Project 2: Partnership Tax Return Instructions:  Complete Anytime Plumbing, LLC’s 2020 partnership tax return (Form 106

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Project 2: Partnership Tax Return Instructions:  Complete
Anytime Plumbing, LLC’s 2020 partnership tax return (Form 1065 and
one Schedule K-1, as they are the same) based upon the facts
presented.  Ignore all AMT calculations and AMT related reporting
items.  If any information is missing, use reasonable assumptions
to fill in the gaps.  The forms, schedules and instructions can be
found at the IRS website (www.irs.gov). The instructions can be
helpful in completing the forms.  Please include your name in the
“Preparer” section of the Form.  All Forms are due by 11:59pm on
December 5, 2021. Company Information: Frankie Jones and Wayne
Brown decided to form a plumbing company, available 24 hours a day,
seven days a week, called Anytime Plumbing, LLC (AP). AP finds
itself often as one of the only available choices for middle of the
night emergencies and is, therefore, able to charge a premium for
after-normal business hour calls. Because of this, and the
company’s reputation, the company has been very successful. The AP
service area now includes three counties and the company has
implemented technology to aid in call dispatch. Name of Company:
Anytime Plumbing, LLC Address: 904 Fifth Avenue Pittsburgh, PA
15222 (has not changed since inception) Company formed and started:
January 1, 2012 Accounting Method: Cash Tax-year end: December 31
Employer Identification Number: 34-9876543 Members’ Information:
Frankie Jones 608 Franklin Street Pittsburgh, PA 15222 SSN-
123-45-6789 Phone: 412-068-1993 Profit/Loss/Capital membership
interest is 50%. Wayne Brown 108 Sugar Hill Drive Pittsburgh, PA
15222 SSN: 987-65-4321 Phone: 412-195-1018 Profit/Loss/Capital
membership interest is 50%. Financial Statements: AP Income
Statement For year ending December 31, 2020 Income: Service Revenue
– Cash $ 543,565 Service Revenue – Credit Cards 1,922,710
Consulting Revenue – Cash 100,950 Consulting Revenue – Credit Cards
155,005 Other Income: Interest Income – Pittsburgh Bank $ 2,540
Municipal Bond Interest Income 3,500 Total Income $ 2,728,270
Expenses: Employee Salaries $ 515,735 Guaranteed Payment – FJ
60,000 Guaranteed Payment – WB 60,000 Repairs and Maintenance –
Trucks 113,415 Rent 35,000 Payroll Taxes 51,260 Licensing Fees
1,750 Property Taxes 77,000 Interest Expense 335,000 Depreciation
759,960 Office Supplies 3,420 Employee Training 15,675 Advertising
20,850 Plumbing Supplies 15,125 Meals (prior to disallowance)
18,740 Travel 4,210 Gasoline 158,675 Utilities 24,940 Telephone
16,830 Total Expenses $ 2,287,585 Net Income $ 440,685 Balance
Sheet: 12/31/2019 12/31/2020 Assets: Cash $ 50,000.00 $ 85,000.00
Tax-exempt Securities 115,000.00 115,000.00 Building 4,000,000.00
4,000,000.00 Less: Accumulated Depreciation (551,282.00)
(653,842.00) Equipment 2,500,000.00 3,250,000.00 Less: Accumulated
Depreciation (1,481,400.00) (2,138,800.00) Land 1,200,000.00
1,200,000.00 Total Assets $ 5,832,318.00 $ 5,857,358.00 Liabilities
and Capital: Notes Payable – Pittsburgh Bank $ 4,502,318.00 $
4,196,673.00 Notes Payable – FJ 300,000.00 300,000.00 Notes Payable
– WB 200,000.00 200,000.00 Capital Account – FJ 415,000.00
580,342.50 Capital Account – WB 415,000.00 580,342.50 Total
Liabilities and Capital $ 5,832,318.00 $ 5,857,358.00 Additional
notes:  AP is not a publicly traded partnership.  AP is a
domestic limited liability company  AP did not have or control a
foreign bank account or have authority over any such financial
account.  AP was not the grantor of or a transferor to a foreign
trust.  AP has never had annual gross receipts in excess of
$25,000,000.  AP has not and did not file a Form 8893 or anything
similar to it this year or in the past.  AP is not required to
file a Form 8918.  AP has never been required to file Form 8858. 
AP was not required to file any Form(s) 5471 during the year.  AP
has never made a Section 754 election.  AP was required to file
Form(s) 1099 related to certain payments it made during the year
and those forms were filed on a timely basis.  AP has never
entered a like-kind exchange or distributed a tenancy-in-common or
other undivided interest in partnership property.  AP uses MACRS
depreciation for both tax and book purposes.  AP did not claim
Section 179 expense for any of the current year asset additions and
has opted out of bonus depreciation for 3 and 5- year recovery
period assets.  The total unadjusted basis for all assets placed
in service for the prior 10 years matches the book value of all
assets reported on the balance sheet.  During the year, AP
acquired the following assets (all assets were placed in service on
the acquisition dates as indicated below): o Service Vans-new (not
Luxury Automobiles) July 1, 2020 $500,000 o Plumbing
Machinery/Equipment-new July 1, 2020 $250,000  AP does not
maintain any inventory. AP purchases supplies and has a policy of
expensing such purchases as paid for tax and book purposes
consistent with existing tax law.  The debt owed to Pittsburgh
Bank is a non-recourse obligation and neither Frankie nor Wayne
have guaranteed its repayment (see balance sheet). This debt is not
directly tied to any specific asset but is rather a debt secured
against all of the assets of the company.  During the year, no
debt was cancelled or forgiven in relation to AP.  All of AP’s
activities constitute a qualified trade or business, and the
salaries and wages expense represent W-2 wages paid by AP in 2020.
 Frankie and Wayne are not related.  Frankie and Wayne are both
U.S. citizens.  Frankie is the Partnership Representative.  Both
Frankie and Wayne are managing members and use the GAAP-basis to
track their capital accounts  Both Frankie and Wayne are active in
the business and work full-time for AP.  During the year, Frankie
and Wayne each contributed $20,000 to the capital of AP  During
the year, Frankie and Wayne each received a $75,000 distribution
from AP