Partnership Tax Return


Please use the information below to complete the Form 1065 and the Schedule K-1 for Malcolm Fox only. Blank forms can be found on the IRS site or Doc Sharing. Please feel free to use a tax software package if you have one, but be aware that I will not be able to answer specific questions about it.


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

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

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

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

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

MFRF LLP Income Statement


        Fees collected                             800,000

        Dividend income (all qualified)       3,600

        Taxable business interest              1,400

        Tax-exempt interest                    2,600

        Long-term capital loss                  (4,000)

                Total revenues                    803,600


        Accounting fees                           12,000

        Advertising                                 5,000

        Contribution to United Way           2,000

        Depreciation expense                   8,119

        Employee salaries                        340,000

        Guaranteed payments                  140,000

        Entertainment                             2,600

        Travel                                        12,000

        Equipment rental                         6,000

        Office rentals paid                       7,000

        Interest expense                         4,000

        Insurance premiums                    2,200

        Office expense                            20,481

        Payroll taxes                               25,600

        Utilities                                      15,700

                Total expenses                    602,700

MFRF LLP Balance Sheet

Assets                                    January 1, 2012          December 31, 2012

Cash                                  $86,576                     $84,595

Tax-exempt securities          52,000                      52,000

Marketable securities           120,000 76,000

Furniture and equipment        65,000                      65,000

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

Total assets                               $287,000                   $232,900

                                        ======                   ======

Liabilities and Equity                   January 1, 2012          December 31, 2012

Nonrecourse debt on

Equipment                          $47,000                     $32,000

Capital, Fox                                120,000                     100,450

Capital, Ford                       120,000                     100,450

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

                                        ======                   =======

  • Attachment 1
  • Attachment 2
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