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

Form

1065-B

Department of the Treasury
Internal Revenue Service

U.S. Return of Income for
Electing Large Partnerships

For calendar year 2010, or tax year beginning
▶

A Principal business activity
B Principal product or service
C Business code no.
(see instructions)

TYPE
or
PRINT

OMB No. 1545-1626

, 2010, and 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 instructions.

E Date business started

City or town, state, and ZIP code

F Total assets (see instructions)

$
G
H
I
J

Final return (2)
Name change
Address change
Check applicable boxes:
(1)
(3)
Cash
Accrual
Other (specify) ▶
(2)
(3)
Check accounting method: (1)
Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year ▶
Check if Schedule M-3 (Form 1065) is attached
. . . . . . . . . . . . . . . . ▶

Tax and
Payments

Deductions

Income

Part I

Amended return

(4)

Taxable Income or Loss From Passive Loss Limitation Activities

1a
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19a
b
20
21
22
23
24

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 16) . .
Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . .
Other income (loss) (see instructions) (attach schedule)
. . . . . . . . . . . . .
Total income (loss). Combine lines 3 through 10 . . . . . . . . . . . . . . .
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 and section 179 expense deduction (see instructions)
19a
19b
Less: depreciation reported on Schedule A and elsewhere on return
Depletion
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . .
Employee benefit programs
. . . . . . . . . . . . . . . . . . . . . .
Other deductions (attach schedule) . . . . . . . . . . . . . . . . . . . .
Total deductions. Add the amounts shown in the far right column for lines 12 through 23 . .

19c
20
21
22
23
24

25
26
27
28
29

Taxable income (loss) from passive loss limitation activities. Subtract line 24 from line 11
Tax (see instructions). Check if from: a
Form 4255
b
Form 8611 . . . . .
Other payments. Check if from:
a
Form 2439
b
Form 4136 . . . . .
Amount owed. Enter the excess of line 26 over line 27 . . . . . . . . . . . . .
Overpayment. Enter the excess of line 27 over line 26 . . . . . . . . . . . . .

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
Use Only

Signature of general partner or limited liability company member manager
Print/Type preparer’s name

Firm’s name

Preparer's signature

▶

Firm's address ▶

For Paperwork Reduction Act Notice, see separate instructions.

▲

▲

Sign
Here

.
.
.
.
.

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

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

Date
Date

Check
if
self-employed

PTIN

Firm's EIN ▶
Phone no.
Cat. No. 26265H

Form 1065-B (2010)

Page 2

Form 1065-B (2010)

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

Taxable Income or Loss From Other Activities

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total ordinary dividends . . . . . . . . . . . . . . . .
2a
Qualified dividends
. . . . . . . . . . . . . . . . .
2b
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 19)
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) . . .
Total miscellaneous itemized deductions . . . . . . . . . . 10a
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

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

2c
3
4
5
6
7
8
9

.
.
.
.

.
.
.
.

.
.
.
.

10b
11
12
13

Cost of Goods Sold (see instructions)

1
2
3
4
5
6
7
8
9a

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

Schedule B
1
a
c
e
2
3

4
5
6
7

8
9

No
No

Other Information (see instructions)

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 ▶
Foreign partnership
f
Are any partners in this partnership also partnerships? . . . . . . . . . . . . .

Yes

.

.

.

.

.

.

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, Form 8918, Material Advisor Disclosure Statement, to provide
information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . .
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 instructions for exceptions and filing requirements for Form TD F 90-22.1. If “Yes,” enter the name
of the foreign country. ▶
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. ▶
Form 1065-B (2010)

Page 3

Form 1065-B (2010)

Schedule D

Capital Gains and Losses (Use Schedule D-1 (Form 1065) to list additional transactions for
lines 1 and 6)
Part I—Short-Term Capital Gains and Losses—Assets Held 1 Year or Less

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

(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)

1

2
3
4
5

Enter short-term gain or (loss), if any, from Schedule D-1 (Form 1065), line 2 .
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 4 in column (f)

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

2
3
4
5

.
.
.
.

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.)

(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
10
11

Enter long-term gain or (loss), if any, from Schedule D-1 (Form 1065), line 8 .
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 6 through 10 in column (f)

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

12
13
14

Combine lines 5 and 11 and enter the net gain (loss)
. . . . . . . . . . . .
Enter excess of net short-term capital gain (line 5) over net long-term capital loss (line 11)
Net capital gain or (loss). Subtract line 13 from line 12 . . . . . . . . . . .

.
.
.

.
.
.

.
.
.

15

Redetermine the amount on line 13 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 13 or line 15. Enter here and on page 1, Part I, line 8 . . . . . . . . . .
Redetermine the amount on line 14 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 14 and 17 are both
positive or both negative, enter the smaller of line 14 or line 17. Otherwise, enter -0-. Enter here
and on Schedule K, line 4a . . . . . . . . . . . . . . . . . . . . . . . .
Note. When figuring whether line 14 or line 17 is smaller, treat both numbers as positive.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

7
8
9
10
11

.
.
.
.
.

Part III—Summary of Parts I and II
12
13
14

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

16
17
18

15
16
17

18

Part V—Net Capital Gain (Loss) From Other Activities
19
20

Excess of net short-term capital gain over net long-term capital loss. Subtract line 16 from
line 13. Enter here and on page 2, Part II, line 4 . . . . . . . . . . . . . . . . .
Net capital gain or (loss) from other activities. Subtract line 18 from line 14. Enter here and on
Schedule K, line 4b . . . . . . . . . . . . . . . . . . . . . . . . . .

19
20

Form 1065-B (2010)

Page 4

Form 1065-B (2010)

Schedule K

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

(a) Distributive share items
1a Taxable income (loss) from passive loss limitation activities (Part I, line 25) . . . . . . . .
b Amount on line 1a allocated to general partners as:
(1) Taxable income (loss) from trade or business activities . . . . . 1b(1)
(2) Taxable income (loss) from rental real estate activities . . . . . 1b(2)
(3) Taxable income (loss) from other rental activities . . . . . . . 1b(3)
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 18) . . . . . .
b Net capital gain (loss) from other activities (Schedule D, line 20) . . . . . . . . . . . .
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) . . . . . . . . . . . . . . . . . . . . . . . .
g Total foreign taxes (check one): ▶ Paid
Accrued
h Reduction in taxes available for credit (attach schedule) . . . . . . . . . . . . . .
15
Other items and amounts required to be reported separately to partners (attach schedule)

(b) Total amount
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

Analysis by
2
partner type:
a General partners
b Limited partners

(i) Corporate

(ii) Individual
(active)

(iii) Individual
(passive)

(iv) Partnership

1

(v) Exempt
organization

(vi) Nominee/Other

Form 1065-B (2010)

Page 5

Form 1065-B (2010)

Schedule L

Balance Sheets per Books
Beginning of tax year

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

Assets
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

(a)

End of tax year

(b)

(c)

(d)

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

2

Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).
Net income (loss) per books . . . .
6
Income recorded on books this year not
included on Schedule K, lines 1c through
Income included on Schedule K, lines 1c
4b, and 8 (itemize):
through 4b, and 8, not recorded on books
a Tax-exempt interest $
this year (itemize):

3

Guaranteed payments

1

.

.

.

.

.

4

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

5

Add lines 1 through 4 .

Schedule M-2
1
2
3
4

5

.

.

.

.

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

6

Distributions:

7

Other decreases (itemize):

8
9

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

.

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 .

.

.

.

.
.
.
.

.

.
.
.
.

.

a Cash .
b Property

.
.

.
.

.
.

.
.

Form 1065-B (2010)