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Davy Jones provides the following information for Davy Jones’ Nautical Tours, LLC, a Limited Liability Company he operates with his business partner, William Turner

You’re required to prepare a 1065 U.S. Return of Partnership Income, a 1065 Statement 1 – Other Deductions, a 1065 Schedule K1 – Partner’s Share of Income, Deductions, Credits, etc., and a 1065 Schedule B1 – Information on Partners Owning 50% or More of a Partnership

Davy Jones’ Nautical Tours, LLC is operated by David K. Jones (SSN 000-00-0000) and William W. Turner (SSN 111-11-1111). They are each 50% members in the LLC.

Principal Business or Professional Activity Code; 114110
Principal business; Charter fishing tours
Employer Identification Number 867530950

Business address Home address (David K. Jones)
1008 North Harbor Drive 8700 Lake Murray Blvd #2
San Diego, CA 92103 San Diego, 92119

The cash accounting method and GAAP are utilized
The business started January 1st, 2012

Income Statement

December 31, 20XX

Revenue $400,950.00
Wages ($40,000.00)
Guaranteed Payments ($84,000.00)
FICA ($3,060.00)
FUTA ($85.00)
Depreciation ($85,000.00)
Interest ($43,900.00)
Advertising ($6,350.00)
Supplies ($23,795.00)
Legal fees ($6,940.00)
Insurance ($26,700.00)
Boat slip rental ($33,010.00)
Travel ($6,250.00)
Office expense ($7,940.00)
Parking fines ($1,350.00)
Lease expense ($3,650.00)
Net Profit $28,920.00

Balance Sheet

1/1/2016 12/31/2016
Cash $15,500.00 $22,010.00
Boat $850,000.00 $850,000.00
Accumulated Depreciation ($255,000.00) ($340,000.00)
Total Assets $610,500.00 $532,010.00

Loans $525,000.00 $417,590.00
Equity Investment $50,000.00 $50,000.00
Retained Earnings $35,500.00 $64,420.00
Total Equity + Liability $610,500.00 $532,010.00

Assignment Guidelines
To prepare The LLC’s tax return, complete the following steps:

  1. Ensure that you have Adobe Reader installed on your computer to open and use the downloadable IRS forms.
  2. Go to the IRS Web site (www.irs.gov) and download the fill-in tax forms that you will need to complete.
  3. Complete all necessary downloaded fill-in forms on the computer and save.
  4. Save the completed forms as PDFs and upload for grading.
  5. You may not utilize Tax preparation software to complete this assignment! This constitutes cheating!
  6. Save the completed forms as PDFs and upload for grading; double check your PDFs to ensure data was retained when they were uploaded to Submitted Assignments; blank forms will yield 0 points!

You will be required to fill out and submit the following forms (find these forms online)
1065 U.S. Return of Partnership Income
1065 Statement 1 – Other Deductions
1065 Schedule K1 – Partner’s Share of Income, Deductions, Credits, etc.
1065 Schedule B1 – Information on Partners Owning 50% or More of a Partnership
(although a tax preparer is required to fill out a 1065 Schedule K1 for each partner/member, you may fill out just one for Davy Jones only since you have his address)

Complete all of the requested attachments for the applicable tax return