Form 1065-B U.S. Return for Income for Electing Large Partnerships

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065-B, PAGE 1 of 6
PRINTS: HEAD to FOOT
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") 3 559 mm (22") FOLD TO: 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: ON TOP FOLD

1065-B

Department of the Treasury
Internal Revenue Service

A Principal business activity
B Principal product or service

C Business code no.
(see instructions)

Date

Revised proofs
requested

U.S. Return of Income for
Electing Large Partnerships

OMB No. 1545-1626

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For calendar year 2007, or tax year beginning
©

Use the
IRS
label.
Otherwise,
print
or type.

Signature

O.K. to print

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

, 2007, and ending

, 20

2007

.

See separate instructions.

Name of partnership

D Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

E Date business started

City or town, state, and ZIP code

F Total assets (see instructions)

$

(1)

Final return

(2)

Name change

(3)

Address change

Cash

(2)

Accrual

(3)

Other (specify) ©

G

Check applicable boxes:

H

Check accounting method: (1)

I

Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year ©

Income
Deductions

Taxable Income or Loss From Passive Loss Limitation Activities

Gross receipts or sales
b Less returns and allowances
c Bal ©
Cost of goods sold (Schedule A, line 8)
Gross profit. Subtract line 2 from line 1c
Net rental real estate income (loss) (attach Form 8825)
Net income (loss) from other rental activities (attach schedule)
Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule)
Net farm profit (loss) (attach Schedule F (Form 1040))
Excess of net short-term capital gain over net long-term capital loss (Schedule D,
line 14)
9 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797)
10 Other income (loss) (see instructions) (attach schedule)
11 Total income (loss). Combine lines 3 through 10
1a
2
3
4
5
6
7
8

12 Salaries and wages (other than to partners) (less employment credits)
13 Guaranteed payments to partners
14 Repairs and maintenance
15 Bad debts
16 Rent
17 Taxes and licenses
18 Interest
19a
19a Depreciation and section 179 expense deduction (see instructions)
19b
b Less: depreciation reported on Schedule A and elsewhere on return
20 Depletion
21 Retirement plans, etc.
22 Employee benefit programs
23 Other deductions (attach schedule)
24 Total deductions. Add the amounts shown in the far right column for lines 12 through 23

Tax and
Payments

25 Taxable income (loss) from passive loss limitation activities. Subtract line 24 from line 11
26
27
28
29

Sign
Here

Amended return

©

J Check if Schedule M-3 (Form 1065) is attached

Part I

(4)

Form 4255
Tax (see instructions). Check if from: a
a
Form 2439
Other payments. Check if from:
Amount owed. Enter the excess of line 26 over line 27
Overpayment. Enter the excess of line 27 over line 26

b
b

Form 8611
Form 4136

1c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

19c
20
21
22
23
24
25
26
27
28
29

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.

©

Paid
Preparer’s
Use Only

Signature of general partner or limited liability company member manager
Preparer’s
signature

©

May the IRS discuss this return
with the preparer shown below
Yes
No
(see instructions)?

Date

Date

Firm’s name (or
yours if self-employed),
address, and ZIP code

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Preparer’s SSN or PTIN

Check if
self-employed
EIN
Phone no.
Cat. No. 26265H

(

)
Form

1065-B

(2007)

2
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065-B PAGE 2 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22") FOLD TO 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: ON TOP FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1065-B (2007)

Part II
1
2a
b
c
3
4
5
6
7
8
9
10a
b
11
12
13

b
c
d
e

1

2c
3
4
5
6
7
8
9

10b
11
12
13

Cost of Goods Sold (see instructions)

1
Inventory at beginning of year
2
Purchases less cost of items withdrawn for personal use
3
Cost of labor
4
Additional section 263A costs (attach schedule)
5
Other costs (attach schedule)
6
Total. Add lines 1 through 5
7
Inventory at end of year
8
Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2
Check all methods used for valuing closing inventory:
(i)
Cost as described in Regulations section 1.471-3
(ii)
Lower of cost or market as described in Regulations section 1.471-4
(iii)
Other (specify method used and attach explanation) ©
©
Check this box if there was a writedown of “subnormal” goods as described in Regulations section 1.471-2(c)
©
Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)
Yes
Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership?
Was there any change in determining quantities, cost, or valuations between opening and closing inventory?
Yes
If “Yes,” attach explanation.

Schedule B

Yes

What type of entity is filing this return? Check the applicable box:
a
Domestic general partnership
b
Domestic limited partnership
c
d
Domestic limited liability partnership
Domestic limited liability company
e
Foreign partnership
f
Other ©
2 Are any partners in this partnership also partnerships?

4
5
6

No

During the partnership’s tax year, did the partnership own any interest in another partnership or in any foreign
entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and
301.7701-3? If “Yes,” see instructions for required attachment
Does this partnership have any foreign partners? If “Yes,” the partnership may have to file Forms 8804, 8805,
and 8813. (See instructions.)
Is this partnership a publicly traded partnership as defined in section 469(k)(2)?
Has this partnership filed, or is it required to file, a return under section 6111 to provide information on any
reportable transaction?

7

At any time during calendar year 2007, 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 instructions for exceptions and filing requirements for Form TD F 90-22.1. If “Yes,” enter the
name of the foreign country. ©

8

During the tax year, did the partnership receive a distribution from, or was it the grantor to, or transferor to, a
foreign trust? If “Yes,” the partnership may have to file Form 3520
Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached
to this return. ©

9

No
No

Other Information (see instructions)

1

3

2

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Interest
2a
Total ordinary dividends
2b
Qualified dividends
Nonqualified dividends (subtract line 2b from 2a)
Gross royalties
Excess of net short-term capital gain over net long-term capital loss (Schedule D, line 17)
Other income (loss) (see instructions) (attach schedule)
Total income (loss). Add lines 1, 2c, 3, 4, and 5
Interest expense on investment debts (attach Form 4952)
State and local income taxes (see instructions)
Charitable contributions (see instructions for limitations and required attachment)
10a
Total miscellaneous itemized deductions
Deductible amount. Multiply line 10a by 30%
Other deductions (attach schedule)
Total deductions. Add lines 7, 8, 9, 10b, and 11
Taxable income (loss) from other activities. Subtract line 12 from line 6

Schedule A
1
2
3
4
5
6
7
8
9a

Page

Taxable Income or Loss From Other Activities

Form

1065-B

(2007)

2
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065-B PAGE 3 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22") FOLD TO 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: ON TOP FOLD

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Form 1065-B (2007)

Schedule D

Page

(a) Description of property
(e.g., 100 shares
of “Z” Co.)

1

2
3
4

3

Capital Gains and Losses
Part I—Short-Term Capital Gains and Losses—Assets Held 1 Year or Less

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(b) Date acquired
(month, day, year)

(c) Date sold
(month, day, year)

(d) Sales price
(see instructions)

(e) Cost or other basis
(see instructions)

(f) Gain or (loss)
Subtract (e) from (d)

2
3
4

Short-term capital gain from installment sales from Form 6252, line 26 or 37
Short-term capital gain (loss) from like-kind exchanges from Form 8824
Net short-term capital gain or (loss). Combine lines 1 through 3 in column (f)

Part II—Long-Term Capital Gains and Losses—Assets Held More Than 1 Year
(a) Description of property
(e.g., 100 shares
of “Z” Co.)

5

6
7
8
9

(b) Date acquired
(month, day, year)

(c) Date sold
(month, day, year)

(d) Sales price
(see instructions)

(e) Cost or other basis
(see instructions)

(f) Gain or (loss)
Subtract (e) from (d)

6
7
8
9

Enter gain from Form 4797, Part I
Long-term capital gain from installment sales from Form 6252, line 26 or 37
Long-term capital gain (loss) from like-kind exchanges from Form 8824
Net long-term capital gain or (loss). Combine lines 5 through 8 in column (f)

Part III—Summary of Parts I and II
10
11
12

Combine lines 4 and 9 and enter the net gain (loss)
Enter excess of net short-term capital gain (line 4) over net long-term capital loss (line 9)
Net capital gain or (loss). Subtract line 11 from line 10

13

Redetermine the amount on line 11 by taking into account only gains and losses from passive
loss limitation activities
Excess of net short-term capital gain over net long-term capital loss. Enter the smaller of
the amount on line 11 or line 13. Enter here and on page 1, Part I, line 8

10
11
12

Part IV—Net Capital Gain (Loss) From Passive Loss Limitation Activities

14
15
16

Redetermine the amount on line 12 by taking into account only gains and losses from passive
loss limitation activities
Net capital gain or (loss) from passive loss limitation activities. If lines 12 and 15 are both
positive or both negative, enter the smaller of line 12 or line 15. Otherwise, enter -0-. Enter here
and on Schedule K, line 4a
Note. When figuring whether line 12 or line 15 is smaller, treat both numbers as positive.

13
14
15

16

Part V—Net Capital Gain (Loss) From Other Activities
17
18

Excess of net short-term capital gain over net long-term capital loss. Subtract line 14 from
line 11. Enter here and on page 2, Part II, line 4
Net capital gain or (loss) from other activities. Subtract line 16 from line 12. Enter here and
on Schedule K, line 4b

17
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Form

1065-B

(2007)

2
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065-B PAGE 4 of 6
PRINTS: HEAD TO FOOT
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22") FOLD TO 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: ON TOP FOLD

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Form 1065-B (2007)

Schedule K

Page

4

Partners’ Shares of Income, Credits, Deductions, etc.

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(a) Distributive share items

(b) Total amount

1a Taxable income (loss) from passive loss limitation activities (Part I, line 25)
b Amount on line 1a allocated to general partners as:
1b(1)
(1) Taxable income (loss) from trade or business activities
1b(2)
(2) Taxable income (loss) from rental real estate activities
1b(3)
(3) Taxable income (loss) from other rental activities
c Total amount on line 1a allocated to general partners. Combine lines 1b(1) through 1b(3)
d Taxable income (loss) from passive loss limitation activities allocated to limited partners. Subtract
line 1c from line 1a (report on Schedules K-1, box 1)
2 Taxable income (loss) from other activities (Part II, line 13)
3 Qualified dividends from other activities (Part II, line 2b)
4a Net capital gain (loss) from passive loss limitation activities (Schedule D, line 16)
b Net capital gain (loss) from other activities (Schedule D, line 18)
5 Net passive alternative minimum tax adjustment
6 Net other alternative minimum tax adjustment
7 Guaranteed payments
8 Income from discharge of indebtedness
9 Tax-exempt interest income
10 General credits (see instructions)
11 Low-income housing credit (see instructions)
12 Rehabilitation credit from rental real estate activities (attach Form 3468)
13a Net earnings (loss) from self-employment
b Gross nonfarm income
14a Name of foreign country or U.S. possession ©
b Gross income from all sources
c Gross income sourced at partner level (attach schedule)
d Foreign gross income sourced at partnership level:
(1) Passive category
(2) General category
(3) Other (attach schedule)
e Deductions allocated and apportioned at partner level:
(1) Interest expense
(2) Other
f Deductions allocated and apportioned at partnership level to foreign source income:
(1) Passive category
(2) General category
(3) Other (attach schedule)
Accrued
g Total foreign taxes (check one): © Paid
h Reduction in taxes available for credit (attach schedule)
15 Other items and amounts required to be reported separately to partners (attach schedule)

1a

1c

1d
2
3
4a
4b
5
6
7
8
9
10
11
12
13a
13b
14b
14c

14d(1)
14d(2)
14d(3)
14e(1)
14e(2)
14f(1)
14f(2)
14f(3)
14g
14h

Analysis of Net Income (Loss)
1

Net income (loss). In column (b), add lines 1c through 4b, 7, and 8. From the result, subtract line 14g

2

(ii) Individual
(active)

Analysis by
partner type:
a General partners
b Limited partners

(i) Corporate

(iii) Individual
(passive)

(iv) Partnership

1

(v) Exempt
organization

(vi) Nominee/Other

Form

1065-B

(2007)

2
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065 PAGE 5 of 6 (PAGE 6 IS BLANK)
PRINTS: HEAD TO FOOT
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22") FOLD TO 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: ON TOP FOLD

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Page

Form 1065-B (2007)

Schedule L

Assets
1
2a
b
3
4
5
6
7
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19
20
21
22

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3
4

Guaranteed payments
Expenses recorded on books this year not
included on Schedule K, lines 1c through
4b, and 14g (itemize):
a Depreciation $
b Travel and entertainment $

6

Income recorded on books this year not
included on Schedule K, lines 1c through
4b, and 8 (itemize):
a Tax-exempt interest $

7

Deductions included on Schedule K, lines 1c
through 4b, and 14g, not charged against book
income this year (itemize):
a Depreciation $

8
9

Add lines 6 and 7
Income (loss). (Analysis of Net Income
(Loss), line 1.) Subtract line 8 from line 5

Add lines 1 through 4

Schedule M-2

5

End of tax year

(c)

(d)

Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

Net income (loss) per books
Income included on Schedule K, lines 1c
through 4b, and 8, not recorded on books
this year (itemize):

3
4

Beginning of tax year
(b)

Reconciliation of Income (Loss) per Books With Income (Loss) per Return

1
2

1
2

(a)

Cash
Trade notes and accounts receivable
Less allowance for bad debts
Inventories
U.S. government obligations
Tax-exempt securities
Other current assets (attach schedule)
Mortgage and real estate loans
Other investments (attach schedule)
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 schedule)
Total assets
Liabilities and Capital
Accounts payable
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach schedule)
All nonrecourse loans
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach schedule)
Partners’ capital accounts
Total liabilities and capital

Schedule M-1

5

5

Balance Sheets per Books

Analysis of Partners’ Capital Accounts

Balance at beginning of year
Capital contributed: a Cash
b Property
Net income (loss) per books
Other increases (itemize):

Add lines 1 through 4

6

Distributions: a Cash
b Property

7

Other decreases (itemize):

8
9

Add lines 6 and 7
Balance at end of year. Subtract line 8 from
line 5
Form

Printed on recycled paper

1065-B

(2007)