Reference no: EM132342260

INCOME TAX PROJECT

The Income Tax Return may be prepared manually or using the PROSERIES (TURBOTAX) software (or some other Federal Income Tax (or Information) software that you may have access to) that is located on the Network System in the Computer Center on the Eight floor (South) at the University Of Houston-Downtown Campus (and the second floor classrooms in the Shea Street College Of Business Building) (or on the personal computers at UHD-Northwest at Lone Star College-University Park). If you choose to prepare the Income Tax (or Information) Return using the ProSeries (TurboTax) software in the Computer Center (or at UHD-Northwest at Lone Star College-University Park), the following information applies. The ProSeries (TurboTax) software may be accessed from any personal computer in the Computer Center that is connected to the Network System at the University Of Houston-Downtown Campus (or on the personal computers on the personal computers at UHD-Northwest at Lone Star College-University Park). Please bring a device to the Computer Center in order to save your data. (Please be sure that the device is capable of saving your data). To assist you in using the ProSeries (TurboTax) software, an operator's manual is available in the Computer Center (or at UHD-Northwest at Lone Star College-University Park). Below is a listing of basic instructions in operating the software.

INSTRUCTIONS

Click on START and enter "PROGRAMS" and locate "ProSeries 2018". Click on "2018 ProSeries". The software will appear on the screen.

CREATING CLIENT/INPUTTING DATA

Click on "New" to create a new client. You will select the type of Income Tax Return. Choose the Income Tax Return for which of the three (3) options that you choose to prepare an Income Tax Return. After selecting a type of Income Tax Return, the first document that you will enter (automatically appears on the screen) will be the "Information Worksheet" (preceded by the name of type of Return chosen, ie. Partnership, etc.). Complete all necessary information on the "Information Worksheet". To enter specific tax related information, you must enter the form, schedule or document that relate to the tax related information you wish to enter. Much of the information will be entered on the forms labeled page 1-2. To go to a specific Form or document, you may either click on "Forms" (and then click on "Select Form"), hit the "F6" key or hit "Control F" then highlight the desired Form, Schedule or document (or press the lighted letter(s) and/or number(s) of the desired Form, Schedule or document) and press return (enter).

WORKSHEETS
In many cases, information may (or must) be entered into a worksheet which is automatically transferred to where needed in the respective Income Tax Returns. This is especially true for Form 1065 (Partnership Return) for entering information on partners, etc. Accordingly, pay attention to the many worksheets that are available for the Return you are preparing to see if certain information may (or must) be entered through a worksheet instead of directly in the Forms and/or Schedules of the Income Tax Return itself.

DEPRECIATION
To enter depreciation information, either click on "Forms" (and then click on "Select Form"), hit the "F6" key or hit "Control F" and enter the "Depr Entry Wks". Enter a description of the asset to be depreciated and press return (enter). Highlight the Form or Schedule the asset relates to (for Partnerships and S Corporations) and press return (enter). Complete the necessary information at the top of the "Asset Entry Worksheet". The computed depreciation will automatically be transferred to the appropriate Form or Schedule that the asset relates. (If the Form or Schedule that the asset relates has not been previously created (for Partnerships and S Corporations), you will be asked to create the Form or Schedule at this time).

PRINTING
To access the print commands, press "Control P" and click on "Tax Returns" then press return (enter) to print the entire Tax Return. If you desire to print one (1) Form or Schedule at a time, click on the printer on the tool bar with the red arrow, then click on "Choose" and select the desired Form or Schedule to print.

EXTRA CREDIT
FACTS
Valerie Lawson and Clara Norman are the sole equal partners in the general partnership of Lawson And Norman Enterprises. The partnership, which is a retail office supplies and stationery store, began its operations on January 2, 1985. For Federal Income Tax purposes, the partnership is a calendar year taxpayer and uses the Accrual Method Of Accounting. Its Employer Identification Number is 76-1234567, address is 4369 Robbie Lane Houston, Texas 77026-3915, telephone number is (281) 479-8132, fax number is (281) 536-1908 and E-Mail address is "lawsonandnormanenterprises.com". The business activity code for the partnership is 453210. Both partners devote one hundred percent (100%) of their time to the business of the partnership and are equal partners of the partnership in every respect (ie. profit sharing ratio, loss sharing ratio, ownership, etc.). Valerie Lawson, who is the designated Tax Matters Partner for the partnership, has social security number of 234-56-7890, her address is 8124 Annette Court Houston, Texas 77031-9475 and her telephone number is (832) 246-8015. Clara Norman has social security number of 890-12-3456, her address is 2716 Nanette Drive Houston, Texas 77061-3459 and her telephone number is (832) 623-5097.

OTHER INFORMATION
Both partners are United States citizens (and individuals) and the partnership is not a partner in any other partnership. The partnership is not subject to the consolidated audit procedures of Sections 6221 through 6233 of the Internal Revenue Code and the partnership does not meet all three (3) requirements shown in the instructions (Schedule B) for Question 5. In addition, the partnership is not a publicly traded partnership as defined in Section 469(k)(2) of the Internal Revenue Code and the partnership has not filed nor is required to file Form 8264 - Application For Registration Of A Tax Shelter. During the year of 2018, Lawson And Norman Enterprises had no interest in or signature or other authority over any financial account in a foreign country. Furthermore, during the year of 2018, the partnership did not receive a distribution from nor was the partnership a grantor of, or transferor to, a foreign trust. Finally, there were no distributions of property or transfer of a partnership interest during the year of 2018.

REQUIRED
Prepare the Partnership Return for the Lawson And Norman Enterprises for the year of 2018 and Schedule K-1 for both partners. The following Forms are needed to complete the Return:

Form 1065
Schedule B-1 (Form 1065)
Form 1125-A
Schedule K-1 (Form 1065) (2)
Form 4562

Attachment:- Tax project.rar