Tax Return #4 Instructions Please prepare, without the help of tax software, Form 1040 for Paul Reasor. (Any likeness to a real person is coincidental. Paul Reasor is made-up, and so are his address, social security number, and any other details about him.) You might need the following information about Paul: Name: Paul Reasor Address: 1440 Tenth Ave. Dallas, TX 75232 (Paul lived at this address all of 2017.) SS#: 123-45-6789 Date of Birth: 01/25/1985 Employment: Paul was employed all of 2017 by Best Comic Books, Inc.—an S corporation solely owned by Paul. The business sells comic books, graphic novels, board games, collectible card games, and other similar products. Paul received a W-2 and a K-1 from his S corporation. Deductions: For 2017, Paul had no deductions (itemized or above-the-line). a Employee’s social security number OMB No. 1545-0008 Safe, accurate, FAST! Use Visit the IRS website at www.irs.gov/efile b Employer identification number (EIN) c Employer’s name, address, and ZIP code d Control number e Employee’s first name and initial Last name Suff. f Employee’s address and ZIP code 1 Wages, tips, other compensation 2 Federal income tax withheld 3 Social security wages 4 Social security tax withheld 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips 9 10 Dependent care benefits 11 Nonqualified plans 12a See instructions for box 12 C o d e 12b C o d e 12c C o d e 12d C o d e 13 Statutory employee Retirement plan Third-party sick pay 14 Other 15 State Employer’s state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name Form W-2 Wage and Tax Statement 201 Department of the Treasury—Internal Revenue S 671113 Final K-1 Amended K-1 OMB No. 1545-0123 Schedule K-1 (Form 1120S) Department of the Treasury Internal Revenue Service 201 For calendar year 201, or tax year beginning , 201 ending , 20 Shareholder’s Share of Income, Deductions, Credits, etc. a See back of form and separate instructions. Part I Information About the Corporation A Corporation’s employer identification number B Corporation’s name, address, city, state, and ZIP code C IRS Center where corporation filed return Part II Information About the Shareholder D Shareholder’s identifying number E Shareholder’s name, address, city, state, and ZIP code F Shareholder’s percentage of stock ownership for tax year . . . . . . . % For IRS Use Only Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items Part III 1 Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) 4 Interest income 5a Ordinary dividends 5b Qualified dividends 6 Royalties 7 Net short-term capital gain (loss) 8a Net long-term capital gain (loss) 8b Collectibles (28%) gain (loss) 8c Unrecaptured section 1250 gain 9 Net section 1231 gain (loss) 10 Other income (loss) 11 Section 179 deduction 12 Other deductions 13 Credits 14 Foreign transactions 15 Alternative minimum tax (AMT) items 16 Items affecting shareholder basis 17 Other information * See attached statement for additional information. For Paperwork Reduction Act Notice, see Instructions for Form 1120S. IRS.gov/form1120s Cat. No. 11520D Schedule K-1 (Form 1120S) 201 45-1122333 Best Comic Books, Inc 1330 Inwood Rd Dallas, TX 75247 E-FILE 123-45-6789 Paul Reasor 1440 Tenth Ave Dallas, TX 75232 100 75,000 15 Schedule K-1 (Form 1120S) 201 Page 2 This list identifies the codes used on Schedule K-1 for all shareholders and provides summarized reporting information for shareholders who file Form 1040. For detailed reporting and filing information, see the separate Shareholder’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 Shareholder’s Instructions Passive income Schedule E, line 28, column (g) Nonpassive loss Schedule E, line 28, column (h) Nonpassive income Schedule E, line 28, column (j) 2. Net rental real estate income (loss) See the Shareholder’s Instructions 3. Other net rental income (loss) Net income Schedule E, line 28, column (g) Net loss See the Shareholder’s Instructions 4. Interest income Form 1040, line 8a 5a. Ordinary dividends Form 1040, line 9a 5b. Qualified dividends Form 1040, line 9b 6. Royalties Schedule E, line 4 7. Net short-term capital gain (loss) Schedule D, line 5 8a. Net long-term capital gain (loss) Schedule D, line 12 8b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D instructions) 8c. Unrecaptured section 1250 gain See the Shareholder’s Instructions 9. Net section 1231 gain (loss) See the Shareholder’s Instructions 10. Other income (loss) Code A Other portfolio income (loss) See the Shareholder’s Instructions B Involuntary conversions See the Shareholder’s Instructions C Sec. 1256 contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Other income (loss) See the Shareholder’s Instructions 11. Section 179 deduction See the Shareholder’s Instructions 12. Other deductions A Cash contributions (50%) 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%) } See the Shareholder’s Instructions H Investment interest expense Form 4952, line 1 I Deductions—royalty income Schedule E, line 19 J Section 59(e)(2) expenditures See the Shareholder’s Instructions K Deductions—portfolio (2% floor) Schedule A, line 23 L Deductions—portfolio (other) Schedule A, line 28 M Preproductive period expenses See the Shareholder’s Instructions N Commercial revitalization deduction from rental real estate activities See Form 8582 instructions O Reforestation expense deduction See the Shareholder’s Instructions P Domestic production activities information See Form 8903 instructions Q Qualified production activities income Form 8903, line 7b R Employer’s Form W-2 wages Form 8903, line 17 S Other deductions See the Shareholder’s Instructions 13. Credits A Low-income housing credit (section 42(j)(5)) from pre-2008 buildings 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 } See the Shareholder’s Instructions H Undistributed capital gains credit Form 1040, line 73, box a I Biofuel producer credit J Work opportunity credit K Disabled access credit L Empowerment zone employment credit M Credit for increasing research activities } See the Shareholder’s Instructions Code Report on N Credit for employer social security and Medicare taxes O Backup withholding P Other credits } See the Shareholder’s Instructions 14. Foreign transactions A Name of country or U.S. possession B Gross income from all sources C Gross income sourced at shareholder level } Form 1116, Part I Foreign gross income sourced at corporate level D Passive category E General category F Other } Form 1116, Part I Deductions allocated and apportioned at shareholder level G Interest expense Form 1116, Part I H Other Form 1116, Part I Deductions allocated and apportioned at corporate level to foreign source income I Passive category J General category K Other } Form 1116, Part I Other information L Total foreign taxes paid Form 1116, Part II M Total foreign taxes accrued Form 1116, Part II N Reduction in taxes available for credit Form 1116, line 12 O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Shareholder’s Instructions 15. Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment 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 } See the Shareholder’s Instructions and the Instructions for Form 6251 16. Items affecting shareholder basis A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income C Nondeductible expenses D Distributions E Repayment of loans from shareholders } See the Shareholder’s Instructions 17. Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Qualified rehabilitation expenditures (other than rental real estate) See the Shareholder’s Instructions D Basis of energy property See the Shareholder’s Instructions E Recapture of low-income housing credit (section 42(j)(5)) Form 8611, line 8 F Recapture of low-income housing credit (other) Form 8611, line 8 G Recapture of investment credit See Form 4255 H Recapture of other credits See the Shareholder’s Instructions I Look-back interest—completed long-term contracts See Form 8697 J Look-back interest—income forecast method See Form 8866 K Dispositions of property with section 179 deductions L Recapture of section 179 deduction M Section 453(l)(3) information N Section 453A(c) information O Section 1260(b) information P Interest allocable to production expenditures Q CCF nonqualified withdrawals R Depletion information—oil and gas S Reserved T Section 108(i) information U Net investment income V Other information } See the Shareholder’s Instructions