Tax return | Accounting homework help
[ad_1]
Tax return | Accounting homework help
•Prepare a 1120 U.S. Corporation Income Tax Return as Jim’s Auto Body, Inc. •Complete the appropriate schedules in the 1120 and Statement 1 – Other Deductions. •Prepare a 1065 U.S. Return of Partnership as Jim’s Auto Body, LLC. •Complete the appropriate schedules in the 1065, Statement 1 – Other Deductions and the 1065 Schedule K1 for Jim.
Jim’s Auto Body (Inc., or LLC) 1122 Sesame Street New York, NY, 10002 EIN 90-1234567 Dated incorporated January 1st, 2010 Jim Jameson 8701 Electric Avenue New York, NY, 10002SSN: 123-45-6789 •Jim Jameson took on Fred as a partner for the LLC. Fred owns 50% of all profits, losses, and capital. You do not have to complete Part 2 K, L, or M on the 1065 Schedule K1 (there is not enough information provided). •$4,500 salary expense is officer’s compensation for the corporation and guaranteed payment to partners for the LLC. •$55,000 equipment is 7-year property in its 5th year of service and was placed into service in the middle of the year, thus using the half-year convention. Use the correct table from the IRS—Publication 946: How to Depreciate Property—to determine the tax deductible depreciation. Form 4562 is not required. •Jim made four quarterly estimated tax payments of $800 each over the course of the year. •In accordance with IRS instructions: “Corporations with total receipts and total assets at the end of the tax year less than $250,000 are not required to complete Schedules L, M-1, and M-2” (Internal Revenue Service, n.d.). This also applies to the LLC. •For the 1065 Schedule K1, you will not have enough information to fill out Part 2 K, L, and M.
"96% of our customers have reported a 90% and above score. You might want to place an order with us."
