Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. See separate instructions.

Transcription

1 Form 1120S U.S. Income Tax Return for an S Corporation OMB No Department of the Treasury Internal Revenue Service For calendar year 2008 or tax year beginning Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. See separate instructions., ending A S election effective date Name D Employer identification number 1/1/2008 Use TRADER S-CORP IRS B Business activity code Number, street, and room or suite no. If a P.O. box, see instructions. E Date incorporated label. number (see instructions) Otherwise, City or town State ZIP code F Total assets (see instructions) 1234 TRADER LANE 1/1/ print or C Check if Sch. M-3 type. attached $ DALLAS TX G Is the corporation electing to be an S corporation beginning with this tax year? X Yes No If "Yes," attach Form 2553 if not already filed H Check if: (1) Final return (2) Name change (3) Address change (4) Amended return (5) S election termination or revocation I Enter the number of shareholders who were shareholders during any part of the tax year Caution. Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information. 1a Gross receipts or sales b Less returns and allowances c Bal 1c 2 Cost of goods sold (Schedule A, line 8) Gross profit. Subtract line 2 from line 1c Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (see instructions attach statement) Total income (loss). Add lines 3 through Compensation of officers Salaries and wages (less employment credits) Repairs and maintenance Bad debts Rents Taxes and licenses Interest Depreciation not claimed on Schedule A or elsewhere on return (attach Form 4562) Depletion (Do not deduct oil and gas depletion.) Advertising Pension, profit-sharing, etc., plans Employee benefit programs Other deductions (attach statement) Total deductions. Add lines 7 through Ordinary business income (loss). Subtract line 20 from line Income Tax and Payments Deductions (see instructions for limitations) 22a Excess net passive income or LIFO recapture tax (see instructions) 22a b Tax from Schedule D (Form 1120S) b c Add lines 22a and 22b (see instructions for additional taxes) c 23a 2008 estimated tax payments and 2007 overpayment credited to a b Tax deposited with Form b c Credit for federal tax paid on fuels (attach Form 4136) c d Add lines 23a through 23c d 24 Estimated tax penalty (see instructions). Check if Form 2220 is attached Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid Enter amount from line 26 Credited to 2009 estimated tax Refunded 27 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 taxpayer) is based on all information of which preparer has any knowledge. May the IRS discuss this return Sign Here PRESIDENT with the preparer shown below (see instructions)? X Yes No Signature of officer Date Title Preparer's Date Check if self- Preparer's SSN or PTIN Paid signature 3/15/2009 employed P Preparer's Firm's name (or GREGORY L BUHROW CPA PC EIN Use Only yours if self-employed), 2355 GUS THOMASSON ROAD Phone no. (214) address, and ZIP code DALLAS State TX ZIP code For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 1120S (2008) (HTA)

2 Form 1120S (2008) TRADER S-CORP Page 2 Schedule A Cost of Goods Sold (see instructions) 1 Inventory at beginning of year Purchases Cost of labor Additional section 263A costs (attach statement) Other costs (attach statement) Total. Add lines 1 through Inventory at end of year Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line a Check all methods used for valuing closing inventory: (i) Cost as described in Regulations section (ii) Lower of cost or market as described in Regulations section (iii) Other (Specify method used and attach explanation.) b Check if there was a writedown of subnormal goods as described in Regulations section (c) c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO d e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? Yes No f 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 (see instructions) Yes No 1 Check accounting method: a X Cash b Accrual c Other (specify) 2 See the instructions and enter the: a Business activity TRADER IN SECURITIES b Product or service SECURITIES TRADING 3 At the end of the tax year, did the corporation own, directly or indirectly, 50% or more of the voting stock of a domestic corporation? (For rules of attribution, see section 267(c).) If "Yes," attach a statement showing: (a) name and employer identification number (EIN), (b) percentage owned, and (c) if 100% owned, was a QSub election made? X 4 Has this corporation filed, or is it required to file, a return under section 6111 to provide information on any reportable transaction? X 5 Check this box if the corporation issued publicly offered debt instruments with original issue discount If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 6 If the corporation: (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to its basis (or the basis of any other property) in the hands of a C corporation and (b) has net unrealized built-in gain (defined in section 1374(d)(1)) in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years $ 7 Enter the accumulated earnings and profits of the corporation at the end of the tax year. $ 8 Are the corporation's total receipts (see instructions) for the tax year and its total assets at the end of the tax year less than $250,000? If "Yes," the corporation is not required to complete Schedules L and M X Schedule K Shareholders' Pro Rata Share Items Total amount 1 Ordinary business income (loss) (page 1, line 21) Income (Loss) 2 Net rental real estate income (loss) (attach Form 8825) a Other gross rental income (loss) a b Expenses from other rental activities (attach statement)..... c Other net rental income (loss). Subtract line 3b from line 3a Interest income Dividends: a Ordinary dividends a b Qualified dividends b 6 Royalties Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) ,685 8a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) a b Collectibles (28%) gain (loss) c Unrecaptured section 1250 gain (attach statement) Net section 1231 gain (loss) (attach Form 4797) Other income (loss) (see instructions) Type 10 3b 8b 8c 3c Form 1120S (2008)

3 Form 1120S (2008) TRADER S-CORP Page 3 Deductions Credits Foreign Transactions Alternative Minimum Tax (AMT) Items Other Information Shareholders' Pro Rata Share Items (continued) Total amount 11 Section 179 deduction (attach Form 4562) a Contributions a b Investment interest expense b c Section 59(e)(2) expenditures (1) Type (2) Amount 12c(2) d Other deductions (see instructions) Type See Attached Statement 12d 1,751 13a Low-income housing credit (section 42(j)(5)) a b Low-income housing credit (other) b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) c d Other rental real estate credits (see instructions).. Type 13d e Other rental credits (see instructions) Type 13e f Alcohol and cellulosic biofuel fuels credit (attach Form 6478) f g Other credits (see instructions) Type 13g 14a Name of country or U.S. possession b Gross income from all sources b c Gross income sourced at shareholder level c Foreign gross income sourced at corporate level d Passive category d e General category e f Other (attach statement) f Deductions allocated and apportioned at shareholder level g Interest expense g h Other h Deductions allocated and apportioned at corporate level to foreign source income i Passive category i j General category j k Other (attach statement) k Other information l Total foreign taxes (check one): Paid Accrued l m Reduction in taxes available for credit (attach statement) m n Other foreign tax information (attach statement) 15a Post-1986 depreciation adjustment a b Adjusted gain or loss b c Depletion (other than oil and gas) c d Oil, gas, and geothermal properties gross income d e Oil, gas, and geothermal properties deductions e f Other AMT items (attach statement) f 16a Tax-exempt interest income a b Other tax-exempt income b c Nondeductible expenses c d Property distributions d e Repayment of loans from shareholders e 17a Investment income a b Investment expenses b c Dividend distributions paid from accumulated earnings and profits c d Other items and amounts (attach statement) 18 Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14l ,934 Form 1120S (2008)

4 Form 1120S (2008) TRADER S-CORP Page 4 Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash a Trade notes and accounts receivable..... b Less allowance for bad debts Inventories U.S. government obligations Tax-exempt securities (see instructions)... 6 Other current assets (attach statement) Loans to shareholders Mortgage and real estate loans Other investments (attach statement) a Buildings and other depreciable assets.... b Less accumulated depreciation a Depletable assets b Less accumulated depletion Land (net of any amortization) a Intangible assets (amortizable only)..... b Less accumulated amortization Other assets (attach statement) Total assets Liabilities and Shareholders' Equity 16 Accounts payable Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) Loans from shareholders Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) Capital stock Additional paid-in capital Retained earnings Adjustments to shareholders' equity (attach statement).. 26 Less cost of treasury stock Total liabilities and shareholders' equity.... Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more see instructions 1 Net income (loss) per books Income recorded on books this year not included 2 Income included on Schedule K, lines 1, 2, 3c, 4, on Schedule K, lines 1 through 10 (itemize): 5a, 6, 7, 8a, 9, and 10, not recorded on books this a Tax-exempt interest $ year (itemize): 3 Expenses recorded on books this year not 6 Deductions included on Schedule K, lines included on Schedule K, lines 1 through 12 1 through 12 and 14l, not charged and 14l (itemize): against book income this year (itemize): a Depreciation $ a Depreciation $ b Travel and entertainment $ 7 Add lines 5 and Add lines 1 through Income (loss) (Schedule K, line 18). Line 4 less line 7. Analysis of Accumulated Adjustments Account, Other Adjustments Account, and Schedule M-2 Shareholders' Undistributed Taxable Income Previously Taxed (see instructions) (a) Accumulated (b) Other adjustments (c) Shareholders' undistributed adjustments account account taxable income previously taxed 1 Balance at beginning of tax year Ordinary income from page 1, line Other additions ,685 4 Loss from page 1, line Other reductions ,751 6 Combine lines 1 through ,934 7 Distributions other than dividend distributions.. 8 Balance at end of tax year. Subtract line 7 from line ,934 Form 1120S (2008)

5 Schedule K-1 (Form 1120S) Department of the Treasury Internal Revenue Service Shareholder's Share of Income, Deductions, Credits, etc. Part I Final K-1 Amended K-1 OMB No Part III Shareholder's Share of Current Year Income, Deductions, Credits, and Other Items For calendar year 2008, or tax 1 Ordinary business income (loss) 13 Credits year beginning, 2008 ending, 20 2 Net rental real estate income (loss) See back of form and separate instructions. Information About the Corporation 3 Other net rental income (loss) 4 Interest income A Corporation's employer identification number 5a Ordinary dividends B Corporation's name, address, city, state, and ZIP code 5b Qualified dividends 14 Foreign transactions TRADER S-CORP 6 Royalties 1234 TRADER LANE 7 Net short-term capital gain (loss) DALLAS TX ,685 C IRS Center where corporation filed return 8a Net long-term capital gain (loss) OGDEN, UT Part II Information About the Shareholder 8b Collectibles (28%) gain (loss) D Shareholder's identifying number Shareholder: 1 8c Unrecaptured section 1250 gain E Shareholder's name, address, city, state, and ZIP code 9 Net section 1231 gain (loss) MIKE TAXPAYER 10 Other income (loss) 15 Alternative minimum tax (AMT) items 1234 TRADER LANE DALLAS, TX F Shareholder's percentage of stock ownership for tax year % 11 Section 179 deduction 16 Items affecting shareholder basis 12 Other deductions S* 1,751 For IRS Use Only 17 Other information * See attached statement for additional information. For Paperwork Reduction Act Notice, see Instructions for Form 1120S. Schedule K-1 (Form 1120S) 2008 (HTA)

6 Capital Gains and Losses and Built-In Gains SCHEDULE D OMB No (Form 1120S) Attach to Form 1120S. See separate instructions. Department of the Treasury Internal Revenue Service Name Employer identification number TRADER S-CORP Part I Short-Term Capital Gains and Losses Assets Held One Year or Less (a) Description of property (Example: 100 shares of Z Co.) (b) Date acquired (mo., day, yr.) (c) Date sold (mo., day, yr.) (d) Sales price (e) Cost or other basis (see instructions) (f) Gain or (loss) (Subtract (e) from (d)) 1 SEE CONTINUATION 41,935 26,250 15,685 2 Short-term capital gain from installment sales from Form 6252, line 26 or Short-term capital gain or (loss) from like-kind exchanges from Form Combine lines 1 through 3 in column (f) ,685 5 Tax on short-term capital gain included on line 21 below Net short-term capital gain or (loss). Combine lines 4 and 5. Enter here and on Form 1120S, Schedule K, line 7 or ,685 Part II Long-Term Capital Gains and Losses Assets Held More Than One Year 7 (a) Description of property (Example: 100 shares of Z Co.) (b) Date acquired (mo., day, yr.) (c) Date sold (mo., day, yr.) (d) Sales price (e) Cost or other basis (see instructions) (f) Gain or (loss) (Subtract (e) from (d)) 8 Long-term capital gain from installment sales from Form 6252, line 26 or Long-term capital gain or (loss) from like-kind exchanges from Form Capital gain distributions Combine lines 7 through 10 in column (f) Tax on long-term capital gain included on line 21 below Net long-term capital gain or (loss). Combine lines 11 and 12. Enter here and on Form 1120S, Schedule K, line 8a or Part III Built-In Gains Tax (See instructions before completing this part.) 14 Excess of recognized built-in gains over recognized built-in losses (attach computation schedule) Taxable income (attach computation schedule) Net recognized built-in gain. Enter the smallest of line 14, line 15, or line 6 of Schedule B Section 1374(b)(2) deduction Subtract line 17 from line 16. If zero or less, enter -0- here and on line Enter 35% of line Section 1374(b)(3) business credit and minimum tax credit carryforwards from C corporation years Tax. Subtract line 20 from line 19 (if zero or less, enter -0-). Enter here and on Form 1120S, page 1, line 22b For Paperwork Reduction Act Notice, see the Instructions for Form 1120S. Schedule D (Form 1120S) 2008 (HTA)

7 Schedule D (Form 1120S) 2008 Name Employer idendtification number INVESTOR S-CORP Continuation of Part I Short-Term Capital Gains and Losses - Assets Held One Year or Less (a) Description of property (Example: 100 sh. XYZ Co.) (b) Date acquired (Mo., day, yr.) (c) Date sold (Mo., day, yr.) (d) Sales price (see instructions) (e) Cost or other basis (see instructions) (f) Gain or (loss) Subtract (e) from (d) 1 3 APPLE CALLS 11/21/2008 1/0/1900 3,840 EXPIRED 3,840 3 APPLE CALLS 12/19/2008 1/0/1900 1,470 EXPIRED 1,470 5 WALMART CALLS 11/21/2008 1/0/1900 1,120 EXPIRED 1,120 5 WALMART CALLS 12/19/2008 1/0/ EXPIRED WALMART 10/10/ /19/ ,500 24,375 3,125 5 RESEARCH IN MOTION CALLS 11/21/2008 1/0/1900 2,700 EXPIRED 2,700 5 RESEARCH IN MOTION CALLS 12/19/2008 1/0/1900 2,850 EXPIRED 2,850 5 RESEARCH IN MOTION PUTS 11/21/ /18/2008 1,480 1, Total ,685

8 TRADER S-CORP Line 12d, Sch K (Form 1120S) - Other Deductions S Code S - Other deductions INVESTMENT ADVISORY NEWSLETTER 600 ONLINE DATA ACCESS 480 DEPRECIATION 671 Total Code S - Other deductions S 1,751 Total other deductions d 1,751

9 Form Department of the Treasury Internal Revenue Service 1040 U.S. Individual Income Tax Return (99) IRS Use Only Do not write or staple in this space. For the year Jan. 1 Dec. 31, 2008, or other tax year beginning, ending OMB No Label Your first name M.I. Last name Suffix Your social security number L (See A MIKE TAXPAYER instructions B on page 14.) If a joint return, spouse's first name M.I. Last name Suffix Spouse's social security number Use the IRS MARTHA TAXPAYER label. H Home address (number and street). If you have a P.O. box, see page 14. Apt. no. You must enter Otherwise, E please print 1234 TRADER LANE your SSN(s) above. R or type. E City, town or post office, state, and ZIP code. If you have a foreign address, see page 14. Checking a box below will not Presidential DALLAS TX change your tax or refund. Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund (see page 14) You Spouse 1 Single 4 Head of household (with qualifying person). (See page 15.) Filing Status 2 X Married filing jointly (even if only one had income) If the qualifying person is a child but not your dependent, enter this child's name here. 3 Married filing separately. Enter spouse's SSN above and full name here. Check only First name Last name SSN one box. First name Last name 5 Qualifying widow(er) with dependent child (see page 16) Exemptions Boxes checked 6a X Yourself. If someone can claim you as a dependent, do not check box 6a on 6a and 6b b X Spouse } No. of children 2 on 6c who: c Dependents: (3) Dependent's (4) if qualifying (2) Dependent's lived with you 2 Enter Dependents on "Ln 6c - Dependents" tab below. relationship to child for child tax social security number did not live with (1) First name Last name you credit (see page 17) you due to divorce If more than four JOSHUA TAXPAYER SON or separation dependents, see ELLEN TAXPAYER DAUGHTER (see page 18) Dependents on 6c page 17. not entered above d Total number of exemptions claimed Add numbers on lines above 4 Income 7 Wages, salaries, tips, etc. Attach Form(s) W ,000 Attach Form(s) 8a Taxable interest. Attach Schedule B if required a W-2 here. Also b Tax-exempt interest. Do not include on line 8a b attach Forms 9a Ordinary dividends. Attach Schedule B if required a W-2G and b Qualified dividends (see page 21) b 1099-R if tax 10 Taxable refunds, credits, or offsets of state and local income taxes (see page 22) was withheld. 11 Alimony received Business income or (loss). Attach Schedule C or C-EZ If you did not get a W-2, see page Capital gain or (loss). Attach Schedule D if required. If not required, check here 13 15, Other gains or (losses). Attach Form a IRA distributions a b Taxable amount (see page 23) 15b 16a Pensions and annuities a b Taxable amount (see page 24) 16b Enclose, but do 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E not attach, any 18 Farm income or (loss). Attach Schedule F payment. Also, 19 Unemployment compensation please use 20a Social security benefits a b Taxable amount (see page 26) 20b Form 1040-V. 21 Other income. List type and amount (see page 28) Add the amounts in the far right column for lines 7 through 21. This is your total income , Educator expenses (see page 28) Adjusted Gross Income E L 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ Health savings account deduction. Attach Form Moving expenses. Attach Form One-half of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction (see page 29) Penalty on early withdrawal of savings a Alimony paid b Recipient's SSN 31a 32 IRA deduction (see page 30) Student loan interest deduction (see page 33) Tuition and fees deduction. Attach Form Domestic production activities deduction. Attach Form Add lines 23 through 31a and 32 through Subtract line 36 from line 22. This is your adjusted gross income ,685 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 88. Form 1040 (2008) (HTA)

10 Form 1040 (2008) MIKE and MARTHA TAXPAYER Page 2 Tax 38 Amount from line 37 (adjusted gross income) ,685 and 39a Check You were born before January 2, 1944, Blind. Total boxes Credits if: { Spouse was born before January 2, 1944, Blind. } checked 39a Standard Deduction b If your spouse itemizes on a separate return or you were a dual-status alien, see page 34 and check here b for c Check if standard deduction includes real estate taxes or disaster loss (see page 34) c 40 Itemized deductions (from Schedule A) or your standard deduction (see left margin) , Subtract line 40 from line , If line 38 is over $119,975, or you provided housing to a Midwestern displaced individual, see page 36. Otherwise, multiply $3,500 by the total number of exemptions claimed on line 6d , Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter , Tax (see page 36). Check if any tax is from: a Form(s) 8814 b Form ,236 People who checked any box on line 39a, 39b, or 39c or who can be claimed as a dependent, see page Alternative minimum tax (see page 39). Attach Form All others: 46 Add lines 44 and , Foreign tax credit. Attach Form 1116 if required Credit for child and dependent care expenses. Attach Form Credit for the elderly or the disabled. Attach Schedule R Single or Married filing separately, $5,450 Married filing jointly or Qualifying widow(er), $10,900 Head of household, $8, Education credits. Attach Form Retirement savings contributions credit. Attach Form Child tax credit (see page 42). Attach Form 8901 if required Credits from Form: a 8396 b 8839 c Other credits from Form: a 3800 b 8801 c Add lines 47 through 54. These are your total credits Tax is calculated from the Capital Gain Tax Worksheet 56 Subtract line 55 from line 46. If line 55 is more than line 46, enter , Self-employment tax. Attach Schedule SE Unreported social security and Medicare tax from Form: a 4137 b Other Taxes 59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required Additional taxes: a AEIC payments b Household employment taxes. Attach Schedule H Add lines 56 through 60. This is your total tax ,236 Payments 62 Federal income tax withheld from Forms W-2 and , estimated tax payments and amount applied from 2007 return If you have a 64a Earned income credit (EIC) a qualifying b Nontaxable combat pay election b child, attach 65 Excess social security and tier 1 RRTA tax withheld (see page 61) Schedule EIC. 66 Additional child tax credit. Attach Form Amount paid with request for extension to file (see page 61) Credits from Form: a 2439 b 4136 c 8801 d First-time homebuyer credit. Attach Form Recovery rebate credit (see worksheet on pages 62 and 63) Add lines 62 through 70. These are your total payments , If line 71 is more than line 61, subtract line 61 from line 71. This is the amount you overpaid ,764 Refund 73a Amount of line 72 you want refunded to you. If Form 8888 is attached, check here a 6,764 Direct deposit? b Routing number XXXXXXXXX c Type: Checking Savings If e-filing, enter See page 63 Routing & Account and fill in 73b, d Account number XXXXXXXXXXXXXXXXX numbers on Form 73c, and 73d, E-File Info. or Form Amount of line 72 you want applied to your 2009 estimated tax Amount 75 Amount you owe. Subtract line 71 from line 61. For details on how to pay, see page You Owe 76 Estimated tax penalty (see page 65) Third Party Designee Sign Here Joint return? See page 15. Keep a copy for your records. Paid Preparer's Use Only Do you want to allow another person to discuss this return with the IRS (see page 66)? X Yes. Complete the following. No Designee's name PREPARER Phone no. Personal identification number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Daytime phone number INVESTOR Spouse's signature. If a joint return, both must sign. Date Spouse's occupation MANAGEMENT Preparer's Date Preparer's SSN or PTIN Check if signature 10/1/2009 self-employed P Firm's name (or GREGORY L BUHROW, CPA, PC EIN yours if self-employed), 2355 GUS THOMASSON ROAD Phone no. (214) address, and ZIP code DALLAS State TX ZIP code Form 1040 (2008)

11 SCHEDULE A Schedule A Itemized Deductions OMB No (Form 1040) Department of the Treasury Internal Revenue Service (99) Attach to Form See Instructions for Schedule A (Form 1040). Name(s) shown on Form 1040 Attachment Sequence No. 07 Your social security number MIKE and MARTHA TAXPAYER Medical Caution. Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see page A-1) and 2 Enter amount from Form 1040, line ,685 Dental 3 Multiply line 2 by 7.5% (.075) ,676 Expenses 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter Taxes You 5 State and local (check only one box): Paid a Income taxes, or ,349 (See b X General sales taxes page A-2.) 6 Real estate taxes (see page A-5) ,000 7 Personal property taxes Other taxes. List type and amount $ $ 8 9 Add lines 5 through ,349 Interest 10 Home mortgage interest and points reported to you on Form ,000 You Paid 11 Home mortgage interest not reported to you on Form If paid (See page A-5.) to the person from whom you bought the home, see page A-6 and show that person's name, identifying no., and address Name Address Note. TIN 11 Personal interest is not deductible. 12 Points not reported to you on Form See page A-6 for special rules Qualified mortgage insurance premiums (see page A-6) Investment interest. Attach Form 4952 if required. (See page A-6.) Add lines 10 through ,000 Gifts to 16 Gifts by cash or check. If you made any gift of $250 or Charity more, see page A ,500 If you made a gift and got a benefit for it, see page A Other than by cash or check. If any gift of $250 or more, see page A-8. You must attach Form 8283 if over $ Carryover from prior year Add lines 16 through ,500 Casualty and Theft Losses 20 Casualty or theft loss(es). Attach Form (See page A-8.) Job Expenses 21 Unreimbursed employee expenses job travel, union and Certain dues, job education, etc. Attach Form 2106 Miscellaneous or 2106-EZ if required. (See page A-9.) Deductions $ $ Tax preparation fees (See 23 Other expenses investment, safe deposit box, etc. List page A-9.) type and amount $ $ SEE ATTACHED STATEMENT $ 1, , Add lines 21 through , Enter amount from Form 1040, line , Multiply line 25 by 2% (.02) , Subtract line 26 from line 24. If line 26 is more than line 24, enter Other 28 Other from list on page A-10. List type and amount Miscellaneous $ Deductions $ 28 Total 29 Is Form 1040, line 38, over $159,950 (over $79,975 if married filing separately)? Itemized X No. Your deduction is not limited. Add the amounts in the far right column Deductions for lines 4 through 28. Also, enter this amount on Form 1040, line ,086 Yes. Your deduction may be limited. See page A-10 for the amount to enter. 30 If you elect to itemize deductions even though they are less than your standard deduction, check here For Paperwork Reduction Act Notice, see Form 1040 instructions. Schedule A (Form 1040) 2008 (HTA)

12 SCHEDULE D OMB No Capital Gains and Losses (Form 1040) Attach to Form 1040 or Form 1040NR. See Instructions for Schedule D (Form 1040). Department of the Treasury Attachment Internal Revenue Service (99) Use Schedule D-1 to list additional transactions for lines 1 and 8. Sequence No. 12 Name(s) shown on return Your social security number MIKE and MARTHA TAXPAYER Part I Short-Term Capital Gains and Losses Assets Held One Year or Less 1 (a) Description of property (Example: 100 sh. XYZ Co.) (b) Date acquired (Mo., day, yr.) (c) Date sold (Mo., day, yr.) (d) Sales price (see page D-7 of the instructions) (e) Cost or other basis (see page D-7 of the instructions) (f) Gain or (loss) Subtract (e) from (d) 2 Enter your short-term totals, if any, from Schedule D-1, line Total short-term sales price amounts. Add lines 1 and 2 in column (d) Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet on page D-7 of the instructions Net short-term capital gain or (loss). Combine lines 1 through 6 in column (f) Part II Long-Term Capital Gains and Losses Assets Held More Than One Year 8 (a) Description of property (Example: 100 sh. XYZ Co.) (b) Date acquired (Mo., day, yr.) (c) Date sold (Mo., day, yr.) (d) Sales price (see page D-7 of the instructions) (e) Cost or other basis (see page D-7 of the instructions) (f) Gain or (loss) Subtract (e) from (d) 9 Enter your long-term totals, if any, from Schedule D-1, line Total long-term sales price amounts. Add lines 8 and 9 in column (d) 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 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K ,685 Enter Capital Gain Distributions on Dividends Worksheet. 13 Capital gain distributions. See page D-2 of the instructions Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet on page D-7 of the instructions Net long-term capital gain or (loss). Combine lines 8 through 14 in column (f). Then go to Part III on the back ,685 For Paperwork Reduction Act Notice, see Form 1040 or Form 1040NR instructions. Schedule D (Form 1040) 2008 (HTA)

13 Schedule D (Form 1040) 2008 MIKE and MARTHA TAXPAYER Page 2 Part III Summary 16 Combine lines 7 and 15 and enter the result ,685 If line 16 is: A gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below. A loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. Zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line Are lines 15 and 16 both gains? X Yes. Go to line 18. No. Skip lines 18 through 21, and go to line Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet on page D-8 of the instructions Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet on page D-9 of the instructions Are lines 18 and 19 both zero or blank? X Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete the Qualified Dividends and Capital Gain Tax Worksheet on page 38 of the Instructions for Form 1040 (or in the Instructions for Form 1040NR). Do not complete lines 21 and 22 below. No. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete the Schedule D Tax Worksheet on page D-10 of the instructions. Do not complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of: The loss on line 16 or ($3,000), or if married filing separately, ($1,500) Note. When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b? Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete the Qualified Dividends and Capital Gain Tax Worksheet on page 38 of the Instructions for Form 1040 (or in the Instructions for Form 1040NR). No. Complete the rest of Form 1040 or Form 1040NR. Schedule D (Form 1040) 2008

14 Schedule E (Form 1040) 2008 Attachment Sequence No. 13 Page 2 Name(s) shown on return. Do not enter name and social security number if shown on other side. Your social security number MIKE and MARTHA TAXPAYER Caution. The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. Part 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 See page E Are you reporting any loss not allowed in a prior year due to the at-risk 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? Yes X No If you answered "Yes," see page E-7 before completing this section. 28 (a) Name (b) Enter P for partnership; S for S corporation (c) Check if foreign partnership (d) Employer identification number A INVESTOR S-CORP S B C D Passive Income and Loss Nonpassive Income and Loss (e) Check if any amount is not at risk (f) Passive loss allowed (g) Passive income (h) Nonpassive loss (i) Section 179 expense (j) Nonpassive income (attach Form 8582 if required) from Schedule K 1 from Schedule K 1 deduction from Form 4562 from Schedule K 1 A B C D 29 a Totals b Totals 30 Add columns (g) and (j) of line 29a Add columns (f), (h), and (i) of line 29b ( ) 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 Part III Income or Loss From Estates and Trusts 33 (a) Name A B Passive Income and Loss (b) Employer identification number 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 34 a Totals b Totals 35 Add columns (d) and (f) of line 34a Add columns (c) and (e) of line 34b ( ) 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 Part IV Income or Loss From Real Estate Mortgage Investment Conduits (REMICs) Residual Holder 38 (a) Name (b) Employer identification number (c) Excess inclusion from Schedules Q, line 2c (see page E-7) (d) Taxable income (net loss) from Schedules Q, line 1b 39 Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below 39 Part V Summary 40 Net farm rental income or (loss) from Form Also, complete line 42 below 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 Reconciliation of farming 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 T; and Schedule K-1 (Form 1041), line 14, code F (see page E-8) Reconciliation for real estate professionals. If you were a real estate professional (see page E-2), enter the net income or (loss) you reported anywhere on Form 1040 or Form 1040NR from all rental real estate activities in which you materially participated under the passive activity loss rules (e) Income from Schedules Q, line 3b (HTA) Schedule E (Form 1040) 2008

15 MIKE and MARTHA TAXPAYER Line 23 (Sch A (1040)) - Other Expenses (subject to 2% limitation) Check ("X") if Investment Expense 1 From K1 Input Worksheet (1120S) - Other deductions 1 1,751 2 Total for other expenses. Enter on Sch A, line ,751 3 Total investment expenses (checked from above) 3 4 Enter the smaller of line 3 and Sch A, line 27. Enter on Form 4952, line 5 4