Instructions:
- The attached file Prima-Donna contains the information needed to complete the assignment.
Purpose: The purpose of this is not merely to learn how to fill-in forms but to enable you to meet the following goals:
- Understand the compliance requirements of partnerships
- Identify common book-tax differences and distinguish between permanent & temporary differences.
- Identify the elements that are included in Ordinary Business Income and distinguish them from separately stated items.
Task: In order to successfully complete this assignment you must:
- Complete Prima Donna Partnership Form 1065 and all related schedules. Be sure to attach schedules for any line item, which indicates one is required on the 1065. This includes line items that may require you to create a schedule that identifies the various items that are included in a line on the return these usually indicate “attach schedule.” Other lines will indicate specifically which schedule must be included with the return.
- The returns must be in.pdf format. The student can use either:
- Forms schedules and instructions found at www.irs.gov
- Tax preparation software may be used to prepare your assignment, but submission must still be in .pdf format.
- The following video may help you in the preparation of the Form 1065
- Include a list of all the judgments, decisions and assumptions that you made in order to complete the return. This should be submitted along with your return.
- FORM 4562 is not required. (Do not complete Form 4562 [depreciation calculation] since you do not have all the information).
Criteria for Success: In order to earn maximum credit for this assignment be sure to review the grading rubric which is included with the assignment.