental Real Estate Activities With Active Participation
Total Losses Allowed
Add the income, if any, on lines 1a and 3a and enter the total . . . . . . . . . . . .
Total losses allowed from all passive activities for 2014. Add lines 10, 14, and 15. See
instructions to find out how to report the losses on your tax return . . . . . . . . . . .
For Paperwork Reduction Act Notice, see instructions. BAA
REV 01/15/15 TTW
- 60 -
15
16
Form 8582 (2014)
651113
Final K-1
2014
Schedule K-1
(Form 1065)
1
Code
year beginning
3
4
Guaranteed payments
00-0000000
5
Interest income
TANGLEWOOD REALTY
6a
Ordinary dividends
6b
Qualified dividends
Part I
A
B
Addr
City
St
38305
Zip Code
17
Royalties
8
9a
000-00-0000
9b
JOHN BORROWER
9c
10
18
11
Other income (loss)
C
F
JACKSON
G
TN
St
38305
Zip Code
member-manager
member
Domestic partner
Foreign partner
H
X
I1
I2
. . . . . . . . . . . . . . . . . .
J
Capital
K
.
.
$
.
$
Recourse
.
$
.
$
.
$
.
.
$ (
.
.
$
.
.
.
.
.
.
.
.
.
12
13
Other deductions
20 %
20 %
20 %
.
14
19
Distributions
20
Other information
.
Tax basis
Other (explain)
X
.
GAAP
A
M
.
Nonrecourse
L
INDIVIDUAL
20 %
20 %
20 %
Loss
500
STMT
Beginning
Ending
Profit
ISA
TN
Part II
City
7
E
Addr
16
D
Name
Credits
2,000
42 WILLOW BLVD
JACKSON
C
Name
15
Code
50,000
2,400
(11,100)
$
)
41,300
Section 704(b) book
(10,000)
For IRS Use Only
Name
(12,000)
2
, 20
Credits, etc.
Name
, 2014
ending
OMB No. 1545-0123
Amended K-1
X No
Yes
IRS.gov/form1065
- 61 -
Schedule K-1 (Form 1065)
Line 18 – Nondeductible Expenses
500
Total
500
STATEMENT
- 62 -
651113
Final K-1
2014
Schedule K-1
(Form 1065)
1
2
3
4
Guaranteed payments
00-0000000
5
Interest income
6a
Ordinary dividends
6b
Qualified dividends
Code
year beginning
, 20
Credits, etc.
Part I
B
Name
Addr
City
City
38305
Zip Code
Royalties
8
9a
000-00-0001
9b
GINNY BORROWER
9c
10
11
Other income (loss)
12
13
Other deductions
F
Addr
St
Part II
Name
TN
7
E
TN
St
38305
Zip Code
member-manager
member
Domestic partner
Foreign partner
X
I1
I2
. . . . . . . . . . . . . . . . . .
INDIVIDUAL
50 %
50 %
50 %
Loss
Capital
.
.
$
.
$
Recourse
.
$
.
$
.
$
.
.
$ (
.
.
$
.
.
.
.
.
.
.
.
.
50 %
50 %
50 %
.
14
18
19
Distributions
20
Other information
.
Tax basis
.
GAAP
$
)
Section 704(b) book
Other (explain)
ISA
Nonrecourse
M
.
Beginning
Ending
Profit
L
17
H
K
JACKSON
G
J
16
D
Name
20,000
JACKSON
C
Credits
For IRS Use Only
Name
15
Code
, 2014
ending
A
OMB No. 1545-0123
Amended K-1
X No
Yes
IRS.gov/form1065
- 63 -
671113
Schedule K-1
(Form 1120S)
2014
, 20
Shareholder’s Share of Income, Deductions,
Credits, etc.
Part I
Information About the Corporation
Name
Addr
City
Addr
3
4
Interest income
B
Corporation’s name, address, city, state, and ZIP code
5b Qualified dividends
JACKSON
TN 38301
St
Zip Code
1,500
Royalties
7
Shareholder’s identifying number
8c Unrecaptured section 1250 gain
E
Shareholder’s name, address, city, state, and ZIP code
9
JOHN BORROWER
Shareholder’s percentage of stock
ownership for tax year . . . .
14
1,500
6
D
F
Credits
8b Collectibles (28% ) gain (loss)
Information About the Shareholder
JACKSON
13
Code
8a Net long-term capital gain (loss)
IRS Center where corporation filed return
000-00-0000
City
2
5a Ordinary dividends
Part II
Name
10,000
Corporation’s employer identification number
C
Name
A
00-0000000
Name
Code
, 2014
ending
OMB No. 1545-0123
Amended K-1
Part III Shareholder’s Share of Current Year Income,
1
year beginning
Final K-1
10
Other income (loss)
15
11
16
Items affecting shareholder basis
D
2,500
TN 38305
St
.
.
.
Zip Code
50.0000 %
Other deductions
For IRS Use Only
12
17
Other information
* See attached statement for additional information.
For Paperwork Reduction Act Notice, see Instructions for Form 1120S.
IRS.gov/form1120s
ISA
- 64 -
Schedule K-1 (Form 1120S) 2014
1065
Form
H
I
J
, 20
2014
.
Type
or
Print
Name of partnership
instructions)
TANGLEWOOD REALTY
00-0000000
42 WILLOW BLVD
JACKSON, TN
G
OMB No. 1545-0123
, 2014, ending
01/01/2003
38305
(1)
(2)
(3)
Initial return
Final return
Name change (4)
Address change
(6)
Other (specify)
(2)
Accrual
(3)
(5)
.
.
.
.
376,300
$
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Amended return
.
.
.
.
.
5
Deductions
Income
1a
b
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16a
b
17
18
19
20
21
22
Sign
Here
1a
60,500
1b
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16a
17,000
SEE STATEMENT 1
60,500
16c
17
18
19
20
21
22
17,000
60,500
60,500
30,000
10,000
14,000
26,000
1,000
20,000
2,500
120,500
(60,000)
instructions)?
Yes
No
Paid
Preparer
Use Only
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Firm’s name
Firm’s address
V.I.P. TAX INC.
ISA
- 65 -
Date
Date
38305
Check
if
self-employed
Firm's EIN
Phone no.
PTIN
00-0000000
Form 1065 (2014)
Form 1065 (2014)
Schedule B
1
a
c
e
2
3
a
Page
2
Other Information
b
d
Foreign partnership
f
Other
Yes
No
. . . . . . . . . . . . . . . . . . . .
4
a
Number (if any)
(iii) Country of
Incorporation
(iv) Percentage
(i) Name of Entity
(ii) Employer
Identification
Number (if any)
(iii) Type of
Entity
(iv) Country of
Organization
(v) Maximum
Percentage Owned in
Yes
5
No
more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
7
8
9
10
Form 1065 (2014)
- 66 -
Form 1065 (2014)
Schedule B
Page
Yes
11
3
No
12a
c
13
14
15
16
17
to this return.
19
20
Name of
designated
TMP
If the TMP is an
entity, name
Address of
designated
TMP
Identifying
number of TMP
Phone number
of TMP
Form 1065 (2014)
- 67 -
Form 1065 (2014)
Schedule K
1
2
3a
Income (Loss)
b
c
4
5
6
7
8
9a
Alternative
(AMT) Items
Credits
ment
b
c
10
11
12
13a
b
c
d
14a
b
c
15a
b
c
d
e
f
16a
b
c
d
g
i
l
m
n
17a
b
c
d
e
f
18a
b
c
19a
b
20a
b
c
Page
4
Total amount
3a
3b
Guaranteed payments
. . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
Dividends:
. . . . . .
6b
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
9b
9c
Contributions . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
(1) Type
(2) Amount
. . . . . . . . . . . . . . . . .
Type
Type
Type
Passive category
e General category
f Other
Interest expense
h Other . . . . . . . . . .
Passive category
j General category
k Other
Paid
Accrued
. . . . . . . .
Nondeductible expenses . . SEE
. . STATEMENT
. . . . .1 . . . . . . . . . . . .
1
2
3c
4
5
6a
(60,000)
10,000
7
8
9a
10
11
12
13a
13b
13c(2)
13d
14a
14b
14c
15a
15b
15c
15d
15e
15f
(50,000)
16b
16c
16f
16h
16k
16l
16m
17a
17b
17c
17d
17e
17f
18a
18b
18c
19a
19b
20a
20b
2,500
Form 1065 (2014)
- 68 -
Form 1065 (2014)
Page
5
1
2
1
Analysis by
(ii) Individual
(iii) Individual
(v) Exempt
(i) Corporate
(iv) Partnership
(active)
(passive)
Organization
partner type:
(50,000)
(vi)
Nominee/Other
a General partners
b Limited partners
Schedule L
1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19a
b
20
21
22
Assets
Cash . . . . . . . . . . . . .
Inventories . . . . . . . . . . .
. . . . . . .
. . . .
. . . . .
. . . .
Total assets . . . . . . . . . . .
2
(a)
(b)
80,000
16,000
425,000
121,200
.
.
.
.
.
.
.
.
20,000
(d)
60,000
16,000
64,000
.
.
.
7,500
44,000
31,000
425,000
131,200
303,800
293,800
418,800
376,300
14,340
21,000
16,340
30,000
133,460
123,460
250,000
418,800
206,500
376,300
(55,500) 6 Income recorded on books this year not included
3
4
a Depreciation $
5
a
7
a
8
9
2,500
(53,000)
Schedule M-2
1
Balance at beginning of year . . .
250,000 6
12,000
2
. . .
3
4
5
End of tax year
(c)
31,000
Schedule M-1
1
.
b Property
2,500
.
.
.
.
.
.
.
.
(55,500)
206,500
Depreciation $
7,000
Add lines 6 and 7 . . . . . . . .
.
.
.
.
.
.
.
.
7
. .
b Property .
8
9
Add lines 6 and 7 .
.
.
.
.
- 69 -
.
.
.
7,000
7,000
(60,000)
206,500
Form 1065 (2014)
2,500
Total
2,500
Line 18c – Nondeductible Expenses
2,500
Total
2,500
STATEMENT 1
- 70 -
1065
Form
H
I
J
, 20
2014
.
Type
or
Print
Name of partnership
instructions)
00-0000000
JACKSON, TN
G
OMB No. 1545-0123
, 2014, ending
05/20/2012
38305
$
(1)
(2)
(3)
Initial return
Final return
Name change (4)
Address change
(6)
Other (specify)
(2)
Accrual
(3)
(5)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Amended return
.
.
.
.
.
2
Deductions
Income
1a
b
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16a
b
17
18
19
20
21
22
Sign
Here
1a
1b
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16a
16c
17
18
19
20
21
22
instructions)?
Yes
No
Paid
Preparer
Use Only
1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Firm’s name
Firm’s address
V.I.P. TAX INC.
ISA
- 71 -
Date
Date
38305
Check
if
self-employed
Firm's EIN
Phone no.
PTIN
00-0000000
Form 1065 (2014)
Form 1065 (2014)
Schedule B
1
a
c
e
2
3
a
Page
2
Other Information
b
d
Foreign partnership
f
Other
Yes
No
. . . . . . . . . . . . . . . . . . . .
4
a
Number (if any)
(iii) Country of
Incorporation
(iv) Percentage
(i) Name of Entity
(ii) Employer
Identification
Number (if any)
(iii) Type of
Entity
(iv) Country of
Organization
(v) Maximum
Percentage Owned in
Yes
5
No
more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
7
8
9
10
Form 1065 (2014)
- 72 -
Form 1065 (2014)
Schedule B
Page
Yes
11
3
No
12a
c
13
14
15
16
17
to this return.
19
20
Name of
designated
TMP
If the TMP is an
entity, name
Address of
designated
TMP
Identifying
number of TMP
Phone number
of TMP
Form 1065 (2014)
- 73 -
Form 1065 (2014)
Schedule K
1
2
3a
Income (Loss)
b
c
4
5
6
7
8
9a
Alternative
(AMT) Items
Credits
ment
b
c
10
11
12
13a
b
c
d
14a
b
c
15a
b
c
d
e
f
16a
b
c
d
g
i
l
m
n
17a
b
c
d
e
f
18a
b
c
19a
b
20a
b
c
Page
4
Total amount
3a
3b
Guaranteed payments
. . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
Dividends:
. . . . . .
6b
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
9b
9c
Contributions . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
(1) Type
(2) Amount
. . . . . . . . . . . . . . . . .
Type
Type
Type
Passive category
e General category
f Other
Interest expense
h Other . . . . . . . . . .
Passive category
j General category
k Other
Paid
Accrued
. . . . . . . .
1
2
40,000
3c
4
5
6a
7
8
9a
10
11
12
13a
13b
13c(2)
13d
14a
14b
14c
15a
15b
15c
15d
15e
15f
16b
16c
16f
16h
16k
16l
16m
17a
17b
17c
17d
17e
17f
18a
18b
18c
19a
19b
20a
20b
Form 1065 (2014)
- 74 -
Form 1065 (2014)
Page
5
1
2
1
Analysis by
(ii) Individual
(iii) Individual
(v) Exempt
(i) Corporate
(iv) Partnership
(active)
(passive)
Organization
partner type:
40,000
(vi)
Nominee/Other
a General partners
b Limited partners
Schedule L
1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19a
b
20
21
22
Assets
Cash . . . . . . . . . . . . .
Inventories . . . . . . . . . . .
. . . . . . .
. . . .
. . . . .
. . . .
Total assets . . . . . . . . . . .
.
.
.
(d)
.
.
.
.
.
.
.
.
3
4
a Depreciation $
5
Schedule M-2
3
4
5
End of tax year
(c)
2
1
2
(a)
(b)
Schedule M-1
1
a
7
a
40,000
. . .
Balance at beginning of year .
.
b Property
.
.
.
.
.
.
.
.
.
.
Depreciation $
8
9
Add lines 6 and 7 . . . . . . . .
6
.
.
.
.
.
.
.
.
7
. .
b Property .
8
9
Add lines 6 and 7 .
.
.
.
.
- 75 -
.
.
.
40,000
Form 1065 (2014)


  
       
    

  


  
   
        
   
  
00-0000000
                      
               
Ð¸§·½¿´ ¿¼¼®» ±º »¿½¸ °®±°»®¬§¬®»»¬ô ½·¬§ô
Ì§°»Û²¬»® ½±¼» ïóèå
  
  
  
    
321 Sunview Terrace,
Memphis, TN 38111
1
365
0





   
        













   
       
       
    
      
       
    
        
        

       
        
      
  
 



55,400












700


1,700
1,000
6,000
4,000
2,000



    
       
    
      

15,400

40,000
                      
                    
                  
                           
               
                 

 
55,400
15,400 


                 
       
 

   
               
         
      

40,000
  
        

- 76 -
Form
4562
Depreciation and Amortization
OMB No. 1545-0172
Attach to your tax return.
Maximum amount (see instructions) . . . . . . . . . . . . . . . . . .
Total cost of section 179 property placed in service (see instructions) . . . . . .
Threshold cost of section 179 property before reduction in limitation (see instructions) .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . .
Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If
separately, see instructions . . . . . . . . . . . . . . . . . . . .
6
(a) Description of property
(b) Cost (business use only)
00-0000000
. . .
. . .
. . .
. . .
married
. . .
. .
. .
. .
. .
filing
. .
(c) Elected cost
7 Listed property. Enter the amount from line 29 . . . . . . . . .
7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
. . . . . .
9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . .
10 Carryover of disallowed deduction from line 13 of your 2013 Form 4562 . . . . . . . . . . .
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . .
13
13 Carryover of disallowed deduction to 2015. Add lines 9 and 10, less line 12
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.
Part II
Attachment
Sequence No. 179
Identifying number
Business or activity to which this form relates
321 SUNVIEW TERRACE
Part I
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1
2
3
4
5
14
(Including Information on Listed Property)
1
2
3
4
5
8
9
10
11
12
Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . .
15 Property subject to section 168(f)(1) election .
16 Other depreciation (including ACRS) . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Part III MACRS Depreciation (Do not include listed property.) (See instructions.)
.
.
.
.
.
.
.
.
.
.
14
15
16
Section A
17
17 MACRS deductions for assets placed in service in tax years beginning before 2014 . . . . . . .
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here . . . . . . . . . . . . . . . . . . . . . .
Section B—Assets Placed in Service During 2014 Tax Year Using the General Depreciation System
(a) Classification of property
(b) Month and year
placed in
service
(c) Basis for depreciation
(business/investment use
only—see instructions)
19a
b
c
d
e
f
g
h
3-year property
5-year property
7-year property
10-year property
15-year property
20-year property
25-year property
Residential rental
property
i Nonresidential real
property
(d) Recovery
period
2 5 yrs.
2 7.5 yrs.
2 7.5 yrs.
3 9 yrs.
(e) Convention
(f) Method
MM
MM
MM
MM
S/L
S/L
S/L
S/L
S/L
2,000
(g) Depreciation deduction
Section C—Assets Placed in Service During 2014 Tax Year Using the Alternative Depreciation System
S/L
20a Class life
1 2 yrs.
S/L
b 12-year
4 0 yrs.
MM
S/L
c 40-year
Part IV Summary (See instructions.)
21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . .
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions .
23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs
. . . . . . .
23
ISA
- 77 -
21
22
2,000
Form 4562 (2014)
Form
1120S
U.S. Income Tax Return for an S Corporation
A S election effective date
, 2014, ending
2014
, 20
Name
TYPE
B Business activity code
number (see instructions)
OMB No. 1545-0123
Do not file this form unless the corporation has filed or is
attaching Form 2553 to elect to be an S corporation.
Information about Form 1120S and its separate instructions is at www.irs.gov/form1120s.
OR
PRINT
JACKSON, TN
C Check if Sch. M-3 attached
00-0000000
E Date incorporated
38301
09/01/2005
F Total assets (see instructions)
95,000
$
Yes
No
If “Yes,” attach Form 2553 if not already filed
G Is the corporation electing to be an S corporation beginning with this tax year?
(4)
(3)
(5)
Name change
Address change
S election termination or revocation
Final return (2)
Amended return
H Check if: (1)
I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . .
Caution. Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.
1a
. . . . . . . . . . . . . .
1a
220,000
. . . . . . . . . . . . . .
1b
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . .
1c
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . .
2
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . .
3
Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . .
4
Other income (loss) (see instructions—attach statement) . . . . . . . . . . . . .
5
Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . .
6
Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . .
7
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . .
8
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . .
9
Bad debts
. . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . .
12
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . .
14
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . .
15
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . .
17
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . .
18
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . .
19
Total deductions. Add lines 7 through 19
. . . . . . . . . . . . . . . .
20
Ordinary business income (loss). Subtract line 20 from line 6 . . . . . . . . . . .
21
Excess net passive income or LIFO recapture tax (see instructions) . . 22a
Tax from Schedule D (Form 1120S) . . . . . . . . . . . 22b
Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . . .
22c
2014 estimated tax payments and 2013 overpayment credited to 2014 23a
Tax deposited with Form 7004 . . . . . . . . . . . . 23b
Credit for federal tax paid on fuels (attach Form 4136) . . . . . 23c
Add lines 23a through 23c
. . . . . . . . . . . . . . . . . . . . . .
23d
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . .
24
Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed . .
25
Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid . .
26
Enter amount from line 26 Credited to 2015 estimated tax
Refunded
27
Tax and Payments
Deductions (see instructions for limitations)
Income
b Returns and allowances
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 a
b
c
23 a
b
c
d
24
25
26
27
Sign
Here
220,000
220,000
220,000
140,000
6,000
24,000
4,000
16,000
2,000
8,000
200,000
20,000
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
(see instructions)?
Paid
Preparer
Use Only
Date
Firm’s name
Firm's address
V.I.P. TAX INC.
ISA
- 78 -
Yes
Title
Date
38305
Check
if
self-employed
Firm's EIN
Phone no.
No
PTIN
00-0000000
Form 1120S (2014)
Form 1120S (2014)
Schedule B
1
2
3
4
Page
2
a
c
a Business activity
Check accounting method:
Cash
b
Other (specify)
Yes No
Accrual
b Product or service
At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a
nominee or similar person? If "Yes," attach Schedule B-1, Information on Certain Shareholders of an S Corporation . .
a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any
foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v)
below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(if any)
(iii) Country of
Incorporation
(iv) Percentage of Stock
Owned
(v) If Percentage in (iv) is 100%, Enter the
Date (if any) a Qualified Subchapter S
Subsidiary Election Was Made
b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or
capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a
trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . .
(i) Name of Entity
(if any)
(iii) Type of Entity
(iv) Country of
Organization
(v) Maximum Percentage Owned in Profit,
Loss, or Capital
5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . .
(i)
Total shares of restricted stock . . . . . . . . .
(ii) Total shares of non-restricted stock . . . . . . . .
b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?
.
.
(i)
Total shares of stock outstanding at the end of the tax year
(ii) Total shares of stock outstanding if all instruments were executed
6
7
Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
information on any reportable transaction?
. . . . . . . . . . . . . . . . . . . . . . . .
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . .
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount
Instruments.
If the corporation: (a) was a C corporation before it elected to be an S corporation or the corporation acquired an
asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in
the hands of a C corporation and (b) has net unrealized built-in gain in excess of the net recognized built-in gain
from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see
$
instructions) . . . . . . . . . . . . . . .
$
9
Enter the accumulated earnings and profits of the corporation at the end of the tax year.
10
Does the corporation satisfy both of the following conditions?
a The corporation’s total receipts (see instructions) for the tax year were less than $250,000 . . . . . . . . . .
b The corporation’s total assets at the end of the tax year were less than $250,000
. . . . . . . . . . . .
If “Yes,” the corporation is not required to complete Schedules L and M-1.
8
11
During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had
terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . .
If “Yes,” enter the amount of principal reduction $
12
During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions
13 a Did the corporation make any payments in 2014 that would require it to file Form(s) 1099? . . . . . . . . .
b If “Yes,” did the corporation file or will it file required Forms 1099? . . . . . . . . . . . . . . . .
the
.
.
.
.
Form 1120S (2014)
- 79 -
Form 1120S (2014)
Credits
Deductions
Income (Loss)
Schedule K
Ordinary business income (loss) (page 1, line 21) . . . . . . . . . . . . . .
Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . .
3a
Other gross rental income (loss) . . . . . . . . . .
. .
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . .
3,000
b Qualified dividends . . . . . . . . . .
5b
6
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . . .
8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . . .
b Collectibles (28%) gain (loss) . . . . . . . . . . .
8b
c Unrecaptured section 1250 gain (attach statement) . . . .
8c
9
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . .
10
Other income (loss) (see instructions) . . Type
11
Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . .
12a Charitable contributions . . . . . . . . . . . . . . . . . . . . .
b Investment interest expense . . . . . . . . . . . . . . . . . . . .
c Section 59(e)(2) expenditures (1) Type
(2) Amount
d Other deductions (see instructions) . . .
Type
13a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . .
b Low-income housing credit (other) . . . . . . . . . . . . . . . . . .
c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) . .
d Other rental real estate credits (see instructions) Type
e Other rental credits (see instructions) . . . Type
Alternative
Minimum Tax
(AMT) Items
Biofuel producer credit (attach Form 6478)
Other credits (see instructions) . . . .
.
.
3
Total amount
1
2
3a
b
c
4
5
f
g
14a
b
c
Items Affecting
Shareholder
Basis
Page
Shareholders’ Pro Rata Share Items
. . .
Type
.
.
.
.
.
.
3c
4
5a
20,000
3,000
6
7
8a
9
10
11
12a
12b
12c(2)
12d
13a
13b
13c
13d
13e
13f
13g
.
.
.
.
Gross income from all sources . . . . . . . . . . . . . . . .
Gross income sourced at shareholder level . . . . . . . . . . . .
Foreign gross income sourced at corporate level
d Passive category
. . . . . . . . . . . . . . . . . . . .
e General category
. . . . . . . . . . . . . . . . . . . .
f Other (attach statement) . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at shareholder level
g Interest expense . . . . . . . . . . . . . . . . . . . . .
h Other . . . . . . . . . . . . . . . . . . . . . . . .
Deductions allocated and apportioned at corporate level to foreign source income
i Passive category
. . . . . . . . . . . . . . . . . . . .
j General category
. . . . . . . . . . . . . . . . . . . .
k Other (attach statement) . . . . . . . . . . . . . . . . . .
Other information
l Total foreign taxes (check one):
Paid
Accrued . . . . . . .
m Reduction in taxes available for credit (attach statement) . . . . . . . .
n Other foreign tax information (attach statement)
15a Post-1986 depreciation adjustment . . . . . . . . . . . . . . .
b Adjusted gain or loss . . . . . . . . . . . . . . . . . . .
c Depletion (other than oil and gas)
. . . . . . . . . . . . . . .
d Oil, gas, and geothermal properties—gross income . . . . . . . . . .
e Oil, gas, and geothermal properties—deductions . . . . . . . . . . .
f Other AMT items (attach statement) . . . . . . . . . . . . . . .
16a Tax-exempt interest income . . . . . . . . . . . . . . . . .
b Other tax-exempt income . . . . . . . . . . . . . . . . . .
c Nondeductible expenses . . . . . . . . . . . . . . . . . .
d Distributions (attach statement if required) (see instructions) . . . . . . .
e Repayment of loans from shareholders . . . . . . . . . . . . . .
.
.
.
.
.
.
14b
14c
.
.
.
.
.
.
.
.
.
14d
14e
14f
.
.
.
.
.
.
14g
.
.
.
.
.
.
.
.
.
14i
14j
14k
.
.
.
.
.
.
14l
14m
.
.
.
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.
.
.
15a
15b
15c
15d
15e
15f
16a
16b
16c
16d
16e
- 80 -
.
1
2
14h
5,000
Form 1120S (2014)
Form 1120S (2014)
ReconOther
ciliation Information
Schedule K
Page
17a
b
c
d
Investment income . . . . . . . . . . . . . . .
Investment expenses . . . . . . . . . . . . . .
Dividend distributions paid from accumulated earnings and profits
Other items and amounts (attach statement)
18
Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right
column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14l
Schedule L
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17a
17b
17c
.
.
.
Assets
(a)
1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15
Cash . . . . . . . . . . . .
Trade notes and accounts receivable . .
Inventories
. . . . . . . . . .
Tax-exempt securities (see instructions) .
Loans to shareholders . . . . . . .
Mortgage and real estate loans . . . .
Other investments (attach statement) . .
Depletable assets . . . . . . . .
Less accumulated depletion . . . . .
Less accumulated amortization . . . .
Total assets . . . . . . . . . .
16
17
18
19
20
21
22
23
24
25
26
27
Capital stock . . . . . . . . . . .
Retained earnings . . . . . . . . .
Total liabilities and shareholders’ equity
. .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(
(c)
2,000
12,000 (
)
18
End of tax year
(b)
12,000
2,000
5,000
5,000
)
132,000
32,000 )
100,000 (
132,000
44,000 )
(
)
(
)
(
)
(
)
(
23,000
(d)
(
88,000
114,000
95,000
30,000
NONE
20,000
2,000
50,000
12,000
12,000
2,000
50,000
31,000
)
114,000
- 81 -
4
Total amount
Shareholders’ Pro Rata Share Items (continued)
(
)
95,000
Form 1120S (2014)
Form 1120S (2014)
Schedule M-1
Page
5
Note. The corporation may be required to file Schedule M-3 (see instructions)
1
Net income (loss) per books
2
Income included on Schedule K, lines 1, 2, 3c, 4,
5a, 6, 7, 8a, 9, and 10, not recorded on books this
year (itemize)
3
a
b
.
.
.
.
.
.
3,000
included on Schedule K, lines 1 through 12 and
14l (itemize):
Depreciation $
Travel and entertainment $
a Tax-exempt interest $
6 Deductions included on Schedule K,
lines 1 through 12 and 14l, not charged
4,000
a Depreciation $
4,000
4,000
23,000
4
Schedule M-2 Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Shareholders’
Undistributed Taxable Income Previously Taxed (see instructions)
7 Add lines 5 and 6
. . . . .
27,000 8 Income (loss) (Schedule K, line 18). Line 4 less line 7
(a) Accumulated
adjustments account
1
2
3
4
5
6
7
8
Balance at beginning of tax year . . . . .
Ordinary income from page 1, line 21 . . .
Other additions . . . . . . . . . .
(
Loss from page 1, line 21 . . . . . . .
(
Other reductions . . . . . . . . . .
Combine lines 1 through 5 . . . . . . .
Distributions other than dividend distributions
Balance at end of tax year. Subtract line 7 from line 6
(b) Other adjustments
account
12,000
20,000
4,000
NONE )
NONE
36,000
5,000
31,000
NONE
)(
- 82 -
(c) Shareholders’ undistributed
taxable income previously taxed
NONE
)
NONE
NONE
NONE
Form 1120S (2014)
1120
U.S. Corporation Income Tax Return
Form
A Check if:
1a Consolidated return
(attach Form 851)
.
b Life/nonlife consolidated return .
.
.
2 Personal holding co.
(attach Sch. PH) .
.
Income
B Employer identification number
Name
00-0000000
TYPE
OR
1000
HEAVEN'S WAY
PRINT
(see instructions) .
.
4 Schedule M-3 attached
Deductions (See instructions for limitations on deductions.)
2014
, 20
C Date incorporated
01/31/2004
D Total assets (see instructions)
City or town, state, or province, country and ZIP or foreign postal code
3 Personal service corp.
Tax, Refundable Credits, and
Payments
OMB No. 1545-0123
, 2014, ending
JACKSON, TN 38301
$
Initial return
E Check if: (1)
Final return
(2)
Name change
(3)
Address change
(4)
490,000
1a
.
.
.
.
.
.
.
.
.
.
.
.
1a
b
c
2
3
4
Returns and allowances . . . . . .
Balance. Subtract line 1b from line 1a . .
Cost of goods sold (attach Form 1125-A) .
Gross profit. Subtract line 2 from line 1c .
Dividends (Schedule C, line 19)
. . .
.
.
.
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1b
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.
1c
2
3
4
5
6
7
Interest
. .
Gross rents .
Gross royalties
.
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5
6
7
8
9
10
Capital gain net income (attach Schedule D (Form 1120)) . . . . .
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
.
COD INCOME
Other income (see instructions—attach statement) . . . . . . .
.
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8
9
10
11
12
13
Total income. Add lines 3 through 10 . . . . . . . . .
Compensation of officers (see instructions—attach Form 1125-E)
.
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14
Salaries and wages (less employment credits)
Repairs and maintenance . . . . . .
11
12
13
.
.
.
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.
.
.
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.
.
.
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.
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15
16
Bad debts .
Rents . .
.
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14
15
16
17
18
19
Taxes and licenses . .
Interest
. . . . .
Charitable contributions .
.
.
.
.
.
.
.
.
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17
18
19
20
21
22
Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) .
Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advertising
. . . . . . . . . . . . . . . . . . . . . . . . . . .
.
.
.
20
21
22
23
24
25
23
24
25
26
27
28
Pension, profit-sharing, etc., plans
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
Domestic production activities deduction (attach Form 8903) . . . . . . . . . . . . . .
See Statement 1
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . .
Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . .
Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11.
29a
b
Net operating loss deduction (see instructions) .
Special deductions (Schedule C, line 20) . . .
c
30
31
32
33
34
35
36
Sign
Here
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Add lines 29a and 29b . . . . . . . . . . . . .
Taxable income. Subtract line 29c from line 28 (see instructions)
.
.
.
.
.
.
.
.
3,000
29a
29b
26,000
116,000
49,000
35,000
5,000
1,000
2,000
50
4,000
2,000
850
500
600
100,000
16,000
3,000
13,000
1,950
1,950
NONE
NONE
NONE
NONE
.
.
.
.
.
.
.
.
.
.
29c
30
Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . .
Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . .
Estimated tax penalty (see instructions). Check if Form 2220 is attached
. . . . .
Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
31
32
33
34
Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid
Enter amount from line 35 you want: Credited to 2015 estimated tax
.
. . . .
Refunded
35
36
.
.
490,000
400,000
90,000
26
27
28
.
.
.
.
206,936
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,
and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Date
Paid
Preparer
Use Only
Firm’s name
Firm's address
(see instructions)?
Yes
No
Title
V.I.P. TAX INC.
ISA
- 83 -
Date
38305
Check
if
self-employed
Firm's EIN
Phone no.
PTIN
00-0000000
Form 1120 (2014)
Page 2
Form 1120 (2014)
Schedule C
Dividends and Special Deductions (see instructions)
(a) Dividends
received
(b) %
1
Dividends from less-than-20% -owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
70
2
Dividends from 20% -or-more-owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
80
3
Dividends on debt-financed stock of domestic and foreign corporations .
.
.
.
.
see
instructions
4
Dividends on certain preferred stock of less-than-20% -owned public utilities
.
.
.
42
5
Dividends on certain preferred stock of 20% -or-more-owned public utilities .
.
.
.
48
6
Dividends from less-than-20% -owned foreign corporations and certain FSCs
.
.
.
70
7
Dividends from 20% -or-more-owned foreign corporations and certain FSCs
.
.
.
80
8
Dividends from wholly owned foreign subsidiaries
100
9
Total. Add lines 1 through 8. See instructions for limitation
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 . . . . .
100
11
Dividends from affiliated group members .
.
.
.
.
.
.
.
.
.
.
.
.
.
100
12
Dividends from certain FSCs
.
.
.
.
.
.
.
.
.
.
.
.
.
100
13
Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12
.
.
.
14
Income from controlled foreign corporations under subpart F (attach Form(s) 5471)
15
Foreign dividend gross-up
.
.
.
.
.
.
.
16
IC-DISC and former DISC dividends not included on lines 1, 2, or 3
.
.
.
.
.
.
17
Other dividends
.
.
.
.
.
.
18
Deduction for dividends paid on certain preferred stock of public utilities
.
.
.
.
19
Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 .
.
.
20
Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
- 84 -
(c) Special deductions
(a) × (b)
.
.
.
.
.
.
.
Form 1120 (2014)
Page 3
Form 1120 (2014)
Schedule J
Tax Computation and Payment (see instructions)
Part I–Tax Computation
1
2
3
Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) .
Income tax. Check if a qualified personal service corporation (see instructions) . . . . .
Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
2
3
4
5a
b
Add lines 2 and 3 . . . . . . . .
Foreign tax credit (attach Form 1118) . .
Credit from Form 8834 (see instructions) .
.
.
.
.
.
4
1,950
.
.
.
.
.
.
.
.
.
.
.
.
6
7
. .
9a
.
.
.
.
.
8
1,950
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
General business credit (attach Form 3800) . . .
Credit for prior year minimum tax (attach Form 8827)
Bond credits from Form 8912 . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Total credits. Add lines 5a through 5e
Subtract line 6 from line 4 . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8
9a
Personal holding company tax (attach Schedule PH (Form 1120)) .
Recapture of investment credit (attach Form 4255) . . . . .
.
.
.
.
.
.
.
.
.
.
.
b
Recapture of low-income housing credit (attach Form 8611)
.
.
.
.
.
c
Interest due under the look-back method—completed long-term contracts (attach
Form 8697) . . . . . . . . . . . . . . . . . . . . . .
9c
d
Interest due under the look-back method—income forecast method
8866) . . . . . . . . . . . . . . . . . . .
Alternative tax on qualifying shipping activities (attach Form 8902)
.
Other (see instructions—attach statement) . . . . . . . .
9d
9e
9f
c
d
e
e
f
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(attach
. .
. .
. .
.
. .
5a
5b
1,950
5c
5d
5e
.
.
9b
Form
. .
. .
. .
10
11
Total. Add lines 9a through 9f . . . . . . . . . . . .
Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
11
1,950
12
13
2013 overpayment credited to 2014
2014 estimated tax payments . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
12
13
14
15
16
2014 refund applied for on Form 4466 .
Combine lines 12, 13, and 14 . . .
Tax deposited with Form 7004 . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
14 (
15
16
1,950
17
18
Withholding (see instructions) . . . .
Total payments. Add lines 15, 16, and 17 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17
18
19
a
Refundable credits from:
Form 2439 . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
b
c
d
20
Form 4136 . . . . . . . . . .
Form 8827, line 8c
. . . . . . .
Other (attach statement—see instructions).
Total credits. Add lines 19a through 19d .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19a
19b
19c
19d
. . .
21
Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 .
Part II–Payments and Refundable Credits
Schedule K
.
.
.
.
1
Check accounting method: a
2
a
b
Business activity code no.
5700
Business activity
RETAIL TRADE
c
3
4
Product or service
Cash
b
Accrual
c
FURNITURE
.
.
.
.
.
.
.
20
.
.
.
.
.
21
)
1,950
1,950
1,950
Other (specify)
Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group?
If “Yes,” enter name and EIN of the parent corporation
Yes
.
.
.
.
.
.
.
.
.
No
X
.
a
b
Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt
organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the
corporation’s stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . .
Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all
classes of the corporation’s stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) .
X
X
Form 1120 (2014)
- 85 -
Page 4
Form 1120 (2014)
Schedule K
5
Other Information continued (see instructions)
Yes
No
a
Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of
any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions.
(ii) Employer
(if any)
X
(iv) Percentage
Owned in Voting
Stock
(iii) Country of
Incorporation
b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership
(including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions.
(ii) Employer
(if any)
(i) Name of Entity
6
X
(iv) Maximum
Percentage Owned in
(iii) Country of
Organization
During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in
excess of the corporation’s current and accumulated earnings and profits? (See sections 301 and 316.) . . . . . . .
X
If "Yes," file Form 5452, Corporate Report of Nondividend Distributions.
If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.
7
At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all
classes of the corporation’s stock entitled to vote or (b) the total value of all classes of the corporation’s stock?
. . . .
X
For rules of attribution, see section 318. If “Yes,” enter:
(i) Percentage owned
and (ii) Owner’s country
8
(c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached
Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . .
9
10
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments.
Enter the amount of tax-exempt interest received or accrued during the tax year $
Enter the number of shareholders at the end of the tax year (if 100 or fewer)
11
If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here
12
13
.
.
.
.
.
If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached
or the election will not be valid.
Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) $
3,000
Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the
tax year less than $250,000?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
X
If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions
$
and the book value of property distributions (other than cash) made during the tax year
14
Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)?
.
.
.
.
.
.
.
.
.
.
.
.
If “Yes,” complete and attach Schedule UTP.
15a
b
Did the corporation make any payments in 2014 that would require it to file Form(s) 1099?
If “Yes,” did or will the corporation file required Forms 1099? . . . . . . . . .
16
During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its
own stock?
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value)
of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . .
18
Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair
market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Form
- 86 -
X
X
X
X
X
X
1120 (2014)
Page 5
Form 1120 (2014)
Schedule L
1
Cash
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15
(a)
Assets
.
.
.
.
.
.
.
.
.
.
.
.
Trade notes and accounts receivable .
Less allowance for bad debts . . .
Inventories . . . . . . . . .
U.S. government obligations
. . .
Tax-exempt securities (see instructions)
Other current assets (attach statement)
Loans to shareholders . . . . .
Mortgage and real estate loans . . .
Other investments (attach statement) .
Buildings and other depreciable assets
Less accumulated depreciation . . .
Depletable assets . . . . . . .
Less accumulated depletion . . . .
Land (net of any amortization) . . .
Intangible assets (amortizable only)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Less accumulated amortization .
Other assets (attach statement) .
Total assets
. . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
(
23
24
25
26
27
28
Capital stock: a Preferred stock . . . .
b Common stock . . . .
Retained earnings—Appropriated (attach statement)
Retained earnings—Unappropriated . . .
Total liabilities and shareholders’ equity . .
Schedule M-1
40,000
39,713
NONE )
(d)
39,713 (
83,492
Net income (loss) per books .
.
.
.
.
.
Federal income tax per books
.
.
.
.
.
3
Excess of capital losses over capital gains
4
Income subject to tax not recorded on books
this year (itemize):
5
deducted on this return (itemize):
15,000
3,000
15,000
3,000
(
18,854
5,345 )
13,509 (
18,854
5,345 )
(
)
(
)
(
600
400 )
200 (
600
500 )
30,000
13,509
100
194,914
206,936
5,078
NONE
NONE
10,000
20,663
10,663
30,000
30,000
30,000
156,273
141,173
(
)
(
)
206,936
.
Depreciation . . . . $
Charitable contributions . $
Travel and entertainment . $
15,100
2,400
7
Income recorded on books this year
not included on this return (itemize):
8
Deductions on this return not charged
a Depreciation . . $
2,000
b Charitable contributions $
500
500 9 Add lines 7 and 8 . . . . . .
6
18,000 10 Income (page 1, line 28)—line 6 less line 9
Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L)
141,173 5 Distributions: a Cash . . . .
1
Balance at beginning of year
. . . . .
15,100
2
Net income (loss) per books . . . . . .
b Stock . . . .
4
95,327
40,000
Note: The corporation may be required to file Schedule M-3 (see instructions).
2
3
40,000
95,327
NONE )
196,914
Reconciliation of Income (Loss) per Books With Income per Return
1
a
b
c
(c)
(b)
16
17
18
19
20
21
22
End of tax year
Add lines 1, 2, and 3 .
.
.
.
.
.
.
.
156,273
- 87 -
6
c Property
7
8
Add lines 5 and 6 . . . . . .
Balance at end of year (line 4 less line 7)
.
.
2,000
2,000
16,000
.
156,273
Form 1120 (2014)
Amortization
100
Travel, meals and entertainment
500
Total
600
STATEMENT 1
- 88 -
Form
1125-E
(Rev. December 2013)
Compensation of Officers
Attach to Form 1120, 1120-C, 1120-F, 1120-REIT, 1120-RIC, or 1120S.
Information about Form 1125-E and its separate instructions is at www.irs.gov/form1125e.
OMB No. 1545-2225
Name
Employer identification number
00-0000000
Note. Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts.
(c) Percent of
time devoted to
business
(b) Social security number
(see instructions)
(a) Name of officer
1 GINNY BORROWER
000-00-0001
Percent of stock owned
(d) Common
(e) Preferred
100 %
100 %
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
2
Total compensation of officers .
.
.
.
.
.
.
.
.
.
2
3
Compensation of officers claimed on Form 1125-A or elsewhere on return
.
.
.
.
.
.
.
.
3
4
Subtract line 3 from line 2. Enter the result here and on Form 1120, page 1, line 12 or the
appropriate line of your tax return . . . . . . . . . . . . . . . . . . . . . .
4
.
.
.
.
.
.
.
.
.
.
.
.
.
(f) Amount of
compensation
49,000
49,000
49,000
Form 1125-E (Rev. 12-2013)
ISA
- 89 -
CASE STUDY – BORROWER
tax years 2015 and 2014
ABOUT JOHN AND GINNY BORROWER:
Filed joint tax returns
Married with no dependents
f f Own three rental properties
ff
ff
JOHN IS A:
Sole proprietor of Tech in a Sec
computer service
f f 20% partner in Tanglewood Realty
f f 50% owner and nonactive participant
in management of Creative Network
Design Services, an S-Corp
ff
GINNY IS AN:
Owner and manager of Interior
Innovations, Incorporated, a regular
corporation
f f Part-time sales representative for
Creative Greetings Cards, 40% of
income from commissions
f f 50% partner in Westchester
Development, LLC
ff
Mortgage Guaranty Insurance Corporation
MGIC Plaza, Milwaukee, Wisconsin 53202 • www.mgic.com
© 2010-2016 Mortgage Guaranty Insurance Corporation. All rights reserved.
71-40325 2/16

EVALUATING the Self-Employed Borrower

Transcription

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