Laurie and Lynn Norris

Laurie and Lynn Norris

Tax Return
Tax return for Laurie and Lynn Norris. As with the previous parts, this part of the problem will ask you to prepare a portion of their tax return. You should complete the appropriate portion of each form or schedule indicated in the instructions. The following basic information is provided for preparing their 2016 tax return:
• Laurie inherited two limited partnerships when her grandfather passed away on October 10, 2014. The first, Towers Brothers, is a real estate venture. The K-1 she received indicated that her share of the income is $3,400. Her suspended loss in the partnership is $2,200. The second limited partnership, DrillTech, is an oil and gas business. Her loss for the year is $2,700. Laurie’s suspended loss in DrillTech is $5,600.
• On July 10, 2014, Lynn invested $4,000 in his brother’s corporation Putter- Plus, a training device to help golfers putt better. The corporation qualified as a small business corporation and went out of business on February 2, 2016.
• On April 22, 2011, the Norrises acquired 1,000 shares of NFG Inc. for $11,000. On August 10, they sell 400 shares for $2,000. On September 5, Lynn is watching Mad Money and based on Kramer’s advice, he buys 300 shares of NFG for $7 a share.
Required: Based on the information provided above, only fill out the appropriate portions of Form 1040, Form 8582, and finish Form 1040 Schedule D.
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