The Dapper-Dons Partnership was formed ten years ago as a general partnership to custom tailor men’s clothing. Dapper-Dons is located at 123 Flamingo Drive in City, ST, 54321. Bob Dapper manages the business and has a 40% capital and profits interest. His

UCSB Extension ECON X427B – Winter 2018 Partnership Tax Return Assignment You will be assigned to prepare a corporate tax return, using the 2015 Form 1065. This assignment is worth 10% of your grade. The interactive form is posted on GauchoSpace. You will physically submit this return on paper, but you may write in the answers, or you may electronically complete the interactive features of the form if you want. As I state in the syllabus, my goal is for you to simply become familiar with the process and not focus and occupy all your time on the return being 100% correct. I want to see that you get the process and the concepts. I will open a forum to allow discussion on this tax return assignment. Therefore, if you have any questions related to it, there will be someplace you can turn for information. Please pace yourself when preparing this tax return. Keep in mind that you will have your regular reading, discussion, homework, and quizzes to keep you busy. So, you will need to fit this assignment in. The tax return will be due by 6:40pm (10 minutes into class) on Monay, March 19. The facts of the assignment are contained within C:9:57. However, I am modifying the facts to reduce the level of complexity as follows:

Complete only the 5 pages of 2016 Form 1065 and Schedule K-1 for each partner (2 total) Do not do any calculations or prepare any of the forms otherwise required for this problem:

• Inventory and Cost of Goods Sold (Form 1125-A)

• Sales of Business Property (Form 4797)

• Capital Gains and Losses (Schedule D)

• Fixed Assets and Depreciation

Other information given to reduce complexity of the problem:

• Net Section 1231 gain is $5,050 (sale of business property)

• Ignore AMT and rehabilitation expenditures issues

• Ignore issues related to domestic production activities deduction (DPAD)

• Short-term capital loss for 2016 is $26,075 and long-term capital

gain for 2016 is $18,000 Other differences: Tax Book

Depreciation $74,311 $49,782