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04-29-09 (2)
J OFFICIAL USE ONLY County Code Year File Number ~~ ~9 D~gS ENTER DECEDENT INFORMATION BELOW ~~ /~~~~Q Social Security Number Date of e o Zp 7 ~~ ©90 Decedents Last Name Suffix ~Q ~ ~~ (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's Social Security Number Date of Birth Dom!//~3 Decedent's First Name MI Spouse's First Name MI THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FILL IN APPROPRIATE OVALS BELOW i 1. Original Return O 2. Supplemental Return O 3. Remainder Return (date of death prior to 12-13-82) O 4. Limited Estate O 4a. Future Interest Compromise (date of O 5. Federal Estate Tax Return Required death after 12-12-82) O 6. Decedent Died Testate O 7. Decedent Maintained a Living Trust 8. Total Number of Safe Deposit Boxes (Attach Copy of Will) (Attach Copy of Trust) O 9. Litigation Proceeds Received O 10. Spousal Poverty Credit (date of death O 11. Election to tax under Sec. 9113(A) between 12-31-91 and 1-1-95) (Attach Sch. O) CORRESPONDENT - THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Daytime Telephone Number Firm Name (If Applicable) REGIS = V111LLS IJ~ONLY' ' ,,, C7 ~'' ~~~ [V r:.. ~~ First line of address ~ U3 ~ ~ - ~a~~ ~ Second line of address ~~ fV ~, ~h~~~e~f6~~~ City or Post Office Correspondent's a-mail address: tV State ZIP Code I DATE FILED ~~9 / ~~~T Under penalties of pery'ury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of preparer other than the personal representative is based on all information of which preparer has any knowledge. SIGNAT P S SP SIBLE FOR FILING RETURN 17ATE% SIGNATURE OF PREPARER OTHER THAN REPRESENTATIVE /~ / / DATE ADDRESS PLEASE USE ORIGINAL FORM ONLY 15056041046 REV-1500 EX (05-04) PA Department of Revenue Bureau of Individual Taxes INHERITANCE TAX RETURN Dept. 280601 Harrisburg, PA 17128-OSOt RESIDENT DECEDENT Side 1 15056041046 15056041046 J 15056042047 REV-1500 EX ' Decedent's Social Security Number Decedent's Name: RECAPITULATION F' ~ i- ~ O 1. Real estate (Schedule A) ............................................. 1. ~ ~ ~. 2. Stocks and Bonds (Schedule B) ....................................... 2. • Z l ~ ~~ ° g ~` ~- . ® o 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) ..... 3. ,.. 4. Mortgages 8~ Notes Receivable (Schedule D) ............................. 4. /~, O C~ 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ........ 5. ~ ~ (-/ ~ • 6. Jointly Owned Property (Schedule F) C Separate. Billing Requested .... ... 6. + 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) O Separate Billing Requested..... ... 7. • 8. Total Gross Assets (total Lines 1-7) ................................. ... 8. / (~,> T ~ o 0 y ~ ~. 9. Funeral Expenses & Administrative Costs (Schedule H) .................. ... 9. C ~ 6 ~ . ' L'~ 10. Debts of Decedent, Mortgage Liabilities, ~ Liens (Schedule I) ............. ... 10. 11. Total Deductions (total Lines 9 & 10) ............................... .... 11. Z / / /7 ~? `f 12. Net Value of Estate (Line 8 minus Line 11) .......................... .... 12. 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) .................... .... 13. 14. Net Value Subject to Tax (Line 12 minus Line 13) .................... .... 14. L' y 6~ ~ Z TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 16. Amount of Line 14 to ble at lineal rate X .O~L~ . 16. ~ 7 ~ ~ .~ 17. Amount of line 14 taxable at sibling rate X .12 + 17. 18. Amount of Line 14 taxable at collateral rate X .15 * 18. • 19. TAX DUE ..................................................... ....19. 2 / -7 l / / 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT O Side 2 15056042047 15D56042047 J REV-1500 EX Page 3 File Number Decedent's Complete Address: DECEDENT'S NA --- 1-~/(~ / VQQ - -- ----- __ __ - __ STREET ADDRESS SCI ~> i a~ ~~ - - _---- - --- - - CITY ~^~ J, Q~S 1~ STATE ,~/J~ ZIP 1~~~~ Tax Payments and Credits: 1. Tax Due (Page 2 Line 19) (1) 3~/ ~ `" 2. Credits/Payments A. Spousal Poverty Credit B. Prior Payments C. Discount Total Credits (A + B + C) (2) 3. Interest/Penalty if applicable D. Interest E. Penalty Total InterestlPenalty (D + E) (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Fill in oval on Page 2, Line 20 to request a refund. (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) A. Enter the interest on the tax due. B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5A) (5B) 37~/ 8 Make Check Payable fo: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes ^ No a. retain the use or income of the property transferred :.................................................................................... ...... b. retain the right to designate who shall use the property transferred or its income : ...................................... ...... ^ c. retain a reversionary interest; or .................................................................................................................... ...... ^ d. receive the promise for life of either payments, benefits or care? ................................................................ ...... ^ 2. If death occurred after December 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? ....................................................................................................... ....... ^ 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? ....... ....... ^ 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ................................................................................................................. ....... ^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is three (3) percent [72 P.S. §9116 (a) (1.1) (i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero (0) percent [72 P.S. §9116 (a) (1.1) (ii)]. The statute does not exemot a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child finrenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is zero (0) percent [72 P.S. §9116(a)(1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is four and one-half (4.5) percent, except as noted in 72 P.S. §9116(1.2) [72 P.S. §9116(a)(1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. §9116(a)(1.3)]. Asibling is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. s REV-1502 EX+ (6-98) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCI~IED~ILE A REAL ESTATE _~_.__ ._ .._____, ....,,... ,..,,,~..,,~~,.~ „~~ww vi uic oauic Disc) ESTATE OF FILE NUMBER ~h,R1Fy.. ~ .~u~t~- All real property o ed solely or as a tens in common must be reported at fair market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant farts REV-1503 EX+ (6-98) SCHEDULE B COMMONWEALTH OF PENNSYLVANIA STOCKS & BONDS INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF ~ FILE NUMBER ~h,~~~. ~~~~ All property jointly-owned with right of survivorship must be disclosed on ;ichedule F. (If more space is needed, insert additional sheets of the same size) REV-1504 EX+ (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCI~IED~ILE C CLOSELY-HELD CORPORATION, PARTNERSHIP OR SOLE-PROPRIETORSHIP ESTATE OF ~~ ~ • ~ ~'1'~ FILE NUMBER Schedule C-1 or C-2 (including all supporting information) must be attached for each closely-held corporation/partnership interest of the decedent, other than a sole-proprietorship. See instructions for the supporting information to be submitted for sale-proprietorships. (If more space is needed, insert additional sheets of the same size) aEU,~osoc.l,~en COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN ESTATE OF 2. 3. 4. Name of Corporation Address City State Zip Code Federal Employer l.D. Number Type of Business Product/Service State of Incorporation Date of Incorporation Tonal Number of Shareholders Business Reporting Year STOCK TYPE Voting !Non-Voting TOTAL NUMBER OF SHARES OUTSTANDING PAR VALUE NUMBER Of= SHARES OWNED BY THE DECEDENT VALUE OF THE DECEDENT'S STOCK Common $ Preferred $ Provide all rights and restrictions pertaining to each class of stock. 5. Was the decedent employed by the Corporation? ^ Yes ^ No If yes, Position Annual Salary $ TimE; Devoted to Business 6. Was the Corporation indebted to the decedent? ^ Yes ^ No If yes, provide amount of indebtedness $ 7. Was there life insurance payable to the corporation upon the death of the decedent? ^ Yes ^ No If yes, Cash Surrender Value $ Net proceeds payable $ Owner of the policy 8. Did the decedent sell or transfer stock of this company within one year prior to death or within two years if the date of death was prior to 12-31-82? ^ Yes ^ No !f yes, ^ Transfer ^ Sale Number of Shares Transferee or Purchaser Consideration $ Date Attach a separate sheet for additional transfers and/or sales 9. Was there a written shareholder's agreement in effect at the time of the decedent's death? ^ Yes ^ No If yes, provide a copy of the agreement. 10. Was the decedent's stock sold? ^ Yes ^ No If yes, provide a copy of the agreement of sale, etc. 11. Was the corporation dissolved or liquidated after the decedent's death? ^ Yes ^ No If yes, provide a breakdown of distributions received by the estate, including dates and amounts received. 12. Did the corporation have an interest in other corporations or partnerships? ^ Yes ^ No If yes, report the necessary information on a separate sheet, including a Schedule C-1 or C-2 for each interest, THE FOLLOWING INF4RI1~ATlON MUST BE SUBMfTTEQ VI-ITH THIS SCHEDULE A. Detailed calculations used in the valuation of the decedent's stock. B. Complete copies of financial statements or Federal Corporate Income Tax returns (Form 1120} for the year of death and 4 preceding years. C. If the corporation owned real estate, submit a list showing the complete addressles and estimated fair market value/s. If real estate appraisals have been secured, attach copies. D. List of principal stockholders at the date of death, number of shares held and their relationship to the decedent. E. List of officers, their salaries, bonuses and any other benefits received from the corporation. F. Statement of dividends paid each year, List those declared and unpaid. G. Any other information relating to the valuation of the decedent's stock. SCHEDULE C-1 CLOSELY-HELD CORPORATE ~ ~ (k TOCK INFORMATION REPORT REV-1506 EX+ (9-00) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE C-S PARTNERSHIP INFORMATION REPORT ESTATE OF i ~ ~ vf~ ~ ~ ~ FILE NUMBER 1. Name of Partnership ~ 0~ /' Date Business Commenced 1 ' / ~ 0 ~. Address /U~ ~~ ~v /C Business Deporting Year City i ~ / t / ~J 7 State D~ Zip Code ~~L-~~ 2. Federal Employer I.D. Number 3. Type of Business ~~ ~ ProducUService _~~~ G~'~~C~ 4. Decedent was a General ^ Limited partner. If decedent was /. !. a limited partner, provde mitual investment $ _ _ - / A. ~ ~~ ~~- C D. ~s/ 6. Value of the decedent's interest $ .S.Q,~_ `<- ( '~ d 7~, 7. Was the Partnership indebted to the decedent? ................................. ^Ves E7 No If yes, provide amount of indebtedness $ 8. Was there life insurance payable to the partnership upon the death of the decedent? ..... ^Ves No If yes, Cash Surrender Value $ Net proceeds payable $_ Owner of the policy 9. Did the deced t sell or transfer an interest in this partnership within one year prior to death or within two years if the date of death was prior to 12-3 -82? ^ Yes No If yes, ^ Transfer ^ Sale Percentage transferred/sold Transferee or Purchaser Consideration $ Date Attach a separate sheet for additional transfers and/or sales. 10. Was there a written partnership agreement in effect at the time of the decedent's death? ...... ^ Yes H No If yes, provide a copy of the agreement. 11. Was the decedent's partnership interest sold? ....................................... ^ YEas fd No If yes, provide a copy of the agreement of sale, etc. ~~ 12. Was the partnership dissolved or liquidated after the decedents death? ................... ^ YE+s 8"No If yes, provide a breakdown of distributions received by the estate, including dates and amounts receiv nd. 13. Was the decedent related to any of the partners? ............. ..................... fl~'Yes ^ No If yes, explain ~~ L(/l~f /~j~ ~~/~~l/- 14. Did the partnership have an interest in other corporations or partnerships? .............. ^ Yes o If yes, report the necessary information on a separate sheet, including a Schedule C-1 or C-2 for each interest. • • •~ ~ ~ ~ A. Detailed ca~ulations used in the valuation of the decedents partnership interest. ~ f1~/ B. Complete copies of financial statements or Federal Partnership Income Tax returns (Form 1065) for the year of death and 4 preceding years. / C. If the partnership owned real estate, submit a list showing the complete addresses and estimated fair market valuels. If real estate appraisals have been secured, attach copies. /~ ~ /4' D. Any other information relating to the valuation of the decedent's partnership interest. Rf'V-1507 EX+ j1-97) SCNEDVLE D f~, COMMONWEALTH OF PENNSYLVANIA MORTGAGES & NOTES ~ ~ T INHERITANCE TAX RETURN RECEIVABLE RESIDENT DECEDENT ESTATE OF ~ + FILE NUMBER All property jointly-owned with right of survivorship must be disclosed on Schedule F. (If more space is needed, insert additional sheets of the same size) REV-1508 EX ~ (1-97) SCHEDULE E COMMONWEALTH OF PENNSYLVANIA CASH, BANK DEPOSITS, ~ MISC. INHRESIDENTD CEDENTRN PERSONAL PROPERTY ESTATE OF ~ FILE NUMBER Include the proceeds of litigation and the date the proceeds were received by the estate. All property jointly-owned with the right of survivorship must be disclosed on Schedule F. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1. i ~ Qf g ~1 ~ ~P (~K. fro ~ >=~, i~ ~ vv - TOTAL (Also enter on line 5, Recapitulation) I $ ~~~ / -- i (If more space Is needed, Insert additional sheets of the same size) REV-1509 b(+ (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN SCHEDULEF JOINTLY-OWNED PROPERTY ~~~ ESTATE OF j ~ ~ • FILE NUMBER If an asset was made joint within one year of the decedent's date of dear, it must be reported on Schedule G. SURVIVING JOINT TENANT(S) NAME A. B. C. JOINTLY-OWNED PROPERTY: RELATIONSHIP TO DECEDENT ITEM NUMBER LETTER FOR JOINT TENANT DATE MADE JOINT DESCRIPTION OF PROPERTY Include name of financial institution and bank acxount number or similar identifying number. Attach deed for jointly-held real estate. DATE OF DEATH VALUE OF ASSET % OF DECD'S INTEREST DATE OF DEATH VALUE OF DECEDENT'S INTEREST 1. A. TOTAL (Also enter on line 6, Recapitulation) (If more space is needed, insert additional sheets of the same size) REV-1510 EX ~ (1-97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN ESTATE OF SCHEDULE G ~ ~ (~ INTER-VIVOS TRANSFERS ~ MISC. NON-PROBATE PROPERTY FILE NUMBER This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes. ITEM NUMBER DESCRIPTION OF PROPERTY INCLUDE THE NAME OF THE TRANSFEREE, THEIRRELATIONSHIPTODECEDENTANDTHEDATEOFTRANSFER ATTACH A COPY OF THE DEED FOR REAL ESTATE. DATE OF DEATH VALUE OF ASSET % OF DECD'S INTEREST EXCLUSION IFAPPI-(CABLE TAXABLE VALUE ~. TOTAL (Also enter on line 7, Recapitulation) I $ (If more space is needed, insert additional sheets of the same size) REV-1511 EX+ (12-99) ~' SCHEDULE H COMMONWEALTH OF PENNSYLVANIA FUNERAL EXPENSES & INHERITANCE TAX RETURN ADMINISTRATIVE COSTS RESIDENT DECEDENT ESTATE OF L FILE NUMBER J Debts of dece nt must be reported on Schedule I. ITEM NUMBER DESCRIPTION AMOUNT A. FUNERAL EXPENSES: 1. `~~ B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name of Personal Representative(s) Social Security Number(s)lEIN Number of Personal Representative(s) Street Address City State __ Zip Year(s) Commission Paid: 2. Attorney Fees ,~a~ 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Street Address City State _ Zip Relationship of Claimant to Decedent 4. Probate Fees ~j~ ~ 5. Accountant's Fees 3 ao ~~ 6. Tax Return Preparer's~Fees 7. TOTAL (Also enter on line 9, Recapitulation) I $ ~ ~ (p ~ ~(' (If more space is needed, insert additional sheets of the same size) REV-1512 EX+ (12-03) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE 1 DEBTS OF DECEDENT, N 1 MORTGAGE LIABILITIES, & LIENS ESTATE OF ~ ~ ~ _ FILE NUMBER Report debts incurred by the de4edent prior to death which remair{a~l unpaid as of the date of death, including unreimbursed medical expenses. (If more space is needed, insert additional sheets of the same size) REV-1513 EX+ (9-00) SCHEDULE J ~~ COMMONWEALTH OF PENNSYLVANIA BENEFICIARIES INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF FILE NUMBER RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADD SS OF PERSON(S) RECEIVING PERTY Do Not ListTrustee[s) OF ESTATE I TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under Sec. 9116 (a) (1.2)] 1. ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 TH ROUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET II NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE 1. B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS 1. TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ (If more space is needed, insert additional sheets of the same size) REV-1514 EX+ (12-03) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF SCHEDULE K LIFE ESTATE, ANNUITY ~ ~ ~ & TERM CERTAIN Check Box 4 on REV-1500 Cover Sheet) FILE NUMBER This schedule is to be used ~r all single life, joint or success)1)e life estate and term certain calculations. For dates of death prior to 5-1-89, actuarial factors for single life calculations can be obtained from the Department of Revenue, Specialty Tax Unit. Actuarial factors can be found in IRS Publication 1457, Actuarial Values, Alpha Volume for dates of death from 5-1-89 to 4-30-99, and in Aleph Volume for dates of death from 5-1-99 and thereafter. Indicate the type of instrument which created the future interest below and attach a copy to the tax return. ^ Will ^ Intervivos Deed of Trust ^ Other NAME(S) OF LIFE TENANT(S) DAtE OF BIRTH • NEAREST AGE AT DATE 4F DEATH TERM OF YEARS LIFE ESTATE 15 PAYABLE ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years 1. Value of fund from which life estate is payable ..........................................$ 2. Actuarial factor per appropriate table ................................................ . Interest table rate - ^ 3 1/2% ^ 6% ^ 10% ^ Variable Rate °I° 3. Value of life estate (Line 1 multiplied by Line 2) ......................................$ NAME(S) Of LIFE ANNUITANT(S) DATE OF BIRTH NEAREST AGE AT DATE OF DEATH TERM OF YEARS ANNUITY lS PAYABLE ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years ^ Life or ^ Term of Years 1. Value of fund from which annuity is payable ............................................$ 2. Check appropriate block below and enter corresponding (number) ......................... . Frequency of payout - ^ Weekly (52) ^ Bi-weekly (26) ^ Monthly (12) ^ Quarterly (4) ^SemI-annually (2) ^ Annually (1) ^ Other ( ) 3. Amount of payout per period ........................................................$ 4. Aggregate annual payment, Line 2 multiplied by Line 3 .................................. . 5. Annuity Factor (see instructions) Interest table rate - ^ 3 1i2% ^ 6% ^ 10% ^ Variable Rate 6. Adjustment Factor (see instructions) ................................................. . 7. Value of annuity - If using 31/2%, 6%, 10%, or if variable rate and period payout is at end of period, calculation is: Line 4 x Line 5 x Line 6 ..........................$ If using variable rate and period payout is at beginning of period, calculation is: (Line 4 x Line 5 x Line ti) + Line 3 ..................................................$ NOTE: The values of the funds which create the above future interests must be reported as part of the estate assets on Schedules A through G of this tax return. The resulting life or annuity interest(s) should be reported at the appropriate tax rate on Lines 13 and 15 through 18. (If more space is needed, insert additional sheets of the same size) REV-1644 EX t Is-oa> INHERITANCE TAX ~' SCHEDULE L COMMONWEALTH OF PENNSYLVANIA REMAINDER PREPAYMENT IN RESIDENTEDECEDENT N OR INVASION OF TRUST PRINCIPAL FILE NUMBER I. ESTATE OF ' ~_ (Last Name) (First Name) (Middle Initial) This schedule is appropriate only for estates of decedents dying on or before December 12, 1982. This schedule is to be used for all remainder returns when an election to prepay has been filed under the provisions of Section 714 of the Inheritance and Estate Tax Act of 1961 or to report the invasion of trust principal. II. REMAINDER PREPAYMENT: A. Election to prepay filed with the Register of Wills on (Date) B. Name(s) of Life Tenant(s) Date of Birth Age on date Term of years income or Annuitant(s) of election or annuity is payable C. Assets: Complete Schedule L-1 1. Real Estate ...............................$ 2. Stocks and Bonds ..........................$ 3. Closely Held Stock/Partnership .............. .$ 4. Mortgages and Notes .......................$ 5. Cash/Misc. Personal Property ................$ 6. Total from Schedule L-1 ......................................................$ D. Credits: Complete Schedule L-2 1. Unpaid Liabilities ...........................$ 2. Unpaid Bequests ...........................$ 3. Value of UninGudable Assets .................$ 4. Total from Schedule L-2 ......................................................$ E. Total Value of trust assets (Line C-6 minus Line D-4) .................................$ F. Remainder factor (see Table 1 or Table II in Instruction Booklet) ........................ . G. Taxable Remainder value (Line E x Line F) .........................................$ (Also enter on Line 7, Recapitulation) III. INVASION OF CORPUS: A. Invasion of corpus (Month, Day, Year) B. Name(s) of Life Tenant(s) Date of Birth Age on date Term of years income or Annuitant(s) corpus or annuity is payable consumed C. Corpus consumed ............................................................$ D. Remainder factor (see Table 1 or Table II in Instruction Booklet) ........................ . E. Taxable value of corpus consumed (Line C x Line D) .................................$ (Also enter on Line 7, Recapitulation) REV-laa5 EX+ v-851 INHERITANCE TAX I SCHEDULE L-1 COMMONWEALTH OF PENNSYLVANIA REMAINDER PREPAYMENT ELECTION IN RESIDENTEDKEDENTRN -ASSETS- FILE NUMBER 1. Estate of (Last Name) (First Nama) (Mid le Init~a II. Item No. Description Value A. Real Estate (please describe) Total value of real estate $ (include on Section II, Line C-1 on Schedule L) B. Stocks and Bonds (please list) Total value of stocks and bonds $ (include on Section ll, Line C-2 on Schedule L) C. Closely Held Stock/Partnership (attach Schedule C-1 and/or C-2) (please list) Total value of Closely Held/Partnership $ (include on Section II, Line C-3 on Schedule L) D. Mortgages and Notes (please list) Total value of Mortgages and Notes $ (include on Section II, Line C-4 on Schedule L) E. Cash and Miscellaneous Personal Property (please list) Toto{ value of Cash/Misc. Pers. Property $ (include on Section II, Line C-5 on Schedule L) III. TOTAL (Also enter on Section II, Line C-6 on Schedule L) $ (If more space is needed, attach additional 8'/s x 11 sheets.) REV-1646 EX+ (3-84) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT INHERITANCE TAX I ,1 ~~ SCHEDULE L-2 N REMAINDER PREPAYMENT ELECTION -CREDITS- FILE NUMBER I. Estate of / , ~- (Last Name (F r t Nome) (Middle Initial) I1. Item No. Description Amount A. Unpaid Liabilities Claimed against Original Estate, and payable from assets reported on Schedule L-1 (please list) Total unpaid liabilities $ (include on Section II, Line D-1 on Schedule L) B. Unpaid Bequests payable from assets reported on Schedule L-1 (please list) Total unpaid bequests $ (include on Section II, Line D-2 on Schedule L~ C. Value of assets reported on Schedule L-1 (other than unpaid bequests listed under "B" above) that are not included for tax purposes or that do not form a part of the trust. Computation as follows: Total unincludable assets $ (include on Section II, Line D-3 on Schedule L) I11. TOTAL (Also enter on Section II, Line D-4 on Schedule L) $ (If more space is needed, attach additional 8'/z x 11 sheets.) R'EV-1647 EX+ (9-00) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT ESTATE OF scNEOU~E M I~ FUTURE INTEREST COMPROMISE Check Box 4a on Rev-1500 Cover Sheet FILE NUMBER This Schedule is appropAate only for estates of decedent lying after December 12, 1982. This schedule is to be used for all future interests where the rate of tax which will be applicable when the future interest vests in possession and enjoyment cannot be established with certainty. Indicate below the type of instrument which created the future interest and attach a copy to the tax return. ^ Will ^ Trust ^ Other I. Beneficiaries NAME OF BENEFICIARY RELATIONSHIP DATE OF BIRTH AGE TO NEAREST BIRTHDAY 1. 2. 3. 4. 5. II. For decedents dying on or after July 1, 1994, if a surviving spouse exercised or intends to exercise a right of withdrawal within 9 months of the decedent's death, check the appropriate block and attach a copy of the document in which the surviving spouse exercises such withdrawal right. ^ Unlimited right of withdrawal ^ Limited right of withdrawal _ III. Explanation of Compromise Offer: N Summary of Compromise Offer: 1. Amount of Future Interest .........................................................$ 2. Value of Line 1 exempt from tax as amount passing to charities, etc. (also include as part of total shown on Line 13 of Cover Sheet) ......$ 3. Value of Line 1 passing to spouse at appropriate tax rate Check One ^ 6%, ^ 3%, ^ 0% ......................$ (also include as part of total shown on Line 15 of Cover Sheet) 4. Value of Line 1 taxable at lineal rate Check One ^ 6%, ^ 4.5% ...........................$ (also include as part of total shown on Line 16 of Cover Sheet) 5. Value of Line 1 taxable at sibling rate (12%) (also include as part of total shown on Line 17 of Cover Sheet) ......$ 6. Value of Line 1 taxable at collateral rate (15%) (also include as part of total shown on Line 18 of Cover Sheet) ......$ 7. Total value of Future Interest (sum of Lines 2 thru 6 must equal Line 1) ......................$ (If more space is needed, insert additional sheets of the same size) 'REV-1648 EX (17-99) SCHEDULE N ., SPOUSAL POVERTY CREDIT ~ I'Pr COMMONWEALTH. OF PENNSYLVANIA (AVAILABLE FOR DATES OF DEATH 01/01/92 TO 12/31/94) INHERITANCE TAX DIVISION ESTATE OF ~ I v~J 1 „ FILE NUMBER This schedule be completed and filed if you checfc~d the spousal poverty credit box on the cover sheet. 1 . Taxable Assets total from line 8 (cover sheet) ............................................ 1 . 2. Insurance Proceeds on Life of Decedent ................................................ 2. 3. Retirement Benefits ............ 3. .................................................... 4. Joint Assets with Spouse ............................................................ 4. 5. PA Lottery Winnings ............................................................... 5. 6a. Other Nontaxable Assets: List (Attach schedule if necessary).. 6a. 6b. 6c. 6d. 6. SUBTOTAL (Lines 6a, b, c, d) ........................................................ 6. 7. Total Gross Assets (Add lines 1 thru 6) ................................................. 7. 8. Total Actual Liabilities .............................................................. 8. 9. Net Value of Estate (Subtract line 8 from line 7) .................................... ~....... 9. If line 9 is greater than $200,000 -STOP. The estate is not eligible to claim the credit. If not, continue to Part 11. Income: 1. TAX YEAR: 19 a. Spouse ........... 1a. b. Decedent .......... 1b. c. Joint ............. 1c. d. Tax Exempt Income .. id. e Other Income not listed above ........ 1e. f. Total ............. 1 t. 4. Average Joint Exemption income Calculation 4a. Add Joint Exemption Income from above: (1 f) + (2f) _ 3c. 3f, + (3f) (= 3) 4b. Average Joint Exemption Income ..................................................... if line 4(b) is greater than $40,000 -STOP. The estate is not eligible to claim the credit. If not. continue to Part 1. Insert amount of taxable transfers to spouse or $100,000, whichever is less ..................... ~ 1 2. Multiply by credit percentage (see instructions) ........................................... 12 3. This is the amount of the Resident Spousal Poverty Credit. Include this figure in the calculation of total credits on line 18 of the cover sheet . ............................... 3. 4. For Nonresidents, enter the ratio of the decedent's gross estate in PA to the value of the decedent's gross estate 4• ............................................................. 5. Multiply fine 3 by line 4 and enter the total here. This is the amount of the Nonresident Spousal Poverty Credit .Include this figure in the calculation of total credits on line 18 of the cover sheet....... 5. REV-649 E~~(b97) COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN SCHEDULE 0 ELECTION UNDER SEC. 9113(A) ~i~ ESTATE OF ~ i, _ - - l ~ p ~ ~ ~ FILE NUMBER Do not complete this schedule unles he estate is making the election to assets under Section 9113(A) of the Inheritance & Estate Tax Act. If the election applies to more than one trust or similar arrangement, a separate form must be filed for each trust. This election applies to the Trust (marital residual A B By pass Unified Credit etc ) If a trust or slmllar arrangement meets the regwrements of Section 9113(A), and: a. The trust or similar arrangement is listed on Schedule 0, and b. The value of the trust or similar arrangement is entered in whole or in part as an asset on Schedule 0, then the transferor's personal representative may specifically identify the trust (all or a fractional portion or percentage) to be included in the election to have such trust or similar property treated as a taxable transfer in this estate. If less than the entire value of the trust or similar property is included as a taxable transfer on Schedule 0, the personal representative shall be considered to have made the election only as to a fraction of the trust or similar arrangement. The numerator of this fraction is equal to the amount of the trust or similar arrangement included as a taxable asset on Schedule 0 The denominator is equal to the total value of the trust or similar arran ement PART A: Enter the description and value of all interests, both taxable and non-taxable, regardless of location, which pass to the decedent's surviving spouse under a Section 9113 (A) trust or similar arran ement PART B: Enter the Part A T~ (If more space is needed, insert additional sheets of the same size) Form y065 U.S. Return of Partnership Inci~me Department of the Treasury For calendar year 2004, or tax year beginnin 0 1 0 1 , 2004, & ending 1 2 / 3 1 / 20 0 4 Internal Revenue Service - See separate instructions. A Principal busn. activity Use the Name of partnership farming IRS Longview Quarter Horse Farm B Principal producUservice label. _ Number, street, and room or suite no. If a P. O. box, see the instructions. product wiser 287 Airport Road C Business code number print City or town, state, and ZIP code 240 °r~'e' Shippensburq Pa 17257 OMB No. 1545-0099 2004 D Employer ID number 02-0621645 E Date business started 01 /01 /2002 Total assets (see the instructions) s 8,955. G Check applicable boxes: (1) ~nitial return (2) ~ Final return (3) ~ Name change (4) ~ Address change ($) ~ Amended return H Check accounting method: (1) Cash (2) o Accrual (3) ~ Other (specity)- Number of Schedules K-1. Attach one for each person who was a partner at anytime during the tax year- 2 . (:autlnn• Inclnda only trade nr husiness inrnma and expenses nn lines ~ a throuah 22 below- Sae tha instrurtinns for more infnrmatinn_ .~ •. 1 a Gross receipts or sales 18 ~'~~~ b Less returns and allowances 1b 1C 0 . 2 Cost of goods sold {Schedule A, line 8) 2 I 3 Gross profit. Subtract line 2 from line is 3 ~ 4 Ordinary income (loss) from other partnerships, estates, and trusts {attach schedule) 4 m 5 Net farm profit (loss) (attach Schedule F (Form 1040)) _ _ 5 -1 2 , 5 31 . e 6 Net gain (loss) from Form 4797, Part II, line 17 6 7 Other income (loss) (attach schedule) _ _ 7 8 Total income (loss}. Combine lines 3 through 7 ............ ...... 8 -1 2 , 5 31 . p 9 Salaries and wages (other than to partners) (less employment credits) 9 10 Guaranteed payments to partners 10 c 11 Repairs and maintenance 11 o 12 Bad debts 12 f n o 13 Rent 13 sr s I 14 Taxes and licenses 14 ei 15 Interest _ 15 t ~ 16a Depreciation (if required, attach Form 4562) 16a e a b Less depreciation reported on Schedule A and elsewhere on return ' 16b 16C t I i 17 Depletion (Do not deduct oil and gas depletion.) 17 t s 18 Retirement plans, etc _ 18 r 19 Employee benefit programs 19 u c j ZO Other deductions (attach schedule) 20 0 n s 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 21 0 . 22 Ordinary business income (loss). Subtract line 21 from line 8 . 22 -1 2 , 5 31 . Under penalties of perjury I declare that I have examined this return, including accom correct and com lete Declaration of best of m knowled e and belief It is true re pan inqq schedules and statements, and to the arer y(otfier than eneral artner or limited liabili Sign Here p g , , , . p p g y company member) is based on all information of which preparer has any knowledge. MaytheIRS discuss this return with the preparershown below 0 3/ 1 2/ 0 5 (see inst.)? Yes No ' ' Signature of general partner or limited liability company member Date Preparer's Date Check if self- Preparer's SSN or PTIN Paid signature 0 3/ 1 2/ 0 5 employed - 1 7 6- 4 4- 2 2 51 Preparer's Firm's name {or yours Mooney' s Tax Service EIN - Use Only itself-employed), ' 1250 Baltimore Road &zlP d dd Phone no. ress, co a e 7175323446 hippensburg For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113902 Form 1065 (2004) 410651 CopyrightTAX$IMPLEJYA Longview Quarter Horse Farm 02-0621645 of Goods Sold (see the i 2 1 Inventory at beginning of year , 1 2 Purchases less cost of items withdrawn for personal use 2 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule} 5 6 Total. Add lines 1 through 5 6 7 Inventory at end of year 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 8 9a Check all methods used for valuing closing inventory: (I) Cost as described in Regulations section 1.471-3 (II) Lower of cost or market as described in Regulations section 1.471-4 (III) Other (specify method used and attach explanation) - b Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c), - C Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970), - d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? , Yes No e Was there any change in determining quantities, cost, or valuations between opening and closing inventory,? , 8 Yes No If "Yes," attach explanation. • - Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a Domestic general partnership b Domestic limited partnership C Domestic limited liability company d Domestic limited liability partnership ''`3~.: e Foreign partnership f Other - ~,~ y 2 Are any partners in this partnership also partnerships? _ _ X 3 During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and 301.7701-3? If yes, see instructions for required attachment X 4 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1){B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details X 5 Does this partnership meet all three of the following requirements? ~`'•=~~r~:: ~7 a The partnership's total receipts for the tax year were less than $250,000; ><'< <;s b The partnership's total assets at the end of the tax year were less than $600,000; and '`' C Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including ~- >? ix<'~ extensions) for the partnership return. If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item N on Schedule K-1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X 6 Does this partnership have any foreign partners? If "Yes," the partnership may have to file Forms 8804, 8805 and 8813. See the instructions , X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? X 8 Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? X 9 At any time during calendar year 2004, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes," enter the name of the foreign country.- X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520. See the instructiong X 11 Was there a distribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax year? If "Yes," you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made By the Partnership in the instructions, _ X 12 Enter the number of Forms 8865, Return of U. S. Persons With Respect to Certain Foreign Partnerships, attached to this return . - rf } Designation of Tax Matters Partner (see ine instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Na 9e of ' Y Identifying ' desi Hated TMP Mark E Neal number of TMP 1 7 6-485 2 Address of 287 Airport Road designated TMP ' Shippensburg Pa 17257 410652 CopyrightTAX$IMPLE JYA Form 1065 (2004) Form 1065 (2004) Longview Quarter Horse Farm 02-0621 645 Page 3 • - Partners' Distributive share Items Total amount 1 Ordinary business income (loss) (page 1, line 22) 1 -1 2 , 5 31 . 2 Net rental real estate income (loss) (attach Form 8825) 2 3a Other gross rental income (loss) , 3a :: ~'~= ~ ~ _ b Expenses from other rental activities (attach statement} 3b ~ ~';`k~~' C Other net rental income {loss). Subtract line 3b from line 3a 3C I 4 Guaranteed payments _ 4 ~ 5 Interest income 5 e 6 Dividends: a Ordinary dividends 6a b Qualified dividends 6b ~ 0 7 Royalties 7 s 8 Net short-term capital gain (loss) (attach Schedule D (Form X065)) $ 9a Net long-term capital gain (loss) (attach Schedule D (Form X065)) 98 b Collectibles (28%) gain (loss) 9b 4 •• C Unrecaptured section 1250 gain (attach statement) , 9C •.'.~.,~'}r~y% 10 Net section ~23~ gain (loss) (attach Form 4797), 10 11 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . 11 D 12 Section X79 expense deduction (attach Form 4562) 12 ~ 13aContributions 13a ~ b Deductions related to portfolio income {attach statement) 13b t I C Investment interest expense , , 13c ~ d Section 59(e)(2) expenditures: (1) Type - (2) Amount - 13d(2) s e Other deductions (attach schedule) 13e S m m 14a Net earnings (loss) from self-employment 14a - 6 , 2 6 5 . e 1 n b Gross farming or fishing income 14b E Y t C Gross nonfarm income ............................. 14C C R 15a Low-income housing credit (section 42(j)(5)) 15a ~ C~ bLow-income housing credit (other) 15b a C Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) 15 . C s ~ u d Other rental real estate credits 15d & e e Other rental credits 15e f other credits and credit recapture (attach statement) . ............. ... 15f 16a Name of country or U.S. possession- ' ~~~- b Gross income from all sources , _ 16b T C Gross income sourced at partner level 16C p a Foreign gross income sourced at partnership level ,' :- O n e a Listed categories General d Passive - e (attach statement) - f limitation - . 16f I ~ t Deductions allocated and apportioned at partner level ~ " `" "` •'~ '= • ~ c g Interest expense - h Other . - 16h n s Deductions allocated and apportioned at partnership level to foreign source income ^ fx:;; ':~~:. •~• Passive - Listed categories General (attach statement) - k limitation - 161( Foreign taxes:(1) Paid - (2) Accrued - i si(z) m Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . 16 A p~A 17a Post-1986 depreciation adjustment 17a t I M T b Adusted gain or loss 17b n ~ I C Depletion (other than oil and gas) 17C a me d Oil gas and geothermal properties- gross income 17d , , j g a Oil as and eothermal ro erties- deductio a , g , g p p ns 1 7e e x f Other AMT items (attach statement) 1 . . . . . . . . . . . . . . . . . . . 7f 18a Tax-exempt interest income 1 8a I " b Other tax-exempt income 1 8b Oo C Nondeductible expenses 1 8C h 19a Distributions of cash and marketable securities 1 9a m e t b Distributions of other property 1 9b 0 20a Investment income 2 0a b Investment expenses 2 0b C Other items and amounts (attach statement) ., ~{;.., e f~^^`~'..'. ~ ~ :a 410653 CopyrightTAX$IMPLEJYA Form 1065 (2004) Form 1065{2004) Longview Quarter Horse Farm 02-0621 645 Page 4 . Analysis of Net Income (Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13e, 161(1), and 161(2) , 1 -1 2 , 5 31 .......... .... 2 Analysis by partner type: a General partners b Limited partners (1) Corporate (ii) Individual (active) (III) Individual (passive) (iv) Partnership (v) Exempt organization (vl) Nominee/Other -6,266. -6,266. Note: Schedules L. M-1. and M-2 are not required if Question 5 of Schedule B is answered "Yes." • Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash ~:~~~~?a~~~y<.:~`'•v~:?~~::••t•}~ , -:;W v3 z3~ ! ~a~; ~ . 4 9 0 6. ~ 5~'~.:: f:~::4»~~~:~~~<:' ~ f . ~ '~! :S 8 9 5 5. / . . . . 2a Trade notes and accounts receivable .x.a .,~... ,:..., .a . •a, •.. s ~~~~ `'~tz~~" ~`~xj•'c~ , •~I k'+a+h'La ..Jb:4.. TY~ •NP~v.. n+h~n.... . .:ax a,:.zz ~ xws.~.ac:,,:t: ; a ,- ~. ' ~ ~k, ~Qi'i:~:4~. .i'~ b Less allowance for bad debts 3 Inventories •'~µ`~'•"' .rya '' ~••~ ~ ~ 4 U.S. government obligations ~•-,:~ :,,, ~.'. '~ , -. 5 Tax-exempt securities w ~ ~a;: ~• . ~ 6 Other current assets (attach statement) ~' ~ Via, ~ ~ , • ; ` 7 Mortgage and real estate loans • t ,. ~~ ~ ~' ~' ~ M1 ~ ~~ ° x a` ~~~~~~ 8 Other investments (attach statement) .•~~.: ~*~.~~ ~:r.:a'~` at'.z ~~ ~~~y ai' a 9a Buildings and other depreciable assets _ ?~'~ ~_. ~n3.::.`.'•~'^'~'.x~;° .. .. .~~~.ae}~~~ ~.:~s'~~A~x~ b Less accumulated depreciation . 10a Depletable assets h; ~k''~~:ty~,~~?~~..,>~,s~~`z %~~;`?4'~.~.`~a.. f.'` b Less accumulated depletion , 11 Land (net of any amortization) ~, ,r* ski~a..~`..~~ ,~'~~.'~ ,) ~~•~i;••~.•. }:~;-,k•r `r,~ • 12a Intangible assets (amortizable only) ;~?.~`•• a'.~a~'z~'~x~A_~c. ?~~,~~~ ~~ ~ 'I b Less accumulated amortization 13 Other assets (attach statement) ~'•~{ ; ~k~ ~ ~~ ~ F ~'~,~•~{ ~ 14 Total assets ~., ~ 4 , 9 0 6 ~ >~ 8 , 9 5 5 . Liabilities and Capital ,fir. _ ,} ~ Y ~ `~ ....~~ "~ y 3 ~ y ~~:~ ~ t~;;, ''x~ 15 Accounts payable '~~ .~~: ', ~' ~ ~~ 16 Mortgages, notes, bonds payable in less than 1 year a { `i ~~'' ~a `~ ,; ,a 17 Other current liabilities (attach statement) 18 All nonrecourse loans . r > ~= ~~• ~ r - +~ a ,;: ;~~ 19 Mortgages, notes, bonds payable in 1 year or more ~,~ ~ ~ _• ~.. '" ~' ~ : nc +, 20 Other liabilities (attach statement) _ ~.~; 4 "~,~ ~ , , z 21 Partners' capital accounts ~~'': ~E •.M',~ 4 , 9 0 6 . ~. 4 , 9 0 6 . 22 Total liabilities and capital 4 , 9 0 6 . x ~ ~` 4 , 9 0 6 . • - Reconciliation of Inco me Loss er Bo oks With Income Loss er Return 1 Net income (loss) per books 6 Income recorded on books this year not included 2 Income included on Schedule K, lines 1, 2, 3c, on Schedule K, lines 1 through 11 {itemize 5, 6a, 7, 8, 9a, 10, and 11, not recorded on aTax-exempt int. $ books this year (itemize): 3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1 through 13e, 161(1), and 161(2), not charged InSUranCe) against book income this year (itemize): 4 Expenses recorded on books this year not a Depr. $ included on Schedule K, lines 1 through 13e, 161(1), and 161(2) (itemize): a Depreciation $ b Travel and entertainment $ $ Add lines 6 and 7 0 . 9 Income (loss) (Analysis of Net Income 5 Add lines 1 through 4 0 . (Loss), line 1). Subtract line 8 from line 5 0 . rs~s or rartners 1 Balance at beginning of year _ , 2 Capital contributed: a Cash b Property . . 3 Net income (loss) per books 4 Other increases (itemize): 5 Add lines 1 through 4 , Accounts 4, 9 0 6. 6 Distributions: a Cash 7 Other b Property , decreases (itemize): 8 Add lines 6 and 7 9 0 6 9 Balance at end of year. Subtract line 8 from line 5 410654 CopyrightTAX$IMPLEJYA 4, 906. Form1065 (2004) Worksheet For Figuring Net Earnings (Loss) From Self-Employment is Ordinary income (loss) (Schedule K, line 1} b Net income (loss) from CERTAIN rental real estate activities , c Net income (loss} firom other rental activities (K, line 3c) . d Net loss from Form 4797 Part II -- line 18 included on line 1 a . . . . . . . . . . . . . . . . . . . . . . e Combine lines lathrough 1d , 2 Net gain from Form 4797, Part II, line 18, included on line is . 3a Subtract line 2 from line ia. If line 1e is loss, increase the loss on line ie by the amount on line 2 , b Part allocated to partners -- estates, trusts, corp., etc c Subtract line 3b from line 3a. If line 3a is a loss, reduce the loss on line 3a by the amount on line 3b. Include each individual general partner's share on line 15a of Sch. K-1 4a Guaranteed payments to partners (Schedule K, line 5) b Part of 4a allocated to partners -- estates, trusts, corp., etc c Subtract line 4b from line 4a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Combine 3c and 4c. Enter here and on Schedule K, line 15a . . . . . . . . . . . . . . . . . . . . . 410655 CopyrightTAX$IMPLEJYA SCHEDULE K-1 204 (Form 1065) Department of the Treasury Internal Revenue Service Tax year beginning 1 1 , 2004 and ending 1 2 { 31 l , 20_Q Partner's Share of Income, Deductions, Credits, etC. - See back of form and separate Instruction Final K-1 f I Amended K-1 OMB No. 1545-0099 "~' ' Dfductions, Credits, and"other `Items '; 1 Ordinary business income (loss) 15 Credits & credit recapture -6,266. 2 Net rental real estate income (loss 3 Other net rental income (loss) 16 Foreign transactions Iniormattoh Abut the Parthe~shl _ _ _.. ___ A Partnership's employer identification number 4 Guaranteed payments 02-0621645 8 Partnership's name, address, city, state, and ZIP code 5 Interest income Longview Quarter Horse Farm 287 Airport Road 6a Ordinary dividends Shippensburg Pa 17257 Qualified dividends C IRS Center where partnership filed return 7 Royalties Philadelphia D Check if this is a publicly traded partnership (PTP) $ Net short-term capital gain (loss) E Tax shelter registration number, if an~1 ~ A F Check if Form 8271 is attached 9a Net long-term capital gain (loss) 17 Alternative minimun tax (AMT) items iitl'l~~'f><lA2~Q~'f. ~~tYUL ~f1~ ~?BT~rtBY 9b Collectibles (28%) gain (loss) G Partner's identifying number 1 7 6-6 6-48 5 2 # 1 9c Unrecaptured section 1250 gain H Partner's name, address, city, state, and ZIP code Mark E Nealy 10 Net section 1231 gain (loss) 287 Airport Road 11 Other income (loss) Shippensburg Pa 17257 General partner or LLC Limited partner or other LLC member-manager member .1 a Domestic partner a Foreign partner 12 Section 179 deduction K What type of entity is this partner? AC t i V e Ind 13 Other deductions L Partner's share of profit, loss, and capital: Beginning Ending Profit °~° 5 0 . 0 0 °~° Loss °r° 5 0 . 0 0 °~° Capital % 5 0 . 0 0 M Partner's share of liabilities at year end: 14 SeIT-employment earnings (loss) Nonrecourse $ Qualified nonrecourse financing $ Recourse $ *See at N Partner's capital account analysis: Beginning capital account. $ Capital contributed during the year $ For Current year increase (decrease) $ IRS Withdrawals & distributions $ Use Ending capital account . $ ( ) Only n Tax basis ~ GAAP a Section 704(b) book n Other (explain} For Privacy Act and Paperwork Reduction Act Notice, see Instructions for Form 1065. -6,266. 1$ Tax-exempt income and nondeductible expenses 19 Distributions 20 Other information n. r Cat. No. 11394R Schedule K-1 (Form 1065) 2004 41065K11 Copyright TAX$IMP~E JYA SCHEDULE K-1 200th (Form 1065) Department of the Treasury Internal Revenue Service Tax year beginning 01 101 / , 2004 and ending 1 1 , 20_Q 4 Partner's Share of Income, Deductions, Credits, etc. - See back of form and separate Instruction Fina! K-1 ~ ~ Amended K-1 OMB No. 1545-0099 Partner's Share of>Cutrent Year lncom~, Deductions,`Credits, and Other>ltems>> ... _. 1 Ordinary business income (loss) 15 Credits & credit recapture -6, 266. 2 Net rental real estate income (loss 3 Other net rental income (loss) ~ 16 Foreign transactions A Partnership's employer identification number 4 Guaranteed payments 02-0621645 B Partnership's name, address; city, state, and ZIP code 5 Interest income Longview Quarter Horse Farm 287 Airport Road 6a Ordinary dividends Shippensburg Pa 17257 6b Qualified dividends C IRS Center where partnership filed return Philadelphia 7 Royalties D E Check if this is a publicly traded partnership (PTP) Tax shelter registration number, if an~i`I ~ A 8 Net short-term capital gain (loss) F Check if Form 8271 is attached 9a Net long-term capital gain (loss) 17 Alternalive minimun tax (AMT) items ~rl1`0!'fl7a~E7itt ~ti~3uL ~flB .~?ar'~ftLC 9b Collectibles (28%) gain {loss) G Partner's identifying number 1 2 0 7- 2 6- 0 9 0 5 # 2 9C Unrecaptured section 1250 gain H Partner's name, address, city, state, and ZIP code Shirley Nealy 287 Airport Road 10 Net section 1231 gain (loss) 18 Tax-exempt income and nondeductible expenses Shippensburg Pa 17257 I U General partner or LLC U Limited partner or other LLC member-manager member .1 Q Domestic partner a Foreign partner 12 Section 179 deduction K What type of entity is this partner? AC t i V e Ind 11 Other income (loss) 13 Other deductions L Partner's share of profit, loss, and capital: Beginning Ending Profit °~ 5 0. 0 0 Loss °r° 5 0 . 0 0 % capital °~ 5 0. 0 0 °~° 14 Self-employment earnings (loss) M Partner's share of liabilities at year end: Nonrecourse $ Oualified nonrecourse financing, $ Recourse $ *See at N Partner's capital account analysis: Beginning capital account $ Capital contributed during the year $ For Current year increase (decrease} $ IRS Withdrawals & distributions $ Use Ending capital account . $ ( ) Only A Tax basis ~ GAAP a Section 704(b) book Other (explain) For Privacy Act and Paperwork Reduction Act Notice, see Instructions for Form 1065 19 Distributions 20 Other information for additional information. Cat. No. 11394R Schedule K-1 {Form 1065) 2004 41065Kt i Copyright TAXSIMPLE JYA Form 1065 U.S. Return of Partnership Income OMB No. 1545-0099 Department of the Treasury For calendar ear 2005, or tax ear be innin ~ y y g 0 1 0 1 , 2005, ending 2/ 3 1 1 20 0 4 2005 Internal Revenue Service - See separate Instructions. A Principal busn. activity Use the Name of partnership D Employer ID number farming IRS Longview Quarter Horse Farm 02-0621645 B Principal product/service Zabel. Other- Number, street, and room or suite no. If a P.O. box, see the instructions. E Date business started roduct P wise, 287 Air ort Road p 01 / 01 / 2 0 0 2 C Business code number print City or town, state, and ZIP code F Total assets (see the 240 _ or e. Shi ensbur _Pa 17257 instructions) ~ 8,955. G Check applicable boxes: (1) Initial return (2) ~ Final return (3) ~ Name change (4) ~ Address change (5~ ~ Amended return H Check accounting method: (1) Cash (2) ~ Accrual (3) ~ Other (specify)- Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year- 2 , Caution. Include only trade or business income and expenses on lines is through 22 below. See the instructions for more information. 1a Gross receipts or sales la . b Less returns and allowances lb 1c . . 0 . I 2 Cost of goods sold (Schedule A, line 8) 2 n c 3 Gross profit. Subtract line 2 from tine 1c 3 ~ m 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) • 4 e 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 -1 0 , 3 9 2 . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797). 6 7 Other income (loss) (attach schedule) 7 8 Total income {loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . 8 -1 0 , 39 2 . D e d 9 Salaries and wages (other than to partners) (less employment credits) 9 ~ 10 Guaranteed payments to partners 10 t o I 11 Repairs and maintenance 11 o r n 12 Bad debts . 12 sl 13 Rent 13 (s i 14 Taxes and licenses 14 e m 15 Interest 15 t i 16a Depreciation (if required, attach Form 4562) . 16a e a b Less depreciation reported on Schedule A and elsewhere on return 16b 16C t i i n o 17 Depletion (Do not deduct oii and gas depletion.) 17 s n t 18 Retirement plans, etc. 18 r s) 19 Employee benefit programs 19 u c t i 20 Other deductions (attach schedule) 20 0 s 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 • 21 0 . 22 Ordinary business Income (loss). Subtract line 21 from line 8 22 -1 O , 3 9 2 . Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements and to the , best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability Sign company member) is based on all information of which preparer has any knowledge. M th IRS di hi ay e scuss t s return Here with the preparer shown below 0 3/ 1 2/ 0 5 (see instr.)? Yes NO Signature of general partner or limited liability company member manager ' Date Preparer's Date Check if self- Preparer's SSN or PTIN Paid signature 03/12/05 employed - 176-44-2251 Preparer's Firm's name (or yours Mooney' s Tax Service EIN - USeOnly ifself-employed), ' 1250 Baltimore Road Phone no address, andzlPcode 7175323446 . Shippensburg For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113902 Form 1065 (2005) 510651 CopyrightTAX$IMPLEJYA Form 1065 (2005) Lon view Quarter Horse Farm 02-0621645 Paget - ~ CoSt Of GOOdS Sold (see the instructions) 1 Inventory at beginning of year • 1 2 Purchases less cost of items withdrawn for personal use - 2 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule) 5 6 Total. Add lines 1 through 5 fi 7 Inventory at end of year 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . 8 9a Check all methods used for valuing closing inventory: (I) Cost as described in Regulations section 1.471-3 (II) Lower of cost or market as described in Regulations section 1.471-4 (III Other (specify method used and attach explanation) - b Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . - C Check this box if the LIFO inventory method was adopted this tax year for any goods (it checked, attach Form 970) . - d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership.? . Yes No 8 Yes No e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? • If "Yes," attach explanation. - • Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a Domestic general partnership b Domestic limited partnership C Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f Other - 2 Are any partners in this partnership also partnerships? X 3 During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and 301.7701-3? If yes, see instructions for required attachment X 4 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 8231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details X 5 Does this partnership meet all three of the following requirements? a The partnership's total receipts for the tax year were less than $250,000; b The partnership's total assets at the end of the tax year were less than $600,000; and C Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item N on Schedule K-1 X 6 Does this partnership have any foreign partners? If "Yes," the partnership may have to file Forms 8804, 8805 and 8813. See the instructions . X 7 Is this partnership a publicly traded partnership as defined in section 469(k}(2)? . X 8 Has this partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter? X 9 At any time during calendar year 2005, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes," enter the name of the foreign country.- X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520. See the instructions X 11 Was there a distribution of property or a transfer (for example, by sale or death) of a partnership interest during the tax year? If "Yes," you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made By the Partnership in the instructions. X 12 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return - ............ .......... Designation of lax Matters Partner {see the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: identifying ' Nam e of ' g desi natedTMP Mark E Neal number ofTMP 176-66-4852 Y Address of 287 Airport Road Pa 17257 n ' Shi b urg ppe s designatedTMP 510652 Capyright7AX~IMPLE JYA Form 1065 (2005) Form 1065 (2005) Longview Quarter Horse Farm 02-0621 645 Paae 3 • Partners' Distributive share Items Total amount 1 Ordinary business income (loss) (page 1, line 22) 1 -1 O 39 2 . 2 Net rental real estate income (loss) (attach Form 8825) 2 I ~ 3a Other gross rental income (loss) 3a b Expenses from other rental activities (attach schedule) 3b C Other net rental income (loss). Subtract line 3b from line 3a 3C ... m 4 Guaranteed payments . 4 e 5 Interest income. 5 6 Dividends: a Ordinary dividends 6a (~ 0 s b Qualified dividends 6b 7 Royalties . >:7 s) 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) • $ 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) • 9a b Collectibles (28%) gain (loss) 9b C Unrecaptured section 1250 gain (attach schedule} 9C 10 Net section 1231 gain (loss) (attach Form 4797) 10 11 Other income (loss) (see instructions) Type - i l e d 12 Section 179 deduction (attach Form 4562). 12 13a Contributions 13a t b Investment interest expense . 13b c " C Section 59(e)(2) expenditures: (1) Type - (2) Amount - 13c(2) s d Other deductions (see instructions) Type - 13d e P e 14a Net earnings (loss) from self-employment . 14a -5 , 1 9 6 . fan t b Gross farming or fishing income 14b E y C Gross nonfarm income . 14C C p C 15a Low-income housing credit (section 42Q)(5)) . 15a ~ e d e a bLow-income housing credit (other) 15b f d p C Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . d 15C tit s t Other rental real estate credits (see instructions} Type - 15d ° & e e Other rental credits (see instructions) Type - f 15e Other credits and credit recapture (see instructions) Type - 15f 16a Name of country or U.S. possession- Longview QUar b Gross income from all sources 16b f C Gross income sourced at partner level 16C F ~ ~ r a Foreign gross income sourced at partnership level Listed categories d Passive - e (attach schedule) - f General - limitation ~~°- 16f I t ~ c Deductions allocated and apportioned at partner level g Interest expense - h Other - 16h s Deductions allocated and apportioned at partnership level to foreign source income Passive - Listed categories General (attach schedule) - k limitation - 161C Total foreign taxes: (check one): - Paid © Accrued 161 m Reduction in taxes available for credit (attach schedule) 16m n O her foreign tax information (attach schedule) ::.:::.:::.::.:..:::.:::::::.::: A M 17a Post-1986 depreciation adjustment 17a e ~ ~ b Adusted gain or loss, 17b ~ ~ I C Depletion (other than oil and gas) , 17C a me j d Oil, gas, and geothermal properties -- gross income. 17d ag e x a Oil, gas, and geothermal properties -- deductions 17e f Other AMT items (attach schedule} 1 7f I 18a Tax-exempt interest income . 1 8a O n b Other tax-exempt income 1 $b t o C Nondeductible expenses 1 8C e r m 19a Distributions of cash and marketable securities 1 9a r a b Distributions of other property 1 0 9b ~ 2 a Investment income 2 0a o n b Investment expenses 2 0b C Other items and amounts (attach schedule) 510653 CopyrightTAX$IMPLEJYA Form 1065 (2005} Form 1065 (2005) Longview Quarter Horse Farm 02-0621645 Page4 Analysis of Net Income Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of ....... ..... .... . . Schedule K, lines 12 through 13d, 161 1 -1 0, 392 . 2 Analysis by partner type: a General partners b Limited partners (i) Corporate (II) Individual (active) (tit) Individual (passive) (iv) Partnership (v) Exempt organization (vi) NomineelOther -5,196. -5,196. Note: Schedules L, M-1, and M-2 are not required if Question 5 of Sc hedule B is answered "Yes." - . Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash 4, 906. 8, 955 . n receivab{e d cou is an ac Tr de notes a 2a ... b Less allowance for bad debts . 3 Inventories ;:.; ..:::>:.:::<.: ;:::;;.:>., ...:: 4 U.S. government obligations ~i unt es m t se Tax-exe 5 p 6 Other current assets (attach schedule) '~ ~" 7 Mortgage and reai estate loans . " ' 8 Other investments (attach schedule} Buildin sand other de reciable assets . 9a g p ;::.:. "' ~ `' ' ' ' ' ` '' b Less accumulated depreciation . 10a Depletable assets ; : ' ' ,';> ' ' .s»::, b Less accumulated depletion 11 Land (net of any amortization) ''>:?s:::; .: <<;: 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach schedule) 14 Total assets ' ' i::i::<: :.:.::::.:.::. 4,906 ', 8,955. Liabilities and Capital .:: :.... , ' ;. ,; ... . 15 Accounts payable :: , , > 1iJ Mortgages, notes, bonds payable in less than t year ; `"' ` ' ~ 17 Other current liabilities (attach schedule) :.::::':~i..:: > »~>' ... : "' %" 18 All nonrecourse loans ;::.:.. 19 Mortgages, notes, bonds payable in 1 year or more . <a:<%:'.::; :::' '^ :' "'"'"""`' ~' i att ch schedule . 20 Other liablllt es ( a ) 21 Partners' capital accounts ;`:.:':;::':: ': ;">?:::' 4 , 9 0 6 ; ::; 4 , 9 0 6 . 22 Total liabilities and capital ,, ,, 4 , 9 0 6 . ;; ,:: ` 4 , 9 0 6 . -. - Reconciliation of Income (Loss) per Books With Income ( Loss) per Return 1 Net income (loss) per books 6 Income recorded on books this yearnot included 2 Income included on Schedule K, lines 1, 2, 3C, on Schedule K, lines 1 through 11 (itemize): 5, 6a, 7, 8, 9a, 10, and 11, not recorded on a Tax-exempt int. 5 books this year (itemize): 3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines t through 13d, and 161, not charged InSUranCe) against book income this year (itemize): 4 Expenses recorded on books this year not a Depreciation $ included on Schedule K, lines 1 through 13d, and 161 (itemize): a Depreciation $ b Travel and entertainment $ $ Add lines 6 and 7 0 . 9 Income (loss) (Analysis of Net Income 5 Add lines 1 through 4 0 . (Loss), line 1). Subtract line 8 from line 5 0 -. - Analysis of Partners' Capital Accounts 1 Balance at beginning of year. 4 , 9 0 6 . 6 Distributions: a Cash 2 Capital contributed: a Cash b Property b Property 7 Other decreases (itemize): 3 Net income (foss) per books . 4 Other increases (itemize): 8 Add lines 6 and 7 0 . Jr Add lines 1 through 4 4 , 9 0 6 . 9 Balance at end of year. Subtract line 8 from line 5 4 , 9 0 6 . 510654 CopyrightTAX$IMPLEJYA Form1065(2005) Worksheet For Figuring Net Earnings (Loss) From Self-Employment 1a Ordinary income (loss) (Schedule K, line 1) b Net income {loss) from CERTAIN rental real estate activities . c Net income (loss) from other rental activities (K, line 3c) d Net loss from Form 4797 Part II -- line 18 included on line is e Combine lines lathrough id 2 Net gain from Form 4797, Part II, line i8, included on line ia. 3a Subtract line 2 from line ia. If line 1e is loss, increase the loss on line 1e by the amount on line 2 b Part allocated to partners -- estates, trusts, corp., etc c Subtract line 3b from line 3a. If line 3a is a loss, reduce the loss on line 3a by the amount on line 3b. Include each individual general partner's share on line 15a of Sch. K:1 . 4a Guaranteed payments to partners {Schedule K, line 5) . b Part of 4a allocated to partners -- estates, trusts, corp., etc c Subtract line 4b from line 4a 5 Combine 3c and 4c. Enter here and on Schedule K, line 15a -10,392. I -10,392. -10,392. -5,196. -5,196. I -5,196. 510655 CapyrightTAX$IMPLEJYA cnurnr n r v a Final K-1 ~ I I Amended K-1 OMB No. 1545-0099 (Form 1065} • . Rart~i~r's the ~~ Celrr~t ~'ea~ :lnixtr#~>' ; ::::. For calendar year 2005, or tax . ;. ;..<.: ;:;:::..:::>::<;::.,~Ef~l~~~4t~~}.;~E'~,5:::~)!1~~EE'::~~~~1':~ :::>>:>:::;:::>::>::>::> Department of the Treasury year beginning 01 / 01 / , 2005 Internal Revenue Service 1 Ordinary business income (loss) 15 Credits & credit recapture ending 1 2 ~ 31 / , 204 - 5 1 9 6 . Partner's Share of Income, DedUCtIOnS, 2 Net rental real estate income (loss ) Credits, etC. - See separate instructions. 3 Other net rental income (loss) 16 Foreign transactions ;' #1„Qj~'~'f~'tf. t~1'E ::.:...:..:: : #~`1~.:.;:<a~'b'l~I'SI"1.: ~<:>;»:>: , ;:: .....:............:. <::a:>: z:::;:: A Partnership's employer identification number 4 Guaranteed a ments P Y 02-0621645 B Partnership's name, address, city, state, and ZIP code 5 Interest income Longview Quarter Horse Farm 287 Airport Road 6a Ordinary dividends Shippensburg Pa 17257 6b Qualified dividends C IRS Center where partnership filed return 7 Royalties Philadelphia D Check if this is a publicly traded partnership (PTP) 8 Net short-term capital gain (loss) E X Tax shelter registration number if anyN ~ A , F Check if Form 8271 is attached 9a Net long-term capital gain (loss) 17 Alternative minimun tax(AMT) ~ items ::: :" '` • • >;;:~t'k'~D1'~'1~d~:>Lt~::fl't~ f!8i~f`;> ,_:; _;;. _;:: .. 9b Collectibles (28%) gain (loss) G Partner's identifying number 176-66-4852 #1 9c Unrecapturedsection125ogain H Partner's name, address, city, state, and ZIP code Mark E Nealy 10 Net section 1231 gain (loss} 18 Tax-exempt income and 287 Airport Road nondeductible expenses 11 Other income (loss) Shippensburg Pa 17257 General partner or LLC Limited partner or other LLC member-man ager member .1 ~ Domestic partner ~ Foreign partner 19 Distributions 12 Section 179 deduction K What type of entity is this partner?AC t 1 Ve Ind ' 13 Other deductions L Partner s share of profit, loss, and capital: 20 Other information Beginning Ending Profit % 5 0 . 0 0 % Loss °~° 5 0 . 0 0 °~° Capital °~° 5 0 . 0 0 °~° 14 Self-employment earnings (loss) M Partner's share of liabilities at year end: Nonrecourse $ Qualified nonrecourse financing $ -6 , 2 6 6 . Recourse $ *See attached statement for additional information. N Partner's capital account analysis: Beginning capital account $ Capital contributed during the year $ For Current year increase (decrease) $ IRS Withdrawals & distributions $ ( ) Use Ending capital account $ Only Tax basis ~ GAAP ~ Section 704(b) book Other (explain) For Privacy Act and Paperwork Reduction Act Notice, see Instructions for Form 1065. Cat. No. 11394R Schedule K-1 (Form 1065} 2005 61065 K11 Copyright TAX$IMP~E JYA Final K-1 Amended K-1 OMB No. 1545-0099 SCHEDULE K-1 2005 1 5 ~FC ~ For calendar year 2005, or tax > > ; ,;.:: :. . • Ra~tner's Sh~'e oi" ~u~ret~t 1~e~r 1~m~. ; <>>< .. ~> :::;;,:;;;:;::;::;<::<:::;:;: ~ECt~LTII~:fEed~Si.:~ ..................... Department of the Treasury year beginning 01 / 01 / , 2005 Internal Revenue Service ending 1 2 / 31 1 , 20_~ 1 Ordinary business income (loss) - 5 , 1 9 6 . 15 Credits & credit recapture Partner's Share of Income, Deductions, - See separate instructions. etc Credits 2 Net rental real estate income (loss) . , »: . 3 Other net rental income (loss) 16 Foreign transactions A Partnership's employer identification number 02-0621645 4 Guaranteed a ments B Partnership's name, address, city, state, and ZIP code Longview Quarter Horse Farm 5 Interest income 287 Airport Road Shippensburg Pa 17257 6a Ordinary dividends 6b Qualified dividends C IRS Center where partnership filed return Philadelphia 7 Royalties D E Check if this is a publicly traded partnership (PTP) Tax shelter registration number, if anyN ~ A 8 Net short-term capital gain (loss) F Check if Form 8271 is attached , ,. :.. :>:: 9a Net long-term capital gain (foss) Collectibles 28% ain loss 9b ( ) ( )9 17 Alternative minimun tax (AMT) items G Partner's identifying number 207-26-0905 #2 9C Unrecaptured section 12so gain address, city, state, and ZIP code H Partner's name , Neely 287 Airport ROa~l 10 Net section 1231 gain (loss) - 18 Tax-exempt income and nondeductible expenses 11 Other income (loss) Shippensburg Pa 17257 General partner or LLC Limited partner or other LLC member-manager member J ~ Domestic partner a Foreign partner 19 Distributions 12 Section 17s deduction K What type of entity is this partner? AC t 1. y e Ind 13 Other deductions L Partner's share of profit, loss, arid capital: 20 Other information Beginning Ending Profit % 5 0. 0 0 Loss °~ 5 0.0 0 Capital % 5 0 . 0 0 M Partner's share of liabilities at year end: 14 Self-employment earnings (loss) Nonrecourse $ Qualified nonrecourse financing $ Recourse $ *See attached statement for additional information. N Partner's capital account analysis: Beginning capital account $ Capital contributed during the year $ Current year increase (decrease) .' $ Withdrawals & distributions $ ( ) Ending capital account $ Tax basis ~ GAAP ~ Section 704(b) book Other (explain} For IRS Use Only For Privacy Act and Paperwork Reduction Act Notlce, see Instructions for Form 1065. Cat. No. 113948 Schedule K-t (FOrm 11765) 2vo5 51065K1 t Copyright TAX$IMPI.E JYA '~ 065 U.S. Return of Partnership Income Form For calendar year 2006, or tax year beginning , 2006, Department of the Treasury ending , 20 Internal Revenue Service - See se crate instructions. A Principal business activity Name of partnership OMB No.1545-0099 2006 D Employer identification number Use the Stabling Horses IRS. Lon view Quarter Horse Farm 02-0621645 label. B Principal product or service Qthgr_ Number, street, and room or suite number. If a P.C. box, see the instructions. E Date business started Horses W15e' 287 Air ort Road 01/01/02 print C Business code number pr type, City or town State ZIP code F Total assets (see instrs) 115210 Shi ensbur PA 17257 $ 6,737. G Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address change (5) ~ Amended return H Check accounting method: (1) X Cash (2) Accrual (3) Other (specify) ..... - Number of Schedules K-1 . Attach one for each person who was a partner at any time during the tax year ................ -_ _ _ _ _ _ _ 2 J Check if Schedule M-3 required (attach Schedule M-3) .............................................................................. I I e~~~+.n., rr,~lr~~lA nn/vfrarla nr hncinacc incnma anri arnencPC nn lines 1a thrnunh 99 hefnw See the instructions for more information. 1a Gross receipts or sales ............................................... 1 a I b Less returns and allowances .......................................... 1 b 1 c N C 2 Cost of goods sold (Schedule A, line 8) ...................................... .................... 2 O M 3 Gross profit. Subtract line 2 from line lc .......................................................... 3 E 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) ......................................................... .................... 4 5 Net farm profit (loss) (attach Schedule F (Form 1040)) ........................ .................... 5 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) ................................. 6 7 Other income (loss) (attach statement) .............................................................................. 7 8 Total income (loss). Combine lines 3 through 7 ................................................... 8 s E E 9 Salaries and wages (other than to partners) (less employment credits) .............................. 9 t 10 Guaranteed payments to partners ................................................................ 10 N s p ..................................................... 11 Re airs and maintenance 11 T R 12 Bad debts ...................................................................................... 12 u D c 13 Rent ............................................................................................ 13 E i D 14 Taxes and licenses ...............:............................................................. 14 o U N 15 Interest ........................................................................................ 15 C s T 16a Depreciation (if required, attach Form 4562) ........................... 16a F R b Less depreciation reported on Schedule A and elsewhere on return ...... 16b 16c O N 17 Depletion (Do not deduct oil and gas depletion.) .................................................. 17 ~ S M 18 Retirement plans, etc ........................................................................... 18 I 19 Employee benefit programs ...................................................................... 19 T A 20 Other deductions (attach statement) .............................................................................. 20 0 N s 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 .............. 21 22 Ordinary business income (loss). Subtract line 21 from line 8 ...................................... 22 23 Credit for federal telephone excise tax paid (attach Form 8913) ..................................... 23 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager) is based on all information of which Sign preparer has any knowledge. Here - - 0 4 / 12 / 0 7 May the IRS discuss this return with the pre~arer wn bel Signature of general partner or limited liability company member manager Date (see instrs). Yes No Preparer's Date Preparer's SSN or PTIN Paid signature Barbara A. Stevens 03/19/08 Check if self- employed.... ~ P00183931 Preparer's Firm's name STEVENS TAX AND ACCOUNTING if Use Only (or yours self-employed), ~ 896 RAGGED EDGE ROAD dd d EIN - a ress, an ZlPcode CHAMBERSBURG PA 17201 Phone no. BAA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. PTPaoI lz 12/29/06 Form 1065 (2006) Form 1065 (2006) Lon view Quarter Horse Farm 02-0621645 Page 2 `Scfi'etlule A Cost of Goods Sold (see the instructions) 1 Inventory at beginning of year ........................................................................... 1 2 Purchases less cost of items withdrawn for personal use .................................................. 2 3 Cost of labor ........................................................................................... 3 '1 Additional section 263A costs (attach statement) ...................................................................................... 4 5 Other costs (attach statement) ................................................................ ..................... 5 6 Total. Add lines 1 through 5 ....................................................... ................... 6 7 Inventory at end of year .......................................................... ..................... 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 ............................ 8 9a Check all methods used for valuing closing inventory: (i) Cost as described in Regulations section 1.471-3 (ii) Lower of cost or market as described in Regulations section 1.471-4 (iii) Other (specify method used and attach explanation) .............. - ------------------------- --- bCheck this box if there was a writedown of 'subnormal' goods as described in Regulations section 1.471-2(c) .................. - c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ............ ~ d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? ................... Yes No e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? ........... Yes No If 'Yes', attach explanation Schetlule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a X Domestic general partnership b Domestic limited partnership c Domestic limited liability company d Domestic limited liability partnership ~ e Foreign partnership f Other .... ~ i _ _ 2 Are any partners in this partnership also partnerships? .......... X 3 During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and 301.7701-3? If yes, see instructions for required attachment ...................................................................................... X 4 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details .......... X 5 Does this partnership meet all three of the following requirements? a The partnership's total receipts for the tax year were less than $250,000; b The partnership's total assets at the end of the tax year were less than $600,000; and c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. If 'Yes,' the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item N on Schedule K-1 ................................................................................................. X 6 Does this partnership have any foreign partners? If 'Yes,' the partnership may have to file Forms 8804, 8805 and 8813. See the instructions ............... .................................................................................... X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? ............................................. X 8 Has this partnership filed, or is it required to file, a return under section 6111 to provide information on any reportable transaction? ................................................................................................. X 9 At any time during calendar year 2006, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90.22.1. If 'Yes,' enter the name of the foreign country.. - ------------------------------------------------ X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If 'Yes,' the partnership may have to file Form 3520. See the instructions ................................................... X 11 Was there a distribution of property or a transfer (for example, by sale or death) of a partnership interest during the tax year? If 'Yes,' you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made By the Partnership in the instructions ..................................................... . 12 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return ....................................................................................... - Designation of Tax Matters Partner (see the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: X Name of Identifying designated TMP - Mark E. Nealy number of TMP - 176-66-4852 Address of - 287 Airport Road designated TMP_ Shippensburg, PA 17257 Form 1065 (2006) PTPA0112 i2/29l06 Form 1065 (2006) Lon. view Quarter Horse Farm 02-0621645 Page 3 Schedule K Partners' Distributive Share Items Total amount 1 Ordinar busines I y s income (oss) (page 1, line 22) ....... , 1 2 Net rental real estate income (loss) (attach Form 8825) .......... 2 3a Other gross rental income (loss) ..... . .......................... 3a b Expenses from other rental activities (atfach stmt) .......................... 3b c Other net rental income (loss). Subtract line 3b from line 3a ... , ... ......... 3c ............... 4 Guaranteed payments .... , .... . ..................................................... 4 5 Interest income ............................................... 5 Income 6 Dividends: a Ordinary dividends (Loss) ............................ I...s~ ...................... 6a b Qualified dividends ........................... 7 Royalties ...................................... 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) ...... ...... . g 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065))....... . .............. . , 9 b Collectibles (28%) gain (loss) ... . .................. . . ... 9b ................. a c Unrecaptured section 1250 gain (attach statement) .......................... gc 10 Net section 1231 gain (loss) (attach Form 4797) .... 11 Other income (loss) (see instructions) T e ~ ..................... i0 12 Section 179 deduction (attach Form 4562) . .... Deduc- ......................... 13a Contributions ................. ........ ............ 12 ions ............ .................... binvestm entinterest expense .......... ..................... 13a ................ c Section 59(e)(2) expenditures: (1) Type ..... 13b (2) Amount ~ 13e (2) Other deductions (see instructions) T e - Self- 14a Net earnin s loss from self•em to ment g ( ) p y 13d ........ ................ mploy- b Gross farming or fishing income ........ . meet ....... ............ ........ 14a .................... c Gross nonfarm income ...... ..................... 14 b ..... . .................................... 15a Low-income housing credit (section 42Q)(5)) .... ..................... 14 c .............. . ... b Low-income housing credit (other) ........ ................... 15 a Credits c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) 15b .............. 15c d Other rental real estate credits (see instructions) .Type - ...... -------- e Other rental credits (see instructions) ...... , .... T e - Yp ---------- 15d -------- f Other credits (see instructions ................ T pe - ---------- 15e 16a Name of country or U.S. possession ... ~ 15f b Gross income from all sources ..... . ....... ........ . . ...... . ... . .. . c Gross income sourced at partner level .. , . 16b ............... . ................ Foreign gross income sourced at partnership level ...... . . . . . ... . . . ... 16c Foreign d Passive -- - - - - - - - e Listed categories (attach statement) - - f General limitation ~ 16 f Trans- - - - - _ Deductions allocated and apportioned at partner level - actions g lnterest expense - h Other _ _ _ _ _ _ _ _ _ _ _ ................. .. Deductions allocated and apportioned at partnership level to foreign source income ................. ~ 16 h i Passive -_ _ _ _ _ _ _ j Listed categories (attach statement) - _ _ kGeneral limitation .. - 16k _ _ _ _ _ I Total foreign taxes (check one): - Paid ~ Accrued ~ 161 mReduction in taxes available for credit (attach statement) ................. n Other forei n tax information (attach statement) ........ . ................... 16 m . .... 17a Post-1986 depreciation adjustment ...... .......... ...... ernative ........ . ............ ... .... djusted gain or loss ............. 17a Minimum Tax ...................................... c Depletion (other than oil and as 9 ) ................ ................. . 77 b (AMT) ........................ d Oil, gas, and geothermal properties -gross income ...................... ................... 17 c . . 17d Items a Oil, gas, and geothermal properties -deductions ~ ~ ~ ~ ~ ........ ............... Other AMT items (attach stmt) ....... ....... ........ 17 e ........ ................. .... 18a Tax-exempt interest income ....... .................. 17 f Other ........... ........................ b Other tax-exempt income ............. .................. 18a Infor- ......... . c Nondeductible expenses ........... 18 b mation ...... 19a Distributions of cash and marketable securities 18c .................... ...... Distributions of other property ........ , . .. .................. 19 a ........................... a Investment income .......... . .... . ........................................ binvestmentexpenses ........ .... .................. 20 a .. ................................... c ter items and amounts (attach stmt) ... , . . ........ . .............. 20 b BAA . ............. Form 1065 (2006) PTPA0134 12!01 /06 Form 1065 (2006) Longview Quarter Horse Farm 02-0621645 Page 4 Anal sis of Net Income Loss 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 throu h 13d, and 161 ............................................................ 1 0 . 2 Analysis by partner type: a partners .. . b Limited (i) Corporate (ii) Individual (active) (iii) Individual (passive) (iv) Partnership (v) Exempt organization (vi) Nominee(Other (Schedule L ~ Balance Sheets er Baoks Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash ...................................... 4, 060. 6, 737 . 2a Trade notes and accounts receivable ....... . b Less allowance for bad debts ............... 3 Inventories ................................ 4 U.S. government obligations ............... . 5 Tax-exempt securities ............ ......... ~ 6 Other current assets (attach stmt) .................. 7 Mortgage and real estate loans .............. 8 Other investments (attach stmt) ........... ....... 9a Buildings and other depreciable assets ... ... b Less accumulated depreciation ............. . 10 a Depletable assets .................. . ...... . b Less accumulated depletion ................. 11 Land (net of any amortization) .............. ~ i 12a Intangible assets (amortizable only) ........ ~ b Less accumulated amortization .............. ~ i I 13 Other assets (attach stmt) ................. . - 14 Total assets ............................... 4, 060. 6, 737 . Liabilities and Capital 15 Accounts payable .......................... 16 Mortgages, notes, bonds payable in less than 1 year ... !I 17 Other current liabilities (attach stmt) ................ 18 All nonrecourse loans ...................... - -- 19 Mortgages, notes, bonds payable in 1 year or more ..... ~ 20 Other liabilities (attach stmt) ..................... I i 21 Partners' capital accounts ...... ....I i 4, 060. I 6, 737 . 22 Total liabilities and capital ............ .....j 4, 060. ~ 6, 737 . `Schedule M-1. Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions). 1 Net income (loss) per books ............. 2, 677. 6 Income recorded on books this year not • 2 Income included on Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not recorded on books this year (itemize): -------------------- included on Schedule K, lines 1 through 11 (itemize): aTax-exempt interest ... $ --------------------- 3 Guaranteed pmts (other than health insurance) . 7 Deductions included on Schedule K, lines 1 through 13d and 161 not charged against book income this 4 Expenses recorded on books thisyyear not included on Schedule K, lines 1 through 13d, and 161 (itemize): aDepreciation ...... $ ----------- bTravel and , , year (itemize): a Depreciation ..... $ ----------- _____________________ --------------------- entertainment ..... - - _ - - - _ - - - - 8 Add lines 6 and 7 - - - - - - - - - - - - - - - - - - - - 9 Income (loss) (Anal sis of Net Income (Loss) line 1) 5 Add lines 1 through 4 ................... 2, 677. y . , Subtract line 8 from line 5 ..................... 2, 677 . Schedule M-2 Anal sis of Partners' Ca i tal Accounts 1 Balance at beginning of year ............ 4 , 0 60 . 6 Distributions: a Cash ................... . 2 Capital contributed: a Cash ............ b Property ............... . b Property ......... 7 Other decreases (itemize): 3 Net income (loss) per books ............. 2, 677 . ----------- 4 Other increases (itemize): --------------------- -------------------- 8 Addlines6and7 ........................ 5 Add lines 1 through 4 ................... 6, 737. 9 Balance at end of year. Subtract line 8 from line 5 .... 6, 737 . PTPA0134 12101!06 Form 1065 (2006) 651106 ,~,~,~ ~. n Final K-1 n Amended K-1 OMB No. 1545-0099 Schedule K-1 LUUC) pad III ~ Partner's Share o f Current Year income, (Form 1065) For calendar year 2006, or cax Deductions, Cre dits, and Other Items Department of the Treasury year beginning , 2006 1 Ordinary business income (loss) 15 ': Credits Internal Revenue Service ending Partner's Share of Income, Deductions, z 'Net re"tai real estate m~°me (I°ss) ---------------- Credits, etC. See separate instructions. 3 !Other net rental income (loss) 16 ', Foreign transactions Part 1 ~ I f ti Ab t th P t hi orma on n ou e ar ners p ' - - - - - - - - - - - - - - 4 ' Guaranteed payments A Partnership's employer identification number ' 02-0621645 5 jlnterest income ---------------- B Partnership's name, address, city, state, and ZIP code Longview Quarter Horse Farm 6a! Ordinary dividends ---------------- 287 Airport Road Shippensburg, PA 17257 6h! Qualified dividends ---------------- C IRS Center where partnership filed return 7 !Royalties ---------------- Cincinnati, OH I D Check if this is a publicly traded partnership (PTP) 8 I Net short-term capital gain (loss) ---------------- I E Tax shelter registration number, if any F Check if Form 8271 is attached 9a; Net long-term capital gain (loss) 17 ;Alternative minimum tax (AMT) items Part It"'`~ Information About the Partner 9b' Collectibles (28%) gain (loss} --,-------------- G Partner's identifying number 9c'' Unrecaptured section 1250 gain ---------------- 207-26-0905 H Partner's name, address, city, state, and ZIP code 10 !Net section 1231 gain (loss) 18 ~ Tax-exempt income and Shirley M. Nealy '' nondeductible expenses 301 Airport Road 11 'Other income (loss) Shippensburg, PA 17257 _ _ - ------------ X General partner or LLC ~ Limited partner or other ---------------- member-manager LLC member - - - - - - - - - - - - - - - - - - J X^ Domestic partner ~ Foreign partner 19 '' Distributions 12 'Section 179 deduction K What type of entity is this partner? Partnershi - - - - - - - - - - - - - - - - L Partner' share f fit l d it l 13 Other deductions ' s pro o , oss, an cap Beginning : a Ending - - - - - - - - - - - - - - - 20 Other information I Profit 50.00000 $ 50.00000 $ ' Loss 50.00000 $ 50.00000 $ ---------------- ---------------- Capital 50.00000 $ 50.00000 $ M Partner's share of liabilities at year end: 14 Self-employment earnings (loss) ---------------- Nonrecourse ......................... $ - ~ --------------- ----------------- Qualified nonrecourse financing ........ $ Recourse ........................... $ . *See attached statement for ad ditional information. N Partner's capital account analysis: F Beginning capital account ............. $ 2, 030. 0 a Capital contributed during the year ..... $ 1 Current year increase (decrease) ...... $ 1, 338. s Withdrawals and distributions .......... $ u Ending capital account ................ $ 3, 368. s E X Tax basis ~ GAAP ~ Section 704(b) book 0 ~ Other (explain) Y BAA For Privacy Act and Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2006 PTPA0312 12/08/06 Schedule K-1 (Form 1065) 2006 Shirley M. Nea1V 02-0621645 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1 Ordinary business income (loss). You must first determine whether the income (loss) is passive or nonpassive. Then enter on your return as follows: Report on Passive loss See the Partner'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 Partner's Instructions 3 Other net rental income (loss) Net income Schedule E, line 28, column (g) Net loss See the Partner's Instructions 4 Guaranteed payments Schedule E, line 28, column Q) 5 Interest income Form 1040, line 8a 6 a Ordinary dividends Form 1040, line 9a 6I] Qualified dividends Form 1040, line 9b 7 Royalties Schedule E, line 4 8 Net short-term capital gain (loss) Schedule D, line 5, column (f) 9a Net long-term capital gain (loss) Schedule D, line 12, column (f) 4 b Collectibles (281) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D Instructions) 9 C Unrecaptured section 1250 gain See the Partner's Instructions 1 ~ Net section 1231 gain (loss) See the Partner's Instructions 11 Other income (loss) Code A Other portfolio income (loss) See the Partner's Instructions f3 Involuntary conversions See the Partner's Instructions C Section 1256 contracts and straddles Form 6781, line 1 ~ Mining exploration costs recapture See Pub 535 E Cancellation of debt Form 1040, line 21 or Form 982 F Other income (loss) See the Partner's Instructions 12 Section 179 deduction See the Partner's Instructions 13 Other deductions A Cash contributions (50 % ) B Cash contributions (30%) C Noncash contributions (50%) ~ Noncash contributions (30%) See the Partner's Instructions E Capital gain property to a 50 organization (30%) F Capital gain property (20%) - G Investment interest expense Form 4952,1ine 1 H Deductions -royalty income Schedule E, fine 18 I Section 59(e)(2) expenditures See the Partner's Instructions ~ Deductions - portfolio (2% floor) Schedule A, line 22 K Deductions -portfolio (other) Schedule A, line 27 L Amounts paid for medical Schedule A, line 1 or insurance Form 1040,1ine 29 M Educational assistance benefits See the Partner's Instructions N Dependent care benefits Form 2441, line 12 0 Preproductive period expenses See the Partner's Instructions P Commercial revitalization deduction from rental real estate activities See Form 8582 Instructions Q Pensions and IRAs See the Partner's Instructions R Reforestation expense deduction See the Partner's Instructions S Domestic production activities information See Form 8903 Instructions T Qualified production activities income Form 8903, line 7 LJ Employer's W-2 wages Form 8903, line 13 ~/ Other deductions See the Partner's Instructions 14 Seff-employment earnings (loss) Note. If you have a sectron 779 deduction or any partner- level deductions, see the Partners /nstructrons before completing Schedule SE. A Net earnings (loss) from self-employment Schedule SE, Section A or B B Gross farming or fishing income See the Partner's Instructions C Gross non-farm income See the Partner's Instructions 15 Credits A Low-income housing credit (section 42(j)(5)) _ B Low-income housing credit (other) t. Qualified refiabilitation expenditures See the Partner's (rental real estate) Instructions D Other rental real estate credits E Other rental credits F Undistributed capital gains credit Form 1040, line 70; check box a G Credit for alcohol used as fuel See the Partner's Instructions H Work opportunity credit Welfare-to-work credit ~ See the Partner's .1 Disabled access credit Instructions PTPA0312 12/OS/06 Code Report on K Empowerment zone and renewal community employment credit Form 8844, line 3 ~ Credit for increasing research activities M New markets credit ~ See the Partner's N Credit for employer social security Instructions and Medicare taxes _ ~ Backup withholding Form 1040, line 64 P Other credits See the Partner's Instructions 16 Foreign transactions A Name of country or U.S. possession B Gross income from all sources ~ Form 1116, Part I C Gross income sourced at partner level _ Foreign gross income sourced at partnership level D Passive t: Listed categories r Form 1116, Part I F General limitation _ I Deductions allocated and apportioned at partner level G Interest expense Form 1116, Part 1 H Other Form 1116, Partl Deductions allocated and apportioned at partnership level to foreign source income I Passive ~ Listed categories ~ Form 1116, Part I K General limitation _ Other information t. 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 0 Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Partner's Instructions 17 Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment - B Adjusted gain or loss C Depletion (other than oil & gas) See the Partner's l7 Oil gas & geothermal -gross income Instructions and , , E Oil, gas, & geothermal -deductions the Instructions for Form 6251 F Other AMT items _ 18 Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income See the Partner's Instructions C Nondeductible expenses See the Partner's Instructions 19 Distributions A Cash and marketable securities See the Partner's Instructions 13 Other property See the Partner's Instructions 20 Other information A Investment income Farm 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 t) Qualified rehabilitation expenditures (other than rental real estate) See the Partner's Instructions E Basis of energy property See the Partner's Instructions F Recapture of low-income housing credit (section 42Q)(5)) Form 8611, line 8 G Recapture of low-income housing credit (other) Form 8611, line 8 H Recapture of investment credit Form 4255 I Recapture of other credits See the Partner's lnstructlons ~ Look-back interest -completed long-term contracts See Form 8697 K Look-back interest -income forecast method See Form 8866 I_ Dispositions of property with - section 179 deductions M Recapture of section 179 deductions N Interest expense for corporate partners 0 Section 453(1)(3) information P Section 453A(c) information Q Section 1260(b) information nstructionsrtner's 13 Interest allocable to production expenditures S CCF nonqualified withdrawals T Information needed to Figure depletion -oil and gas LJ Amortization of reforestation costs V Unrelated business taxable income W Other information Schedule K-1 (Form 1065) 2006 r~ 6511D6 ~~~~, ~ Final K-1 I I Amended K-1 OMB No. 1545-0099 Schedule K-1 LUUt7 Partner's Share o ..Part I11 ~ f Current Year Income, (Form 1065) For calendar year 2006, or tax . Deductions Cred its, and Other Items Department of the Treasury year beginning , 2006 1 Ordinary business income (loss) 15 :Credits Internal Revenue Service ending ' Partner's Share of Income, Deductions, 2 ,Net rental real estate income (loss) ---------------- C d re ltS, etC. See separate instructions. 3 '', Other net rental income (loss} 16 ~ Foreign transactions rt I I -P f r ti Ab t th P hi t ~, - a n o ma on ou ar ners e p - - - - - - - - - - - - - - - 4 Guaranteed payments A Partnership's employer identification number 02-0621645 5 ;Interest income B Partnership's name, address, city, state, and Z1P code Longview Quarter Horse Farm 6a' Ordinary dividends ---------------- ; 287 Airport Road ' Shi ensbur PA 17257 PP g 6b Qualified dividends _ C 1RS Center where partnership tiled return 7 I Royalties ---------------- Cincinnati, OH ' D Check if this Is a publicly traded partnership (PTP) 8 'Net short-term capital gain (loss) ---------------- E Tax shelter registration number, if any F Check if Form 8271 is attached 9 a' Net long-term capital gain (loss) 17 ,Alternative minimum tax (AMT) items Part'11 ~ Information About the Partner 9b'' Collectibles (28%) gain pons) ---------------- G Partner's identifying number 9c' Unrecaptured section 1250 gain ---------------- 176-66-4852 H Partner's name, address, city, state, and ZIP code 10 'Net section 1231 gain (loss) 18 I' Tax-exempt income and Mark E. Nealy j nondeductible expenses 287 Airport Road 11 !', Other income (loss) Shippensburg, PA 17257 i _ _ - ------------ I X General partner or LLC ~ Limited partner or other ---------------- member-manager LLC member - - - - - - - - - - - - - - - - - J X^ Domestic partner ~ Foreign partner 19 i Distributions 12 I Section 179 deduction K What type of entity is this partner? Partnershi I - - - - - - - - - - - - - - - - I L P rt r' sh f fit l d l it 13 I Other deductions ne s are o pro a , oss, an cap Beginning : a Ending _________________. 20 Other information Profit 50.00000 $ 50.00000 ~ Loss 50.00000 ~ 50.00000 ~ ----------------- - '-------------- Ca ital 50.00000 $ 50.00000 g M Partner's share of liabilities at year end: 14 Self-employment earnings (loss) ---------------- Nonrecourse ......................... $ - - - - - - - - - - - - - - - - - Qualified nonrecourse financing ........ $ i Recourse ........................... $ . *See attached statement for ad ditional information. N Partner's capital account analysis: F Beginning capital account ............. $ 2, 030. 0 a Capital contributed during the year ..... $ i Current year increase (decrease) ...... $ 1, 339. s Withdrawals and distributions .......... $ u Ending capital account ................ $ 3, 369. s e X Tax basis ~ GAAP ~ Section 704(b) book 0 ~ Other (explain) Y BAA For Privacy Act and Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2006 PTPA0312 12/08/06 Schedule K-1 (Form 1065) 2006 Mark E. Nealy 02-0621645 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1 Ordinary business income (loss). You must first determine whether the income (loss) is passive or nonpassive. Then enter on your return as follows: Report on Passive loss See the Partner's Instructions Passive income Schedule E, Vine 28, column (g) Nonpassive loss Schedule E, line 28, column (h) Nonpassive income Schedule E, line 2S, column ()) 2 Net rental real estate income (loss) See the Partner's Instructions 3 Other net rental income (loss) Net income Schedule E, line 28, column (g) Net loss See the Partner's Instructions 4 Guaranteed payments Schedule E, line 28, column (j) 5 Interest income Form 1040, line 8a 6 d Ordinary dividends Form 1040, line 9a 6 t) Qualified dividends Form 1040, line 9b 7 Royalties Schedule E, Ilne 4 $ Net short-term capital gain (loss) Schedule D, line 5, column (f) 9 a Net long-term capital gain (loss) Schedule D, line 12, column (f) 9I) Collectibles (28 %) gain (loss} 28% Rate Gain Worksheet, line 4 (Schedule D Instructions) 9 C Unrecaptured section 1250 gain See the Partner's Instructions 1 ~ Net section 1231 gain (loss) See the Partner's Instructions 11 Other income (loss) Code /~ Other portfolio income (loss) See the Partner's Instructions B Involuntary conversions See the Partner's Instructions C Section 1256 contracts and straddles Form 6781, line 1 ~ Mining exploration costs recapture See Pub 535 ~ Cancellation of debt Farm 1040, line 21 or Form 982 F Other income (lass) See the Partner's Instructions 12 Section 179 deduction See the Partner's Instructions 13 Other deductions A Cash contributions (50%) ~ Cash contributions (30 % ) C Noncash contributions (50%) ~ Noncash contributions (30%) See the Partner's Instructions E Capital gain property to a 50% organization (30%) F Capital gain property (20%) - G Investment interest expense Form 4952, line 1 H Deductions -royalty income Schedule E, line 18 I Section 59(e)(2) expenditures See the Partner's Instructions ~ Deductions -portfolio (2% floor) Schedule A, line 22 K Deductions -portfolio (other) Schedule A, line 27 t_ Amounts paid for medical Schedule A, line 1 or insurance Form 1040, line 29 M Educational assistance benefits See the Partner's Instructions N Dependent care benefits Form 2441, line 12 ~ Preproductive period expenses See the Partner's Instructions P Commercial revitalization deduction from rental real estate activities See Form 8582 Instructions Q Pensions and IRAs See the Partner's Instructions R Reforestation expense deduction See the Partner's Instructions S Domestic production activities information See Form 8903 Instructions T Qualified production activities income Form 8903, line 7 U Employer's W-2 wages Form 8903, line 13 V Other deductions See the Partner's Instructions 14 Self-employment earnings (loss) Note. 1f you have a section 179 deduction or any partner- level deductions, see the Partner's Instructions before completing Schedule SE. /~ Net earnings (loss) from self-employment Schedule SE, Section A or B $ Gross farming or fishing income See the Partner's Instructions C Gross non-farm income See the Partner's Instructions 15 Credits A Low-income housing credit (section 42(j)(5)) _ B Low-income housing credit (other) C Qualified rehabilitation expenditures See the Partner's (rental real estate) Instructions ~ Other rental real estate credits E Other rental credits _ F Undistributed capital gains credit Form 1040, line 70; check box a G Credit for alcohol used as fuel See the Partner's Instructions H Work opportunity credit I Welfare-to-work credit }- See the Partner's .1 Disabled access credit I Instructions PTPA0312 12/08/06 Code Report on K Empowerment zone and renewal community employment credit Form 8844, line 3 L Credit for increasing research activities ffA New markets credit ~ See the Partner's N Credit for employer social security Instructions and Medicare taxes - ~ Backup withholding Form 1040, line 64 P Other credits See the Partner's Instructions 16 Foreign transactions A Name of country or U.S. possession B Gross income from all sources ~ Form 1116, Part I C Grass income sourced at partner level _ Foreign gross income sourced at partnership level D Passive E Listed categories ~ Form 1116, Part I F General limitation _ Deductions allocated and apportioned at partner Level G Interest expense Form 1116, Part I H Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income Passive ~ Listed categories ~ Form 1116, Part I K General limitation - Other information L Total foreign taxes paid Form 1116, Part II fd Total foreign taxes accrued Form 1116, Part II N Reduction in taxes available for credit Form 1116, line 12 0 Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Partner's Instructions 17 Alternative minimum tax (AMT) items /~ Post-1986 depreciation adjustment - B Adjusted gain or loss C Depletion (other than oil & gas) See the Partnei s ~ Oil, gas, & geothermal -gross income Instructions and the Instructions far E Oil, gas, & geothermal -deductions Form 6251 F Other ANTE items - 1$ Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income See the Partner's Instructions C Nondeductible expenses See the Partner's Instructions 19 Distributions A Cash and marketable securities See the Partner's Instructions is Other property See the Partner's Instructions 20 Other information Q Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 ~ Qualified rehabilitation expenditures (other than rental real estate) See the Partner's Instructions I: Basis of energy property See the Partner's Instructions F Recapture of low-income housing credit (section 42(j)(5)) Form 8611, line 8 G Recapture of low-income housing credit (other) Form 8611, line 8 f f Recapture of investment credit Form 4255 I Recapture of other credits See the Partner's Instructions ~ Look-back interest -completed long-term contracts See Form 8697 {( Look-back interest -income forecast method See Form 8866 ~ Dispositions of property with - section 179 deductions lh Recapture of section 179 deductions N Interest expense for corporate partners O Section 453(1)(3) information P Section 453A(c) information Q Section 1260(b) information See the Partner's Instructions R Interest allocable to production expenditures $ CCF nonquallfied withdrawals T Information needed to figure depletion -oil and gas L) Amortization of reforestation costs ~/ Unrelated business taxable income 1N Other information - Schedule K-1 (Form 1065) 2006 u.s. Return of Partnership Income OMB No.1545-OO99 F 1065 orm Fo r calendar year 2007, or tax year beginning , 2007, Department of the Treasury ending , 20 2007 Internal Revenue Service - See se crate instructions. A Principal business activity Name of partnership D Employer identification Use the number Stabling Horses label. Lon view Quarter Horse Farm 02-0621645 B Principal product or service Other- Number, street, and room or suite number. If a P.O. box, see the instructions. E Date business started Horses W1Se' print 287 Air ort Road 01/01/02 C Business code number Or type, City or town State ZIP code F Total assets (see instrs) 115210 Shi ensbur PA 17257 $ 10,022. G Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address chan e g (5) Amended return H Check accounting method: (1) X Cash (2) Accrual (3) Other (specify) ..... ~ Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year ......... ....... ~ 2 ------ J Check if Schedule M-3 attached . ........................................................................... . Caution. Include on/y trade or business income and expenses on lines 1a through 22 below. See the instn,ctinns fnr mere infnrmatinn 1a Gross receipts or sales ............................................... 1a b Less returns and allowances .......................................... 1 b 1 c 2 Cost of goods sold (Schedule A, line 8) ........................................................... 2 I N 3 Gross profit. Subtract line 2 from line lc .......................................................... 3 C 4 Ordinary income (loss) from other partnerships, estates, and trusts O M (attach statement) ............................................................................. q E 5 Net farm profit (loss) (attach Schedule F (Form 1040)) ............................................. 5 3, 285 . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) ................................. 6 7 Other income (loss) (attach statement) .............................................................................. 7 8 Total income (loss). Combine lines 3 throw h 7 .................................................... 8 3, 285. s E E 9 Salaries and wages (other than to partners) (less employment credits) .............................. 9 I N 10 Guaranteed payments to partners ................................................................ 10 T 11 Repairs and maintenance ....................................................................... 11 R u 12 Bad debts ...................................................................................... 12 D T 13 Rent ........................................................................................... 13 p o 14 Taxes and licenses ......... ................................................................... 14 U s 15 Interest ........................................................................................ 15 C T F 16a Depreciation (if required, attach Form 4562) ........................... 16a R b Less depreciation reported on Schedule A and elsewhere on return ...... 16b 16c O N ~ 17 Depletion (Do not deduct oil and gas depletion.) ......... ................... .......... 17 S M 18 Retirement plans, etc ........................................................................... 18 I 19 Employee benefit programs ................... 19 T ................................................... A 20 Other deductions 0 (attach statement) .............................................................................. 20 N s 21 Total deductions. Add the amounts shown in the far ri ht column for lines 9 throw h 20 .............. 21 22 Ordina business income (loss). Subtract line 21 from line 8 ...................................... 22 3, 285. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. Sign Here - - May the IRS discuss this return with the preparer wn bel Signature of general partner or limited liability company member manager Date (see instrs)? Yes No Preparer's Date Preparer's SSN or PTIN Paid signature Barbara A. Stevens 03/19/08 employedelf- ~ p00183931 Preparers Firm's name STEVENS TAX AND ACCOUNTING (or yours if Use Only self-employed), ~ 896 RAGGED EDGE ROAD address, and EIN - zIP code CHAMBERSBURG PA 17 2 O l Phone no. 6AA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. PTPaot 12 t2~2~io~ Form 1065 (2007) Form 1065 (2007) Lon view Quarter Horse Farm 02-0621645 Page 2 ScheduEe A Cost of Goods Sold see the instructions 1 Inventory at beginning of year ........................................................................ ... 1 2 Purchases less cost of items withdrawn for personal use ............................................... ... 2 3 Cost of labor ........................................................................................ ... 3 4 Additional section 263A costs (attach statement) ................................................................................... ... 4 5 Other costs (attach statemenf) ................................................................................... ... 5 6 Total. Add lines 1 through 5 .......................................................................... ... 6 7 Inventory at end of year ............................................................................. ... 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 ......................... ... 8 9a Check all methods used for valuing closing inventory: (i) Cost as described in Regulations section 1.471-3 (ii) Lower of cost or market as described in Regulations section 1.471-4 (iii} Other (specify method used and attach explanation) .............. ------------ ---------------- bCheck this box if there was a writedown of 'subnormal' goods as described in Regulations section 1.471-2(c) .................. ~ c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ............ ~ d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? ....... ............ Yes No e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? 8 ........... Yes No If 'Yes', attach explanation Schedule B Other Information What type of entity is filing this return? Check the applicable box: _Yes _N_o a X Domestic general partnership b Domestic limited partnership c Domestic limited liability company d Domestic limited liability partnership j i e Foreign partnership f Other .... ~ Are any partners in this partnership also partnerships? .................................................................... X During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and 301.7701.3? If 'Yes,' see instructions for required attachment ...................................................................................... X Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details ........ , . _ X__ Does this partnership meet all three of the following requirements? a The partnership's total receipts for the tax year were less than $250,000; b The partnership's total assets at the end of the tax year were less than $600,000; and 'i c Schedules K•1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. If 'Yes,' the partnership is not required to complete Schedules L, M-l, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1 ................................................................................................. 6 Does this partnership have any foreign partners? If 'Yes,' the partnership may have to file Forms 8804, 8805 and 8813. See the instructions .............................................................................. ...................... 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? .................... . ........................ 8 Has this partnership filed, or is it required to file, a return under section 6111 to provide information on any reportable transaction? ................................................................................................. 9 At any time during calendar year 2007, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1. If 'Yes,' enter the name of the foreign country.. 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If 'Yes,' the partnership may have to file Form 3520. See the instructions ................................................... X 11 Was there a distribution of property or a transfer (for example, by sale or death) of a partnership interest during the tax year? If 'Yes,' you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made By the Partnership in the instructions ...................................................... X 12 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return ...................................... .. Designation of Tax Matters Partner (see the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return Name of Identifying designated TMP - Mark E. Nealy number of TMP - 176-66-4$52 Address of - 287 Airport Road designated TMP Shippensburg, PA 17257 Form 1065 (2007) PTPA0112 12/27!07 Fnrm ~nss r~nn7~ Longview Quarter Horse Farm_ 02-0621645 - Sshedta ~ - _ ie K Partners Distributive Share Items Total amount line 22 .................. ............. . e 1 ) loss a i ( ) ( 1 3, 285 . .......... . , g ncome 1 Ordinary business P ............................... (loss) (attach Form 8825) m i t l t 2 ....... nco e e es a 2 Net rental rea 3a Other gross rental income (loss) ................................ 3a b Expenses from other rental activities attach stmt 3b ................................ Subtract line 3b from line 3a ss) (l l i 3c .. . ncome o c Other net renta ........ t ~ ~ 4 ..................................... s 4 Guaranteed paymen ............................. . 5 . ............................................ 5 Interest income Income . ................ • .. • .. . d di id i 6a (Loss) . .................. s ......... .. en v nary 6 Dividends: a Ord I 6b b Qualified dividends ............................. . ...................... 7 .......................... ...................... 7 Royalties . .......................... . ttach Schedule D (Form 1065)) l i ) ( i l 8 . a n ( oss ga ta 8 Net short-term cap .......................... ch Schedule D (Form 1065)) tt l i 9a ... a oss) (a n ( 9a Net long-term capital ga b Collectibles (28%) gain (foss) ................................... 9b c Unrecaptured section 1250 gain (attach statement) .......................... 9c ~ ........................... ch Form 4797) tt l 10 .................. a oss) (a 10 Net section 1231 gain ( 11 Other income (foss) (see instructions) T e ~ 11 4562) h F tt 12 orm ac 12 Section 179 deduction (a ........................... 13a Deduc- 13a Contributions ................................................... ....... ........... . 13b lions . ......................... b investment interest expense .......... (2) Amount ~ 1 T ~ 13c (2) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ) ype c Section 59(e)(2) expenditures: ( d Other deductions (see instructions) T e ~ 13d 2$5 3 ........................ ... ment l lf 14a . , Self- . ....................... -emp oy 14a Net earnings (loss) from se l ............................ i 14b oy- Emp ncome ................................ b Gross farming or fishing 0 ment ................................. c Gross nonfarm income ................................. 14c . ................................. . ection 42(j)(5)) dit ( i 15a . .............. s ng cre 15a Low-income hous ....................... . . ther) dit ( i 15b . . ....................... o ng cre bLow-income hous es (rental real estate) (attach Form 3468) ........ ........... dit 15c ur c Qualified rehabilitation expen Credits Type ~ ee instructions) ( dit 15d _ _ _ . s s d Other rental real estate cre Type ~ tions) t i 15e _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . ........... ruc ns e Other rental credits (see f Other credits see instructions) ................. T pe ~ 15f 16aNameofcountryorU.S.possession ... ~__________________________ . ...... ll 16b . ............................... sources bGross income from a vel .............. l t t d 16c ner e par a c Gross income source Foreign gross income sourced at partnership level ~ f Other 16f ....... _ _ _ _ _e General category d Passive category ~ __------ Foreign Trans- _ _ _ _ Deductions allocated and apportioned at partner level I actions ............................. ~ h Other ~ ~16h ........ _ _ _ _ _ _ _ _ g Interest expense Deductions allocated and apportioned at partnership level to foreign source income _ kOther ....... ~ j General category ~ ~ 16k _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ i Passive category a ne}; - Paid ~ Accrued h k 161 ec o I Total foreign taxes (c mReduction in taxes available for credit (attach statement) ..................................... 16m n Other forei n tax information (attach statement ............... ..... .. ... .. . . -- ----- .... ...... .. ... ... . . djustment ti i 17a . . .................. . . on a a 17a Post-1986 deprec ................................. . l ' 17b Alternative ... 1 9 ................................. oss usted gin or b Ad Mi um i il nd as th h 17c n m g .............. an o a er c Depletion (ot Tax ....................................... erties -gross income mal ro th d 17d (AMT) .. p p er geo d Oil, gas, an ....................... .. . . ......... erties -deductions rmal ro th d 17e Items ..... p p e geo e Oil, gas, an f Other AMT items (attach stmt) ................................................................... 17 f ..................................... . t i ome i t 18a . ......................... nc eres n 18aTox-exempt ............................ . i 18b Otfier . ncome ... . ................... .......... b Other tax-exempt ............................ 18c Infor- c Nondeductible expenses ........................ . 19 tio ................................. . d marketable securities f h a mo n ........... . an cas 19a Distributions o ................................. . rt th f 19b . y ........................... er prope o b Distributions o ................................... . . t i 20a . . ................................. ncome 20a Investmen ................................... . 20b . b Investment expenses ................................. ,. n++,e. ~+omc anri amni intc /attach stmtl . . ................................................. i , BAA Form 1065 (2007) PTPA0134 06/25/07 Form 1065 (2007) Longview Quarter Horse Farm 02-0621645 Page 4 Anal sis of Net Income Loss 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 161 ............................................................ 1 3, 285 . 2 Analysis by (i) Corporate (ii) Individual (iii) Individual (iv) Partnership (v) Exempt (vi) Nominee/Other partner type: (active) (passive} organization a partners .. 3,285. b Limited artners . Schedule L Balance Sheets er BOOks Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash ......................................~ 6, 737. 10, 022. 2a Trade notes and accounts receivable ...... b Less allowance for bad debts ... ........... 3 Inventories ................................. 4 U.S. government obligations ............... . 5 Tax-exempt securities ..................... . 6 Other current assets (attach stmt) .................. ' 7 Mortgage and real estate loans .............. 8 Other investments (attach stmt) ................... ' 9a Buildings and other depreciable assets ...... . b Less accumulated depreciation ............. . l0a Depletable assets .......................... b Less accumulated depletion ................. ~ i 11 Land (net of any amortization) .... .... T 12a Intangible assets (amortizable only) ..... b Less accumulated amortization .............. _ 13 Other assets (attach stmt) .... . .......... .. 14 Total assets ............................... ~ 6, 7 3 7 . _ 10 , 0 2 2 . Liabilities and Capital 15 Accounts payable .......................... 16 Mortgages, notes, bonds payable in less than 1 year .... _ 17 Other current liabilities (attach stmt) ... .... ... ~ ' 18 All nonrecourseloans ....... .. .. ... 19 Mortgages, notes, bonds payable in 1 year or more .... 20 Other liabilities (attach stmt) ..................... I i 21 Partners' capital accounts I I 6, 737 . ~ 10, 022 . 22 Total liabilities and capital ........ .......I 6, 737. 10, 022 . ScheduCe=M-1 ~ Reconciliation of Income (Loss) per Books With Income (Loss} per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions). 1 Net income (loss) per books ............. 3, 285. 6 Income recorded on books this year not 2 Income included on Schedule K, lines 1, included on Schedule K, lines 1 through 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not 11 (itemize): recorded on books this year (itemize): aTax-exempt interest ... $ -------------------- --------------------- 3 Guaranteed pmts (other than health insurance) . 7 Deductions included on Schedule K, lines 1 through 13d, and 161, not charged against book income this 4 Expenses recorded on books thisyyear not included year (itemize): on Schedule K, lines 1 through 13d, and 161 a De reciation ..... $ (itemize): P ___________ aDepreciation ...... $ _____________________ ----------- bTravel and --------------------- entertainment ..... _ _ - _ - _ - _ _ _ _ 8 Add lines 6 and 7 - - - - - - - - - - - - - - - - - - - - 9 Income (loss) (Analysis of Net Income (Loss), line 1). 5 Add lines 1 through 4 ................... 3, 285. Subtract line 8 from line 5 ......... , ........... 3, 285 . SicFtetlule iVl-2'', Anal sis of Partners' Ca ital Accounts 1 Balance at beginning of year ............ 6, 737. 6 Distributions: a Cash .................... 2 Capital contributed: a Cash ............ b Property ............... . b Property ......... 7 Other decreases (itemize): _ _ _ _ _ _ _ _ _ _ 3 Net income loss - ( )per books ............. 3, 285 . --------------------- 4 Other increases (itemize): _ --------------------- 8 Add lines 6 and 7 ........................ -------------------- 5 Add lines 1 through 4 ................... 10, 022. 9 Balance at end of year. Subtract line 8 from line 5 .... 10 , 022 . PTPA0134 06/25/07 Form 1065 (2007) 651107 ,~,~,~~. n Final K-1 n Amended K-1 OMHNo. 1545-0099 Schedule K-1 LV V / part III. ~ Partner's Share o f Current Year Income, (Form 1065) For calendar year 2007, or tax Deductions, Cre dits, and Other Items Department of the Treasury year beginning , 2007 1 ', Ordinary business income (loss) 15 i Credits Internal Revenue Service ending ~~ 1, 642. Partner's Share of Income, Deductions, 2 ;Net rental real estate income (loss) ---------------- C di re ts, etc. See separate instructions. 3 ;Other net rental income (loss) 16 Foreign transactions Part L '`~ Inf ati Ab t th P t hi orm on ou ar e ners p ---------------- 4 ;Guaranteed payments A Partnership's employer identification number 02-0621645 5 ;Interest income ---------------- ; B Partnership's name, address, city, state, and ZIP code Longview Quarter Horse Farm 6a', Ordinary dividends 287 Airport Road Shippensburg, PA 17257 6b' Qualified dividends ---------------- C IRS Center where partnership fled return 7 'Royalties Cincinnati, OH 8 ', Net short-term capital gain (foss) ---------------- D ~ Ch k if thi i bli l d t d h PTP ec s s a pu c y ra e partners ip ( ) ' 9a Net long-term capital gain (loss) 17 'Alternative minimum tax (AMT) items Part H ~ Information About the Partner 9b,'' Collectibles (2s°i°) gain (loss) --------------- E Partner's identifyrng number 9c' Unrecaptured section 1250 gain 207-26-0905 F Partner's name, address, city, state, and ZIP code 10 ~ Net section 1231 gain (foss) 18 'Tax-exempt income and Shirley M. Nealy I nondeductible expenses 301 Airport Road 11 'Other income (loss) Shippensburg, PA 17257 i --`-`----`-`---- G X General partner or LLC Limited partner or other member-manager LLC member - - - - - - - - - - - - - - - - - H X^ Domestic partner ~ Foreign partner I 19 j Distributions 12 ;Section 179 deduction 1 What type of entity is this partner? Partnershi - - - - - - - - - - - - - - - - J Partner's share of ofit lo d l it 13 j Other deductions pr , ss, an cap Beginning : a Ending , _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 20 ;Other information Profit 50.00000 % 50.00000 Loss 50.00000 % 50.00000 % ----------------- -=-------------- Capital 50.00000 % 50.00000 % K Partner's share of liabilities at year end: 14 Self-employment earnings (loss) Nonrecourse A ___________ 1,642. ________________ Qualified nonrecourse financing ........ $ ~ ' Recourse C 0 *See attached statement for ad ditional information. L Partner's capital account analysis: F Beginning capital account ............. $ 3, 368. 0 R Capital contributed during the year ..... $ t Current year increase (decrease) ...... $ 1, 642. R s Withdrawals and distributions .......... $ u Ending capital account ................ $ 5, O10 . s e X Tax basis ~ GAAP ~ Section 704(b) book 0 ~ Other (explain) Y BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2007 PTPA0312 12/31 /07 Schedule K-1 (Form 1065) 2007 Shirley M. Nealy 02-0621645 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1 Ordinary business income (loss). You must first determine whether the income (loss) is passive or nonpassive. Then enter on your return as follows: Report on Passive toss See the Partner'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 Q) 2 Net rental real estate income (loss) See the Partner's Instructions 3 Other net rental income (loss) Net income Schedule E, line 28, column (g) Net loss See the Partner's Instructions 4 Guaranteed payments Schedule E, line 28, column Q) 5 Interest income Form 1040, line 8a 6 a Ordinary dividends Form 1040, line 9a 6I) Qualified dividends Form 1040, line 9b ~ Royalties Schedule E, line 4 $ Net short-term capital gain (loss) Schedule D, line 5, column (f) 9 a Net longterm capital gain (loss) Schedule D, line 12, column (f) 917 Collectibles (28%) gain (loss) 28 % Rate Gain Worksheet, line 4 (Schedule D Instructions) 9 C Unrecaptured section 1250 gain See the Partner's Instructions 1 ~ Net section 1231 gain (loss) See the Partner's Instructions 11 Other income (loss) Code A Other portfolio income (loss) See the Partner's Instructions B Involuntary conversions See the Partner's lnstructions C Section 1256 contracts and straddles Form 6781, line 1 ~ Mining exploration costs recapture See Pub 535 E Cancellation of debt Form 1040, fine 21 or Form 9$2 F Other income (loss) See the Partner's Instructions 12 Section 179 deduction See the Partner's Instructions 13 Other deductions A Cash contributions (50%) B Cash contributions (30% ) C Noncash contributions (50%) D Noncash contributions (30%) See the Partner's Instructions ~ Capital gain property to a 501 organization (30%) F Capital gain property (20%) - G Investment interest expense Form 4952,1ine 1 H Deductions -royalty income Schedule E, line 18 Section 59(e)(2) expenditures See the Partner's Instructions ~ Deductions -portfolio (2% floor) Schedule A, line 23 K Deductions -portfolio (other) Schedule A, line 28 t. Amounts paid for medical Schedule A, line 1 or insurance Form 1040, line 29 IVI Educational assistance benefits See the Partner's Instructions N Dependent care benefits Form 2441, line 14 0 Preproductive period expenses See the Partner's Instructions P Commercial revitalization deduction from rental real estate activities See Farm 8582 Instructions Q Pensions and IRAs See the Partner's Instructions R Reforestation expense deduction See the Partner's Instructions $ Domestic production activities information See Form 8903 Instructions T Qualified production activities income Form 8903, line 7 tl Employer's W-2 wages Form 8903, line 15 V Other deductions See the Partner's Instructions 14 Self•employment earnings (loss) Note. If you have a section 779 deduction or any partner -level deductions, see the Partner's Instructions before completing Schedule SE. /~ Net earnings (loss) from self-employment Schedule SE, Section A or B B Gross farming or fishing income See the Partner's Instructions C Gross non-farm income See the Partner's Instructions 15 Credits A Low-income housing credit (section 42Q)(5)) _ B Low-income housing credit (other) C Qualified rehabilitation expenditures See the Partner's (rental real estate) lnstructions ~ Other rental real estate credits E Other rental credits _ F Undistributed capital gains credit Form 1040, line 70; check box a G Credit for alcohol used as fuel - FI Work opportunity credit I Welfare-to-work credit See the Partner's ~ Disabled access credit Instructions PTPA0312 12/31/07 Cade Report on iK Empowerment zone and renewal community employment credit Form 8844, line 3 ~ Credit for increasing research activities _ fJl New markets credit I See the Partner's N Credit for employer social security r Instructions and Medicare taxes I _ ~ Backup withholding Form 1040, line 64 P Other credits See the Partner's Instructions 16 Foreign transactions A Name of country or U.S. possession B Gross income from all sources ~ Form 1116, Part I C Gross income sourced at partner level _ Foreign gross income sourced at partnership level ~ Passive category 1: General category ~ Form 1116, Part I F Other _ Deductions allocated and apportioned at partner level G interest expense Form 1116, Part I Ff Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income Passive category ~ General category ~ Form 1116, Part I K Other Other information - L Totai foreign taxes paid Form 1116, Part II fd Total foreign taxes accrued Form 1116, Part II N Reduction in taxes available for credit Form 1116, line 12 ~ Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Partner's Instructions 17 Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment - B Adjusted gain or loss C Depletion (other than oil & gas) See the Partner's ~ Oil, gas, & geothermal -gross income Instructions and E OiI, gas, & geothermal -deductions the Instructions for Form 6251 F Other AMT items _ 18 Tax-exempt income and nondeductible expenses A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income See the Partner's Instructions C Nondeductible expenses See the Partner's Instructions 19 Distributions A Cash and marketable securities See the Partner's Instructions B Other property See the Partner's Instructions 20 Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 p Qualified rehabilitation expenditures (other than rental real estate) See the Partner's Instructions ~ Basis of energy property See the Partner's Instructions F Recapture of low•income housing credit (section 42(j)(5)) Form 8611, line 8 G Recapture of low-income housing credit (other) Form 8611, line 8 M Recapture of investment credit Form 4255 Recapture of other credits See the Partner's Instructions ~ Look-back interest -completed long-term contracts See Form 8697 ~( Look-back interest -income forecast method See Form 8866 ~ Dispositions of property with - section 179 deductions ft7 Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(1)(3) information P Section 453A(c) information Q Section 1260(b) information See the Partner's Instructions R Interest allocable to production expenditures S CCF nonqualified withdrawals '~ Information needed to figure depletion -oil and gas U Amortization of reforestation costs `/ Unrelated business taxable income W Other information - Schedule K-1 (Form 1065) 2007 n n 651107 nAn,' 1 1 Final K-1 I I Amended K-1 OMB No. 1545-0099 5chedute K-1 LV V / Partlll I Partner's Share of Current Year Income, (Form 1065) For calendar year 2007, or tax Deductions, Cre dits, and Other Items Department of the Treasury year beginning , 2007 1 ;Ordinary business income (loss) 15 Credits Internal Revenue Service ending 1, 6 4 3 . ', '~ Partner's Share of Income, Deductions, z !Net rental rea{ estate income (foss) i C di re ts, etc. See separate instructions. 3 Other net rental income (loss) 16 I Foreign transactions Part 1' Inf r ati Ab t th P t hi o m on ou ar e ners p ---------------- 4 ,Guaranteed payments A Partnership's employer identification number - 02-0621645 5 ;Interest income - -------------- B Partnership's name, address, city, state, and ZIP code - Longview Quarter Horse Farm 6a; Ordinary dividends - -------------- 287 Airport Road Shippensburg, PA 17257 6b! Qualified dividends ---------------- ' C IRS Center where partnership filed return 7 j Royalties ---------------- Cincinnati, OH 8 j Net short-term capital gain (loss) ---------------- D ~ Ch k if thi i bli l t d d t hi PTP i ec s s a pu ra c y e par ners p ( ) 9ai Net long-term capital gain (loss) j 17 'Alternative minimum tax (AMT) items Part'il Information About the Partner 9b' Collectibles (28%) gain (loss) ---------------- E Partner's identifying number 9c~ Unrecaptured section 1250 gain 176-66-4852 , F Partner's name, address, city, state, and ZIP code 10 ,Net section 1231 gain (loss) 18 Tsx-exempt income and Mark E. Nealy i nondeductible expenses p ,~o 11 Other income (loss) Shippensburg PA 17257 II G X General partner or LLC Limited partner or other member-manager LLC member - - - - - - - - - - - - - - - - - - H X~ Domestic partner ~ Foreign partner ' 19 ~ Distributions 12 i Section 179 deduction What type of entity is this partner? Partnershi ' - -I - - ~ - - - - - - - - - - - J Partner's share of rofit loss and a it L• 13 Other deductions p , , c p Beginning a Ending - - - - - - - - - - - - - - - _ _ 20 I Other information Profit 50.00000 % 50.00000 g Loss 50.00000 ~ 50.00000 ~ i ----------------- -=-------------- Ca itai 50.00000 $ 50.00000 ~ K Partner's share of liabilities at year end: 14 Self-employment earnings (loss) Nonrecourse A ___________ 1,643. - - -------------- Qualified nonrecourse financing ........ $ Recourse C ~' 0 *See attached statement for ad ditional information. L Partner's capital account analysis: F Beginning capital account ............. $ 3, 369, a Capital contributed during the year ..... $ i Current year increase (decrease) ...... $ 1, 643. s Withdrawals and distributions .......... $ u Ending capital account ................ $ 5, 012. s e X Tax basis ~ GAAP ~ Section 704(b) book 0 ~ Other (explain Y BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2007 PTPA0312 12!31!07 Schedule K-1 (Form 1065) 2007 Mark E. Nealy 02-0621645 Paget This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1 Ordinary business income (loss). You must first determine whether the income COde Report on (loss) is passive or nonpassive. Then enter on your return as follows: Report on K Empowerment zone and renewal Passive toss See the Partner's Instructions community employment credit Form 8844, line 3 Passive income Schedule E, line 28, column (g) L Credit for increasing research activities Nonpassive loss Schedule E, line 28, column (h) M New markets credit See the Partner's Instructions M Credit for employer social security Nonpassive income Schedule E, line 28, column (j) and Medicare taxes 2 Net rental real estate income (loss) See the Partner's Instructions ~ Backup withholding _ Form 1040, line 64 3 Other net rental income (loss) P Other credits See the Partner's Instructions Net income Schedule E, line 28, column (g) 16 Foreign transactions Net loss See the Partner's Instructions A Name of country or U.S. possession 4 Guaranteed payments Schedule E, line 28, column (1) B Gross income from all sources {- Form 1116, Part I 5 Interest income Form 1040, line 8a C Gross income sourced at partner level I 6 a Ordinary dividends Form 1040, line 9a _ Foreign gross income sourced at partnership level 6 t) Qualified dividends Form 1040, line 9b ~ Passive category 7 Royalties Schedule E, line 4 E General category ~ Form 1116, Part I 8 Net short-term capital gain (loss) Schedule D, line 5, column (f) F Other _ 9 a Net long-term capital gain (loss) Schedule D, line 12, column (f) Deductions allocated and apportioned at partner level 9 t) Collectibles (28%) gain (loss) 28 % Rate Gain Worksheet, fine G Interest expense Form 1116 Part I 9 C Unrecaptured section 1250 gain 4 (Schedule D Instructions) See the Partner's Instructions H Other , Form 1116, Part I 10 N i 12 1 i l ' Deductions allocated and apportioned at partnership level to et sect on ga oss) 3 n ( See the Partner s Instructions foreign source income 11 Other income (foss) I Passive category Code .I General category I- Form 1116, Part I A Other portfolio income (loss) See the Partner's Instructions K Other I B Involuntary conversions See the Partner's Instructions Other information _ C Section 1256 contracts and straddles Form 6781, line 1 ~ Total foreign taxes paid Form 1116, Part II ~ Mining exploration costs recapture See Pub 535 M Total foreign taxes accrued Form 1116, Part II E Cancellation of debt Form 1040, line 21 or Form 982 N Reduction in taxes available for credit Form 1116, line 12 F Other income (loss) See the Partner's Instructions Q Foreign trading gross receipts Form 8873 12 Section 179 deduction See the Partner's Instructions P Extraterritorial income exclusion Form 6873 13 Other deductions _ Q Other foreign transactions See the Partner's instructions A Cash contributions (50%) 1 ] Alternative minimum tax (AMT) items 8 Cash contributions (30%) A Post-1986 depreciation adjustment - C Noncash contributions (50%) ' ~ Adjusted gain or lass t7 Noncash contributions (30%) See the Partner s Instructions C Depletion (other than oil & gas) See the Partner's E Capital gain property to a 50% D Oil, gas, & geothermal -gross income Instructions and organization (30%) F Capital gain property (20%) - E Oil, gas, & geothermal -deductions the Instructions for Form 6251 G Investment interest expense Form 4952, line 1 F Other AMT items 18 T i _ H Deductions -royalty income Schedule E line 18 ax-exempt ncome and nondeductible expenses I Section 59(e)(2) expenditures , See the Partner's Instructions A Tax-exempt interest income Form 1040, line 8b ~ Deductions -portfolio (2% floor) Schedule A line 23 B Other tax-exempt income See the Partner's Instructions K Deductions -portfolio (other) , Schedule A, line 28 C Nondeductible expenses 19 Di trib i See the Partner's Instructions t. Amounts paid for medical insurance Schedule A, line 1 or Form 1040, line 29 s ut ons A Cash and marketable securities See the Partner's Instructions 141 Educational assistance benefits See the Partner's Instructions B Other property See the Partner's Instructions N Dependent care benefits Form 2441, line 14 2~ Other infonnatlon ~ Preproductive period expenses See the Partner's Instructions A Investment income Form 4952, line 4a P Commercial revitalization deduction from B Investment expenses Form 4952, line 5 rental real estate activities See Form 8582 Instructions C Fuel tax credit information Form 4136 Q Pensions and IRAs See the Partner's Instructions p Qualified rehabilitation expenditures (other than R Reforestation expense deduction See the Partner's Instructions rental real estate) See the Partner's Instructions $ Domestic production activities information See Form 8903 instructions E Basis of energy property See the Partner's Instructions T Qualified production activities income Form 8903, line 7 F Recapture of low-income housing credit (section 42Q)(5)) F 861 1 li 8 V Employer's W-2 wages Form 8903, line 15 G Recapture of low-income housing credit (other) orm , ne Form 8611, line 8 ~/ Other deductions See the Partner's Instructions I't Recapture of investment credit Form 4255 14 Self-employment earnings (loss) I Recapture of other credits See the Partner's Instructions Note. If you have a section 179 deduction or any partner-level deductions, see the ~ Look-back interest -completed Partners Instructions before completing Schedule SE. long-term contracts See Form 8697 A Net earnings (loss) from self-employment Schedule SE Section A or B ~( Look-back interest -income B Gross farming or fishing income , See the Partner's Instructions forecast method I_ Dispositions of property with See Form 8866 C Gross non-farm income See the Partner's Instructions section 179 deductions 15 Credits M Recapture of section 179 deduction A Low-income housing credit (section 42(j)(5)) N Interest expense for corporate partners B Low-income housing credit (other) ~ Section 453(1)(3) information C Qualified rehabilitation expenditures See the Partner's P Section 453A(c) information (rental real estate) Instructions Q Section 1260(b) information See the Partner's Instructions ~ Other rental real estate credits R Interest allocable to production expenditures E Other rental credits - $ CCF nonqualified withdrawals F Undistributed capital gains credit Form 1040, line 70; check box a T Information needed to figure G Credit for alcohol used as fuel - depletion -oil and gas H Work opportunity credit U Amortization of reforestation costs I Welfare-to-work credit See the Partner's Instructions ~( Unrelated business taxable income ~ Disabled access credit - {l~l Other information - PTPA0312 12/31/07 Schedule K-1 (Form 1065) 2007 1065 U.S. Return of Partnership Income OMBNo.1545-0099 Form For calendar year 2008, or tax year beginning , 2008, 2008 Department of the Treasury ending , 2U Internal Revenue Service - See separate instructions. /~ Principal business activity Name of partnership D Employer identification number Use the Stabling Horses label. Lon view Quarter Horse Farm 02-0621645 B Principal product or service Other- Number, street, and room or suite number. If a P.O. box, see the instructions. E Date business started Horses wtse, 287 Air ort Road 01/01/02 print C Business code number or type. City or town State ZIP code F Total assets (see instrs) 115210 Shi ensbur PA 17257 $ 11,773. G Check applicable boxes: (1) Initial return (2) X Final return (3) Name change (4) Address change (5) ~ Amended return (6) Technical termination -also check (1) or (2) H Check accounting method: (1) X Cash (2) ~ Accrual (3) ~ Other (specify) ..... ~ I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year ................ ~_ _ _ _ _ _ _ 2 J Check if Schedule M-3 attached .................................................................................................. I I rairiinn. Inrlurle nn/vtrar/e nr hrrcineec inrnme and exnencec nn linec 1a thrnunh 99 halnw .See the inctnictinnc fnr mnre infnrmatinn 1a Gross receipts or sales ............................................... la ' _ b Less returns and allowances .......................................... 1 b 1 c 2 Cost of oods sold Schedule A, line 8 9 ( ) ....................................... 2 I N 3 Gross profit. Subtract line 2 from line lc ................................ 3 ~ 4 Ordinary income (loss) from other partnerships, estates, and trusts O M ...................................... ................. (attach statement) .......... . ........... 4 E 5 Net farm profit (loss) (attach Schedule F (Form 1040)) ....................... .......... ........... 5 1, 751 . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) ............ ......... ........... 6 7 Other income (loss) I (attach statement) ....................................................... ........... ....... ... 7 8 Total income (loss). Combine lines 3 throu h 7 ........................................ ........... 8 1, 751 . s E E 9 Salaries and wages (other than to partners) (less employment credits) ................... ........... 9 i 10 Guaranteed payments to partners ....................................... ............. ........... 10 N s 11 Repairs and maintenance ............................................................ ........... 11 T R 12 Bad debts ......................... ... ................................. .... ...... ........ .. 12 u D c 13 Rent ................................................................................ ........... 13 E i D 14 Taxes and licenses ................................... ........... 14 o U N 15 Interest ............................................................................. ........... 15 C s T = 16a Depreciation (if required, attach Form 4562) ................... ....... 16a t R b Less depreciation reported on Schedule A and elsewhere on return ...... 16b 16c ~ N 17 De letion Do not deduct oil and as de letion. p ( 9 p ) ........................................ .......... 17 ~ S m 18 Retirement plans, etc ................................................................. .......... l8 i 19 Employee benefit programs ................................................... ........ .......... 19 r a 20 Other deductions (attach statement) .................................................................... .......'... 20 0 N s 21 Total deductions. Add the amounts shown in the far ri ht column for lines 9 throw h 20 .... .......... 21 22 Ordinary business income (loss). Subtract line 21 from line 8 ............................ .......... 22 1, 751 . Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager) is based on all information of which Sign preparer has any knowledge. Here - ~ May the IRS discuss this return with the preparer shown below Signature of general partner or limited liability company member manager Date (see instrs)? Yes No Preparer's Date Preparer's SSN or PTIN Paid signature Barbara A. Stevens 03/11/09 Check if self- employed.... ~ P00183931 Pre arer's p Firm's name STEVENS TAX AND ACCOUNTING (or ours if Use Only y self•employed), ~ g96 RAGGED EDGE ROAD address and EIN , zlPcode CHAMBERS BURG PA 17202 Phone no. BAA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. PTPaoi 12 loiosioa Form 1065 (2008) Form 1065 (2008) Lon view Quarter Horse Farm 02-0621645 Paae2 Schedule A I Cost of Goods Sold see the instructions 1 Inventory at beginning of year .......................................................................... . 1 2 Purchases less cost of items withdrawn for personal use ................ ................................ . 2 3 Cost of labor .......................................................... ............................... . 3 4 Additional section 263A costs (attach statement) .. .................................................................................. . 4 5 Other costs (attach statement) .......................... ........................................................... 5 6 Total. Add lines 1 through 5 ............................................................................. 6 7 Inventory at end of year ................................................................................ 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 ............................ 8 9a Check all methods used for valuing closing inventory: (i) Cost as described in Regulations section 1.471-3 (ii) Lower of cost or market as described in Regulations section 1.471-4 (iii) Other (specify method used and attach explanation) .............. -------------- -------------- bCheck this box if there was a writedown of 'subnormal' goods as described in Regulations section 1.471.2(c) .. ................ ~ c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ~ d Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? .......... ........ . e Yes No e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? .. ....... Yes No If 'Yes,' attach explanation Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a X Domestic general partnership b Domestic limited partnership !' c Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f Other .... ~ _ _ _ 2 At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnerhip), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? ................................................................................................... ..... X 3 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), or trust own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If 'Yes,' complete (i) throu h (v) below ....................................................................... X (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If 'Yes.' comolete lit through liv) below .. ~ X (i) Name of Individual or Estate (ii) Social Security Number or Employer Identification Number (if an ) (iii) Country of Citizenship (see instructions) (iv) Maximum Percentage Owned in Profit, Loss, or Capital 4 At the end of the tax year, did the partnership: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If 'Yes,' complete (i) through (iv) below ...................................................................................................... X (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country of Incorporation (iv) Percentage Owned in Voting Stock PTPA0112 ioiosios Form 1065 (2008) Form 1065 (2008) Lon view Quarter Horse Farm 02-0621645 Pa e 3 b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital Yes No in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If 'Yes.' complete lil thrnnah (vl halnw ~- (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital 5 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax ear? See Form 8893 for more details ......... ~ - . ~ X 6 Does this partnership satisfy all four of the following conditions? a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 ....................................................... . X If 'Yes,' the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K•1. 7 Is this partnership a publicl traded partnership as defined in section 469(k)(2)? ............................................. X 8 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? ................................................................................. X 9 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on an reportable transaction? ............................................................................................. X 10 At any time during calendar year 2008, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90.22.1, Report of Foreign Bank and Financial Accounts. If 'Yes,' enter the name of the foreign country.. ~ ' 11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If 'Yes,' the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions ......... ......................................... ~ I X 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? .............................. See instructions for details regarding section 754 election. I X b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If 'Yes,' attach a statement showing the computation and allocation of the basis adjustment. See instructions .................................. I }{ c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial ~ built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If 'Yes,' attach a statement showing the computation and allocation of the basis adjustment See instructions ~ ~ X 13 Check this box if, during the current or prior tax year the partnership distributed any propert received in a like-kind , y exchange or contributed such property to another entit (including a disregarded entity) ............................. ~ n ~ ' ~ ' 14 At any time during the tax year, did the partnership distribute to any partner atenancy-in-common or other undivided interest in a partnership property? ............................. X 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions 16 Does the partnership have any foreign partners? If 'Yes,' enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership. ~ X 17 -Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return ................................ Designation of Tax Matters Partner (see the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of Identifying designatedTlJ~P - Mark E. Neale number of TMP - 176-66-4852 Address o` ~ 287 Airport Road designatedrmP Shippensburq, PA 17257 Form 1065 (2008) PTP~,ouz ioiosioa Form 1065 (2008) Lon view Quarter Horse Farm 02-Q621645 Page 4 c.:Hea~~ie 1( Pavfncrc' I~ictrihutive Share Items ~ Totaf amount line 22) .............. ................ ............ 1 Ordinary business income (loss) (page 1 1 1, 751 . , 2 Net rental real estate income (loss) (attach Form 8825) ................... .................. 2 3a Other gross rental income (loss) ................................ 3a b Expenses from other rental activities (attach stmt) .......................... 3b c Other net rental income (foss). Subtract line 3b from line 3a .................................. I 3c i ............................................ .. ................... . 4 Guaranteed payments 4 . . .......................................... ............. ..... .. 5 Interest income 5 Income ......... .. 6 Dividends: a Ordinary dividends ................................. .. 6a (Loss) 6b~ b Qualified dividends ....... . ........ ................................................. 7 Ro alties 7 . ................... y 8 Net short-term capital gain (loss) (attach Schedule D (Form 1Q65)) ............................ 8 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) ............................. 9a b Collectibles (28%) gain (loss) ................................... 9b c Unrecaptured section 1250 gain (attach statement) ........................ 9e 10 Net section 1231 gain (loss) (attach Form 4797) ...... ..... ................................ 10 I 11 Other income (loss) (see instructions) T pe ~ 11 12 Section 179 deduction (attach Form 4562) . ................................................. 12 ............... ......... .. 13aContributions 13a Deduc- s ti . ................ ...................... ........ .............................. b Investment interest expense 13b on .. (2) Amount ~ c Section 59(e)(2) expenditures: (~) Type ~ 13c (2) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ d Other deductions (see instructions) T pe ~ 13d s (loss) from self-employment ....................... ........................... 14a Net earnin 14a 1, 751 . Self- Employ- g ....................................................... .. b Gross farming or fishing income 14b ment .. . c Gross nonfarm income ..................................................................... 14c 0 . 15a Low-income housing credit (section 42(j)(5)) ................................................. 15a bLow-income housing credit (other) .......................................................... 15b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) .... ............... 15c Credits d Other rental real estate credits (see instructions) .Type - 15d _ _ _ _ e Other rental credits (see instructions) ...........Type ~ 1e ------------------_ f Other credits (see instructions ................. T pe - 15 f 16a Name of country or U.S. possession ... ~ -------------------------- bGross income from all sources ............................................................. 166 c Gross income sourced at partner level ...................................................... 16c Foreign gross income sourced at partnership level f Other ....... ~ e General category - d Passive category - ~ 16f Foreign Trans- actions _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - ~ Deductions allocated and apportioned at partner level h Other .......... ~ g Interest expense - ~ 16h _ _ _ _ _ _ _ _ _ _ Deductions allocated and apportioned at partnership level to foreign source income kOther ....... ~ j General category ~ i Passive category ~ 16k _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - I Total foreign taxes (check one): ~ Paid ~ Accrued ~ 161 mReduction in taxes available for credit (attach statement) ...................... .............. 16m n Other forei n tax information attach statement) .............. ............................. . 17a Post-1986 depreciation adjustment ......................................................... 17a Alt ti b Adjusted gain or loss ...................................................................... 17b erna ve Minimum p ( 9 ) .................................................... c De ietion other than oil grid as 17c Taz and geothermal properties -gross income ........... ............................. d Oil gas 17d (AMT} Items , , and geothermal properties -deductions ....... ......................... a Oil gas 17e , , f Other AMT items (attach stmt) ................................................................... 17 f 18aTsx-exempt interest income ...................... ......................................... 18a b Other tax-exempt income ....................... 18 b Other f I c Nondeductible expenses ........................ .......................... 18c or- n mation 19a Distributions of cash and marketable securities .............................................. 19a b Distributions of other property .............................................................. 19b 20a Investment income .............. ......................................................... 20a b Investment expenses ...................................................................... 20b c Other items and amounts (attach stmt) ...................................................... BAA Form 1065 (2008) PTPA0134 08/04/08 Form 1065 (2008) Longview Quarter Horse Farm 02-0621645 Page 5 Anal sis of Net Income Loss 1 Net income (loss). Combine Schedule K, lines 1 through 11 . From the result, subtract the sum of Schedule K, fines 12 through 13d, and 161 ............................................................ 1 1, 751 . 2 Analysis by (i) Corporate (ii) Individual (iii) Individual (iv) Partnershi v Exem t partner type: (active) (passive P () P (vi) Nominee/Other organization a partners .. . 1,751. b Limited ~Schedule'L 'Balance Sheets er Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash ................................... ...' 10, 022. 11, 773. 2a Trade notes and accounts receivable ... . ... __ - b Less allowance for bad debts ............ .. . 3 Inventories ........................... 4 U.S. government obligations ............. ... 5 Tax-exempt securities ................... ... i 6 Other current assets (attach stmt) ............... ... ~ I 7 Mortgage and real estate loans ......... . ... -- 8 Other investments (attach stmt) .............. . . , 9a Buildings and other depreciable assets.... ... b Less accumulated depreciation ........... ... 10a Depletable assets ....................... ... ~ I j b Less accumulated depletion ............... .. i I 11 Land (net of any amortization) .. ... .. I 12a Intangible assets (amortizable only) .. j b Less accumulated amortization ............ .. 13 Other assets (attach stmt) ... . i i 14 Total assets ........... I 10, 022 .' 11, 773. Liabilities and Capital 15 Accounts payable ...................... . .. 16 Mortgages, notes, bonds payable in less than 1 year 17 Other current liabilities (attach stmt) .............. 18 All nonrecourse loans .................... 19 Mortgages, notes, bonds payable in 1 year or more ... ' i 20 Other liabilities (attach stmt) ................. . .. `°~ - 21 Partners' capital accounts ................. . 10, 022. ' 11,773. 22 Total liabilities and capital ................. . 10, 022 , i 11, 773. Schedule`M-1 °; Reconaliation of Incom e (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions). 1 Net income (loss) per books ............. 1, 751. 6 Income recorded on books this year not 2 Income included on Schedule K, lines 1, included on Schedule K, lines 1 through 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not 11 (itemize): recorded on books this year (itemize): -------------------- aTax-exempt interest ... $ 3 Guaranteed pmts (other than health insurance) . --------------------- 7 Deductions included on Schedule K, lines 1 through 4 Expenses recorded on books this yyear not included l S h d K li 13d, and 161, not charged against book income this year (itemize): on c e u e , nes 1 through 13d, and 161 (itemize): a Depreciation ..... $_ a Depreciation ...... $ _ _ _ _ _ _ _ _ -- bTravel and ------------------- entertainment ..... - - - - - - _ - - - - 8 Add lines 6 and 7 ....................... . - - - - - - - - - - - - - - - - - - 5 Add lines 1 through 4 .............. ... 9 Income (loss) (Analysis of Net Income (Lass), line 1). 1, 751. Subtract line 8 from line 5 .............. ...... 1, 7 51 . Schedule M-2 Anal sis of Partners' Ca ital Accounts 1 Balance at beginning of year ............ 10, 022. 6 Distributions: a Cash ................... 2 Capital contributed: a Cash ............ . b Property .............. b Property ......... . . 7 Other decreases (itemize): Net income (loss) per books ...... ...... 1, 751 . ----------- 4 Other increases (itemize): --------------------- ____________________ 8 Addlines6and7 5 Add lines 1 through 4 ................... 11, 773. 9 Balance at end of year. Subtract line 8 from line 5 .... 11 773 . PTPA0134 08/04!08 Form 1065 (2008) 651,],08 „„„~~ ICI Final K-1 ~ Amended K-1 OMB No. 1545-0099 Schedule K-1 LUU~ p~ art 111 -I Partner's Share o f Current Year Income, (Form 1065) Far calendar year 2008, or tax - DeduCt1011S, Cred its, and Other Items Department of the Treasury year 'oeginning ,2008 1 '., Ordinary business income (loss) 15 Credits Internal Revenue Service ending 875. _ ____________ _ Partner's Share of Income, DeduCtlOnS, 2 !Net rental real estate income (loss) _ Credits, etc. See separate instructions. 3 'Other net rental income (loss) 16 ;Foreign transactions - - - - - - - - - - - - - - --Part I - ~ Information About the Partnership - 4 Guaranteed payments A Partnership's employer identification number _ 02-0621645 5 'Interest income B Partnership's name, address, city, state, and ZIP code ! _ '~ _ _ _ _ _ Longview Quarter Horse Farm 6a' Ordinary dividends 287 Airport Road Shippensburg, PA 17257 6b; Qualified dividends C IRS Center where partnership filed return 7 ', Royalties Cincinnati, OH -------------- 8 ,; Net short-term capita( gain (loss) D ~ Check if this is a publicly traded partnership (PTP) g a' Net long-term capital gain (loss) i 17 Alternative minimum tax (AMT) items -------------- - -'Part II Information About the Partner !Collectibles (28%) gain (loss) 9b - -- E Partner's identifying number 9c! Unrecaptured section 1250 gain -------------- 207-26-0905 F Partner's name, address, city, state, and ZIP code 10 ~ Net section 1231 gain (loss) 18 Tax-exempt income and Shirley M. Nealy nondeductible expenses 301 Airport Road 11 ', Other income (loss) ---------------- Shippensburg, PA 17257 ------------ G X General partner or LLC Limited partner or other ---- member-manager LLC member - - - - - - - - - - - - - - - - - " H X^ Domestic partner ~ Foreign partner 19 i Distributions 12 ~ Section 179 deduction _ _ _ _ _ _ _ _ _ _ _ _ _ - I What type of entity is this partner? Partnershi _ 13 'Other deductions J Partner's share of profit, loss, and capital (see instructions): I Other information 20 Beginning Ending _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . j Profit 50.00000 ~ 50.00000 $ ' Loss 50.00000 ~ 50.00000 $ -=--------------- --'-------------- Capital 50.00000 0 50.00000 ~ -------------- - K Partner's share of liabilities at year end: 14 Self-employment earnings (loss) - Nonrecourse $ A '~ 875. Qualified nonrecourse financing ........ $ $ 0 . C Recourse ............................ S * ee attached statement for a dditional information. L Partner's capital account analysis: o Beginning capital account ....... ..... $ 5, 010. R Capital contributed during the year ..... $ R Current year increase (decrease) .... $ 875. s Withdrawals and distributions .......... $ 5 Ending capital account ................ $ 5, 885. e X Tax basis ~ GAAP ~ Section 704(b) book 0 ~ Other (explain) Y BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2008 PT?.40312 12/75/08 Schedule K-1 (Form 1065) 2008 Shirley M. NealY _ _ 02-0621645 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's lnstructions for Schedule K-1 and the instructions for your income tax return. 1 Ordinary business income (loss). Determine whether the income (loss) is passive Code Report on or nonpassrve and enter on your return as follows. .1 Work opportunity credit Form 5884, line 3 Report on ' K Disabled access credit See the Partner s Instructions Passive loss See the Partner's Instructions Passive income Schedule E, fine 28, column (g) L Empowerment zone and renewal community employment creidt Form 8844, line 3 Nonpassive loss Schedule E, line 28, column (h) M Credit for increasing research actlvties See the Partner's Instructions Nonpassive income Schedule E, line 28, column (j) pJ Credit for employer social security and 2 Net rental real estate income (loss) See the Partner's Instructions Medicare taxes Form 8846, line 5 3 Other net rental income (loss) ~ Backup withholding Form 1040, line 62 Net income Schedule E, line 28, column (g) P Other credits See the Partner's Instructions Net loss See the Partner's Instructions 16 Foreign transactions 4 Guaranteed payments Schedule E, line 28, column (j) A Name of country or U.S. possession 5 4nterest income Form 1040, tine Sa B Gross income from all sources Form 1116, Part I 6 8 Ordinary dividends Form 1040, line 9a C Gross income sourced at partner level _ 6 b Qualified dividends Form 1040, line 9b Foreign gross income sourced at partnership level 7 Royalties Schedule E, line 4 D Passive category $ Net short-term capital gain (loss) Schedule D, line 5, column (f) E General category ~ Form 1116, Part I 9 a Net long-term capital gain (loss) Schedule D, line 12, column (f) F Other _ 9 b Collectibles (28%) gain (loss) 2s°ro Rate Gain Worksheet, line Deductions allocated and apportioned at partner level 4 (Schedule D Instructions) G Interest expense Form 1116, Part f 9 C Unrecaptured section 1250 gain See the Partner's Instructions H Other Form 1116, Part I 10 Net section 1231 gain (loss) See the Partner's Instructions nd apportioned at partnership level to e om l l 11 Other income (loss) foe /gn source ~~c e Code I Passive category A Other portfolio income (loss) See the Partner's Instructions ,J General category -~ Form 1116, Part I B involuntary conversions See the Partner's Instructions K Other C Section 1256 contracts and straddles Form 6787, line 1 Other information D Mining ex?/oration costs recapture See Pub 535 L Total foreign taxes paid Form 1116, Part II E Cancellation of debt Form 1040, line 21 or Form 982 M Total foreign taxes accrued Form 1176, Part II F Other income (loss) See the Partner's Instructions N Reduction in taxes available for credit Form 1116, line i2 12 Section 179 deduction See the Partner's Instructions Q Foreign trading gross receipts Form 8873 13 Other deductions P Extraterritorial income exclusion Form 8873 A Cash contributions (50%) _ Q Other foreign transactions See the Partnei s lnstructions B Cash contributions (30%) 1 ~ Alternative minimum tax (AMT) items C Noncash contributions (50%) ' A Post-1986 depreciation adjustment - D Noncash contributions (30%) See the Partner s Instructions B Adjusted gain or loss ' E Capital gain property to a 50 { C Depletion (other than oil & gas) See the Partner s Instructions and organization (30%) F Capital gain property (20%) D Oif, gas, & geothermal -gross income the Instructions for G Contributions (100%a) - E Oil, gas, & geothermal -deductions Form 6251 F Other AMT items - H Investment interest expense Form 4952, line 1 1$ Tax-exempt income and nondeductible expenses { Deductions -royalty income Schedule E, line 18 A Tax-exempt interest income Form 1040, line 8b .1 Section 59(e)(2) expenditures See the Partner's Instructions B Other tax-exempt income See the Partner's Instructions K Deductions -portfolio (2 % floor) Schedule A, line 23 C Nondeductible expenses See the Partner's Instructions L Deductions -portfolio (other) Schedule A, line 28 19 Distributions M Amoun±s paid for medical insurance Schedule A, line 1 or 1ine 29 Form 1040 A Cash and marketable securities N Educational assistance benefits , See the Partner's Instructions B Other property ~ See Partner's Instructions ~ Dependent care benefits Form 2441, line 14 C Distribution sub ed to section 737 1 P Preoroductive period expenses See the Partner's Instructions 2~ Other information (~ Commercial revitalization deduction from A Investment income Form 4952, line 4a rental real estate activities See Form 8582 instructions B Investment expenses Form 4952, line 5 R Pensions and IRAs See the Partner's Instructions C Fuel tax credit information Form 4136 S Reforestation expense deduction See the Partner's Instructions D Qualified rehabilitation expenditures (other than T Domestic production activities information See Form 8903 lnstructions rental real estate) See the Partner's Instructions U Qualified production activities income Form 8903, line 7 E Basis of energy property See the Partner's Instructions V Employer's W-2 wages Form 8903, line 15 F 42 ca5ture of low-income housing credit (section (1)( )) Form 8611, line 8 W Other deductions See the Partner's Instructions G Recapture of low-income housing credit (other) Form 8611, line 8 14 Self-employment earnings (loss) H Recapture of investment credit Form 4255 Note. ff you have a section 179 deduction or any partner- Partner's rnsfrucfions before completing Schedule SE. level deductions, see the I Recapture of other credits See the Partner's Instructions A Net earnings (loss) from ~ Look-back interest - compVeted self-employment Schedule SE, Section A or B long-term contracts See Form 8657 B Gross farming or fishing income See the Partner's Instructions M( Look-back interest -income forecast method See Form 8866 C Gross non-farm income See the Partner's Instructions L Dispositions of property with 15 Credits section 179 deductions Q Low-income housing credit (section 42Q)(5)) M Recapture of section 179 deduction from pre-2008 buildings See the Partner's Instructions N Interest expense for corporate partners B Low-income housing credit (other) from pre-2008 buildings See the Partner's Instructions 0 Section 453(1)(3) information C Low-income housing credit (section 42Q)(5)) P Section 453A(c) informalion See the Partner's from post-2007 buildings Form 8586, line 11 Q Section 1260(b) information Instructions D Low-income housing credit (other) from R Interest allocable to production expenditures post-2007 buildings For - m 8586, line 11 $ CCF nonqualified withdrawals E Qualified rehabilitation expenditures (rental real estate) See the Partner's T Depletion information -oil and gas F Other rental real estate credits lnstructions U Amortization of reforestation costs G Other rental credits - V Unrelated business taxable income H Undistributed copilot gairs credit Form i 040, line 68; check box a W Precontribution gain (loss) I Alcohol and cellulosic biofuel fuels credit Form 6478, line 9 X Other information PTPA0312 12n5ios Schedule K-1 (Form 1065) 2008 ~^ 651,1,08 IX I Ginal K-1 I I Amanrlarl K-1 C1MA Nn 750.5-(1099 Schedule K-1 Zo08 I pf a~ III -~ Partner's Share o f Current Year Income, (Form 1065) For calendar year 2008, or tax Deductions, Cred its, and Other Items Department of the Treasury year beginning , 2008 ~ 'Ordinary business income (loss) 15 ,Credits ~ Internal Revenue Service ending ~, 8 7 6 • ' _ _ ------------ - Partner's Share of {ncome, Deductions, 2 ~,' Net rental real estate income (loss} Credits, etc. ~ See separate instructions. 3 'Other net rental income (loss) 16 'Foreign transactions - - - - - - - - - - - - - - - - Part l Information About the Partnership 4 j Guaranteed payments A Partnership's employer identification number 02-0621645 5 jlnterest income B Partnership's name, address, city, state, and ZIP code i ---------------- Longview Quarter Horse Farm 6a' Ordinary dividends ' 287 Airport Road ~I ------------ Shippensburg, PA 17257 6b! Qualified dividends i ---------------- C iRS Center where partnership filed return 7 I Royalties Cincinnati, OH '~ 8 Net short-term capital gain (loss) D ~ Check if this is a publicly traded partnership (PTP) ' AMT it i t ga! Net long-term capital gain (loss) ax ( ) ems 17 Alternative m nimum ------- - Part ll _ Information About the Partner 9b' couectibles (28%) gain (loss) I ----- --- E Partner's identifying number 9c!, Unrecaptured section 1250 gain 176-66-4852 F Partner's name, address, city, state, and ZIP code 10 'Net section 1231 gain (loss) 18 ITax-exempt income and Mark E. Nealy nondeductible expenses 287 Airport Road 11 I Other income (loss) Shippensburg, PA 17257 G X General partner or LLC Limited partner or other member-manager LLC member - - - - - - - - - - - - - - - - - H X^ Domestic partner ~ Foreign partner ' 19 Distributions 12 i Section 179 deduction _ _ 1 What type of entity is this partner? Partnershi 1 _ _ _ _ _ _ _ _ _ _ _ _ 13 Other deductions J Partner's share of profit, loss, and cap ital (see instructions): 20 Other information Beginning Ending Profit 50.00000 g 50.00000 ~ Loss 50.00000 ~ 50.00000 ~ ----------------- ---~'-`-`-----"- Capital 50.00000 $ 50.00000 ~ -------------- - K Partner's share of liabilities at year end: 14 'Self-employment earnings (loss) - Nonrecourse $ A ~ 8 7 6. Qualified nonrecourse financing ..... , .. $ j $ 0 C Recourse ............................ See attached statement for ad * diti onal information. L Partner's capital account analysis: o Beginning capital account ............. $ 5, 012. R Capital contributed during the year ..... $ R Current year increase (decrease) .... $ 8 7 6 . s Withdrawals and distributions .......... $ u Ending capital account ................ $ 5 , 8 8 8 . s e 0 X Tax basis ~ GAAP ~ Section 704(b) book ~ Other (explain) Y BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2008 PTPA0312 12/15/08 Schedule K-1 (Form 1065) 2008 Mark E. Nealy 02-0621645 Paget This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner '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 i Code Re Ort On P or nonpass ve and enter on your return as fo llows. Report On .1 Work opportunity credit Form 5884, line 3 Passive loss See the Partner's Instructions K Disabled access credit See the Partner's Instructions Passive income Schedule E, line 28, column (g) L Empowerment zone and renewal community Nonpassive loss Schedule E, line 28, column (h) employment creidt M Credit for increasing research acfivties Form 8844, line 3 See the Partner's Instructions Nonpassive income 2 N t l Schedule E, line 28, column (j) ' N Credit for employer social security and renta e real estate income (loss) h 3 O See the Partner s Instructions Medicare taxes Form 8846, line 5 t er net rental income (loss) 0 Backup withholding Form 1040, line 62 Net income Schedule E, line 28, column (g) P Other credits See the Partner's Instructions Net loss See the Partner's Instructions 16 Foreign transactions 4 Guaranteed payments Schedule E, line 28, column (j) A Name of country or U.S. possession 5 Interest income Form 1040, line Sa B Gross income from all sources ~ Form 1116, Part I 6 a Ordinary dividends Form 1040, line 9a C Gross income sourced at partner level 6 b Qualified dividends Form 1040, line 9b _ Foreign gross income sourced at partnership level 7 Royalties Schedule E, line 4 D Passive category $ Net short-term capital gain (loss) Schedule D, line 5, column (f) E General category ~ Form 1116 Part I 9 a Net long-term capital gain (loss) Schedule D, line 12, column (f) F Other , 9 b Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line Deductions allocated and apportioned _ at partner level 9 C Unrecaptured section 1250 gain 4 (Schedule D Instructions) See the Partner's Instructions G Interest expense Form 1116, Part I 10 Net section 1231 gain (loss) i 11 O h See the Partner's Instructions f'1 Other Deductions allocated and apportioned Form 1116, Part I at partnership level fo t er ncome (loss) foreign source income Code I Passive category ~ A Other portfolio income (loss) See the Partner's Instructions ,1 General category Form 1116 Part I B Involuntary conversions See the Partner's Instructions K Other _ , C Section 1256 contracts and straddles Form 6781, line 1 Other information D Mining exploration costs recapture See Pub 535 ~ Total foreign taxes paid Form 1116 Part II E Cancellation of debt Form 1040, line 21 or Form 982 M Total foreign taxes accrued , Form 1116 Part II F Other income (loss) See the Partner's Instructions N Reduction in taxes available for credit , Form 1116 line 12 12 Section 179 deduction See the Partner's Instructions O Foreign trading gross receipts , Form 8873 13 Other deductions A Cash contributions (50 %) _ P Extraterritorial income exclusion Form 8873 B Cash contributions (30 %) Q Other foreign transactions See the Partner's Instructions C Noncash contributions (50%) 17 Alternative minimum tax (AMT) items D Noncash contributions (30%) See the Partner's A Post-1986 depreciation adjustment - Instructions B Adjusted gain or loss E Capital gain property to a 50 % organization (30%) C Depletion (other than oil & gas) See the Partner's F Capital gain property (20%) D Oil, gas, & geothermal -gross income Instructions and the Instructions for Ci Contributions (i0C%) - E Oil, gas, & geothermal -deductions Form 6251 I'I Investment interest expense Form 4952, line i F Other AMT items _ Deductions -royalty incorne Schedule E, line 18 18 Tax-exempt income and nondeductible expenses .1 Section 59(e)(2) expenditures See the Partner's Instructions A Tax-exempt interest income Form 1040, line 8b K Deductions -portfolio (2 % floor) Schedule A, line 23 B Other tax-exempt income See the Partner's Instructions ~ Deductions -portfolio (other) Schedule A line 28 C Nondeductible expenses See the Partner's Instructions M Amounts paid for medical , Schedule A, line 1 or 19 Distributions insurance Form 1040, line 29 A Cash and marketable securities N Educational assistance benefits See the Partner's Instructions B Other property See Partner's ~ Dependent care benefits Form 2441, line 14 C Distribution subject to section 737 Instructions P Preproductive period expenses See the Partner's Instructions 20 Otheriniormation Q Commercial revitalization deduction from A Investment income Form 4952, line 4a rental real estate activities See Form 8582 Instructions B Investment expenses Form 4952 .1ine 5 R Pensions and IRAs See the Partner's Instructions C Fuel tax credit information , Form 4136 $ Reforestation expense deduction See the Partner's Instructions D Qualified rehabilitation expenditures (other than T Domestic production activities information See Form 8903 Instructions rental real estate) See the Partner's Instructions U Qualified production activities income Form 8903, line 7 E Basis of energy property See the Partner's Instructions V Employer's W-2 wages Form 8903 line 15 F Recapture of low-income housing credit (section 7N Other deductions , See the Partner's instructions 42Q)(5)) G Recapture of low-income housing credit (other) Form 8611, line 8 Form 8611 line 8 14 Self-employment earnings (loss) Note. !f you have a section ]79 deduction or any partner -level deductions see the H Recapture of investment credit , Form 4255 Partner's lnstrucfions before completing Schedule SE. , I Recapture of other credits See the Partner's Instructions ,4 Net earnings (loss) from J Look-back interest -completed self-employment Schedule SE, Section A or B long-term contracts See Form 8697 B Gross farming or fishing income See the Partner's Instructions K Look-back interest -income C Gross non-farm income See the Partner's Instructions Forecast method ~ Dispositions of property wit`. See Form 8866 i 15 Credits section 1 i9 deductions A Low-income housing credit (section 42Q)(5)) M Recapture of section 179 deduction from pre-2008 buildings -i B L h i See the Partner's Instructions N Interest expense for corporate partners ow ncome ous ng credit (other) from pre-2008 buildings See the Partner's Instructions ~ Section 453(1)(3) information C Low-income housing credit (section 42(j)(5)) P Section 453A(c) information from post-2007 buildings Form 8586, line 11 Q Section 1260(b) information See the Partner's D Low-income housing credit (other) from post-2007 buildings Fcrm 8586, line 11 R Interest allocable to production expenditures Instructions E Qualified rehabilitation expenditures (rental - $ CCF nonqualified withdrawals real estate) F Other rental real estate credits I See the Partner's I T Depletion information -oil and gas ~ nstructions U Amortization of reforestation costs G Other rental credits V Unrelated business taxable income H Undistributed capital gains credit Form 1040, line 68; check box a W Precontribution gain (loss) I Alcohol and cellulosic biofuel fuels credit Form 6478, line 9 X Other information PTPA0312 l2nslos Schedule K-1 (Form 1065) 2008 651108 n Final K-1 n Amended K-1 OMR Nn 15A5-(1099 Schedule K-1 1UV~ Part 111 _~ Partner's Share o f Current Year Income, (Form 1065) For calendar year 2008, or tax Deductions, Cred its and Other Items Department of the Treasury year beginning , 2006 1 'Ordinary business income Goss) 15 '' Credits Internal Revenue Service ending 8 7 5 . ------- - - -- - Partner's Share of Income, Deductions, 2 ;Net rental real estate income (loss) - - - - Credits, etc. ~ See separate instructions. 3 Other net rental income (loss) 16 !Foreign transactions ~ i - ~ - - - - - - - - Information About the Partnership :Pant I - - - - - - ~ 4 ', Guaranteed payments ! A Partnership's employer identification number ------- - 02-0621645 5 'Interest income - ------- B Partnership's name, address, city, state, and ZIP code i _ _ _ _ _ _ _ _ _ _ _ Longview Quarter Horse Farm 6aj Ordinary dividends _ _ _ _ _ 287 Airport Road ~' - ---- - Shippensburg, PA 17257 6b Qualified dividends - -- ------- - ------------- C IRS Center where partnership filed return 7 ', Royalties - - Cincinnati, OH ~ ------- - - - 8 Net short•term capital gain (loss) - - - --- D ~ Check if this is a publicly traded partnership (PTP) ' 9a! Net long-term capital gain (loss) i 17 , Alternative minimum tax (AMT) items .Part tl i Information About the Partner 9b Collectibles (28%) gain (loss) i ---------------- E Partner's identifying number 9c! Unrecaptured section 1250 gain -=-------------- 207-26-0905 F Partner's name, address, city, state, and ZIP code 10 Net section 1231 gain (loss) 18 ' Tax-exempt income and Shirley M. Nealy nondeductible expenses 301 Airport Road 11 I Other income (loss) - ----~-------- Shippensburg, PA 17257 - - G X General partner or LLC Limited partner or other member-manager LLC member - ; - - - - - - - - - - - - - - - H X^ Domestic partner ~ Foreign partner 19 ,Distributions 12 i Section 179 deduction = What type of entity is this partner? Partnershi - -------------- ' 13 ,Other deductions J Partner s share of profit, loss, and cap ital (see instructions): Beginning Ending _________________. 20 Other information Profit r 50.00000 g .50.00000 ~ ' Loss 50.00000 g 50.00000 ~ Capital 50.00000 ~ 50.00000 $ ------ K Partner's share of liabilities at year end: 14 .Self-employment earnings (loss) ---------- Nonrecourse $ A _____________875. __.______________ Qualified nonrecourse financing ........ $ Recourse $ C I 0. ............................ *See attached statement for ad ditional information. L Partner's capital account analysis: F Beginning capital account ............. $ 5, 010. 0 a Capital contributed during the year ..... $ I Current year increase (decrease) ...... $ 875. s Withdrawals and distributions .......... $ u Ending capital account .... ........... $ 5, 885. E X Tax basis ~ GAAP ~ Section 704(b) book 0 ~ Other (explain} Y BAA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065) 2008 PTPA0372 i2/15/OB