11049422.1015 Genworth Mortgage Insurance Corporation ©2018 Genworth Financial, Inc. All rights reserved.

Genworth Mortgage Insurance Customer Training

1

I b I a Employee's SSN XXX-XX-XXXXc Employer's name. address, and ZIP code 1 Wgs, lips, other compn

MODERN DWELLING ENTERPRISES, INC 20150.00 4 SS tax withheld

4331 WATER WAY BLVD 1249.30 FORT WORTH TX 76006 7 Social security lips

d Control No. 10 Oepdnt care benefits

e Employee's name, address. and ZIP code Sufi. 13

Slatutory employee •• D MARY HOMEOWNER 7 GALLOPING HILL ROAD Retirement plan • D DALLAS TX 75432

Third-party sick pay 15 Slate Employe(s slate ID number 16 Slate wages, tips, etc 17 State income tax

__ TX i

7 6 6 ________ 20150.00 ---------------------

a Employee's SSN XXX-XX-XXXX Jb C Employer's name, address, and ZIP code 1 Wgs, tips, other compn

MODERN DWELLING ENTERPRISES, INC 20150.00 4 SS tax withheld

4331 WATER WAY BLVD 1249.30 FORT WORTH TX 76006 7 Social security tips

d Control No. 10 Depdnt care benefits

e Employee's name, address, and ZIP code Sufi. 13 Statutory employee •. D

MARY HOMEOWNER GALLOPING HILL ROAD Retirement plan • D

DALLAS TX 75432 Third-party sick pay n

: 5 ;a; i ;;;

ye(s state ID No. - - r

6 Slate w;9;s1t1

;s

(t O Q_ � 7 State income tax

- - -

a Employee's SSN XXX-XX-XXXX Jb C Employer's name, address, and ZIP code 1 Wgs, tips, other compn

MODERN DWELLING ENTERPRISES, INC 20150.00 4 SS tax withheld

4331 WATER WAY BLVD 1249.30 FORT WORTH TX 76006 7 Social security tips

d Control No. 10 Depdnl care benefits

e Employee's name, address, and ZIP code Sufi. 13 Statutory employee •• D

MARY HOMEOWNER Retirement plan • D GALLOPING HILL ROAD

DALLAS TX 75432 Third-party sick pay n

15 State Employer's state ID No. 16 Stale wages, tips, etc 17 State income tax

__ TX i 7 6 6 ________ 20150.00 ---------------------

Employer ID No. (EIN) 03-0435021 I OMB No. 1545-0008

z Fed inc tax withheld 3 Social security wages Form W-2 1310.01 20150.00

5 Medicare wages & tips 6 Medicare tax withheld Wage and 20150.00 292.18 Tax

8 Allocated tips 9 Verification code Statement

11 Nonqualifoed plans 12a 2017 I

14 Other 12b

I 12c Copy B To Be Filed with

I Employee's FEDERAL Tax Return

12d This information is being furnished to the Internal

I Revenue Service.

18 Local wages, tips, etc 19 Local income lax 20 Locality name

---------- --------- --------

Department of the Treasury -1Rs

Employer ID No. (EIN) 03-04350212 Fed inc tax withheld 3 Social security wages

1310. 01 20150.00 5 Medicare wages & lips 6 Medicare tax withheld

20150.00 292.18 8 Allocated tips � Verification code

11 Nonqualified plans 12a

I 14 Other 12b

I 12c

I 12d

I 18 Local wages, lips, etc 19 Local income lax

----------- ---------

Employer ID No. (EIN) OJ-0435021 2 Fed inc tax wlthheld 3 Social security wages

1310.01 20150.00 5 Medicare wages & tips 6 Medicare tax withheld

20150.00 292.18 8 Allocated tips 9 Verification code

11 Nonqualified plans 12a

I 14 Other 12b

I 12c

I 12d

I 18 Local wages, tips, etc 19 Local income tax

---------- ---------

I OMB No. 1545-0008

Form W-2 Wage and

Tax Statement

2017

Copy 2To Be Filed With Employee's State, City, or Local Income Tax Return.

20 Locality name

--------

I OMB No. 1545-0008

Form W-2Wage and

Tax

Statement

2017

Copy 2 To Be Filed With Employee's State, City, or Local Income Tax Return.

20 Locality name

--------

1

I b la Employee's SSN XXX-XX-XXXX C

Employer's name, address, and ZIP code 1 Wgs, tips, other compn MODERN DWELLING ENTERPRISES, INC 16500.00

4 SS tax withheld 4331 WATER WAY BLVD 1023.00 FORT WORTH TX 76006 7 Social security tips

d Control No. 10 Depdnt care benefits

e Employee's name. address. and ZIP code Sufi. 13 Statutory employee •. D

JOHN HOMEOWNER 7 GALLOPING HILL BLVD Retirement plan • . D DALLAS TX 75432

Third-party sick pay I :

5 ;a;; i;;t

er's state ID number r

6 State w�;

s;t�

•ct\ Q_ �

7 Stale income tax - --

a Employee's SSN XXX-XX-XXXX lb C Employer's name, address. and ZIP code 1 Wgs, tips, other compn

MODERN DWELLING ENTERPRISES, INC 16500.00 4 SS tax withheld

4331 WATER WAY BLVD 1023.00 FORT WORTH TX 76006 7 Social security tips

d Control No. 1 U Depdnt care benefits

e Employee's name. address. and ZIP code Sufi. 13 Statutory employee •. D

JOHN HOMEOWNER 7 GALLOPING HILL BLVD Retirement plan • . 0 DALLAS TX 75432

Third-party sick pay ' 15 State Employer's state ID No . 16 State wages, tips, etc 17 State income tax

.__ TXr66 ________ 16500.00 ---------------------

a Employee's SSN XXX-XX-XXXX lb C Employer's name. address. and ZIP code 1 Wgs, tips, other compn

MODERN DWELLING ENTERPRISES, INC 16500.00 4 SS tax withheld

4331 WATER WAY BLVD 1023.00 FORT WORTH TX 76006 7 Social security lips

d Control No. 1 0 Depdnt care benefits

e Employee's name. address, and ZIP cede Sufi. 13 Statutory employee •• D

JOHN HOMEOWNER 7 GALLOPING HILL BLVD Retirement plan • D DALLAS TX 75432

Third-party sick pay n f 5 State Employers state ID No. 16 State wages, tips, etc 17 State income tax

�- TXr66 ________ 16500.00 ---------------------

Employer ID No. (EIN) 03-0435021� Fed inc tax withheld 3 Social security wages

16500.00 !> Medicare wages & tips 6 Medicare tax withheld

16500.00 239.25 8 Allocated tips 9 Verification code

11 Nonqualified plans 12a I

14 Other 12b I

12c I

12d I

18 Local wages. tips, etc f

19 Local income tax

---------- ---------

I OMS No. 1545-0008

Form W-2

Wage and Tax

Statement

2017

Copy B To Be Filed with Employee's FEDERAL Tax Return This information is being furnished to the lnlomal

Revenue Service.

20 Locality name

--------

Department of the Treasury -

IRS

Employer ID No. (EIN) 03-0435021 I OMS No. 1545-0008 2 Fed inc tax withheld 3 Social security wages

Form W-2 16500.00 5 Medicare wages & tips 6 Medicare tax wtthheld Wage and

16500.00 239.25 Tax 8 Allocated tips 9 Verification code Statement

11 Nonquatified plans 12a 2017 I

14 Other 12b I Copy 2 To Be

12c Filed With

I Employee's State, City, or Local

12d Income Tax I Return.

18 Local wages, tips, etc 19 Local income tax 20 Locality name

----------- --------- --------

Emptoye, ID No. (EIN) 03-0435021 I OMS No. 1545--0008 2 Fed inc tax withheld 3 Social security wages

Form W-2 16500.00 5 Medicare wages & tips 6 Medicare tax wtthheld Wage and

16500.00 239.25 Tax 8 Allocated tips 9 Verification code Statement

11 Nonqualified plans 12a 2017 I

14 Other 12b I Copy 2 To Be

12c Filed With I Employee's State,

City, or Local 12d Income Tax

I Return. 18 Local wages, tips, etc 19 Local income tax 20 Locality name

----------- ---------._ ________

2

E 1040 Department of the Treasury-Internal Revenue Service (99) I� (Q) 1 7 I OMB No. 1545-0074 , IRS Use Only-Do not write or staple in !his space. 0 U.S. Individual Income Tax Return LL

For the year Jan. 1-Dec. 31, 2017, or other lax year beginning , 2017, ending , 20 See separate instructions. Your first name and initial Last name

John Homeowner If a joint return, spouse's first name and initial Last name

Mary Homeowner Home address (number and street). If you have a P.O. box, see instructions. I Apt. no.

Your social security number

XXX-XX-XXXXSpouse's social security number

XXX-XX-XXXX

A Make sure the SSN(s) above 7 Gallooing Hill Road and on line 6c are correct.

City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below {see instructions). Presidential Election Campaign Dallas TX 75432 Check here tt you, or your spouse if filing

Foreign country name I Foreign province/state/county I Foreign postal code jointly, want $3 to go to this fund. Checking a box below will not change your tax or

Filing Status

Check only one box.

Exemptions

If more than four dependents, see instructions and check here .,.. 0

Income

Attach Form(s) W-2 here. Also attach Forms W-2G and1099-R if tax was withheld.

If you did not get a W-2, see instructions.

Adjusted Gross Income

refund. D You D Spouse O Single 4 D Head of household {with qualifying person). {See instructions.)

2 � Married filing jointly (even if only one had income) If the qualifying person is a child but not your dependent, enter this 3 D Married filing separately. Enter spouse's SSN above child's name here . .,..

6a b c

and full name here . .,.. 5 D Qualifying widow(er) (see instructions) l8J Yourself. If someone can claim you as a dependent, do not check box 6a Boxes checked

on Sa and Sb t&J Spouse No. of children Dependents: (2) Dependent's (3) Dependent's (4) ./ if child under age 17 on Sc who;

2

(1) First name Last name social security number relationship to you qualifying tor child tax credit (see instructions)

• lived with you • did not live with

you due to divorce or separation D

D D D

d Total number of exemptions claimed 7 Wages, salaries, tips, etc. Attach Form(s) W-2 Ba Taxable interest. Attach Schedule B if required

I.ab. I .b Tax-exempt interest. Do not include on line 8a 9a Ordinary dividends. Attach Schedule B if required

1· 9b. I. b Qualified dividends

10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ 13 Capital gain or (loss). Attach Schedule D it required. If not required, check here .,.. D 14 Other gains or (losses). Attach Form 4797 . 15a IRA distributions . I 15a I I b Taxable amount 16a Pensions and annuities : 16a : b Taxable amount 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or (loss). Attach Schedule F . 19 Unemployment compensation 20a Social security benefits I 20a I I b Taxable amount 21 Other income. List type and amount

-------------------------------------------------------------Combine the amounts in the far right column for lines 7 through 21. This is your total income 1iJ,,

23 Educator expenses 23

24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ 24

25 Health savings account deduction. Attach Form 8889 25 26 Moving expenses. Attach Form 3903 26 27 Deductible part of self-employment tax. Attach Schedule SE 27 5,616.

28 Self-employed SEP, SIMPLE, and qualified plans 28

29 Self-employed health insurance deduction 29 30 Penalty on early withdrawal of savings . 30

31a Alimony paid b Recipient's SSN .,.. 31a 32 IRA deduction 32 33 Student loan interest deduction . 33

34 Reserved for future use 34

35 Domestic production activities deduction. Attach Form 8903 35

36 Add lines 23 through 35 37 Subtract line 36 from line 22. This is your adjusted gross income ....

7

8a

9a

10 11 12 13 14

15b 16b 17

18

19 20b 21 22

36

37

(see instructions) Dependents on Sc not entered above

Add numbers on r--:-1 lines above .,.. L2J

36,650.

1,889.

62,577.

-3,000.

-23,673.

74,443.

5,616.

68 827.

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. BAA REV01130/18nw Form 1040 (2017) 3

4

SCHEDULE A Itemized Deductions OMB No. 1545-0074

(Form 1040) ..,. Go to www.irs.gov/ScheduleA for instructions and the latest information . �@17 ..,. Attach to Form 1040. Department of the Treasury Attachment Internal Revenue Service {99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 28. Sequence No. 07Name(s) shown on Form 1040

John & Mary Homeowner

Your social security number XXX-XX-XXXX

Medical Caution: Do not include expenses reimbursed or paid by others.

and 1 Medical and dental expenses (see instructions) 1 0 .

Dental 2 Enter amount from Form 1040, line 38 I 2 I 68,827.

Expenses 3 Multiply line 2 by 7.5% (0.075) 3 5,162. 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 4

Taxes You 5 State and local (check only one box): Paid a O Income taxes, or

} 5

b O General sales taxes 6 Real estate taxes (see instructions) 6 8,378. 7 Personal property taxes 7

8 Other taxes. List type and amount ..,.. ----------------------------------·

8----------------------------------------------------------------------------------

9 Add lines 5 through 8 9 8,378. Interest 10 Home mortgage interest and points reported to you on Form 1098 10 15,669. You Paid 11 Home mortgage interest not reported to you on Form 1098. If paid

to the person from whom you bought the home, see instructions Note: and show that person's name, identifying no., and address..,.. Your mortgage interest ------------------------------------------------------------------------------------

deduction may 11 -----------------------------------------------·--------------------------------------be limited (see 12 Points not reported to you on Form 1098. See instructions for instructions). special rules . 12

13 Reserved for future use 13 l 14 Investment interest. Attach Form 4952 if required. See instructions 14 15 Add lines 10 through 14 . 15 15,669.

Gifts to 16 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions . 16 6,255.

If you made a 17 Other than by cash or check. If any gift of $250 or more, see gift and got a instructions. You must attach Form 8283 if over $500 17

benefit for it, 18 Carryover from prior year 18 see instructions. 19 Add lines 16 throuqh 18 19 6,255. Casualty and 20 Casualty or theft loss(es) other than net qualified disaster losses. Attach Form 4684 and Theft Losses enter the amount from line 18 of that form. See instructions 20 Job Expenses 21 Unreimbursed employee expenses-job travel, union dues, and Certain job education, etc. Attach Form 2106 or 2106-EZ if required. Miscellaneous See instructions . ..,.. 21 Deductions

--------------------------------------------------------

22 Tax preparation fees 22

23 Other expenses-investment, safe deposit box, etc. List type and amount..,.. . Miscellaneous_ deductions,. from Schedule (s). K-1. ------------------------------------------------------------------------------------- 23 1,345.

24 Add lines 21 through 23 . 24 1,345.

25 Enter amount from Form 1040, line 38 i2sl 68,827. 26 Multiply line 25 by 2% (0.02) 26 1,377. 27 Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- 27

Other 28 Other-from list in instructions. List type and amount ..,.. ·--------·······----------·-··-·········· Miscellaneous Deductions

------------------------------------------------------------------------�--------------------------------------------- -

28 Total 29 Is Form 1040, line 38, over $156,900? Itemized � No. Your deduction is not limited. Add the amounts in the far right column

lDeductions for lines 4 through 28. Also, enter this amount on Form 1040, line 40. 29 30,302.

D Yes. Your deduction may be limited. See the Itemized Deductions Worksheet in the instructions to figure the amount to enter.

30 If you elect to itemize deductions even though they are less than your standard deduction, check here . .... D

For Paperwork Reduction Act Notice, see the Instructions for Form 1040. BAA REV 01/15/18 TIW Schedule A (Form 1040) 2017

5

SCHEDULES {Form 1040A or 1040) Interest and Ordinary Dividends

OMBNo.1545-0074

�@17 Department of the Treas1.ry _ Internal Revenue Service {99)

� Attach to Form 1040A or 1040. �Goto www.Jrs.gov/ScheduJeB for instructions and the latest information. Attachment

Sequence No. 08 Name(s) shown on return Your social security, number

XXX-XX-XXXXJohn & Mary Homeowner

Part I

Interest

(See instructions and the instructions for Form 1040A, or Form 1040, line Ba.)

Note: If you received a Form 1099-INT, Form 1099-0ID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form.

Part II

Ordinary Dividends

(See instructions and the instructions for Form 1040A, or Form 1040, line Sa.)

Note: If you received a Form 1099-DIVor substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form.

Part Ill

Foreign Accounts and Trusts

(See instructions.)

1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address .... _Community_ Bank--------------------------------------------··------------------------------------American Credit Union

------.. ----------------------------------------·-------------------------------------------------·--------·------

Amount

987.

902.

1

-----------------------··----------------------------------------------·--·-·----------------------------------- 1------al---------2 Add the amounts on line 1 . . . . . . . . . . . . . . . . . . . 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989.

Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . . 4 Subtract line 3 from line 2. Enter the result here and on Form 1040A, or Form

2

3

1040, line Sa . . . . . . . . . . . . . . . . _ . . . . . .... 4 Note: If line 4 is over $1 ,500, you must complete Part Ill.

5 List name of payer � -------------------------------------------------------------------------------------

5

1,889.

1,889.

Amount

-----------------------------------·---------------------------------------------------------------------------- 1------ai---------6

Note:

Add the amounts on line 5. Enter the total here and on Form 1040A, or Form 1040, line Sa . . . . . . . . . . . . . . . . . . . . � If r $ 111 1ne6 is over 1,500, vou must complete Part

6

You must complete this part if you {a) had over $1 ,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a granter of, or a transferor to, a foreign trust.

7a At any time during 2017, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) IOcated in a foreign country? See instructions If "Yes," are you required to file FinCEN Forrn 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements

b If you are required to file FinCEN Forrn 114, enter the name of the foreign country where the financial account is located � ---------------------------------------------------------------------..----------------------·

8 During 2017, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes," you may have to file Form 3520. See instructions.

Yes No

x

I x

For Paperwork Reduction Act Notice, see your tax return instructions. BAA REV 11/14/17 TIW Schedule B (Form 1040A or 1040) 2017

6

SCHEDULE C (Form 1040)

Profit or Loss From Business (Sole Proprietorship)

J11, Go to www.irs.gov/Schedu/eC for instructions and the latest information.

OMB No. 1545-0074

�@17 Department of the Treasury Internal Revenue Service (99) J11, Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.

Attachment Sequence No. 09

Name of proprietor John Homeowner

A

c

Principal business or profession, including product or service (see instructions) Photographer Business name. If no separate business name, leave blank. Impressive Images

Social security number (SSN)

XXX-XX-XXXX

D Employer ID number (EIN) (see instr.)

I I I I I I I I E Business address (including suite or room no.) .,. __ 7 _Galloping __ Hill __ Road-------------------------------------------------------------------

City, town or post office, state, and ZIP code Dallas, TX 75432 Accounting method: (1) 18] Cash (2) D Accrual (3) D Other (specify) .,. F

G

H

I

Did you "materially participate" in the operation of this business during 2017? If "No," see instructions for limit on losses [8J Yes O No

... 0

J

1

2 3 4 5 6 7

8 9

10 11

12 13

14

15 16

a b

17

28 29

30

31

32

If you started or acquired this business during 2017, check here Did you make any payments in 2017 that would require you to file Form(s) 1099? (see instructions) If "Yes," did vou or will vou file reauired Forms 1099?

Income

Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked .... o Returns and allowances Subtract line 2 from line 1 Cost of goods sold (from line 42) Gross profit. Subtract line 4 from line 3 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) Gross income. Add lines 5 and 6 ...

Expenses. Enter expenses for business use of your home only on line 30 . Advertising 8 7, 111. 18 Office expense (see instructions) Car and truck expenses (see 19 Pension and profit-sharing plans instructions) . 9 14,105. 20 Rent or lease (see instructions): Commissions and fees 10 a Vehicles, machinery, and equipment Contract labor (see instructions) 11 b Other business property Depletion 12 21 Repairs and maintenance . Depreciation and section 179

22 Supplies (not included in Part Ill) expense deduction (not 23 Taxes and licenses . included in Part Ill) (see instructions) . 13 4,802. 24 Travel, meals, and entertainment: Employee benefit programs a Travel . (other than on line 19) . 14 b Deductible meals and Insurance (other than health) 15 entertainment (see instructions) Interest: 25 Utilities Mortgage (paid to banks, etc.) 16a 26 Wages {less employment credits) . Other 16b 27a Other expenses (from line 48) . Legal and professional services 17 2, 211. b Reserved for future use Total expenses before expenses for business use of home. Add lines 8 through 27a .... Tentative profit or (loss). Subtract line 28 from line 7 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 882 9 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: . Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 Net profit or (loss). Subtract line 30 from line 2 9. • If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.• If a loss, you must go to line 32.If you have a loss, check the box that describes your investment in this activity (see instructions). • If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) andon Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates andtrusts, enter on Form 1041, line 3. • If you checked 32b, you must attach Form 6198. Your loss may be limited.

}

) For Paperwork Reduction Act Notice, see the separate instructions. BAA REV 11/15/17TIW

1

2

3 4 5 6 7

18 19

20a 20b 21 22

23

24a

24b 25 26

27a 27b 28 29

30

31

QYes

ov es Ix] No

ON 0

127,600.

127,600.

127,600. 7,133.

134,733.

720.

6,322. 600.

14,447.

3,611. 2,001.

13,518.

69,448 . 65,285.

2,708.

62,577.

32a O All investment is at risk. 32b O Some investment is not

at risk.

Schedule C (Form 1040) 2017

7

8

SCHEDULE D (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Capital Gains and Losses

II-- Attach to Form 1040 or Form 1040NR.

II-- Go to www.irs.gov/ScheduleD for instructions and the latest information.

II-- Use Form 8949 to list your transactions for lines 1b, 2, 3, Sb, 9, and 10.

OMB No. 1545-0074

�@17 Attachment Sequence No. 12

Name(s) shown on return Your social security number

John & Mary Homeowner XXX-XX-XXXX

l:ffli•• Short-Term Capital Gains and Losses-Assets Held One Year or Less

See instructions for how to figure the amounts to enter on the lines below. (d) (e)

Proceeds Cost This form may be easier to complete if you round off cents to (sales price) (or other basis) whole dollars.

1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1 b

1b Totals for all transactions reported on Form(s) 8949 with Box A checked

2 Totals for all transactions reported on Form(s) 8949 with Box B checked

3 Totals for all transactions reported on Form(s) 8949 with Box C checked

(g) Adjustments

to gain or loss from Form(s) 8949. Part I,

line 2, column (g)

4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 4

5 Net short-term gain or (loss) from partnerships, s corporations, estates, and trusts from Schedule(s) K-1

6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions

7 Net short-term capital gain or (loss). Combine lines 1 a through 6 in column (h). If you have any long-term capital gains or losses, go to Part II below. Otherwise, go to Part Ill on the back

•@II• Long-Term Capital Gains and Losses-Assets Held More Than One Year

See instructions for how to figure the amounts to enter on the (g)

5

6

7

lines below. (d) (e) Adjustments Proceeds Cost to gain or loss from

This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part 11, whole dollars. line 2, column (g)

Sa Totals for all long-term transactions reported on Form 1099-8 for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b

Sb Totals for all transactions reported on Form(s) 8949 with Box D checked

9 Totals for all transactions reported on Form(s) 8949 with Box E checked

10 Totals for all transactions reported on Form(s) 8949 with Box F checked.

11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 11

12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12

13 Capital gain distributions. See the instructions 13

14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 14

15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h}. Then go to Part Ill on the back. 15

(h) Gain or Ooss) Subtract column (e) from column (d} and

combine the result with column (g)

( 16 I 554. )

-16,554.

(h) Gain or Qoss) Subtract column (e) from column (d) and

combine the result wtth column (g)

( )

For Paperwork Reduction Act Notice, see your tax return instructions. BAA REV 11/21/17 TTW Schedule D (Fonn 1040) 2017

9

10

Supplemental Income and Loss OMB No. 1545-0074 SCHEDULE E (Form 1040) (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)

Ill- Attach to Form 1040, 1040NR, or Form 1041. �@17 Attachment Department of the Treasury

Internal Revenue Service (99) .,. Go to www.irs.gov/ScheduleE for instructions and the latest information. S uence No. 13 Name(s) shown on return Your social security number

John & Mary Homeowner XXX-XX-XXXXIncome or Loss From Rental Real Estate.and Royalties Note: If you are in the business of renting personal property, use Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.

A Did you make any payments in 2017 that would require you to file Form(s) 1099? (see instructions) D Yes � No B If "Y " d'd f O O es, I you or will you ile required Forms 1099? Yes No

1a Physical address of each property (street, city, state, ZIP code) A 234C Condo Court Dallas TX 75432 B

c

1b Type of Property 2 For each rental real estate property listed Fair Rental Personal Use QJV (from list below) above, report the number of fair rental and Days Days A 1 personal use days. Check the QJV box

A 365 0----------------------------

only if riou meet the requirements to file as B a quali 1ed joint venture. See instructions. B D ----------------------------c c D

Type of Property: 1 Single Family Residence 3 Vacation/Short-Term Rental 5 Land 7 Self-Rental 2 Multi-Family Residence 4 Commercial 6 Royalties 8 Other (describe) Income: I Properties: A B c

3 Rents received 3 30,550. 4 Royalties received 4

Expenses: 5 Advertising 5

6 Auto and travel (see instructions) 6 7 Cleaning and maintenance 7 3,366. 8 Commissions. 8

9 Insurance 9 1 780. 10 Legal and other professional fees 10 11 Management fees 11 600. 12 Mortgage interest paid to banks, etc. (see instructions) 12 8,007. 13 Other interest. 13

14 Repairs. 14 1,788. 15 Supplies . 15 999.

16 Taxes 16 8,433. 17 Utilities. 17 1,002. 18 Depreciation expense or depletion 18 7,127. 19 Other (list) � Association Dues -------------------------------------------------------· 19 3, 720. 20 Total expenses. Add lines 5 through 19 20 36,822. 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If

result is a (loss), see instructions to find out if you must file Form 6198 21 -6,272.

22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) 22 ( -6,272. )( ) (

23a Total of all amounts reported on line 3 for all rental properties 23a 30,550. b Total of all amounts reported on line 4 for all royalty properties 23b c Total of all amounts reported on line 12 for all properties 23c 8,007. d Total of all amounts reported on line 18 for all properties 23d 7,127. e Total of all amounts reported on line 20 for all properties 23e 36,822.

24 Income. Add positive amounts shown on line 21. Do not include any losses 24

25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here . 25 ( 6,272. 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here.

If Parts II, Ill, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on oaae 2 26 -6,272.

)

)

For Paperwork Reduction Act Notice, see the separate instructions. BAA REV 12128111 nw Schedule E (Form 1040) 2017

11

Schedule E (Form 1040) 2017 Name(s) shown on return. Do not enter name and social security number if shown on other side.

Attachment Sequence No. 13 Page2 Your social security number

Caution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. John & Mary Homeowner XXX-XX-XXXX

•@Ii• Income or Loss From Partnerships and S Corporations Note: If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (e) on line 28 and attach Form 6198. See instructions.

27 Are you reporting any loss not allowed in a prior year due to the at-risk, excess farm loss, or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If

28

d "Y " . t . b f I . h" .

D !8J you answere es, see ins ructions e ore comp etin! t 1s section . Yes x No

(a) Name(b) Enter P for (c) Check if (d) Employer (e) Checkifpartnership; S foreign identification any amount is

for S corporation partnership number not at risk A Street Art Desiqn comoanv, LLC p D 06-1231129 D B Modern Dwelling Enterprises, Inc s D 03-0435021 D c D D D D D

Passive Income and Loss Nonpassive Income and Loss (f) Passive loss allowed (g) Passive income (h) Nonpassive loss (i) Section 179 expense 0) Nonpassive income

(attach Form 8582 if required) from Schedule K-1 from Schedule K-1 deduction from Form 4562 from Schedule K-1

A 16,916. B 34,317. c

D

29a Totals I 16,916. b Totals I 34,317.

30 Add columns (g) and 0) of line 29a 30 16,916. 31 Add columns (f), (h), and (i) of line 29b 31 ( 34,317. 32 Total partnership and S corporation income or (loss). Combine lines 30 and 31. Enter the

result here and include in the total on line 41 below 32 -17,401.Income or Loss From Estates and Trusts

33 (a) Name (b) Employeridentification number

A

B

Passive Income and Loss Nonpassive Income and Loss

(c) Passive deduction or loss allowed (d) Passive income (e) Deduction or loss (f) Other income from (attach Form 8582 if required) from Schedule K-1 from Schedule K-1 Schedule K-1

A

B

34a Totals I b Totals I

35 Add columns {d) and (f) of line 34a 35

36 Add columns (c) and (e) of line 34b 36 (

37 Total estate and trust income or (loss). Combine lines 35 and 36. Enter the result here and include in the total on line 41 below 37

·�•n• Income or Loss From Real Estate Mortgage Investment Conduits {REMICs)-Residual Holder

38 (a) Name (b) Employer identification (c) Excess inclusion from (di Taxable income (net loss) (e) Income fromnumber Schedules a, line 2c from Schedules 0, line 1 b Schedules 0, line 3b (see instructions)

39 Combine columns (d) and (e\ onlv. Enter the result here and include in the total on line 41 below 39

·�·'• Summary 40 Net farm rental income or (loss) from Form 4835. Also, complete line 42 below 40

41 Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Form 1040, line 17. or Form 1040NR, line 18 � 41 -23,673.

42 Reconciliation of fanning and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code V; and Schedule K-1 (Form 1041 ), box 14, code F (see instructions) 42

43 Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or (loss) you reported anywhere on Fom, 1040 or Fom, 1040NR from all rental real estate activities in which vou materiallv oarticinated under the oassive activitv loss rules 43

)

I

)

!

REV 12128/17 TTW Schedule E (Form 1040) 2017

12

Form4562 Depreciation and Amortization (Including Information on Listed Property)

.,. Attach to your tax retum. Department of the Treasu-y Internal Revenue Service 99 .,. Go to www.irs.gov/Form4562 for instructions and the latest information. Name(s) shown on return Business or activity to which this form relates John & Mary Homeowner Sch C Photographer

Election To Expense Certain Property Under Section._179 Note: If you have any listed property, complete Part V before you complete Part I.

1 Maximum amount (see instructions) . 2 Total cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0-5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing

separately, see instructions 6 (a) Description of property (b) Cost (business use only) (c) Elected cost

OMB No. 1545-0172

�@17 Attachment Sequence No. 179

Identifying number XXX-XX-XXXX

1 510 000. 2 9 476. 3 2 030 000.4 0.

5 510,000.

Camera 35 3,999. 2 000.

7 Listed property. Enter the amount from line 29 I 7 '--�'--��������-.-----!

8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 9 Tentative deduction. Enter the smaller of line 5 or line 8

10 Carryover of disallowed deduction from line 13 of your 2016 Form 4562 . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11

r---,r-�����-'-�-+-���..a.-��

13 Carryover of disallowed deduction to 2018. Add lines 9 and 10, less line 12 .... I 13 I Note: Don't use Part II or Part Ill below for listed property. Instead, use Part V.

•::r.1•••• Special Depreciation Allowance and Other Depreciation (Don't include listed property.) (See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service

during the tax year (see instructions) ,__14 ______ _15 Property subject to section 168(f)(1) election . ,__1s ______ _16 Other depreciation (includinq ACAS) 16

•:t:•••11• MACRS Depreciation (Don't include listed property.) (See instructions.) Section A

17 MACRS deductions for assets placed in service in tax years beginning before 2017 17 3, 54 8. !--�'--��-'-��-18 If you are electing to group any assets placed in service during the tax year into one or more general

asset accounts, check here . . . . � DSection B-Assets Placed in Service During 2017 Tax Year Using the General Depreciation System

(bl Month and year (c) Basis for depreciation (d) Recovery (a) Classification of property placed in (business/investment use (e) Convention (f} Method (g) Depreciation deduction service only-see instructions) period

19a 3-vear property b 5-vear property c 7-year property 7,476. 7.0 HY 200 DB 1,068.

d 10-year property e 15-year property f 20-year property g 25-year property 25yrs. S/L h Residential rental 27.5 yrs. MM S/L

property 27.5yrs. MM S/L i Nonresidential real 39yrs. MM S/L

property MM S/L Section C-Assets Placed in Service During 2017 Tax Year Using the Alternative Depreciation System

20a Class life S/L b 12-year 12 yrs. S/L c 40-year 40yrs. MM S/L

·�Tii•l•• Summary (See instructions.)21 Listed property. Enter amount from line 2822 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter

23 here and on the appropriate lines of your return. Partnerships and S corporations-see instructions For assets shown above and placed in service during the current year, enter the

I I portion of the basis attributable to section 263A costs . . . . . . . 23 For Paperwork Reduction Act Notice, see separate instructions. BAA REV 01/31/18 TIW

21

22 6,616.

Form 4562 (2017)

13

14

Form8829 Expenses for Business Use of Your Home OMB No_ 1545-0074

,.. File only with Schedule C (Form 1040). Use a separate Form 8829 for each �@17Department of the Treasury home you used for business during the year. Attachment Internal Revenue Service (99} ,.. Go to www.irs.gov/Form8829 tor instructions and the latest information. Sequence No. 176 Name(s) of proprietor(s) Your social security number John Homeowner XXX-XX-XXXX

-�Ttii• Part of Your Home Used for Business Photographer

1 Area used regularly and exclusively for business, regularly for daycare, or for storage of inventory or product samples (see instructions) . 1 425

2 Total area of home 2 4,200 3 Divide line 1 by line 2. Enter the result as a percentage 3 10.12 %

For daycare facilities not used exclusively for business, go to line 4. All others, go to line 7. 4 Multiply days used for daycare during year by hours used per day 4 hr.

5 Total hours available for use during the year (365 days x 24 hours) (see instructions) 5 8,760 hr.

6 Divide line 4 by line 5. Enter the result as a decimal amount . 6 7 Business percentage_ For daycare facilities not used exclusively for business, multiply line 6 by

line 3 (enter the result as a percentage)_ All others, enter the amount from line 3 - � 7 10 .12 % Figure Your Allowable Deduction

8 Enter the amount from Schedule C, line 29, plus any gain derived from the business use of your home, minus any loss from the trade or business not derived from the business use of your home (see instructions) 8 -15,555.See instructions for columns (a) and (b) before completing lines 9-21. (a) Direct expenses (bl Indirect expenses

9 Casualty losses (see instructions). 9 10 Deductible mortgage interest (see instructions) 10 17 433. 11 Real estate taxes (see instructions) 11 o <21 12 Add lines 9, 10, and 11 12 26 754. 13 Multiply line 12, column (b}, by line 7. 13 2 708. 14 Add line 12, column (a), and line 13 14 2 708. 15 Subtract line 14 from line 8. If zero or less, enter -0- 15 0. 16 Excess mortgage interest (see instructions) 16 17 Insurance 17 1 644. 18 Rent 18 19 Repairs and maintenance 19 4 433. 20 Utilities 20 1 Sll.

21 Other expenses (see instructions). 21 22 Add lines 16 through 21 22 7 588. 23 Multiply line 22, column (b}, by line 7_ 23 768. 24 Carryover of prior year operating expenses (see instructions) 24 2,720. 25 Add line 22, column (a), line 23, and line 24 25 3,488. 26 Allowable operating expenses. Enter the smaller of line 15 or line 25 . 26 0. 27 Limit on excess casualty losses and depreciation. Subtract line 26 from line 15 27 0. 28 Excess casualty losses (see instructions) 28 29 Depreciation of your home from line 41 below 29 1,814. 30 Carryover of prior year excess casualty losses and depreciation (see

instructions) 30 1,814. 31 Add lines 28 through 30 _ 31 3,628. 32 Allowable excess casualty losses and depreciation. Enter the smaller of line 27 or line 31 32 0. 33 Add lines 14, 26, and 32. 33 2,708. 34 Casualty loss portion, if any, from lines 14 and 32. Carry amount to Form 4684 (see instructions) 34

35 Allowable expenses for business use of your home. Subtract line 34 from line 33. Enter here and on Schedule C, line 30. If your home was used for more than one business, see instructions � 35 2,708.

•�m,•11• Depreciation of Your Home 36 Enter the smaller of your home's adjusted basis or its fair market value (see instructions) 36 699,000. 37 Value of land included on line 36 . 37 38 Basis of building. Subtract line 37 from line 36 38 699,000. 39 Business basis of building_ Multiply line 38 by line 7_ 39 70,739. 40 Depreciation percentage (see instructions). 40 2.5641 % 41 Depreciation allowable (see instructions). Multiply line 39 by line 40_ Enter here and on line 29 above 41 1,814.

•:.-:,a•••• Carryover of Unallowed Expenses to 2018

42 Operating expenses. Subtract line 26 from line 25. If less than zero, enter -0- 42 3,488. 43 Excess casualty losses and depreciation. Subtract line 32 from line 31. If less than zero, enter -0- 43 3,628.

For Paperwork Reduction Act Notice, see your tax return instructions. BAA REV 11/15/17 TIW Form 8829 (2017) 15

Form 8829

Lines 7, 8, 41

Form 8829 Worksheet

Name(s) of Proprietor(s) Your SSN

•

2017

John Homeowner XXX-XX-XXXX

Bus iness name . . . . ...:P::..:h:.::.o::.t.::.o=g=-r-=a'-"'p.:::h:.::ec::r'-------------------------7 Galloping Hill Road

Part I - Calculation of Line 7

Calculation for Form 8829, fine 7 when one area of the home was used exclusively

for daycare and another area of the home was used only partly for daycare:

1 Area used exclusively for daycare ..... . . . . ..... . ... . - .. . . . .

2 Total area of home .. . . . . . . . . . . . . ..... . . . . . . . . . . . . -3 4 5 6 7

8

9 10

Business % for area used exclusively for daycare. Divide Line 1 by line 2 . . . . . .

Area used only partly for daycare Divide line 4 by line 2 - .....

. . .

. . . . . . .

. ..

. . .

. .. - . . . . . . .

. . .

- ...Multiply days used for daycare during year by hours used per day . Total hours available for use during the year (365 x 24 hours). . . .

. . .

... . . .

Divide line 6 by line 7. Enter result as a decimal amount. Carries to Simple Worksheet, line E . . . . . . . . . . . . . . ... . . . . . . . Business % for area used only partly for daycare. Multiply line 8 by line 5 . Total business percentage. Add lines 3 and 9. Carries to Form 8829, line 7 .

. .

. .

. . .

.. . . .

1

2 3 %

4 5 %

6 hr

7 hr

8 9 %

10 %

Part II - Calculation of Business Income Limit for Form 8829, Line 8 or Simple Method, line A

Calculation of business income limit when part of gross income is from a place of

business other than this home office:

1 2

3 4

5 6 7

8

Gross income from Schedule C, line 7 . Percent of gross income from business use of home reported on Schedule C. . . . • . . . . . . . . . . . . . . . . . . . . . ... Gross income from business use of home. Multiply line 1 by line 2 . Gain from business use of your home shown on Schedule D or Form 4797 . . . . . . . . . . . . . . . . . . .......... . Gross income from Schedules C, D, and Form 4797. Add lines 3 and 4 ... . Total expenses from Schedule C, line 28. . . . . . . . . . ..... . If there is more than one home office for this business, enter the amount of expenses from line 6 allocable to this home office. Enter the expenses as a positive number . . . . . . . . . . . . . Any losses from this business shown on Schedule Dor Form 4797. Enter the losses as a positive number . . . . . . . . . . . . . . . . . . .

9 Line 5 less lines 6 or 7, and 8. Carries to Form 8829, In 8, or Simple Wks, In A .

Part Ill - Calculation of Line 41

1 Depreciation attributable to business use of home 2 Depreciation for additions and improvements attributable to business

use of home ............................... . 3 Total allowable depreciation. Add lines 1 and 2. Carries to Form 8829,

line 41 ........................................ .

1

2 3

4 5 6

7

8

9

1

2

3

134, 733.

40.00 % 53,893.

53,893. 69,448.

-15,555.

1,814.

1,814.

16

Car and Truck Expenses Worksheet � Keep for your records

2017

Name(s) Shown on Return

John & Mary Homeowner Social Security Number

XXX-XX-XXXX

Activity: Sch C

Part I - Vehicle Information

1 Make and model of vehicle . 2 Date placed in service . . 3 Type of vehicle ...... .

Photographer

Range Rover Example: Ford Taurus 01/03/2015 Example: 06/15/2017 B2 - Heavy SUV

4 a Ending mileage reading .. b Beginning mileage reading c Total miles vehicle was driven during 2017.

5 Number of miles driven for business . . . . .

Enter mileage readings, or enter total miles on line 4c

12, 003 Line 4a less line 4b 8,109

6 7

Number of miles driven for commuting. . . . Travel between home and work Number of miles driven for personal purposes 3, 8 94 Line 4c less line 5 and 6

8

9a Percent of business use. . . . . . . . . . . . . 6 7 . 5 6 % Line 5, divided by 4c Have record of personal mileage for full year? LJ Yes D No

10

11

12

b Months for special allocation . . . . . . . . . . . . . . . . . See Tax Hffil

Do you have another vehicle available for personal use? . . . . . . . . . . . . . . . X Yes Was the vehicle available for personal use during off duty hours? . . . . . . . . . . X Yes Was the vehicle used primarily by a more than 5% owner of the business or related person? . . . . . . . . . . . . . . . . . . . . . . . . .

D NoD No

13 a Do you have evidence to support the business use claimed? I� I�:: § �: b If Yes, is the evidence written? ..... ........... .

Part II - Standard Mileage Rate

14

15

16 17

18

Did you own this vehicle, lease this vehicle, or was it not your vehicle? ..................... -

-�

Own D LeaseNot my vehicle

Did you use this vehicle for hire?. . . . . . . . . . . . . . Yes W No Example: taxicab Did you use less than 5 vehicles for business at a time?. . x Yes D NoIf you owned this vehicle, did you use the standard Only applies to mileage rate for this vehicle's first year, OR vehicles placed if you leased this vehicle, did you use the standard in service in mileage rate for the portion of the lease period after 1997? . . . . [iJ Yes D No prior years

If you answered Own or Lease to line 14, and Yes to lines 16 and 17 you can take standard mileage for this vehicle (note: Line 15, vehicle for hire, is now allowed):

Standard mileage deduction . . . . . . . . 4 , 3 3 8 . line 5 times .535

Part Ill - Actual Expenses

19 a Gasoline b Oil ... . c Tires .. . d Repairs. e Vehicle insurance f Vehicle registration, license

(excluding property tax) g Garage rent. . . . . . . .

20 Expenses subtotal . . . . . . . . . . . 21 Expenses applicable to business . . . 22 Vehicle depreciation and Section 179 23 Total actual expenses ....... .

h Vehicle lease or rental fees: 1 30 days or more . . . . . 2 29 days or less . . . . . . 3 Total vehicle lease/rental fees. Leased vehicle inclusion amount: 1 Year lease began ....... . 2 FMV of leased vehicle . . . . . 3 Number of lease days in year . 4 Inclusion amount . Other ........ .

Sum of lines 19a thru 19j Line 20 times line 8 From Part VI Line 21 plus line 22

17

18

_J_ o_hn�-&�M_a_r_y�H_o_m�e_o _wn�e_r������������������� XXX-XX-XXXX Page 3

Vehicle: Range Rover Activity: _S_c_h----'C���������- Photographer

Part VII - Disposition of Vehicle - Complete this part only if you sold, abandoned, or otherwise disposed of this vehicle, or removed it from business use in 2017.

42 Date vehicle sold, given away or a��ooed ............ .

43 Date vehicle acquired . 44 Sales price . . . . . . . 45 Expense of sale . . . . 46 Sec 179 deduction allowed . 47 Double click to link sale to Form 6252 . . . . . . . .,..

Example: 5/01/2017

O 1 Io 3 I 2 o 15 If converted from personal use Enter business portion only Enter business portion only

�������������������-

48 a Double click to link sale to Form 8824 ....... ... b Form 8824: Depreciation at 100% business use c Form 8824: AMT depr at 100% business use .

49 Gain/loss basis, if different from line 32 . . . . 50 AMT gain/loss basis, if different from line 72 .

51 Depreciation allowed or allowable ..... 52 AMT depreciation allowed or allowable 53 Gain or loss . . . . . . . . . . . . . . . . . 54 AMT gain or loss . . . . . . . . . . . . . . . 55 Part of Form 4797 to which gain/loss carries .

�������������������-

Enter 100% of basis Enter 100% of basis

Part VIII - Detail Vehicle Depreciation Information - This section is calculated for most vehicles from the data entered above. Use Find Next Error feature to check for any required entries.

56 Subject to automobile limitations? 57 Truck or van? . . . . . . . . .

58 Electric passenger vehicle? . 59 Heavy SUV? ............ 60 Listed property? . . . . . . . . . . 61 Eligible Section 179 property? . .

62 Use I RS tables for MACRS property? 63 Indian reservation property?

Regular Depreciation 64 Depreciation type . 65 Asset class . . . . . 66 Depreciation method

67 MACRS convention .

Yes Yes Yes Yes

x Yes Yes Yes Yes

No No

X No No No See Tax Help. No Applies to current year assets only. No

X No

68 QuickZoom to set 2017 convention . . . . . . . . . . . ... 69 Recovery period . . . 70 Year of depreciation . 71 Depreciable basis . .

Alternative Minimum Tax Depreciation 72 AMT basis, if different from line 32 . . 73 AMT depreciation method . 74 AMT recovery period .. 75 AMT depreciable basis . .

19

Schedule K-1 (Form 1065) �@17 Department of the Treasury Internal Revenue Service For calendar year 2017, or tax year

beginning I I f 2017 l ending �I __ 1 __ 1 __ .....,l

Partner's Share of Income, Deductions, Credits, etc. � See back of torm and separate instructions.

·�1a• Information About the PartnershipA Partnership's employer identification number

06-1231129B Partnership's name, address, city, state, and ZIP code Street Art Design Company LLC 33456 22nd Street Galveston, TX 77568

C IRS Center where partnership filed return e-fileD O Check if this is a publicly traded partnership (PTP)

:JmII Information About the PartnerE Partner's identifying number

XXX-XX-XXXXF Partner's name, address, city, state, and ZIP code

John Homeowner 7 Galloping Hill Road Dallas. TX 75432

G

H

O General partner or LLC member-manager

[BJ Domestic partner

[BJ Limited partner or other LLC member

O Foreign partner

11 What type of entity is this partner? _ln_d_iv_id_u_a_l ________ _12 If this partner is a retirement plan (IRAISEP/Keoghfetc.), check here O

J Partner's share of profit, loss, and capital (see instructions): Beginning Ending

Profit 33.3300000 % 33.3300000 %

Loss 33.3300000 % 33.3300000 %

Capital 33.3300000 % 33.3300000 %

K Partner's share of liabilities at year end: Nonrecourse $ ------------Qualified nonrecourse financing Recourse

L Partner's capital account analysis:

------------

0 ------------

651117

O Final K-1 0 Amended K-1 OMB No. 1545-0123

r1IIIIII Partner's Share of Current Year Income,Deductions, Credits, and Other Items

1 Ordinary business income (loss) 15 Credits

2,450 2 Net rental real estate income (loss)

3 Other net rental income (loss)

4 Guaranteed payments

5 Interest income

6a Ordinary dividends

6b Qualified dividends

7 Royalties

14.466

8 Net short-term capital gain Ooss)

9a Net long-term capital gain (loss)

9b Collectibles (28%) gain (loss)

9c Unrecaptured section 1250 gain

10 Net section 1231 gain (loss)

11 Other income Qoss)

12 Section 179 deduction

13 Other deductions

16 Foreign transactions

.,.___ - --- �

--- �

-+ -

17 Alternative minimum tax (AMT) item!

---,;----- -- - -

18 Tax-exempt income and nondeductible expenses

19 1 Distributions

94

J!! _1.345 20 Other information

i

1-------------�I��"- -� -- --

14 Self-employment earnings Ooss)

- --A 16,916_

c 39, 153 Beginning capital account $ -600 *See attached statement for additional information.

------------

Capital contributed during the year $ ------------990 Current year increase (decrease) $ ------------

) Withdrawals & distributions $ ..,( __________ __,_ 390 Ending capital account . $ ------------

[BJ Tax basis O GAAP O Section 704(b) book O Other (explain)

M Did the partner contribute property with a built-in gain or loss? O Yes IRJ No

If "Yes," attach statement (see instructions)

u.

For Paperwork Reduction Act Notice, see Instructions for Form 1065. www.irs.gov/Form1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2017 20

21

Form 1065 Department of the Treasury Internal Revenue Service

U.S. Return of Partnership Income For calendar year 2017, or tax year beginning , 2017, ending , 20 .

Go to www.irs.gov/Form1065 for instructions and the latest information.

OMB No. 1545-0123

2017

Type

or

Print

Name of partnership

Number, street, and room or suite no. If a P.O. box, see the instructions.

City or town, state or province, country, and ZIP or foreign postal code

A Principal business activity

B Principal product or service

C Business code number

D Employer identification number

E Date business started

F Total assets (see the instructions)

$

G Check applicable boxes: (1) Initial return (2) Final return (3) Name change (4) Address change (5) Amended return

(6) Technical termination - also check (1) or (2)

H Check accounting method: (1) 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

J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.

Inc

om

e

1a Gross receipts or sales . . . . . . . . . . . . . 1a

b Returns and allowances . . . . . . . . . . . . 1b

c Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . 1c

2 Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . 2

3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . 3

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

De

du

cti

on

s

(see

the

inst

ruct

ions

for

limita

tions

)

9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . 9

10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . 10

11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . 11

12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . 14

15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

16a Depreciation (if required, attach Form 4562) . . . . . . 16a

b Less depreciation reported on Form 1125-A and elsewhere on return 16b 16c

17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . 17

18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . 18

19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . 19

20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . 20

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

Sign

Here

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 partner or limited liability company member) is based on all information of which preparer has any knowledge.

May the IRS discuss this return with the preparer shown below (see instructions)? Yes No

Signature of partner or limited liability company member Date

Paid

Preparer

Use Only

Print/Type preparer’s name Preparer’s signature DateCheck if self-employed

PTIN

Firm’s name

Firm’s address

Firm’s EIN

Phone no.

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (2017)

Street Art Design Company LLC

33456 22nd Street

Galveston, TX 77568

Graphic Design

service

540400

06-1231129

01/01/1996

765

✔

2

117,472

117,472

117,472

117,472

88,138

Stm #1 __294229

Stm #2___21,461110,122

7,350

✔

Andy Accountant P00355723Acme Accontants5569 Six Forks Road, Raleigh, NC 27615

53-9976531800-443-7677

Amy Artist 2/14/18

22

Form 1065 (2017) Page 2

Schedule B 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 At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 At the end of the tax year:

a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization, or any foreign government 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,” attach ScheduleB-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . .

b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital ofthe partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Informationon Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . .

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 . . . . . . . . . . . . . . . . . . . . .

(i) Name of Corporation (ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(iv) Percentage

Owned in Voting Stock

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 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 (i) through (v) below . .

(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

Yes No

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 year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 Does the 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 . . . . . . . . . . . . . . .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 publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . .

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? . . . . . . . . . . . . . . . . . .

9 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . .

10 At any time during calendar year 2017, 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 FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If “Yes,” enter the name of the foreign country.

Form 1065 (2017)

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23

Form 1065 (2017) Page 3

Schedule B Other Information (continued) Yes No

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 . . . . . . . . .

12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . .See instructions for details regarding a section 754 election.

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 . . . .

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

13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . .

14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . .

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.

17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return.

18 a Did you make any payments in 2017 that would require you to file Form(s) 1099? See instructions . . . . .b If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . .

19 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return.

20 Enter the number of partners that are foreign governments under section 892. 21 During the partnership’s tax year, did the partnership make any payments that would require it to file Form 1042

and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)? . . . .22 Was the partnership a specified domestic entity required to file Form 8938 for the tax year (See the Instructions for

Form 8938)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (TMP) for the tax year of this return:

Name of designated TMP

Identifying number of TMP

If the TMP is an entity, name of TMP representative

Phone number of TMP

Address of designated TMP

Form 1065 (2017)

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24

Form 1065 (2017) Page 4

Schedule K Partners’ Distributive Share Items Total amountIn

co

me

(L

oss)

1 Ordinary business income (loss) (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 (attach statement) 3b

c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . 3c

4 Guaranteed payments . . . . . . . . . . . . . . . . . . . . . 4

5 Interest income . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . 6a

b Qualified dividends . . . . . . 6b

7 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . 8

9 a 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) . . 9c

10 Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . 10

11 Other income (loss) (see instructions) Type 11

De

du

cti

on

s

12 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . 12

13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . 13a

b Investment interest expense . . . . . . . . . . . . . . . . . . . 13b

c Section 59(e)(2) expenditures: (1) Type (2) Amount 13c(2)

d Other deductions (see instructions) Type 13d

Se

lf-

Em

plo

y-

me

nt

14a Net earnings (loss) from self-employment . . . . . . . . . . . . . . . 14a

b Gross farming or fishing income . . . . . . . . . . . . . . . . . . 14b

c Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . 14c

Cre

dit

s

15a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . 15a

b Low-income housing credit (other) . . . . . . . . . . . . . . . . . 15b

c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) 15c

d Other rental real estate credits (see instructions) Type 15d

e Other rental credits (see instructions) Type 15e

f Other credits (see instructions) Type 15f

Fo

reig

n T

ran

sa

cti

on

s

16a Name of country or U.S. possession b Gross income from all sources . . . . . . . . . . . . . . . . . . . 16b

c Gross income sourced at partner level . . . . . . . . . . . . . . . . 16c

Foreign gross income sourced at partnership level d Passive category e General category f Other 16f

Deductions allocated and apportioned at partner level g Interest expense h Other . . . . . . . . . . 16h

Deductions allocated and apportioned at partnership level to foreign source income i Passive category j General category k Other 16k

l Total foreign taxes (check one): Paid Accrued . . . . . . . . 16l

m Reduction in taxes available for credit (attach statement) . . . . . . . . . . 16m

n Other foreign tax information (attach statement) . . . . . . . . . . . . .

Alt

ern

ati

ve

M

inim

um

Ta

x

(AM

T)

Ite

ms

17a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . 17a

b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . 17b

c Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . 17c

d Oil, gas, and geothermal properties—gross income . . . . . . . . . . . . 17d

e Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . . 17e

f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . 17f

Oth

er

Info

rma

tio

n 18a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . 18a

b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . 18b

c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . 18c

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 statement) . . . . . . . . . . . . . .Form 1065 (2017)

7,350

88,138

Stm #3___ 4,03495,488

117,472

Stm#4___282

25

Form 1065 (2017) Page 5

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, and 16l . . . . . . . . . . . . . . . . . . 1

2 Analysis by partner type:

(i) Corporate(ii) Individual

(active)(iii) Individual

(passive)(iv) Partnership

(v) ExemptOrganization

(vi)

Nominee/Other

a General partners b Limited partners

Schedule L Balance Sheets per Books Beginning of tax year End of tax year

Assets (a) (b) (c) (d)

1 Cash . . . . . . . . . . . . .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 statement) . .7a Loans to partners (or persons related to partners)

b Mortgage and real estate loans . . . .8 Other investments (attach statement) . . .9a Buildings and other depreciable assets . .

b Less accumulated depreciation . . . .10a Depletable assets . . . . . . . . .

b Less accumulated depletion . . . . .11 Land (net of any amortization) . . . . .12a Intangible assets (amortizable only) . . .

b Less accumulated amortization . . . .13 Other assets (attach statement) . . . .14 Total assets . . . . . . . . . . .

Liabilities and Capital

15 Accounts payable . . . . . . . . .16 Mortgages, notes, bonds payable in less than 1 year

17 Other current liabilities (attach statement) .18 All nonrecourse loans . . . . . . . .19a Loans from partners (or persons related to partners)

b Mortgages, notes, bonds payable in 1 year or more 20 Other liabilities (attach statement) . . . .21 Partners’ capital accounts . . . . . .22 Total liabilities and capital . . . . . .Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return

Note. The partnership may be required to file Schedule M-3 (see instructions).1 Net income (loss) per books . . . .

2 Income included on Schedule K, lines 1, 2, 3c,5, 6a, 7, 8, 9a, 10, and 11, not recorded onbooks this year (itemize):

3 Guaranteed payments (other than health insurance) . . . . . . .

4 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16l (itemize): Stm #7 64

a Depreciation $ b Travel and entertainment $

5 Add lines 1 through 4 . . . . . .

6 Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize):

a Tax-exempt interest $

7 Deductions included on Schedule K, lines 1 through 13d, and 16l, not charged against book income this year (itemize):

a Depreciation $

8 Add lines 6 and 7 . . . . . . . .9 Income (loss) (Analysis of Net Income

(Loss), line 1). Subtract line 8 from line 5 .

Schedule M-2 Analysis of Partners’ Capital Accounts

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 . . . . . .

6 Distributions: a Cash . . . . . .b Property . . . . .

7 Other decreases (itemize):

8 Add lines 6 and 7 . . . . . . . .9 Balance at end of year. Subtract line 8 from line 5

Form 1065 (2017)

91,454

91,454

765

9,063 9,0639,063 9,063

0 765

Stm #5__6,005 3,800

-6,005 -3,0350 765

2,970

88,138

282 34691,454 91,454

-6,005

2,970

-3,035 -3,03526

FEDERAL STATEMENTS

2017 STREET ART DESIGN COMPANY LLC

STATEMENT 1

FORM 1065 LINE 14

TAXES AND LICENSES

27

STATEMENT 2

FORM 1065 LINE 20

OTHER DEDUCTIONS

STATEMENT 3

Schedule K1

OTHER DEDUCTIONS

28

STATEMENT 4

Schedule K

NONDEDUCTABLE EXPENSE

STATEMENT 5

Schedule L

OTHER CURRENT LIABILITIES

29

STATEMENT 6

FORM 1065

PARTNERS’ CAPITAL ACCOUNT SUMMARY

STATEMENT 7

Schedule M-1

EXPENSES RECORDED NOT DEDUCTED IN RETURN

30

671117Final K-1 Amended K-1 OMB No. 1545-0123

Schedule K-1 (Form 1120S) 2017Department of the Treasury Internal Revenue Service For calendar year 2017, or tax year

beginning / / 2017 / / ending

Shareholder’s Share of Income, Deductions, Credits, etc. See back of form and separate instructions.

Information About the Corporation Part I

A Corporation’s employer identification number

B Corporation’s name, address, city, state, and ZIP code

C IRS Center where corporation filed return

Information About the Shareholder Part II

D Shareholder’s identifying number

E Shareholder’s name, address, city, state, and ZIP code

F Shareholder’s percentage of stock ownership for tax year . . . . . . . %

For

IRS

Use

Onl

y Shareholder’s Share of Current Year Income,

Deductions, Credits, and Other Items Part III

1 Ordinary business income (loss)

2 Net rental real estate income (loss)

3 Other net rental income (loss)

4 Interest income

5a Ordinary dividends

5b Qualified dividends

6 Royalties

7 Net short-term capital gain (loss)

8a Net long-term capital gain (loss)

8b Collectibles (28%) gain (loss)

8c Unrecaptured section 1250 gain

9 Net section 1231 gain (loss)

10 Other income (loss)

11 Section 179 deduction

12 Other deductions

13 Credits

14 Foreign transactions

15 Alternative minimum tax (AMT) items

16 Items affecting shareholder basis

17 Other information

* See attached statement for additional information.

For Paperwork Reduction Act Notice, see the Instructions for Form 1120S. www.irs.gov/Form1120S Cat. No. 11520D Schedule K-1 (Form 1120S) 2017

03-0435021

Modern Dwelling Enterprises, Inc.4331 Water Way BlvdFort Worth, TX 76006

e filed

XXX-XX-XXXX

Mary Homeowner7 Galloping Hill RoadDallas, TX 75432

100

-34,317

A 3,255

A 637

C 1,733

E 56,302

31

Schedule K-1 (Form 1120S) 2017 Page 2

This list identifies the codes used on Schedule K-1 for all shareholders and provides summarized reporting information for shareholders who file Form 1040.

For detailed reporting and filing information, see the separate Shareholder’s Instructions for Schedule K-1 and the instructions for your income tax return.

1. Ordinary business income (loss). Determine whether the income (loss) is passive or nonpassive and enter on your return as follows:

Report on Passive loss See the Shareholder’s Instructions Passive income Schedule E, line 28, column (g)Nonpassive loss See the Shareholder’s Instructions Nonpassive income Schedule E, line 28, column (j)

2. Net rental real estate income (loss) See the Shareholder’s Instructions 3. Other net rental income (loss)

Net income Schedule E, line 28, column (g) Net loss See the Shareholder’s Instructions

4. Interest income Form 1040, line 8a 5a. Ordinary dividends Form 1040, line 9a 5b. Qualified dividends Form 1040, line 9b 6. Royalties Schedule E, line 47. Net short-term capital gain (loss) Schedule D, line 58a. Net long-term capital gain (loss) Schedule D, line 128b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4

(Schedule D instructions) 8c. Unrecaptured section 1250 gain See the Shareholder’s Instructions 9. Net section 1231 gain (loss) See the Shareholder’s Instructions

10. Other income (loss)

Code A Other portfolio income (loss) See the Shareholder’s Instructions B Involuntary conversions See the Shareholder’s Instructions C Sec. 1256 contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Other income (loss) See the Shareholder’s Instructions

11. Section 179 deduction See the Shareholder’s Instructions 12. Other deductions

A Cash contributions (50%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) E

Capital gain property to a 50% organization (30%)

F Capital gain property (20%) G Contributions (100%)

} See the Shareholder’s Instructions

H Investment interest expense Form 4952, line 1 I Deductions—royalty income Schedule E, line 19 J Section 59(e)(2) expenditures See the Shareholder’s Instructions K Deductions—portfolio (2% floor) Schedule A, line 23 L Deductions—portfolio (other) Schedule A, line 28 M Preproductive period expenses See the Shareholder’s Instructions N

Commercial revitalization deduction from rental real estate activities See Form 8582 instructions

O Reforestation expense deduction See the Shareholder’s Instructions P Domestic production activities

information See Form 8903 instructions Q Qualified production activities income Form 8903, line 7b R Employer’s Form W-2 wages Form 8903, line 17 S Other deductions See the Shareholder’s Instructions

13. Credits

A Low-income housing credit (section42(j)(5)) from pre-2008 buildings

B Low-income housing credit (other) from pre-2008 buildings

C Low-income housing credit (section 42(j)(5)) from post-2007 buildings

D

Low-income housing credit (other) from post-2007 buildings

E

Qualified rehabilitation expenditures (rental real estate)

F Other rental real estate credits G Other rental credits

} See the Shareholder’s Instructions

H Undistributed capital gains credit Form 1040, line 73, box a I Biofuel producer creditJ Work opportunity credit K Disabled access credit L

Empowerment zone employment credit

M Credit for increasing research activities

} See the Shareholder’s Instructions

Code Report on

N

Credit for employer social security and Medicare taxes

O Backup withholding P Other credits

} See the Shareholder’s Instructions

14. Foreign transactions

A

Name of country or U.S.possession

B Gross income from all sources C

Gross income sourced at shareholder level

} Form 1116, Part I

Foreign gross income sourced at corporate level D Passive category E General category F Other

} Form 1116, Part I

Deductions allocated and apportioned at shareholder level G Interest expense Form 1116, Part I H Other Form 1116, Part I Deductions allocated and apportioned at corporate level to foreign source income I Passive category J General category K Other

} Form 1116, Part I

Other information L Total foreign taxes paid Form 1116, Part II M Total foreign taxes accrued Form 1116, Part II N

Reduction in taxes available for credit Form 1116, line 12

O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Shareholder’s Instructions

15. Alternative minimum tax (AMT) items

A Post-1986 depreciation adjustment B Adjusted gain or loss C Depletion (other than oil & gas) D Oil, gas, & geothermal—gross income E Oil, gas, & geothermal—deductions F Other AMT items

} See the Shareholder’s Instructions and the Instructions for Form 6251

16. Items affecting shareholder basis

A Tax-exempt interest income Form 1040, line 8b B Other tax-exempt income C Nondeductible expenses D Distributions E Repayment of loans from

shareholders } See the Shareholder’s Instructions

17. Other information

A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Qualified rehabilitation expenditures

(other than rental real estate) See the Shareholder’s Instructions D Basis of energy property See the Shareholder’s Instructions E

Recapture of low-income housingcredit (section 42(j)(5)) Form 8611, line 8

F

Recapture of low-income housing credit (other) Form 8611, line 8

G Recapture of investment credit See Form 4255 H Recapture of other credits See the Shareholder’s Instructions I

Look-back interest—completed long-term contracts See Form 8697

J

Look-back interest—income forecast method See Form 8866

K

Dispositions of property with section 179 deductions

L Recapture of section 179 deduction

M Section 453(l)(3) information N Section 453A(c) information O Section 1260(b) information P

Interest allocable to production expenditures

Q CCF nonqualified withdrawals R Depletion information—oil and gas S ReservedT Section 108(i) informationU Net investment income V Other information

} See the Shareholder’s Instructions

32

33

34

35

36

37

FEDERAL STATEMENTS 2017

Modern Dwelling Enterprises, Inc.

STATEMENT 1

Payroll Taxes $ 11,357

Real Estate Taxes 41,596

Other Taxes 450

StateTax 250

Total to Form 1120S, Line 12 Total $ 53,653

STATEMENT 2

Auto and Truck Expenses $ 13,804

Bank Charges 26,114

Gifts 1,377

Dues and Subscriptions 123

Insurance 17,208

Legal and Professional 5,965

Meals and Entertainment 1,728

Office Supplies 7,780

Miscellaneous 331

Office Expense 433

Travel 8

Utilities 26,681

Total to Form 1120S, Line 19 Total $ 101,119

38

STATEMENT 3

Cash Contributions- 50% limitation $ 3,255

Form 1120S, Schedule K, Line 12a Total $ 3,255

Charitable Contributions

STATEMENT 4

Beginning End

Tax Year Tax Year

Due from APC $ 0 5,578

Form 1120S, Schedule L, Line 6 Total 0 5,578

Other Current Assets

STATEMENT 5

Beginning End

Tax Year Tax Year

Customer Deposits $ 184,058 115,225

Sales Tax Payable 3,573 8,872

State Tax Payable 250 250

Form 1120S, Schedule L, Line 18 Total 187,881 124,347

Other Current Liabilities

39

STATEMENT 6

Penalties $ 5

Form 1120S, Schedule M-1, Line 3 Total $ 5

Expenses On Books Not on Schedule K

STATEMENT 7

Contributions $ 3,255

Disallowed Meals and Entertainment 1,728

Penalties 5

Form 1120S, Schedule M-2, Column A, Line 5, Total $ 4,988

Other Reductions

STATEMENT 8

Freight $ 171

Form 1125-A, Line 5 Total $ 171

Other Costs

40