Form 1065 Form 1065 U.S. Return of Partnership Income

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INSTRUCTIONS TO PRINTERS
FORM 1065, PAGE 1 of 6
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Date

1065

Department of the Treasury
(77)
Internal Revenue Service

For calendar year 2008, or tax year beginning

C Business code number

OMB No. 1545-0099

, 2008, ending

, 20

2008

.

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©

Use the
IRS
label.
Otherwise,
print
or type.

Signature

Revised proofs
requested

U.S. Return of Partnership Income

A Principal business activity
B Principal product or service

Date

O.K. to print

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

Form

Action

See separate instructions.

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, and ZIP code

F Total assets (see the
instructions)

$

G

Check applicable boxes:

(1)
(6)

Initial return (2)
Final return (3)
Name change
Technical termination - also check (1) or (2)

H

Check accounting method: (1)

Other (specify)

©

I

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

©

Cash

J Check if Schedule M-3 attached

(2)

Accrual

(3)

(4)

Address change

(5)

Amended return

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
2
3
4
5
6
7
8

1a
Gross receipts or sales
1b
Less returns and allowances
Cost of goods sold (Schedule A, line 8)
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

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

9 Salaries and wages (other than to partners) (less employment credits)
10 Guaranteed payments to partners
11 Repairs and maintenance
12 Bad debts
13 Rent
14 Taxes and licenses
15 Interest
16a
16a Depreciation (if required, attach Form 4562)
16b
b Less depreciation reported on Schedule A and elsewhere on return
17 Depletion (Do not deduct oil and gas depletion.)
18 Retirement plans, etc.
19 Employee benefit programs
20 Other deductions (attach statement)
21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20
22 Ordinary business income (loss). Subtract line 21 from line 8

Sign
Here
Paid
Preparer’s
Use Only

16c
17
18
19
20
21
22

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
Date

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

©

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

©

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

Date
Check if
self-employed
EIN

Preparer’s SSN or PTIN
©

©

Phone no.
Cat. No. 11390Z

(

)
Form

1065

(2008)

5
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065 PAGE 2 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

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

Form 1065 (2008)

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

b
c
d
e

Page

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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 statement)
5
Other costs (attach statement)
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) ©
Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership?
Yes
Was there any change in determining quantities, cost, or valuations between opening and closing inventory?
Yes
If “Yes,” attach explanation.

Schedule B

Other Information

1 What type of entity is filing this return? Check the applicable box:
b
Domestic general partnership
Domestic limited partnership
a
d
Domestic limited liability partnership
c
Domestic limited liability company
f
e
Foreign partnership
Other ©
2 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?
3

2

Cost of Goods Sold (see the instructions)

No
No

Yes

No

At the end of the tax year:
a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), or trust 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,” 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

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,” complete (i) through (iv) below
(i) Name of Individual or Estate

4

(ii) Social Security Number or
Employer Identification Number
(if any)

(iii) Country of
Citizenship
(see instructions)

(iv) Maximum
Percentage Owned in
Profit, Loss, or Capital

At the end of the tax year, did the partnership:
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? 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

Form

1065

(2008)

5
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065 PAGE 3 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

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Form 1065 (2008)

Page

b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss,

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Yes

3

No

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

5

6

(ii) Employer
Identification
Number (if any)

(iv) Country of
Organization

(iii) Type of
Entity

(v) Maximum
Percentage Owned in
Profit, Loss, or Capital

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
Does the partnership satisfy all four of the following conditions?

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 extensions)

for the partnership return.

d The partnership is not filing and is not required to file Schedule M-3

7
8
9

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.
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
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
information on any reportable transaction?

10

At any time during calendar year 2008, 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 Form TD F
90-22.1, Report of Foreign Bank and Financial Accounts. If “Yes,” enter the name of the foreign
country. ©

11

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 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
13
14
15
16
17

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 (including a disregarded entity)
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. ©

Designation of Tax Matters Partner (see instructions)
Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return:
Name of
designated
TMP
Address of
designated
TMP

©
©

Identifying number
of TMP

©
Form

1065

(2008)

5
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1065 PAGE 4 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

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

Form 1065 (2008)

Page

Partners’ Distributive Share Items

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Ordinary business income (loss) (page 1, line 22)
Net rental real estate income (loss) (attach Form 8825)
Other gross rental income (loss)
Expenses from other rental activities (attach statement)
Other net rental income (loss). Subtract line 3b from line 3a
Guaranteed payments
Interest income
Dividends: a Ordinary dividends
b Qualified dividends
7 Royalties
8 Net short-term capital gain (loss) (attach Schedule D (Form 1065))
9a Net long-term capital gain (loss) (attach Schedule D (Form 1065))
b Collectibles (28%) gain (loss)
c Unrecaptured section 1250 gain (attach statement)
10 Net section 1231 gain (loss) (attach Form 4797)
11 Other income (loss) (see instructions) Type ©
1
2
3a
b
c
4
5
6

12
13a
b
c
d

1
2

3a
3b

3c
4
5
6a

6b

7
8
9a

9b
9c

Section 179 deduction (attach Form 4562)
Contributions
Investment interest expense
Section 59(e)(2) expenditures:
(1) Type ©
Other deductions (see instructions) Type ©

(2) Amount

©

Credits

Low-income housing credit (section 42(j)(5))
Low-income housing credit (other)
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468)
Other rental real estate credits (see instructions)
Type ©
Other rental credits (see instructions)
Type ©
Type ©
Other credits (see instructions)

16a Name of country or U.S. possession ©
b Gross income from all sources
c Gross income sourced at partner level
Foreign gross income sourced at partnership level
d Passive category ©
e General category ©
f Other
Deductions allocated and apportioned at partner level
h Other
g Interest expense ©
Deductions allocated and apportioned at partnership level to foreign source income
i Passive category ©
j General category ©
k Other
l Total foreign taxes (check one): © Paid
Accrued
m Reduction in taxes available for credit (attach statement)
n Other foreign tax information (attach statement)
17a
b
c
d
e
f

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)

18a
b
c
19a
b
20a
b
c

Tax-exempt interest income
Other tax-exempt income
Nondeductible expenses
Distributions of cash and marketable securities
Distributions of other property
Investment income
Investment expenses
Other items and amounts (attach statement)

10
11
12
13a
13b
13c(2)
13d
14a
14b
14c
15a
15b
15c
15d
15e
15f

14a Net earnings (loss) from self-employment
b Gross farming or fishing income
c Gross nonfarm income
15a
b
c
d
e
f

Alternative
Other Information Minimum Tax
(AMT) Items

4

Total amount

Foreign Transactions

SelfEmploy- Deductions
ment

Income (Loss)

Schedule K

16b
16c
©

16f

©

16h

©

16k
16l
16m
17a
17b
17c
17d
17e
17f
18a
18b
18c
19a
19b
20a
20b
Form

1065

(2008)

5
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
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 559 mm (22") FOLD TO 216 mm (81⁄ 2 ") x 279 mm (11")
PERFORATE: ON TOP FOLD

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

Form 1065 (2008)

Page

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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

Analysis by
partner type:
a General partners
b Limited partners

Schedule L

(i) Corporate

(ii) Individual
(active)

Balance Sheets per Books
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

(iii) Individual
(passive)

(a)

(iv) Partnership

Beginning of tax year
(b)

1

(v) Exempt
organization

(vi) Nominee/Other

End of tax year
(c)

(d)

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

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

1
2

Net income (loss) per books
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

Income recorded on books this year not included
on Schedule K, lines 1 through 11 (itemize):
a Tax-exempt interest $

7

Deductions included on Schedule K, lines 1
through 13d, and 16l, 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
1
2

6

Analysis of Partners’ Capital Accounts

3
4

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

5

Add lines 1 through 4

6
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

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Form

1065

(2008)