Form 1065

bamberry
form1065.docx

Week 6: Form 1065 Tax Return Simulation

1. TRP.10.01

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Instructions

Form 1065

Form 8949

Schedule D

Form 4562

Federal Statements

Schedule K-1

Statement A-QBI Pass-through Entity Reporting

Instructions

Question Content Area

Note: This problem is for the 2020 tax year.

Ryan Ross (111-11-1112), Oscar Omega (222-22-2223), Clark Carey (333-33-3334), and Kim Kardigan (444-44-4445) are equal active members in ROCK the Ages LLC. ROCK serves as agents and managers for prominent musicians in the Los Angeles area. The LLC's Federal ID number is 55-5555556. It uses the cash basis and the calendar year and began operations on January 1, 2008. Its current address is 6102 Wilshire Boulevard, Suite 2100, Los Angeles, CA 90036. ROCK was the force behind such music icons as Adrianna Venti, Drake Malone, Elena Gomez, Tyler Quick, Queen Bey, and Bruno Mercury and has had a very profitable year. The following information was taken from the LLC's income statement for the current year.

Revenues

Fees and commissions

$4,800,000

Taxable interest income from bank deposits

1,600

Tax-exempt interest

3,200

Net gain on stock sales

4,000

Total revenues

$4,808,800

Expenses

Advertising and public relations

$380,000

Charitable contributions

28,000

Section 179 expense

20,000

Employee salaries and wages

1,000,000

Guaranteed payment (services), Ryan Ross, office manager

800,000

Guaranteed payment (services), other members

600,000

Business meals, subject to 50% disallowance

200,000

Travel

320,000

Legal and accounting fees

132,000

Office rentals paid

80,000

Interest expense on operating line of credit

10,000

Insurance premiums

52,000

Office expense

200,000

Payroll taxes

92,000

Utilities

54,800

Total expenses

$3,968,800

Recently, ROCK has taken advantage of bonus depreciation and § 179 deductions and fully remodeled the premises and upgraded its leasehold improvements. This year, ROCK wrapped up its remodel with the purchase of $20,000 of office furniture for which it will claim a § 179 deduction. (For simplicity, assume that ROCK uses the same cost recovery methods for both tax and financial purposes.) There is no depreciation adjustment for alternative minimum tax purposes.

ROCK invests much of its excess cash in non-dividend-paying growth stocks and tax-exempt securities. During the year, the LLC sold two securities. On June 15, 2020, ROCK purchased 1,000 shares of Tech, Inc., stock for $100,000; it sold those shares on December 15, 2020, for $80,000. On March 15, 2019, ROCK purchased 2,000 shares of BioLabs, Inc., stock for $136,000; it sold those shares for $160,000 on December 15, 2020. These transactions were reported to the IRS on Forms 1099–B; ROCK's basis in these shares  was reported.

Net income per books is $840,000. On January 1, 2020, the members' capital accounts equaled $200,000 each. No additional capital contributions were made in 2020. In addition to their guaranteed payments, each member withdrew $250,000 cash during the year. All contributions and distributions have been in cash, so the LLC has no net unrecognized § 704(c) gain or loss. The LLC's balance sheet as of December 31, 2020, is as follows.

Beginning

Ending

Cash

$444,000

$??

Tax-exempt securities

120,000

120,000

Marketable securities

436,000

300,000

Leasehold improvements, furniture, and equipment

960,000

980,000

Accumulated depreciation

(960,000)

(980,000)

Total assets

$1,000,000

$??

Operating line of credit

$200,000

$160,000

Capital, Ross

200,000

??

Capital, Omega

200,000

??

Capital, Carey

200,000

??

Capital, Kardigan

200,000

??

Total liabilities and capital

$1,000,000

$??

The firm's activities do not constitute "qualified production activities" for purposes of the § 199 deduction. (Note that the § 179 deduction is a business-related expense.) The LLC’s UBIA (unadjusted basis immediately after acquisition) equals the total original cost of all leasehold improvements, or $980,000.

All debt is shared equally by the members. Each member has personally guaranteed the debt of the LLC. All members are active in LLC operations. The business code for the entity is 711410. Complete the 2020 Form 1065 for ROCK the Ages LLC with appropriate forms and schedules. Prepare Schedule K–1 for Ryan Ross.

· If an amount box does not require an entry or the answer is zero, enter "0".

· Enter all amounts as positive numbers, unless otherwise instructed.

· If required, round amounts to the nearest dollar.

· Make realistic assumptions about any missing data.

Form 1065

Question Content Area

a.  Prepare the 2020 Form 1065, pages 1, 4, and 5, for ROCK the Ages LLC using tax basis information for Schedules L and M–2.  If required, use the minus sign to indicate a loss.

Form  1065 Department of the Treasury Internal Revenue Service

U.S. Return of Partnership Income For calendar year 2020, or tax year beginning _ _ _ _ , 2020, ending _ _ _ _ , 20 _ _ _. ► Go  www.irs.gov/Form1065  for instructions and the latest information.

OMB No. 1545-0123

2020

A

Principal business activity

Type or Print

ROCK the Ages LLC 6102 Wilshire Boulevard Suite 2100 Los Angeles, CA 90036

D

Employer identification no

Musician Agents

55-5555556

B

Principal product or service Agent Services

E

Date business started 1/01/2008

C

Business code number

F

Total assets (see instructions)

711410

$

fill in the blank e66966ff0fe306d_1

G

Check applicable boxes:

(1) ☐

Initial return

(2) ☐

Final return

(3) ☐

Name change

(4) ☐

Address change

(5) ☐

Amended return

H

Check accounting method:

(1) ☒

Cash

(2) ☐

Accrual

(3) ☐

Other (specify) ►

I

Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year ►

4

J

Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ►

Caution: Include  only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.

INCOME

1a

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1a

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b

Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1b

c

Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1c

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   2

Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

   3

Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

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   4

Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . . . . . .

4

   5

Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

   6

Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . .

6

   7

Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

   8

Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

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DEDUCTIONS SEE INSTRS FOR LIMITATIONS

   9

Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . .

9

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10

Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

fill in the blank e66966ff0fe306d_7

11

Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

12

Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

13

Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

fill in the blank e66966ff0fe306d_8

14

Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

fill in the blank e66966ff0fe306d_9

15

Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

fill in the blank e66966ff0fe306d_10

16a

Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . .

16a

b

Less depreciation reported on Form 1125-A and elsewhere on return . . . . .

16b

16c

17

Depletion  (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17

18

Retirement plans, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

19

Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

20

Other deductions (att stmt) See Statement 1

20

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21

Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . . . . .

21

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22

Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

fill in the blank e66966ff0fe306d_13

TAX AND PAYMENTS

23

Interest due under the look-back method — completed long-term contracts (attach Form 8697) . . . . . .

23

24

Interest due under the look-back method — income forecast method (attach Form 8866) . . . . . . . . . . .

24

25

BBA AAR imputed underpayment (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25

26

Other taxes (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

27

Total balance due. Add lines 23 through 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

28

Payment (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28

29

Amount owed. If line 28 is smaller than line 27, enter amount owed . . . . . . . . . . . . . . . . . . . . . . . .

29

30

Overpayment. If line 28 is larger than line 27, enter overpayment . . . . . . . . . . . . . . . . . . . . . . . . . .

30

Sign Here

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 partner or limited liability company member) is based on all information of which preparer has any knowledge.

May the IRS discuss this return with the preparer shown below? See instructions. ☐  Yes ☐  No

Signature of partner or limited liability company member

Date

Paid Preparer Use Only

Print/Type preparer's name

Preparer's signature SELF-PREPARED

Date

Check ☐ if self-employed

PTIN

Firm's name ►

Firm's EIN ►

Firm's address ►

Phone no.

BAA For Paperwork Reduction Act Notice, see separate instructions.

Form  1065 (2020)

Form 1065 (2020)

ROCK the Ages LLC

55-5555556

Page  2

Schedule B

Other Information

1

What type of entity is filing this return? Check the applicable box:

Yes

No

a

Domestic general partnership

b

Domestic limited partnership

c

Domestic limited liability company

d

Domestic limited liability partnership

e

Foreign partnership

f

Other ►

2

At the end of the tax year:

a

Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization, or any foreign government 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

3

At the end of the tax year, did the partnership:

a

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

(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 . . . . . . . . . . . . . . .

X

(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

4

Does the partnership satisfy  all four of the following conditions?

Yes

No

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

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.

5

Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

6

During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

7

Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

8

At any time during calendar year 2020, 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 FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If "Yes," enter the name of the foreign country. ►

X

9

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

10a

Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . . . . . . . . .

X

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 . . . . . . . . . . . . . . . . . . . . .

X

BAA

Form  1065 (2020)

Form 1065 (2020)

ROCK the Ages LLC

55-5555556

Page  3

Schedule B

Other Information  (continued)

Yes

No

c 

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

X

  11

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 disregarded entities wholly owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► ☐

  12

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? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

  13

If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), enter the number of Forms 8858 attached. See instructions ►

  14

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. ►

X

  15

Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. ►

16a

Did you make any payments in 2020 that would require you to file Form(s) 1099? See instructions . . . . . . . . . . . . . . . .

X

b

If "Yes," did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  17

Enter the number of Forms 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return ►

  18

Enter the number of partners that are foreign governments under section 892. ► 0

  19

During the partnership's tax year, did the partnership make any payments that would require it to file Form 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)? . . . . . . . . . . . . . . .

X

  20

Was the partnership a specified domestic entity required to file Form 8938 for the tax year? See the Instructions for Form 8938? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

  21

Is the partnership a section 721(c) partnership, as defined in Regulations section 1.721(c)-1(b)(14)?

X

  22

During the tax year, did the partnership pay or accrue any interest or royalty for which one or more partners are not allowed a deduction under section 267A? See instructions. If "Yes," enter the total amount of the disallowed deductions. ► $

  23

Did the partnership have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

  24

Does the partnership satisfy one or more of the following? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

a

The partnership owns a pass-through entity with current, or prior year carryover, excess business interest expense.

b

The partnership's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $26 million and the partnership has business interest.

c

The partnership is a tax shelter (see instructions) and the partnership has business interest expense. If "Yes" to any, complete and attach Form 8990.

  25

Is the partnership electing out of the centralized partnership audit regime under section 6221(b)? See instructions.

X

If "Yes," the partnership must complete Schedule B-2 (Form 1065). Enter the total from Schedule B-2, Part III, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ►

If "No," complete Designation of Partnership Representative below.

Designation of Partnership Representative (see instructions)

Enter below the information for the partnership representative (PR) for the tax year covered by this return.

Name of PR   ►

U.S. address of PR

U.S. phone number of PR

If the PR is an entity, name of the designated individual for the PR   ►

U.S. address of designated individual

U.S. phone number of designated individual

  26

Is the partnership attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

If "Yes," enter the amount from Form 8996, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ►   $

  27

Enter the number of foreign partners subject to section 864(c)(8) as a result of transferring all or a portion of an interest in the partnership or of receiving a distribution from the partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ►

  28

At any time during the tax year, were there any transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

29

Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties constituting a trade or business of your partnership, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the partners held more than 50% of the stock of the foreign corporation)? If "Yes," list the ownership percentage by vote and by value. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X

Percentage: By Vote By Value

BAA

Form  1065 (2020)

Form 1065 (2020)

ROCK the Ages LLC

55-5555556

Page  4

  Schedule K 

Partners' Distributive Share Items

Total amount

Income (Loss)

1

Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1  

fill in the blank e66966ff0fe306d_14

2

Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2  

3a

Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . .

3a

b

Expenses from other rental activities (attach stmt) . . . . . . . . . . . . . .

3b

c

Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . .

3c

4

Guaranteed payments:

a Services

4a

fill in the blank e66966ff0fe306d_15

b Capital

4b

c

Total. Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4c

fill in the blank e66966ff0fe306d_16

5

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5  

fill in the blank e66966ff0fe306d_17

6

Dividends and dividend equivalents:  a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . .

6a

b Qualified dividends

6b

c Dividend equivalents

6c

7

Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7  

8

Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . .

8  

fill in the blank e66966ff0fe306d_18

9a

Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . .

9a

fill in the blank e66966ff0fe306d_19

b

Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9b

c

Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . . . .

9c

10

Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

11

Other income (loss) (see instructions)     Type ►

11

Deduc- tions

12

Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

fill in the blank e66966ff0fe306d_20

13a

Contributions See Statement 2

13a

fill in the blank e66966ff0fe306d_21

b

Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13b

c

Section 59(e)(2) expenditures:    (1) Type ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _    (2) Amount ►

13c(2)

d

Other deductions (see instructions)   Type ►

13d

Self- Employ- ment

14a

Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14a

fill in the blank e66966ff0fe306d_22

b

Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14b

c

Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14c

Credits

15a

Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15a

b

Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15b

c

Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable)

15c

d

Other rental real estate credits (see instructions)   Type ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

15d

e

Other rental credits (see instructions) . . . . . . . .   Type ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

15e

f

Other credits (see instructions) . . . . . . . . . . . . .  Type ►

15f

Foreign Trans- actions

16a

Name of country or U.S. possession ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

b

Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16b

c

Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16c

Foreign gross income sourced at partnership level

d

Reserved for future use ► _ _ _ _ _ _ _ _ _  e  Foreign branch category ► _ _ _ _ _ _ _ _ _ _

16e

f

Passive category ► _ _ _ _ _ _ _  g  General category ► _ _ _ _ _ _ _  h  Other (att. stmt.) ►

16h

Deductions allocated and apportioned at partner level

i

Interest expense ► _ _ _ _ _ _ _ _ _ _ _ _ _ _   j  Other . . . . . . . . . . . . . . . . . . . . . . . . . ►

16j

Deductions allocated and apportioned at partnership level to foreign source income

k

Reserved for future use ► _ _ _ _ _ _ _ _ _ _   l  Foreign branch category ► _ _ _ _ _ _ _ _  ►

16l

m

Passive category ► _ _ _ _ _ _ _  n  General category ► _ _ _ _ _ _ _  o  Other (att. stmt.) ►

16o

p

Total foreign taxes (check one): ►  Paid  ◻    Accrued  ◻ . . . . . . . . . . . . . . . . . . . . . . . . . . .

16p

q

Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . .

16q

r

Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Alter- native Minimum Tax (AMT) Items

17a

Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17a

b

Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17b

c

Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17c

d

Oil, gas, and geothermal properties — gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17d

e

Oil, gas, and geothermal properties — deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17e

f

Other AMT items (attach stmt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17f

Other Infor- mation

18a

Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18a

fill in the blank e66966ff0fe306d_23

b

Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18b

c

Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18c

fill in the blank e66966ff0fe306d_24

19a

Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19a

fill in the blank e66966ff0fe306d_25

b

Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19b

20a

Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20a

fill in the blank e66966ff0fe306d_26

b

Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20b

c

Other items and amounts (attach stmt)

Form  1065 (2020)

Form 1065 (2020)

ROCK the Ages LLC

55-5555556

Page  5

Analysis of Net Income (Loss)

1

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 16p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

fill in the blank e66966ff0fe306d_27

2

Analysis by partner type:

(i) Corporate

(ii) Individual (active)

(iii) Individual (passive)

(iv) Partnership

(v) Exempt Organization

(vi) Nominee/ Other

   a

General partners . .

   b

Limited partners . . .

fill in the blank e66966ff0fe306d_28

  Schedule L 

Balance Sheets per Books

Beginning of tax year

End of tax year

Assets

(a)

(b)

(c)

(d)

1

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_29

fill in the blank e66966ff0fe306d_30

2a

Trade notes and accounts receivable . . . . . . . . . . .

b

Less allowance for bad debts . . . . . . . . . . . . . . . .

3

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

U.S. government obligations . . . . . . . . . . . . . . . . .

5

Tax-exempt securities . . . . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_31

fill in the blank e66966ff0fe306d_32

6

Other current assets (attach stmt)   See St 3

fill in the blank e66966ff0fe306d_33

fill in the blank e66966ff0fe306d_34

7a

Loans to partners (or persons related to partners) .

b

Mortgage and real estate loans . . . . . . . . . . . . . . .

8

Other investments (attach stmt) . . . . . . . . . . . . . .

9a

Buildings and other depreciable assets . . . . . . . . . .

fill in the blank e66966ff0fe306d_35

fill in the blank e66966ff0fe306d_36

b

Less accumulated depreciation . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_37

fill in the blank e66966ff0fe306d_38

10a

Depletable assets . . . . . . . . . . . . . . . . . . . . . . . .

b

Less accumulated depletion . . . . . . . . . . . . . . . . .

11

Land (net of any amortization) . . . . . . . . . . . . . . .

12a

Intangible assets (amortizable only) . . . . . . . . . . .

b

Less accumulated amortization . . . . . . . . . . . . . . .

13

Other assets (attach stmt) . . . . . . . . . . . . . . . . . .

14

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_39

fill in the blank e66966ff0fe306d_40

Liabilities and Capital

15

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . .

16

Mortgages, notes, bonds payable in less than 1 year

17

Other current liabilities (attach stmt)   See St 4

fill in the blank e66966ff0fe306d_41

fill in the blank e66966ff0fe306d_42

18

All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . .

19a

Loans from partners (or persons related to partners)

b

Mortgages, notes, bonds payable in 1 year or more

20

Other liabilities (attach stmt) . . . . . . . . . . . . . . . .

21

Partners' capital accounts . . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_43

fill in the blank e66966ff0fe306d_44

22

Total liabilities and capital . . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_45

fill in the blank e66966ff0fe306d_46

  Schedule M-1 

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

Note: The partnership may be required to file Schedule M-3. See instructions.

1

Net income (loss) per books . . . . . . . . . .

fill in the blank e66966ff0fe306d_47

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) . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_48

4

Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16p (itemize):

a

Depreciation . . . . . . . . . $

b

Travel and entertainment $fill in the blank e66966ff0fe306d_49

fill in the blank e66966ff0fe306d_50

5

Add lines 1 through 4 . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_51

6

Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize):

a

Tax-exempt interest . . $fill in the blank e66966ff0fe306d_52

fill in the blank e66966ff0fe306d_53

7

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

a

Depreciation $ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

8

Add lines 6 and 7 . . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_54

9

Income (loss) (Analysis of Net Income (Loss),

line 1). Subtract line 8 from line 5 . . . . .

fill in the blank e66966ff0fe306d_55

  Schedule M-2 

Analysis of Partners' Capital Accounts

1

Balance at beginning of year . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_56

6

Distributions:

a Cash . . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_57

2

Capital contributed:

a Cash . . . . . . . . .

b Property . . . . . . . . . . . .

b Property . . . . . . . . .

7

Other decreases (itemize): _ _ _ _ _ _ _ _ _

3

Net income (loss) per books . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_58

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

4

Other increases (itemize): _ _ _ _ _ _ _

8

Add lines 6 and 7 . . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_59

5

Add lines 1 through 4 . . . . . . . . . . . . . . . .

fill in the blank e66966ff0fe306d_60

9

Balance at end of year. Subtract line 8 from 5

fill in the blank e66966ff0fe306d_61

BAA

Form  1065 (2020)

Form 8949

Question Content Area

Prepare Form 8949 for ROCK the Ages LLC.  If required, use the minus sign to indicate a loss.

Form  8949 Department of the Treasury Internal Revenue Service

Sales and Other Dispositions of Capital Assets ► Go to  www.irs.gov/form8949  for instructions and the latest information. ► File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.

OMB No. 1545-0074

2020

Attachment Sequence No.  12A

Name(s) shown on return ROCK the Ages LLC

SSN or taxpayer identification number 55-5555556

Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.

  Part I 

Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long-term transactions, see page 2.

Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions).

You  must check Box A, B,  or C below. Check only one box.  If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.

☒  (A)

Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see  Note above)

☐  (B)

Short-term transactions reported on Form(s) 1099-B showing basis  wasn't reported to the IRS

☐  (C)

Short-term transactions not reported to you on Form 1099-B

1

(a) Description of property (Example: 100 shares XYZ Co.)

(b) Date acquired (Mo., day, yr.)

(c) Date sold or disposed of (Mo., day, yr.)

(d) Proceeds (sales price) (see instructions)

(e) Cost or other basis. See the  Note below and see  Column (e) in the separate instructions

Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f).  See the separate instructions.

(h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g)

(f) Code(s) from instructions

(g) Amount of adjustment

1,000 Shares Tech, Inc.

06/15/20

12/15/20

fill in the blank 19a65af7c04f02b_1

fill in the blank 19a65af7c04f02b_2

fill in the blank 19a65af7c04f02b_3

2

Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D,  line 1b (if  Box A above is checked),  line 2 (if  Box B above is checked), or  line 3 (if  Box C above is checked)

fill in the blank 19a65af7c04f02b_4

fill in the blank 19a65af7c04f02b_5

fill in the blank 19a65af7c04f02b_6

Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See  Column (g) in the separate instructions for how to figure the amount of the adjustment.

BAA For Paperwork Reduction Act Notice, see your tax return instructions.

Form  8949 (2020)

Form  8949 (2020)

Attachment Sequence No.  12A

Page  2

Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side ROCK the Ages LLC

SSN or taxpayer identification number 55-5555556

Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.

  Part II 

Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For short-term transactions, see page 1.

Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions).

You  must check Box D, E,  or F below. Check only one box.  If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.

☒  (D)

Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see  Note above)

☐  (E)

Long-term transactions reported on Form(s) 1099-B showing basis  wasn't reported to the IRS

☐  (F)

Long-term transactions not reported to you on Form 1099-B

1

(a) Description of property (Example: 100 shares XYZ Co.)

(b) Date acquired (Mo., day, yr.)

(c) Date sold or disposed of (Mo., day, yr.)

(d) Proceeds (sales price) (see instructions)

(e) Cost or other basis. See the  Note below and see  Column (e) in the separate instructions

Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f).  See the separate instructions.

(h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g)

(f) Code(s) from instructions

(g) Amount of adjustment

2,000 Shares BioLabs, Inc.

3/15/19

12/15/20

fill in the blank 19a65af7c04f02b_7

fill in the blank 19a65af7c04f02b_8

fill in the blank 19a65af7c04f02b_9

2

Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D,  line 8b (if  Box D above is checked),  line 9 (if  Box E above is checked), or  line 10 (if  Box F above is checked)

fill in the blank 19a65af7c04f02b_10

fill in the blank 19a65af7c04f02b_11

fill in the blank 19a65af7c04f02b_12

Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See  Column (g) in the separate instructions for how to figure the amount of the adjustment.

Form  8949 (2020)

Schedule D

Question Content Area

Complete Schedule D for ROCK the Ages LLC.  If required, use the minus sign to indicate a loss.

SCHEDULE D (Form 1065) Department of the Treasury Internal Revenue Service (99)

Capital Gains and Losses ▶ Attach to Form 1065 or Form 8865. ▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. ▶ Go to  www.irs.gov/Form1065  for instructions and the latest information.

OMB No. 1545-0123

2020

Attachment Sequence No.  12

Name of partnership ROCK the Ages LLC

Employer identification number 55-5555556

Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . ►   ◻  Yes   ☒  No

If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss.

 Part I 

Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less (see instructions)

See instructions for how to figure the amounts to enter on the lines below.

(d) Proceeds (sales price)

(e) Cost (or other basis)

(g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)

(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)

This form may be easier to complete if you round off cents to whole dollars.

1a

Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . . . .

1b

Totals for all transactions reported on Form(s) 8949 with  Box A checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 22b814ffafa901f_1

fill in the blank 22b814ffafa901f_2

fill in the blank 22b814ffafa901f_3

  2

Totals for all transactions reported on Form(s) 8949 with  Box B checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  3

Totals for all transactions reported on Form(s) 8949 with  Box C checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  4

Short-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . . . . . . . . . . . . . . . . . .

4

  5

Short-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . . . . . . . . . . . . . . . . . .

5

  6

Partnership's share of net short-term capital gain (loss), including specially allocated short-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

  7

Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on Form 1065, Schedule K, line 8 or 11; or Form 8865, Schedule K, line 8 or 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

fill in the blank 22b814ffafa901f_4

 Part II 

Long-Term Capital Gains and Losses—Generally Assets Held More Than One Year (see instructions)

See instructions for how to figure the amounts to enter on the lines below.

(d) Proceeds (sales price)

(e) Cost (or other basis)

(g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g)

(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)

This form may be easier to complete if you round off cents to whole dollars.

8a

Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . . . .

8b

Totals for all transactions reported on Form(s) 8949 with  Box D checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 22b814ffafa901f_5

fill in the blank 22b814ffafa901f_6

fill in the blank 22b814ffafa901f_7

  9

Totals for all transactions reported on Form(s) 8949 with  Box E checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

Totals for all transactions reported on Form(s) 8949 with  Box F checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

Long-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . . . . . . . . . . . . . . . . . .

11

12

Long-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . . . . . . . . . . . . . . . . . . .

12

13

Partnership's share of net long-term capital gain (loss), including specially allocated long-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

14

Capital gain distributions (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

15

Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter here and on Form 1065, Schedule K, line 9a or 11; or Form 8865, Schedule K, line 9a or 11 . . . . . . . . . . . . . . . . . . . . . . . . . .

15

fill in the blank 22b814ffafa901f_8

BAA For Paperwork Reduction Act Notice, see your tax return instructions.

Schedule D (Form 1065) 2020

Form 4562

Question Content Area

Prepare Form 4562 for ROCK the Ages LLC. The threshold cost of Section 179 property for 2020 is $2,590,000 and the maximum deduction is $1,040,000.

Form  4562 Department of the Treasury Internal Revenue Service (99)

Depreciation and Amortization (Including Information on Listed Property)

► Attach to your tax return. ► Go to  www.irs.gov/Form4562  for instructions and the latest information.

OMB No. 1545-0172

2020

Attachment Sequence No.  179

Name(s) shown on return ROCK the Ages LLC

Identifying number 55-5555556

Business or activity to which this form relates Form 1065

Part I

Election To Expense Certain Property Under Section 179

Note: If you have any listed property, complete Part V before you complete Part I.

  1

Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

fill in the blank 5e88effb5fdd07c_1

  2

Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

fill in the blank 5e88effb5fdd07c_2

  3

Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . . . . . . . . . . . .

3

fill in the blank 5e88effb5fdd07c_3

  4

Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . .

4

fill in the blank 5e88effb5fdd07c_4

  5

Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

fill in the blank 5e88effb5fdd07c_5

  6

(a) Description of property

(b) Cost (business use only)

(c) Elected cost

Office Furniture

fill in the blank 5e88effb5fdd07c_6

fill in the blank 5e88effb5fdd07c_7

  7

Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . .

7

fill in the blank 5e88effb5fdd07c_8

  8

Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . .

8

fill in the blank 5e88effb5fdd07c_9

  9

Tentative deduction. Enter the  smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

fill in the blank 5e88effb5fdd07c_10

10

Carryover of disallowed deduction from line 13 of your 2019 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

fill in the blank 5e88effb5fdd07c_11

11

Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instrs . . .

11

fill in the blank 5e88effb5fdd07c_12

12

Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 . . . . . . . . . . . . . . . .

12

fill in the blank 5e88effb5fdd07c_13

13

Carryover of disallowed deduction to 2021. Add lines 9 and 10, less line 12

13

fill in the blank 5e88effb5fdd07c_14

Note: Don't use Part II or Part III below for listed property. Instead, use Part V.

Part II

Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions. )

14

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

15

Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

16

Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

Part III

MACRS Depreciation (Don't include listed property. See instructions. )

Section A

17

MACRS deductions for assets placed in service in tax years beginning before 2020 . . . . . . . . . . . . . . . . . . . . .

17

18

If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► ☐

Section B—Assets Placed in Service During 2020 Tax Year Using the General Depreciation System

(a) Classification of property

(b) Month and year placed in service

(c) Basis for depreciation (business/investment use only—see instructions)

(d) Recovery period

(e) Convention

(f) Method

(g) Depreciation deduction

19a

3-year property

b

5-year property

c

7-year property

d

10-year property

e

15-year property

f

20-year property

g

25-year property

25 yrs.

S/L

h

Residential rental property

27.5 yrs.

MM

S/L

27.5 yrs.

MM

S/L

i

Nonresidential real property

39 yrs.

MM

S/L

MM

S/L

Section C—Assets Placed in Service During 2020 Tax Year Using the Alternative Depreciation System

20a

Class life

S/L

  b

12-year

12 yrs.

S/L

  c

30-year

30 yrs.

MM

S/L

  c

40-year

40 yrs.

MM

S/L

Part IV

Summary (See instructions.)

21

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21

22

Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations — see instructions . . . . . . . . . .

22

23

For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . .

23

BAA For Paperwork Reduction Act Notice, see separate instructions.

Form  4562 (2020)

Federal Statements

Question Content Area

Complete Federal Statements for ROCK the Ages LLC.

2020

Federal Statements

Page 1

Rock the Ages LLC

55-5555556

Statement 1 Form 1065, Line 20 Other Deductions

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$fill in the blank 71be8cff800b072_1

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 71be8cff800b072_2

Legal and Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 71be8cff800b072_3

Meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 71be8cff800b072_4

Office Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 71be8cff800b072_5

Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 71be8cff800b072_6

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 71be8cff800b072_7

Total

$fill in the blank 71be8cff800b072_8

Statement 2 Form 1065, Schedule K, Line 13a Charitable Contributions

Cash Contributions - 60% Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$fill in the blank 71be8cff800b072_9

Total

$fill in the blank 71be8cff800b072_10

Statement 3 Form 1065, Schedule L, Line 6 Other Current Assets

Beginning

Ending

Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$fill in the blank 71be8cff800b072_11

$fill in the blank 71be8cff800b072_12

Total

$fill in the blank 71be8cff800b072_13

$fill in the blank 71be8cff800b072_14

Statement 4 Form 1065, Schedule L, Line 17 Other Current Liabilities

Beginning

Ending

Line of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$fill in the blank 71be8cff800b072_15

$fill in the blank 71be8cff800b072_16

Total

$fill in the blank 71be8cff800b072_17

$fill in the blank 71be8cff800b072_18

Schedule K-1

Question Content Area

Prepare Schedule K–1 for Ryan Ross, 15520 W. Earlson Street, Pacific Palisades, CA 90272.  If required, use the minus sign to indicate a loss.

651119

◻ Final K-1

◻ Amended K-1

OMB No. 1545-0123

Schedule K-1 (Form 1065)

2020

Part III

Partner's Share of Current Year Income,

Deductions, Credits, and Other Items

Department of the Treasury Internal Revenue Service

For calendar year 2020, or tax year

1

Ordinary business income (loss)

fill in the blank 36945ef8c03a05d_1

15

Credits

2

Net rental real estate income (loss)

3

Other net rental income (loss)

16

Foreign transactions

4a

Guaranteed payments for services

fill in the blank 36945ef8c03a05d_2

4b

Guaranteed payments for capital

4c

Total guaranteed payments

fill in the blank 36945ef8c03a05d_3

5

Interest income

fill in the blank 36945ef8c03a05d_4

6a

Ordinary dividends

6b

Qualified dividends

6c

Dividend equivalents

17

Alternative minimum tax (AMT) items

7

Royalties

8

Net short-term capital gain (loss)

fill in the blank 36945ef8c03a05d_5

9a

Net long-term capital gain (loss)

fill in the blank 36945ef8c03a05d_6

18

Tax-exempt income and nondeductible expenses

9b

Collectibles (28%) gain (loss)

A

fill in the blank 36945ef8c03a05d_7

9c

Unrecaptured section 1250 gain

C

fill in the blank 36945ef8c03a05d_8

10

Net section 1231 gain (loss)

11

Other income (loss)

19 A

Distributions

fill in the blank 36945ef8c03a05d_9

12

Section 179 deduction

fill in the blank 36945ef8c03a05d_10

20 A

Other information

fill in the blank 36945ef8c03a05d_11

13 A

Other deductions

fill in the blank 36945ef8c03a05d_12

Z*

STMT

14 A

Self-employment earnings (loss)

fill in the blank 36945ef8c03a05d_13

21 ◻ More than one activity for at-risk purposes* 22 ◻ More than one activity for passive activity purposes*

*See attached statement for additional information.

beginning        /        / 2020   ending        /        /        

Partner's Share of Income, Deductions, Credits, etc.  ► See separate instructions.

 Part I Information About the Partnership

A

Partnership's employer identification number 55-5555556

B

Partnership's name, address, city, state, and ZIP code ROCK the Ages LLC 6102 Wilshire Boulevard Suite 2100 Los Angeles, CA 90036

C

IRS Center where partnership filed return ► e-file

D

◻ Check if this is a publicly traded partnership (PTP)

 Part II Information About the Partner

E

Partner's SSN or TIN (Do not use TIN of a disregarded entity. See instructions.) 111-11-1112

F

Name, address, city, state, and ZIP code for partner entered in E. See instructions. Ryan Ross 15520 West Earlson Street Pacific Palisades, CA 90272

G

General partner or LLC member-manager

Limited partner or other LLC member

H1

Domestic partner

Foreign partner

H2

If the partner is a disregarded entity (DE), enter the partner's: TIN   Name   

I1

What type of entity is this partner?

I2

If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here ◻

J

Partner's share of profit, loss, and capital (see instructions):

Beginning

Ending

Profit

fill in the blank 36945ef8c03a05d_15 %

fill in the blank 36945ef8c03a05d_16 %

Loss

fill in the blank 36945ef8c03a05d_17 %

fill in the blank 36945ef8c03a05d_18 %

Capital

fill in the blank 36945ef8c03a05d_19 %

fill in the blank 36945ef8c03a05d_20 %

Check if decrease is due to sale or exchange of partnership interest ◻

K

Partner's share of liabilities:

Beginning

Ending

Nonrecourse

$

fill in the blank 36945ef8c03a05d_21

$

fill in the blank 36945ef8c03a05d_22

Qualified nonrecourse financing

$

$

Recourse

$

$

◻ Check this box if Item K includes liability amounts from lower tier partnerships.

L

Partner's capital account analysis:

Beginning capital account . . . . . . .

$

fill in the blank 36945ef8c03a05d_23  

Capital contributed during the year. . . .

$

  

Current year net income (loss) . . . . .

$

fill in the blank 36945ef8c03a05d_24  

Other increase (decrease) (attach explanation)

$

  

Withdrawals & distributions . . . . . . . .

$

fill in the blank 36945ef8c03a05d_25  

Ending capital account . . . . . . . . . .

$

fill in the blank 36945ef8c03a05d_26  

M

Did the partner contribute property with a built-in gain or loss?

Yes

No

If "Yes," attach statement. See instructions.

N

Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss)

Beginning capital account . . . . . . . . .

$

Ending . . . . . . . . . . . . . . . . . . . . . .

$

BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065.

www.irs.gov/Form1065

Schedule K-1 (Form 1065) 2020

Schedule K-1 (Form 1065) 2020

ROCK the Ages LLC

55-5555556

Page  2

This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040 or 1040-SR. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return.

1.

Ordinary business income (loss). Determine whether the income (loss) is passive or nonpassive and enter on your return as follows.

 

Report on

 

Passive loss

See the Partner's Instructions

 

Passive income

Schedule E, line 28, column (h)

 

Nonpassive loss

See the Partner's Instructions

 

Nonpassive income

Schedule E, line 28, column (k)

2.

Net rental real estate income (loss)

See the Partner's Instructions

3.

Other net rental income (loss)

 

Net income

Schedule E, line 28, column (h)

 

Net loss

See the Partner's Instructions

4a.

Guaranteed payments

See the Partner's Instructions

b.

Guaranteed payment Capital

See the Partner's Instructions

c.

Guaranteed payment Total

See the Partner's Instructions

5.

Interest income

Form 1040 or 1040-SR, line 2b

6a.

Ordinary dividends

Form 1040 or 1040-SR, line 3b

6b.

Qualified dividends

Form 1040 or 1040-SR, line 3a

6c.

Dividend equivalents

See the Partner's Instructions

7.

Royalties

Schedule E, line 4

8.

Net short-term capital gain (loss)

Schedule D, line 5

9a.

Net long-term capital gain (loss)

Schedule D, line 12

9b.

Collectibles (28%) gain (loss)

28% Rate Gain Worksheet, line 4 (Schedule D instructions)

9c.

Unrecaptured section 1250 gain

See the Partner's Instructions

10.

Net section 1231 gain (loss)

See the Partner's Instructions

11.

Other income (loss)

Code

A

Other portfolio income (loss)

See the Partner's Instructions

B

Involuntary conversions

See the Partner's Instructions

C

Sec. 1256 contracts & straddles

Form 6781, line 1

D

Mining exploration costs recapture

See Pub. 535

E

Cancellation of debt

}

See the Partner's Instructions

F

Section 743(b) positive adjustments

G

Section 965(a) inclusion

H

Income under subpart F (other than inclusions under sections 951A and 965)

I

Other income (loss)

12.

Section 179 deduction

See the Partner's Instructions

13.

Other deductions

A

Cash contributions (60%)

}

See the Partner's Instructions

B

Cash contributions (30%)

C

Noncash contributions (50%)

D

Noncash contributions (30%)

E

Capital gain property to a 50% organization (30%)

F

Capital gain property (20%)

G

Contributions (100%)

H

Investment interest expense

Form 4952, line 1

I

Deductions – royalty income

Schedule E, line 19

J

Section 59(e)(2) expenditures

See the Partner's Instructions

K

Excess business interest expense

See the Partner's Instructions

L

Deductions — portfolio (other)

Schedule A, line 16

M

Amounts paid for medical insurance

Schedule A, line 1, or Schedule 1 C Nondeductible expenses See the Partner's Instructions (Form 1040 or 1040-SR), line 16

N

Educational assistance benefits

See the Partner's Instructions

O

Dependent care benefits

Form 2441, line 12

P

Preproductive period expenses

See the Partner's Instructions

Q

Commercial revitalization deduction from rental real estate activities

See Form 8582 instructions

R

Pensions and IRAs

See the Partner's Instructions

S

Reforestation expense deduction

See the Partner's Instructions

T

through  U

Reserved for future use

V

Section 743(b) negative adjustments

}

See the Partner's Instructions

W

Other deductions

X

Section 965(c) deduction

14.

Self-employment earnings (loss)

Note: If you have a section 179 deduction or any partner-level deductions, see the Partner's Instructions before completing Schedule SE.

A

Net earnings (loss) from self-employment

Schedule SE, Section A or B

B

Gross farming or fishing income

See the Partner's Instructions

C

Gross non-farm income

See the Partner's Instructions

15.

Credits

A

Low-income housing credit (section 42(j)(5)) from pre-2008 buildings

}

See the Partner's Instructions

B

Low-income housing credit (other) from pre-2008 buildings

C

Low-income housing credit (section 42(j)(5)) from post-2007 buildings

D

Low-income housing credit (other) from post-2007 buildings

E

Qualified rehabilitation expenditures (rental real estate)

F

Other rental real estate credits

G

Other rental credits

Code

Report on

H

Undistributed capital gains credit

Schedule 3 (Form 1040 or 1040-SR), line 13, box a

I

Biofuel producer credit

}

See the Partner's Instructions

J

Work opportunity credit

K

Disabled access credit

L

Empowerment zone employment credit

M

Credit for increasing research activities

N

Credit for employer social security and Medicare taxes

O

Backup withholding

P

Other credits

16.

Foreign transactions

A

Name of country or U.S. possession

}

Form 1116, Part I

B

Gross income from all sources

C

Gross income sourced at partner level

Foreign gross income sourced at partnership level

D

Reserved for future use

}

Form 1116, Part I

E

Foreign branch category

F

Passive category

G

General category

H

Other

Deductions allocated and apportioned at partner level

I

Interest expense

Form 1116, Part I

J

Other

Form 1116, Part I

Deductions allocated and apportioned at partnership level to foreign source income

K

Reserved for future use

}

Form 1116, Part I

L

Foreign branch category

M

Passive category

N

General category

O

Other

Other information

P

Total foreign taxes paid

Form 1116, Part II

Q

Total foreign taxes accrued

Form 1116, Part II

R

Reduction in taxes available for credit

Form 1116, line 12

S

Foreign trading gross receipts

Form 8873

T

Extraterritorial income exclusion

Form 8873

U

through  V

Reserved for future use

W

Section 965 information

}

See the Partner's Instructions

X

Other foreign transactions

17.

Alternative minimum tax (AMT) items

A

Post-1986 depreciation adjustment

}

See the Partner's Instructions and the Instructions for Form 6251

B

Adjusted gain or loss

C

Depletion (other than oil & gas)

D

Oil, gas, & geothermal — gross income

E

Oil, gas, & geothermal — deductions

F

Other AMT items

18.

Tax-exempt income and nondeductible expenses

A

Tax-exempt interest income

Form 1040 or 1040-SR, line 2a

B

Other tax-exempt income

See the Partner's Instructions

C

Nondeductible expenses

See the Partner's Instructions

19.

Distributions

A

Cash and marketable securities

}

See the Partner's Instructions

B

Distribution subject to section 737

C

Other property

20.

Other information

A

Investment income

 

Form 4952, line 4a

B

Investment expenses

Form 4952, line 5

C

Fuel tax credit information

Form 4136

D

Qualified rehabilitation expenditures (other than rental real estate)

}

See the Partner's Instructions and the Instructions for Form 6251

E

Basis of energy property

F

through  G

G

Recapture of low-income housing credit (other)

 

Form 8611, line 8

H

Recapture of investment credit

See Form 4255

I

Recapture of other credits

See the Partner's Instructions

J

Look-back interest — completed long-term contracts

See Form 8697

K

Look-back interest — income forecast method

See Form 8866

L

Dispositions of property with section 179 deductions

}

See the Partner's Instructions

M

Recapture of section 179 deduction

N

Interest expense for corporate partners

O

through  Y

Z

Section 199A income

AA

Section 704(c) information

AB

Section 751 gain (loss)

AC

Section 1(h)(5) gain (loss)

AD

Deemed section 1250 unrecaptured gain

AE

Excess taxable income

AF

Excess business interest income

AG

Gross receipts for section 59A(e)

AH

Other information

Partner 1:       Ryan Ross       111-11-1112

Schedule K-1 (Form 1065) 2020

Statement A-QBI Pass-through Entity Reporting

Question Content Area

Complete Statement A—QBI Pass-through Entity Reporting (Schedule K-1, Box 20, Code Z) for ROCK the Ages LLC.

Statement A—QBI Pass-through Entity Reporting (Schedule K-1, Box 20, Code Z)

Partnership's name:

ROCK the Ages LLC

Partnership's EIN:

55-5555555

Partner's name:

Ryan Ross

Partner's identifying number:

111-11-1112

Partner's share of:

ROCK the Ages LLC

☐ PTP ☐ Aggregated ☐ SSTB

☐ PTP ☐ Aggregated ☐ SSTB

☐ PTP ☐ Aggregated ☐ SSTB

QBI or qualified PTP items subject to partner-specific determinations:

Ordinary business income (loss)

fill in the blank 220721ffa07bfd0_1

Rental income (loss) . . . . . . . . .

Royalty income (loss) . . . . . . . .

Section 1231 gain (loss) . . . . . .

Other income (loss). . . . . . . . . .

Section 179 deduction. . . . . . . .

fill in the blank 220721ffa07bfd0_2

Charitable contributions  Cash, 60%

fill in the blank 220721ffa07bfd0_3

Other deductions. . . . . . . . . . . .

W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . .

fill in the blank 220721ffa07bfd0_4

UBIA of qualified property. . . . . . . . . . . . . . . .

fill in the blank 220721ffa07bfd0_5

Section 199A dividends

Partner's share of:

☐ PTP ☐ Aggregated ☐ SSTB

☐ PTP ☐ Aggregated ☐ SSTB

☐ PTP ☐ Aggregated ☐ SSTB

QBI or qualified PTP items subject to partner-specific determinations:

Ordinary business income (loss)

Rental income (loss) . . . . . . . . .

Royalty income (loss) . . . . . . . .

Section 1231 gain (loss) . . . . . .

Other income (loss). . . . . . . . . .

Section 179 deduction. . . . . . . .

Charitable contributions. . . . . . .

Other deductions. . . . . . . . . . . .

W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . .

UBIA of qualified property. . . . . . . . . . . . . . . .

Partner 1 BAA For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

Statement A (Form 1065) 2020

Check My Work10 more Check My Work uses remaining.

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