March 24, 2015
Matthew K. Simon
1940 N. Dayton Street
Chicago, IL, 60614
Dear Member:
Attached is your copy of the 2014 federal and state schedules K-1. These schedules summarize your information
from the partnership. Please review the schedules carefully as it pertains to name, address, FEIN, and entity type.
These items have been completed based upon information provided previously by you and, if any such information
requires updating or is incorrect, we ask that you please contact us immediately to make the appropriate changes.
This information will be provided to the Internal Revenue Service and the Illinois Department of Revenue with the
respective tax returns.
The enclosed schedules K-1 and supporting schedule are not intended to and do not provide tax advice, nor can tax
advice be provided by the Managing Member of the Fund. Therefore, before you prepare and file your 2014 federal
and state income tax returns, we strongly recommend that you consult your tax advisor.
Ascendance Capital Partners I, LLC
200 West Madison Street, Suite 3200
Chicago, IL 60606
I.D. 20-5800862
Partner # 5
651113
2014
Schedule K-1
(Form 1065)
Department of the Treasury
Internal Revenue Service
For calendar year 2014, or tax
year beginning
, 20
Partner’s Share of Income, Deductions,
a See back of form and separate instructions.
Credits, etc.
A
Information About the Partnership
1
Ordinary business income (loss)
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
15
Credits
16
Foreign transactions
17
Alternative minimum tax (AMT) items
18
Tax-exempt income and
nondeductible expenses
19
Distributions
76,316
3
Partnership’s name, address, city, state, and ZIP code
Ascendance Capital Partners I, LLC
200 West Madison Street, Suite 3200
Chicago, IL 60606
C
Part III Partner’s Share of Current Year Income,
Deductions, Credits, and Other Items
Partnership’s employer identification number
20-5800862
B
OMB No. 1545-0123
Amended K-1
, 2014
ending
Part I
Final K-1
IRS Center where partnership filed return
7
Royalties
8
Net short-term capital gain (loss)
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 (loss)
12
Section 179 deduction
13
Other deductions
Ogden, UT
Check if this is a publicly traded partnership (PTP)
D
Part II
Partner’s identifying number
358-78-1830
F
Partner’s name, address, city, state, and ZIP code
Matthew K. Simon
1940 N. Dayton Street
Chicago, IL 60614
G
General partner or LLC
member-manager
H
Domestic partner
✖
Limited partner or other LLC
member
Foreign partner
Individual
I1
What type of entity is this partner?
I2
If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here
. . . . . . . . . . . . . . . . . .
J
Partner’s share of profit, loss, and capital (see instructions):
Beginning
Ending
6.570000 %
6.570000 %
6.570000 %
Profit
Loss
Capital
K
6.623323 %
6.623323 %
6.570000 %
.
.
$
Qualified nonrecourse financing
.
$
Recourse
.
$
.
$
Current year increase (decrease)
.
$
Withdrawals & distributions
.
.
$ (
.
.
$
.
.
.
.
.
.
.
.
.
.
44,135
507,826
.
Capital contributed during the year
Ending capital account .
✖
Tax basis
.
GAAP
Other information
A
3
V
37,609
Y
SEE ATTACHMENT
Self-employment earnings (loss)
555,957
$
76,319
65,708 )
566,568
Section 704(b) book
Other (explain)
M
14
65,708
*See attached statement for additional information.
Partner’s capital account analysis:
Beginning capital account .
A
20
Partner’s share of liabilities at year end:
Nonrecourse
L
.
For IRS Use Only
E
Information About the Partner
Did the partner contribute property with a built-in gain or loss?
✖ No
Yes
If “Yes,” attach statement (see instructions)
For Paperwork Reduction Act Notice, see Instructions for Form 1065.
IRS.gov/form1065
Cat. No. 11394R
Schedule K-1 (Form 1065) 2014
Partner # 5
Schedule K-1 (Form 1065) 2014
Page
2
This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040.
For detailed reporting and filing information, see the separate Partner’s Instructions for Schedule K-1 and the instructions for your income tax return.
1. Ordinary business income (loss). Determine whether the income (loss) is
passive or nonpassive and enter on your return as follows.
Report on
See the Partner’s Instructions
Passive loss
Passive income
Schedule E, line 28, column (g)
Nonpassive loss
Schedule E, line 28, column (h)
Nonpassive income
Schedule E, line 28, column (j)
2. Net rental real estate income (loss) See the Partner’s Instructions
3. Other net rental income (loss)
Net income
Schedule E, line 28, column (g)
Net loss
See the Partner’s Instructions
4. Guaranteed payments
Schedule E, line 28, column (j)
5. Interest income
Form 1040, line 8a
6a. Ordinary dividends
Form 1040, line 9a
6b. Qualified dividends
Form 1040, line 9b
Schedule E, line 4
7. Royalties
8. Net short-term capital gain (loss)
Schedule D, line 5
Schedule D, line 12
9a. Net long-term capital gain (loss)
9b. Collectibles (28%) gain (loss)
28% Rate Gain Worksheet, line 4
(Schedule D instructions)
9c. Unrecaptured section 1250 gain
See the Partner’s Instructions
10. Net section 1231 gain (loss)
See the Partner’s Instructions
11. Other income (loss)
Code
A Other portfolio income (loss)
See the Partner’s Instructions
B Involuntary conversions
See the Partner’s Instructions
C Sec. 1256 contracts & straddles
Form 6781, line 1
D Mining exploration costs recapture See Pub. 535
E Cancellation of debt
Form 1040, line 21 or Form 982
F Other income (loss)
See the Partner’s Instructions
12. Section 179 deduction
See the Partner’s Instructions
13. Other deductions
A Cash contributions (50%)
B Cash contributions (30%)
C Noncash contributions (50%)
D Noncash contributions (30%)
See the Partner’s
E Capital gain property to a 50%
Instructions
organization (30%)
F Capital gain property (20%)
G Contributions (100%)
H Investment interest expense
Form 4952, line 1
I Deductions—royalty income
Schedule E, line 19
J Section 59(e)(2) expenditures
See the Partner’s Instructions
K Deductions—portfolio (2% floor)
Schedule A, line 23
L Deductions—portfolio (other)
Schedule A, line 28
M Amounts paid for medical insurance Schedule A, line 1 or Form 1040, line 29
N Educational assistance benefits
See the Partner’s Instructions
O Dependent care benefits
Form 2441, line 12
P Preproductive period expenses
See the Partner’s Instructions
Q Commercial revitalization deduction
See Form 8582 instructions
from rental real estate activities
R Pensions and IRAs
See the Partner’s Instructions
S Reforestation expense deduction
See the Partner’s Instructions
T Domestic production activities
information
See Form 8903 instructions
U Qualified production activities income Form 8903, line 7b
V Employer’s Form W-2 wages
Form 8903, line 17
W Other deductions
See the Partner’s Instructions
14. Self-employment earnings (loss)
Note. If you have a section 179 deduction or any partner-level deductions, see the
Partner’s Instructions before completing Schedule SE.
A Net earnings (loss) from
self-employment
Schedule SE, Section A or B
B Gross farming or fishing income
See the Partner’s Instructions
C Gross non-farm income
See the Partner’s Instructions
15. Credits
A Low-income housing credit
(section 42(j)(5)) from pre-2008
buildings
B Low-income housing credit
(other) from pre-2008 buildings
C Low-income housing credit
(section 42(j)(5)) from
See the Partner’s Instructions
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
H Undistributed capital gains credit
Form 1040, line 73; check box a
I Biofuel producer credit
J Work opportunity credit
See the Partner's Instructions
K Disabled access credit
}
}
}
16.
}
Report on
Code
L Empowerment zone
employment credit
M Credit for increasing research
activities
See the Partner’s Instructions
N Credit for employer social
security and Medicare taxes
O Backup withholding
P Other credits
Foreign transactions
A Name of country or U.S.
possession
B Gross income from all sources
Form 1116, Part I
C Gross income sourced at
partner level
Foreign gross income sourced at partnership level
D Passive category
E General category
Form 1116, Part I
F Other
Deductions allocated and apportioned at partner level
Form 1116, Part I
G Interest expense
H Other
Form 1116, Part I
Deductions allocated and apportioned at partnership level to foreign source
income
I Passive category
J General category
Form 1116, Part I
K Other
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
Form 8873
O Foreign trading gross receipts
P Extraterritorial income exclusion
Form 8873
Q Other foreign transactions
See the Partner’s Instructions
Alternative minimum tax (AMT) items
A Post-1986 depreciation adjustment
See the Partner’s
B Adjusted gain or loss
C Depletion (other than oil & gas)
Instructions and
D Oil, gas, & geothermal—gross income
the Instructions for
E Oil, gas, & geothermal—deductions
Form 6251
F Other AMT items
Tax-exempt income and nondeductible expenses
A Tax-exempt interest income
Form 1040, line 8b
B Other tax-exempt income
See the Partner’s Instructions
C Nondeductible expenses
See the Partner’s Instructions
Distributions
A Cash and marketable securities
B Distribution subject to section 737
See the Partner’s Instructions
C Other property
Other information
A Investment income
Form 4952, line 4a
B Investment expenses
Form 4952, line 5
Form 4136
C Fuel tax credit information
D Qualified rehabilitation expenditures
See the Partner’s Instructions
(other than rental real estate)
E Basis of energy property
See the Partner’s Instructions
F Recapture of low-income housing
Form 8611, line 8
credit (section 42(j)(5))
G Recapture of low-income housing
Form 8611, line 8
credit (other)
H Recapture of investment credit
See Form 4255
I Recapture of other credits
See the Partner’s Instructions
J Look-back interest—completed
long-term contracts
See Form 8697
K Look-back interest—income forecast
method
See Form 8866
L Dispositions of property with
section 179 deductions
M Recapture of section 179 deduction
N Interest expense for corporate
partners
O Section 453(l)(3) information
P Section 453A(c) information
Q Section 1260(b) information
R Interest allocable to production
See the Partner’s
expenditures
Instructions
S CCF nonqualified withdrawals
T Depletion information—oil and gas
U Reserved
V Unrelated business taxable income
W Precontribution gain (loss)
X Section 108(i) information
Y Net investment income
Z Other information
}
}
}
17.
18.
19.
20.
}
}
}
Partner # 5
ASCENDANCE CAPITAL PARTNERS I, LLC
20-5800862
SCH K-1 SUPPORTING SCHEDULE PARTNER #
5
Matthew K. Simon
======================================================================================================
ITEM L - RECONCILIATION OF INCOME
================================
TOTAL INCOME PER SCHEDULE K-1
76,319
------------------TOTAL INCOME PER ITEM L, CURRENT YEAR INCR(DECR)
76,319
===========
LINE 2 - NET INCOME FROM RENTAL REAL ESTATE ACTIVITIES
====================================================
FROM PARTNERSHIP
TOTAL NET INCOME FROM RENTAL REAL ESTATE ACTIVITIES
LINE 5 - INTEREST INCOME
=======================
OTHER INTEREST INCOME
--------------------------------------OTHER INTEREST INCOME
TOTAL INTEREST INCOME
LINE 20 - OTHER INFORMATION
===========================
V UNRELATED BUSINESS TAXABLE INCOME
-----------------------------------------------------------------DEBT-FINANCED PORTION OF LINE 2 RENTAL REAL ESTATE INCOME (LOSS)
TOTAL BOX V
76,316
------------------76,316
===========
3
------------------3
===========
37,609
------------------37,609
===========
Y NET INVESTMENT INCOME
-----------------------------------------------------------------ALL INFORMATION NECESSARY TO COMPUTE NET INVESTMENT INCOME IS DISCLOSED ON SCHEDULE K-1 AND THE
SCHEDULE K-1 SUPPORTING SCHEDULE. PLEASE CONSULT YOUR TAX ADVISOR FOR THE PROPER TREATMENT OF
THIS ITEM.
PARTNER FOOTNOTES
====================
PLEASE CONSULT YOUR TAX ADVISOR TO DETERMINE IF THE AMOUNT ON LINE 20V QUALIFIES FOR THE DEBTFINANCED UBTI EXCEPTION UNDER IRC SEC. 514 (c) (9).
Partner # 5
Illinois Department of Revenue
Schedule K-1-P
Partner’s or Shareholder’s Share of Income,
Deductions, Credits, and Recapture
To be completed by partnerships filing Form IL-1065 or S corporations filing Form IL-1120-ST
Partners and Shareholders receiving Schedule K-1-P should attach this to their Illinois tax return.
Year ending
12
____
2014
____
Month
Year
IL Attachment No. 12
Step 1: Identify your partnership or S corporation
1 Check your business type
✔ partnership
2 ____
0
5 ____
8 ____
0
0
8
6
2
S corporation 3 ____
- ____
____
____
____
____
Enter your federal employer identification number (FEIN).
Ascendance Capital Partners I, LLC
2 ___________________________________________________
Enter your name as shown on your Form IL-1065 or Form IL-1120-ST.
4 Enter the apportionment factor from Form IL-1065 or Form
1.000000
IL-1120-ST, Line 42. Otherwise, enter “1.” _________________
Step 2: Identify your partner or shareholder
Matthew K. Simon
358-78-1830
5 ___________________________________________________
7 _____________________________________________________
Name
Social Security number or FEIN
1940 N. Dayton Street
6 ___________________________________________________
6.623323%
8 _________________________
Mailing address
Share (%)
Chicago
IL
60614
___________________________________________________
9a Check the appropriate box. See instructions.
City
State
ZIP
✔ individual
corporation
partnership
S corporation
*433001110*
9b
trust
estate
To be completed by the recipient on Line 5 only.
I am a:
grantor trust
disregarded entity
and the amounts on this Schedule will be reported by:
Name:_______________________________________________
SSN or FEIN: ________________________________________
Step 3: Figure your partner’s or shareholder’s share of your nonbusiness income or loss
10
11
12
13
14
15
16
17
18
19
Interest
Dividends
Rental income
Patent royalties
Copyright royalties
Other royalty income
Capital gain or loss from real property
Capital gain or loss from tangible personal property
Capital gain or loss from intangible personal property
Other income and expense ____________________________
10
11
12
13
14
15
16
17
18
19
A
B
Member’s share
(See instructions.)
Member’s share
allocable to Illinois
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
Specify
Step 4:
Figure your partner’s or shareholder’s share of your business income or loss
20
21
22
23
24
25
26
27
28
29
30
Ordinary income or loss from trade or business activity
Net income or loss from rental real estate activities
Net income or loss from other rental activities
Interest
Dividends
Royalties
Net short-term capital gain or loss
Net long-term capital gain or loss. Total for year.
Unrecaptured Section 1250 gain
Guaranteed payments to partner (U.S. Form 1065 only)
Net Section 1231 gain or loss (other than casualty or theft).
Total for year.
31 Other income and expense ____________________________
A
B
Member’s share
from U.S. Schedule K-1,
less nonbusiness income
Member’s share
apportioned to Illinois
_________________________
76,316
_________________________
_________________________
3
_________________________
_________________________
76,316
_________________________
_________________________
3
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
30 _________________________
31 _________________________
_________________________
_________________________
20
21
22
23
24
25
26
27
28
29
Specify
Schedule K-1-P front (R-12/14)
Partner # 5
358-78-1830
___________________
Step 5: Figure your partner’s or shareholder’s share of Illinois additions and subtractions
Enter the partner’s or shareholder’s identification number from Line 7.
A
Member’s share apportioned or
allocated to Illinois
_________________________
_________________________
253
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
253
_________________________
_________________________
_________________________
_________________________
38a _________________________
38b _________________________
39 _________________________
40 _________________________
41 _________________________
_________________________
_________________________
_________________________
_________________________
_________________________
42 _________________________
_________________________
43
44
45
46
47
_________________________
8,791
_________________________
_________________________
_________________________
_________________________
Additions
32
33
34
35
36
37
Federally tax-exempt interest income
Illinois replacement tax and surcharge deducted
Illinois Special Depreciation addition
Related-Party Expenses addition
Distributive share of additions
Other additions (from Illinois Schedule M for businesses)
Subtractions
38 a Interest from U.S. Treasury obligations (business income)
b Interest from U.S. Treasury obligations (nonbusiness income)
39 River Edge Redevelopment Zone Dividend Subtraction
40 High Impact Business Dividend subtraction
41 Contribution subtraction (Form IL-1120-ST filers only)
42 Interest subtraction - River Edge Redevelopment Zone
(Form IL-1120-ST financial organizations only)
B
Member’s share from
Form IL-1065 or IL-1120-ST
32
33
34
35
36
37
43 Interest subtraction - High Impact Business within a Foreign
44
45
46
47
Trade Zone (Form IL-1120-ST financial organizations only)
Illinois Special Depreciation subtraction
Related-Party Expenses subtraction
Distributive share of subtractions
Other subtractions (from Illinois Schedule M for businesses)
_________________________
8,791
_________________________
_________________________
_________________________
_________________________
Step 6: Figure your partner’s or shareholder’s (except a corporate partner or shareholder)
share of your Illinois August 1, 1969, appreciation amounts
A
48
49
50
51
Section 1245 and 1250 gain
Section 1231 gain
Section 1231 gain less casualty and theft gain. See instructions.
Capital gain
48
49
50
51
B
Member’s share from Illinois
Schedule F (Form IL-1065 or IL-1120-ST)
Member’s share apportioned or
allocated to Illinois
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
Step 7: Figure your partner’s or shareholder’s share of your Illinois credits, recapture,
pass-through withholding payments and federal income subject to surcharge
Member’s or nonresident
member’s share from
Illinois tax return
Member’s or nonresident
member’s share from
Illinois tax return
52 Illinois credits
a Film Production Services Tax Credit 52a __________________
b Enterprise Zone Investment Credit 52b __________________
c River Edge Redevelopment
Zone Investment Credit
52c __________________
d Tax Credit for Affordable
Housing Donations
52d __________________
e EDGE Tax Credit
52e __________________
f Research and Development Credit 52f __________________
g Ex-Felons Jobs Credit
5 2g __________________
h Veterans Jobs Credit
52h __________________
i Student-Assistance
Contribution Credit
52i __________________
j Angel Investment Credit
52j __________________
k New Markets Credit
52k __________________
l River Edge Historic
Preservation Credit
52l __________________
m Live Theater Production Credit
52m __________________
*433002110*
n Hospital Credit
o Historic Preservation Credit
p Replacement Tax Investment
52n __________________
52o __________________
Credits. See instructions.
52p __________________
53 Recapture
a Enterprise Zone or River
Edge Redevelopment Zone
Investment Credit recapture
b Replacement Tax Investment
Credit recapture
c Angel Investment Credit recapture
54 Pass-through withholding payment
(See instructions before completing.)
55 Federal income attributable to
transactions subject to the
Compassionate Use of Medical
Cannabis Pilot Program Act Surcharge.
See instructions.
This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this
information is REQUIRED. Failure to provide this information could result in a penalty.
53a __________________
53b __________________
53c __________________
54
__________________
55
__________________
Schedule K-1-P back (R-12/14)
Partner # 5