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

1065

U.S. Return of Partnership Income

Form
Department of the Treasury
Internal Revenue Service
A Principal business activity

For calendar year 2010, or tax year beginning

B Principal product or service

Print
or
type.

C Business code number

a

OMB No. 1545-0099

, 2010, ending

, 20

2010

.

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
H
I
J

Check applicable boxes:

(1)
(2)
(3)
Initial return
Final return
Name change (4)
Address change
(6)
Technical termination - also check (1) or (2)
Other (specify) a
Check accounting method: (1)
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 a
Check if Schedules C and M-3 are attached

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(5)

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Amended return

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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
9
10
11
12
13
14
15
16a
b
17
18
19
20
21
22

Signature of general partner or limited liability company member manager

Print/Type preparer’s name

Firm’s name

Preparer’s signature

F

Paid
Preparer
Use Only

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

Sign
Here

Gross receipts or sales . . . . . . . . . . . .
1a
Less returns and allowances . . . . . . . . . . .
1b
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 . . . . . . . . . . . . . .
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
Less depreciation reported on Schedule A and elsewhere on return 16b
Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . .
Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . .

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

Date
Date

PTIN

Firm's EIN a

a

Firm’s address a

For Paperwork Reduction Act Notice, see separate instructions.

Check
if
self- employed

Phone no.
Cat. No. 11390Z

Form 1065 (2010)

Form 1065 (2010)

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

b
c
d
e

Inventory at beginning of year . . . . . . . . . . . . . . . .
Purchases less cost of items withdrawn for personal use . . . . . . .
Cost of labor . . . . . . . . . . . . . . . . . . . . .
Additional section 263A costs (attach statement) . . . . . . . . . .
Other costs (attach statement) . . . . . . . . . . . . . . .
Total. Add lines 1 through 5 . . . . . . . . . . . . . . . .
Inventory at end of year
. . . . . . . . . . . . . . . . .
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
Lower of cost or market as described in Regulations section 1.471-4
(ii)
Other (specify method used and attach explanation) a
(iii)

a
c
e
2

3
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2

1
2
3
4
5
6
7
8

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? . . . .
Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . .
If “Yes,” attach explanation.

Schedule B
1

Page

Cost of Goods Sold (see the instructions)

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a
a

Yes

No

Yes

No

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
Other a
Foreign partnership
f
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 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

Form 1065 (2010)

Form 1065 (2010)

Page

Yes

5

3

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

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 . . . . . . . . . . . . . . .
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 2010, 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. a

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

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 entities wholly-owned by the
partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . a
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 a
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. a
Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached
to this return. a

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:

Identifying
number of TMP
F

Phone number
of TMP

F F

F
F

Name of
designated
TMP
If the TMP is an
entity, name
of TMP representative
Address of
designated
TMP

Form 1065 (2010)

Form 1065 (2010)

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) . . . . . . . . . . . . .
1
Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . .
2
Other gross rental income (loss) . . . . . . . .
3a
Expenses from other rental activities (attach statement) .
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . .
3c
Guaranteed payments
. . . . . . . . . . . . . . . . . . . . .
4
Interest income . . . . . . . . . . . . . . . . . . . . . . . .
5
Dividends:
6a
a Ordinary dividends . . . . . . . . . . . . . . . . .
. . . . . .
6b
b Qualified dividends
Royalties . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . .
8
Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . .
9a
Collectibles (28%) gain (loss) . . . . . . . . .
9b
Unrecaptured section 1250 gain (attach statement) . .
9c
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . .
10
Other income (loss) (see instructions) Type a
11
Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . .
12
Contributions . . . . . . . . . . . . . . . . . . . . . . . .
13a
Investment interest expense
. . . . . . . . . . . . . . . . . . .
13b
(1) Type a
Section 59(e)(2) expenditures:
(2) Amount a 13c(2)
Other deductions (see instructions) Type a
13d
Net earnings (loss) from self-employment . . . . . . . . . . . . . . .
14a
Gross farming or fishing income . . . . . . . . . . . . . . . . . .
14b
Gross nonfarm income . . . . . . . . . . . . . . . . . . . . .
14c
Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . .
15a
Low-income housing credit (other)
. . . . . . . . . . . . . . . . .
15b
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . .
15c
Type a
15d
Other rental real estate credits (see instructions)
Type a
Other rental credits (see instructions)
15e
Other credits (see instructions)
Type a
15f
Name of country or U.S. possession a
Gross income from all sources . . . . . . . . . . . . . . . . . . .
16b
Gross income sourced at partner level . . . . . . . . . . . . . . . .
16c
Foreign gross income sourced at partnership level
Passive category a
e General category a
f Other a
16f
Deductions allocated and apportioned at partner level
Interest expense a
h Other . . . . . . . . . . a
16h
Deductions allocated and apportioned at partnership level to foreign source income
Passive category a
j General category a
k Other a 16k
a
. . . . . . . .
Total foreign taxes (check one):
Paid
Accrued
16l
Reduction in taxes available for credit (attach statement) . . . . . . . . . .
16m
Other foreign tax information (attach statement) . . . . . . . . . . . . .
Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . .
17a
Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . .
17b
Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . .
17c
Oil, gas, and geothermal properties—gross income . . . . . . . . . . . .
17d
Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . .
17e
Other AMT items (attach statement) . . . . . . . . . . . . . . . . .
17f
Tax-exempt interest income . . . . . . . . . . . . . . . . . . . .
18a
Other tax-exempt income . . . . . . . . . . . . . . . . . . . .
18b
Nondeductible expenses . . . . . . . . . . . . . . . . . . . . .
18c
Distributions of cash and marketable securities . . . . . . . . . . . . .
19a
Distributions of other property . . . . . . . . . . . . . . . . . . .
19b
Investment income . . . . . . . . . . . . . . . . . . . . . . .
20a
Investment expenses . . . . . . . . . . . . . . . . . . . . . .
20b
Other items and amounts (attach statement) . . . . . . . . . . . . . .
Form 1065 (2010)

Form 1065 (2010)

Page

5

Analysis of Net Income (Loss)
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:

1
2

(vi)
Nominee/Other

a General partners
b Limited partners

Schedule L
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

Balance Sheets per Books

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)
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 . . . . . . .

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Beginning of tax year
(a)
(b)

End of tax year
(c)

(d)

Mortgages, notes, bonds payable in less than 1 year

Other current liabilities (attach statement)
All nonrecourse loans . . . . . . .

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Mortgages, notes, bonds payable in 1 year or more

Other liabilities (attach statement) .
Partners’ capital accounts . . .
Total liabilities and capital . . .

Schedule M-1

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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).
Net income (loss) per books . . . .
Income recorded on books this year not included
6

1
2

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 .

Schedule M-2
1
2

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on Schedule K, lines 1 through 11 (itemize):

a

Tax-exempt interest $

a

Deductions included on Schedule K, lines
1 through 13d, and 16l, not charged
against book income this year (itemize):
Depreciation $

7

8
9

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

6

Distributions: a Cash
. .
b Property .
Other decreases (itemize):

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Add lines 6 and 7 .

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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):

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5

Add lines 1 through 4 .

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7

8
9

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Balance at end of year. Subtract line 8 from line 5
Form 1065 (2010)