Arizona S Corporation Income Tax Return

For the EI calendar

Business feloptrone NimEd Name
2019 tr L_-_1_J2.!-.
(with area code) CHECK ONE
49vanced Transmissions & .Emissions EI Oliginat I
Address - numhar en.t ci Amendec
Business Activity Code trmproyer tdentification Number (ElN)
(from foderal Form .1120-S)
2849 E BelL Road
Citv. i; 56-24961 32
State ZIP Code
811110 Phoenix
AZ 8s032 -
s vrree^ vv^ L A l_ I rnrs rs a rtrsr rerurn B LJName change C flAddress change **t" tiled under extens'ion
A ARIZONA apportionr nent for multistate S corporafions
I l-lato r^ADDTEb
onty (check one box): ffi ":fr"H
.a r_le
l-la+^.,^
r^r\uAr1u
^ ^^
., LlliALtss FACToR oNLy USE ONLY. DO NOT MARK IN THIS AREA.
ff check if Multistate service Provider Election and Computaflon
(Arizona schedule MSp) is
inctuded. Indicate the year of the etection cycte
. flyr t E]Vrz ElVr s EVr a EJyi s
ls this the S corporation's final Arizona return under
this EIN?,,.,...., Eyes E]tto
I
lf "Yes", check one: EDissolved 2
Ewithdrawn 3 [Merged/Ruorgunized
List EIN of the successor corporation, if any ,,..,.,,......
D Does the s corporation conduct business within '
and withoutArizona?,,.....,.. Eves Eltto 81
E Will a composite return be filed on Form 140NR?. ilyes E|ruo
F Total number of nonresident individual shareholders 0.
G Totar number of resident and part-year resident Individuar
sharehorders......,
H Total number of entity shareholders: See instructions
Nonprofit Medical Marrjuana Dlspensary (NMMD) onry:
see insirucrions.
I E NVVlO Registry ldentification Number:

Complete lines 2-12 only ifrthe S

.not gaihs, An S corporation that is
to tines'2.12'mUbt
the,reoaptu re of tax, cred its.
2 Excess net passive income ......,,,..
3
4 Total federal income subject to corporate income tax: Add
lines 2 and 3. Enter the difference.
100%Azscorporatlonscheckbox4aE,Gotolinell. Multlstatescorporaflonsrcontinuetolines,..................
5Nonapportionable or arrocabre income: Incrude schedure, -
Murustate s corporations onry,...,.......,..., ..,, , .,.,.,.,. ,.:::::::::::
o Apportionable income: subtract line 5 from line
4. Enter the difference. Muttistar€ S cornoraronc nnhr
Arizona apportionment ratio from Schedule A or Schedule
ACA
8 Income apportioned to Arizona: Line 6 murtipried
by rine 7. Murfistate s corporatrons onry .....,,.........
Iother income allocated to Arizona: Incrude schedure. Murflstate s corporations
onry ........,,....,.
10 Total income attrlbutabre to Arizona: Add rines g
and g. Enter the totar.,..,,.....,,..,.
11 Net income subject to Arizona corporate income
tax.,
100/o Arizona S corporations: Enter amount from line
4. Multistate s corporations: Enter the amount from line 10....,.,

'13 Tax from recapture of tax credits from Arizona Form 300, part
2, line 26,
14 Subtotal: Add lines i2 and 1g. Enter the total.
15 NonrefundabletaxcreditsfromArizonaForm300,part2,line4T.,.......
16 Enterformnumberforeachnonrefundablecreditclaimed: 151 L3, , tn: t3r----.r_1163 r3, , "'i,.i
..,.....,..,,.,.......,.

17 faxliability: SuUtraciline lSfrom line 14. Enterthe difference.

rS, r

29 Amount of line 28 to be applied to 2O2O estimated tax.,......,......,...

ADOR 10337 (1e) 1030

REV 11/13/17 PRO
 24967
ftionment Formula
IMPORTANT: Qualifying air carriers must use Arizona Schedule ACA.
Qualifying multistate service providers must include Arizona Schedule COLUMN A COLUMN B
Total Vy'ithin Arizona Total Everywhere
MSP, lf the "SALES FACTOR ONLy,, box on page 1, line A, is checked,
Round to nearest dollar.
complete only Section 43, Sales Factor, lines a through f. See instructions.
Al Property Factor . STANDARD AppORT|ONMENT ONLy
Value of real and tangible personal property (by averaging the value
of owned property at the beginning and end of the tax period; rented
propedy at capitalized value),
a Owned Property (al originat cost):
1 Inventories.,.
2 Depreciable assets (do not include construction in progress)
3 1and.,..,,.....,
4 Other assets (describe): ,

5 Less: Nonbusiness property (if included in above totals) .........,.,.......

6 Total of section a (the sum of lines 1 through 4 less line 5)..,.....
b Rented property (capitatize at I times nat rent paid)..,..
c Total owned and rented property (Total of section a plus section b).,.,...

A2 Payroll Factor . STANDARD APPORTTONMENT ONLy

Total wages, salaries, commissions and other compensation to
employees (per federal Form .1120S,
or payroll reports).
A3 Sales Factor
a Sales delivered or shipped to Arizona purchasers
b Sales of services for qualifying multistate service providers
only (include Schedule MSp) ..,...,.,......
c Other gross receipts
d Total sales and other gross receipts.
e Weight AZ sales: (STANDARD x 2; SALES FACTOR ONLY x 1),.....
f Sales Factor (for Column A, multiply line d by line e; for
Column B, enter the amount from line d; for Column C, divide
Column A by Column B.)
STANDARD Apportionment, continue to 44.
SALES FACTOR ONLY Apportionment, enter the amount from
Column C on page 1, line 7.
,A4 STA'NDA'RD Apportionment Total Ratio: Add Column C of lines A1c, A2, and A3f. Enter the total.
A5 Average Apportionment Ratio for STANDARD Apportionment: Divide line A4, Column C, by four (4). Enter the result
onpagel,lineT. (lfoneofthefactorsis"0"inbothColumnAandColumnB,seeinstructions.)........,.........,.....

F:tdfllliTllElll Other tnformation,

81 Date business began inArizonaordate incomewasfirstderivedfromArizonasources: r 0,110,l- t2,0,1,3 r

82 Address at which tax records are located for audit purposes:

Number/Street: ,l-305 East Hatcher Rd
City: Phaan i v
State: , A.z' .;' ', ., zlP Code: , 8 5 0 2 0
83 The taxpayer designates the individual listed below as the person to contaci to schedule an audii ofthis return and authorizes the disclosure
of
confldential information to this individual. (See instructions, page 12.)
Name: ,Kevin Reid Phone Number: l992lZt1-8467
Title: CPA (Area Code)

84 List prior taxable years ending in MM/DDI/YW format for which a federal examination has been finalizeo;

NoTE: A.R.S. S 43-327 requires the taxpayer, within ninety days after final determination, to report these changes unoer separate cover
to the
Arizona Department of Revenue or to file amended returns reporting these changes. (See instructions, page 2.)
85 Indicate tax accounting method: ffi Cash E Accrual E Otner (Specify method.)

EdCI
REV ,11/13J17 PFO
Advanced Transmissions & Emissions 56-24961 32
F{C![!li[[!liI Shareholder I nformation
complete Schedule C for all shareholders of the s corporation. lf the
S corporation has more than g shareholders, include additionat schedules as
necessarv.

(a)

Shareholder Name

Gregory Kaiser 1527 E Vitl-a Maria Dr.

Phoenix AZ 85022

lnclude additional sheets as necessary

The following declaration must be signed by one or more of the following officers: presldent,
treasurer, or any other principal ofiicer.
Under penalties of perjury' l(we), the undersigned officer(s) authorized to sign this return,
declare that l(we) have examlned this return,
including the accompanying schedules and statements, bno to the best 6f my(our) knowledge
ano'beliet, it is a true, correct and
complete return, made in good faith, for the taxable year stated pursuant to the income
tax laws of the State of Arizona.

OFFICER'S SIG DATE

TITLE

02/1.3/2020 P00838562
Reid & Reid, cPA's =-:=--.
LJAI tr PAID PREPARER'S PTIN

pAtD PREPARER'S NAME, tF SEIF€MPLC,'/ED)

86-0385879
FTRM',S NAME (OR
FIRM'S EIN
Lfse 1305 E. Hatcher (602) 31 r-8461
Only FIRM'S TELEPHONE NUMBER-
Phoenix
85020
5tA{tr ffi

Mail to: Arizona Department of Revenue, po Box 29079, phoenix, Az gbogg-g079

 Resident and Part-Year Resident
Shareholder's Information Schedule

Forthe 8 calendar year2019 or I fiscalyear beginningr t , t2,0 ' 1 ,9randendingt t ' t2,0' , t.

EGK ONEr
Shareholder's Identirylng Number S corporatlon's Employer Identiflcation Number (EIN)

37r.-80-5192 56-24961 32
Shareholder's Name S corDoratlon's Name

Crannrrr Ka i qar Advanced Transmissions & Emissions

Shareholder's Address - number and street or rural route 5 corDoration's Address - number and street or rural route

1527 E Vil-Ia Maria Dr. 2849 E BelI Road

Shareholdert City, Town or Post Offlce State zIP Code S corporation's City, Town or Post Offlce State ZIP Code

Phoenix AZ 85022 Phoenix AZ 85032

Shareholder's Dercentaqe of stock ownership for the taxable yeari 1 0 0 { ! ! ry!!6

[F Net Capital Gain (Loss) From Investment in a Qualified Small Business - Information
H schedule -.'.-..-.-- ----'.
in a qualified small
lf the shareholder's federal Schedule tci (f orm 11 ,O€) d""s not include any net capital gain (loss) from investment
business as determined by the Arizona Commerco Au the S is not required to ete Part 1

1 Net capital gain (loss) from investment in a qualifled

small business

lEFl?DI Net Capital Gain (Loss) From the Exchange.of Legal TenCgr: Informatign Schedule
|fthesharehotoer'sreoetinc|udeanynetcapita|gain(loss)fromtheexchangeof|ega|tender,
the S corporation is not required to Parl.2.

Pro Rata S-hare Items

2 Net capital gain (loss) from the exchange of legal

nq-Term Ca ation Schedule

3 through line 5 (if
lf the shareholder's federal Schedule K-1 (Form 1120-S) includes net long-term capital gain (loss), complete line
does not include any net long-term capital gain (loss), the S
applicable). lf the shareholder's federal Schedule K-1 (Form 1120-S)
Part
(b) (c)
Pro Rata Siare ltenls Distributive Share Amount Net long-term capital gain Net long-term capital gain
(loss) included in column (a) (loss) included in column (a)
Fr:om federal Form:1120"5; Schedule K-1
from assets acquired before from assets acquired after

Net long-term capital gain (loss) from investment in

a qualified small business (amount already included

5 Net long{erm capital gain (loss) from the exchange

of legal tender (amount already included in line 3'
cotumn

ADOR 11191 (19)

ro..' 1 120-S U.S. Income Tax Return for an S Corporation OMB No.
> Do not file this form unless the corporation has filed or
Depanment of the Treasury
Internal Revenue Servlce )
is attaching Form 2553 to elect to be an S corporation,
Go to www.irs,govlForm1120S for instructions and the latest information.
2@19
or calendar year 201 9 or tax
For ,2019, ,20
S election effective date Name D Employer ldentification numb€l
01"/01./2013 Advanced Transmissions & Emissions 56-24961 32
B Business activity code TYPE
Number, street, and room or sulte no, lf a P,O. box, see Instructions. E Date lncorporated
number (see instructions) OR
PRINT 2849 E Be]] Road 0L/01"/2013
11110
8 City or town, state or provlnce, country, and ZIP or foreign postal code F Total assets (see instructions)
;cnl.t.irs.l" M-sltt-..t,.ofi Hnoenlx AL 65|.J32 $ 8.485.
G ls the corporation electing to be Ln S corporation beginning with this taxyear? n yes X trto lf ,'Yes,,, attach Form 2553 if not alreadv
already fited
H Check if: (1) n Final return (2) [ Name change (3) n Address change (4) n Amended return (5) t] S election termination or revocation
|Enterthenumberofshareho|derswhowereshareho|dersduringanypar1ofthetaXyear'>
{ Check if corporation: (1) n Agglegated activities for section 465 at-risk purposes (2) fl Grouped activities tor section aog paJiive iliivity purpoJes
caution: Include only trade or business income and expenses on lines 1a throuqh 21 , see
'la Grossreceiptsorsales lt" | 1,093,799.
b Returnsandallowances llbl 10,888.
(1, c Balance, Subtract line 1b from line 'la 1c 1, 082, 900
2 Cost of goods sold (attach Form 'l2S-A) 1 2 64 r,525
3 Gross profit. Subtract line 2 from line 1c 3 44r,315
4 Net gain (loss) from Form 4797, line 17 (attach Form 47971 4
5 Other income (loss) (see instructions-attach statement) c
6 Total income (loss). Add lines 3 through S 6 44r,3'7 5
a 7 Compensation of officers (see instructions-attach Form 1125-E) 7 2L, 650
8 Salades and wages (less employment credits) - I
,

'jf
$ 9 Repairs and maintenance . 9 22,946
E .|0 Bad debts 10
.o
!)
11 Rents 11
c
.F
12 Taxes and licenses 12 1_8 ,582 ,

f,
13 Interest (see instructions) 13
a 14 Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 14 5, 93s
.E
c)
o
15 Depletion (Do not deduct oil and gas depletion.) 15
o 16 Advertising 16 1_1_1,824
o 17 Pension, profit-sharing, etc., plans 't7
18 Employee benefit programs 18
19 Other deductions (attach statement) , See, S,tatement. 19 L02, L63
() 20 Total deductions. Add lines 7 through 19 20 299 , 4't 9
o 21 Ordinary business income (loss). Subtract line 20
from line 6 21 I4L,896

o
22a
b
c
Excess net passive income or LIFO recapture iax (see instructions) .
Tax from Schedule D (Form 1 120-S)
Add lines 22a and 22b (see instructions for additional taxes)
m
I zzal

22c
!)
23a 2019 estimated tax payments and 201 8 overpayment credited to 2019
b Tax deposited with Form 7004
o
o-
c Credit for federal tax paid on fuels (attach Form 4196)
d Reserved for future use
e Add lines 23a through 23d 23e
x 24
25
Estimated tax penalty (see instructions), Check if Form 2220 is attacheo
Amount owed. lf line 23e is smaller than the total
>n 24
lines 22c and 24, enter amount owed
oJ 25
26 Overpayment. lf line 23e is larger than the total of lines 22c and 24, enter amount overpaid 26
27 Enter amount from line 26: Credited to 2020 estimated tax l> Refunded ) 27
yig?t P?l?lli:. I,declare that I have examlned thls return, including accompanying schedules and statemsnts, and to the U"st ot my knowleOge and
"lperjury,
belief, it is true, correct, and complete. Deolaration of preparer (other than taxpayer) is based on alt Information of whlch preparer has anv knoriledoe.
Siqn
Here
|)
PrlnvType preparer's
namo Preparor's signature Date
Paid
Preparer Kevin Reid 02/t3/2020
Firm's name > Reid & Reid, CPAt s 86-0385879
Use Only
Firm'saddress) 1305 E. Hatcher Phoenix AZ 85020 Phone no. 602) 3'71-846'1
For Paperwork Reduction Act Notice, see separate instructions, BAA REV 0204/20 PRO rorm 11 20-S pot sy
Form 1 1 2q-S (201 9)
Page

Check acoounting method: a lXlOash b Accrual No

c I Other (specify)]
See the instructions and enter the:
a Business activity >
--4-g!-g_--ts9-p_?-1.-t-_---_- b Product or seryice > Ap_r__g__B_gp-1_ll_______-__
At any time durlng the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a
nominee or similar person? lf "Yes," attach Schedule B-1, Information on Certaln Shareholders of an S Corporation .
At the end of the tax year, did the corporation:
Own directly 20Vo or more, or own, directly or indirectly, SQYo or more of the total stock issued and outstanding of any
foreign or domestic corporatlon? For rules of constructive ownership, see Instructions. lf ',yes," complete (i) through
halnrrr M

(i) Name of Corporation (v) lf Percentage In (lv) ls 100%, Enter

the Date (if any) a Quallfled Subchapter
S Subsidiary Election Was Made

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 5Oo/o or more In the profit, loss, or
capital in any foreign or domestic paftnership (including an entity treated as a partnership) or in the beneficial interest of a
trust? For rules of constructive see instructions. lf "Yes." below
(i) Name of Entity (v) Maxlmum Percentage Owned
In Profit, Loss, or Capital

5a At the end of the tax year, did the corporation have any outstanding shares of restricted stock?
lf "Yes," complete lines (i) and (ii) below.
0 Total shares of restricted stock
(ii) Total shares of non-restricted stock
At the end of the tax year, did the corporation have any outstanding stock options, warrants, or eimilar instruments?
lf "Yes," complete lines (i) and (ii) below.
(i)Totalsharesofstockoutstandingattheendofthetaxyear
(ii} Total shares of stock outstanding if all instruments were executed )
Has this corporation filed, or is it requlred to file, Form 8918, Material Advisor Disclosure Statement, to
provlde
information on any reportable transaction?
Check this box if the corporation issued publicly offered debt instruments with original issue discount >n
lf checked, the corporation may have to file Form 8281, Information Return for Publlcly Offered Origlnal lssue Discount
Instruments.
lf the corporation (a) was a C corporation before it elected to be an $ corporation or the corporation acquired an assel with a
basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation and
(b) has net unrealized built-in gain 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 prioryears. See instructions . . > $---_--__--
Did the corporation have an election under section 163(j) for any real properly trade or business or any farming business
in effect during the tax year? See instructions .
10 Does the corporation satisfy one or more of the following? See instructions
a The corporatlon owns a pass-through entity with current, or prior year carryover, excess business interest expense.
b The corporation's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years
preceding the current tax year are more than $26 million and the corporation has business interest expense,
The corporation is a tax shelter and the corporation has business interest expense.
lf "Yes," complete and attach Form 8990.
11 Does the corporation satisfy both of the following conditions?
a The corporation's total receipts (see instructions) for the tax year were less than 9250,000,
b The corporation's total assets at the end of the tax year were less than g25O,OOO.
lf "Yes," the is not Schedules L and M-1 .
porm 1 1 20-S eot s)
Form 1120-S (2019)

12 During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the
terms modified so as to reduce the principal amount of the debt?
lf "Yes," enter the amount of principal reduction , > $___-__
13 During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? lf "Yes," see instructions
14a Did the corporation make any payments in 2019 that would require it to file Form(s) 1099? ,
b lf "Yes," did the corporation file or will it file required Form(s) 1099? .
15 ls the corporation attaching Form 8996 to certify as a Qualified Oppoftunity Fund?
lf "Yes," enter the amount from Form line14 ,>$
Total amount

tt
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o
0)

o
o

tt
C)
o

o
o
(.)
o
o
t:
F-

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It

REV 02/04/20 PRO rorm 1120-S (zote)

Form 1 1 20-S (201 9) eage 4
Total amount

X,^
>F E

F Etr
ts,=E
<5E
.Eh
i:
E*:'; o
121
Et#
F

228 ,1"92
.

.
EE-
ou)
=

0.
o L

(!
o 896,
End of tax year

1 Cash
2a Trade notes and accounts receivable
b Less allowance for bad debts '
3 lnventories
4 U,S. government obligations
5 Tax-exempt securities (see instructions)
6 Other current assets (attach statement) ,
7 Loans to shareholders
I Mortgage and real estate loans
9 Other investments (attach statement)
10a Buildings and other depreciable assets '
8,485.
b Less accumulated dePreciation
11a Depletable assets
b Less accumulated dePletion
12 Land (net of any amortization) ,
'l3a Intangible assets (amortizable only)
o Less accumulated amodization
14 Other assets (attach statement)
8,485.
15 Total assets
Liabilities and Shareholders' Equity
16 Accounts payable
17 Morlgages, notes, bonds payable in less than 1 year
18 Other current liabilities (attach statement)Ln 1B S
t,81 6.
19 Loans from shareholders
20 Modgages, notes, bonds payable in 1 year or more
21 Other liabilities (attach statement)
22 Capital stock
6, 609.
23 Additional paid-in caPital
0.
24 Retained earnings
25 Adjustments to shareholders' equity (attach statement)
26 Less cost of treasury stock
27 Total liabilities and shareholders'
8,485.
REV 02/04/20 PRO
rorm 1 120-S (zots)
Form 1 120.-S (2019)

Ril;;'rt6iiln;i fi;m;coss) per Bryks with Income (Loss) per Return

- r, 6 6^^ !^^+,r r^+i^h6
Note: The corporation may be required to tilg @
1 Net Income (loss) Per books 141,170. 5 lncome recorded on books this year
not included on Schedule K' lines '1

2 lncome included on Schedule K, lines 1, 2'

through 10 (itemize):
3c,4,5a,6,7,8a,9, and 10, not recorded
on books this Year (itemize) a Tax-exempt interest$----------------------.
Rqqqdrtq-- ------------1-'-
t-.

3 Exoenses recorded on books this year 6 Deductions included on Schedule K'

lines 1 through 12 and 14p, not charged
not included on Schedule K, lines 1
against book income this year (itemize):
through 12 and 14P (itemize):
Depreciation $ ----_-____-_--- a Depreciation $ -----------

b Travel and enteftainment $ -------------7-?-?. 7 Add lines 5 and 6 '

8 lncome (loss) (Schedule K, line 18).

Add linec 1 throrroh 3 I4r,897, Subtract line 7 from line 4 . 1-

l_41,896
Indistributed Taxable lncome
ffi Account, Shareholders' U A rrl
Earnings and profits, and other Adjustments
--^---l^
^ -t!- Acoount
;;;'ilry i"*"J, n*r*utated ^^rr

(d) Other adlustments

account

32,893 ,
0.
1 Balance at beginning of tax Year
2 Ordinary income from Page 1, line 21
141,896.
3 Other additions
4 Loss from page 1, line 21
5 other reductions l"le4ls. an$ 9nt9rlaipme.nt .
n
6 Combine lines 1 through 5 '
r'14,062,
L'1 4 ,062 .
0.
7 Distributions
I Balance at end of tax year, Subtract line 7 from U.
line 6
rorm 1120-S (eots)
REV 02/04/20 PRO
ro,' 1125-A Gost of Goods Sold
(Rev. November 20'18) OMB No. 1545-0123
> Attach to Form 1120, 1120-C, 1 1 20-F, 1 1 20S, or 1 065.
Depanment of the Treasury
lntirnal Revenue Seruica ) Go to www.irs.govlFormll2SA for the latest information.
Name Employer identification number
Advanced Transmissions & Emissions 56-2496't 32
1 Inventory at beginning of year
2 Purchases 411" , 205
3 Cost of labor ),39 ,258
4 Additional section 2634 costs (attach schedule)
5 Other costs (attach schedule) Towing. 3r,062
6 Total. Add lines 1 through 5 , 64L,525
7 Inventory at end of year
8 Cost of goods sold. Subtract line 7 from line 6, Enter here and on Form 1120, page 1, line 2 or the
appropriate line of your iax return, See instructions . : 64).,525
9a Check all methods used for valuing closing inventory:
(/i LJ UOSI
(ll) LJ Lower of cost or market
( y' n Otner (Specify method used and attach explanation.) )
b Check if there was a writedown of subnormal goods >n
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) >n
d lf the LIFO inventory method was used for this tax year, enter amount of closing inventory computed , ,

under LIFO . | 9d I I

e lf property is produced or acquired for resale, do the rules of section 2634 apply to the entity? See instructions LJ Yes nruo
t Was there any change in determining quantities, cost, or valuations between opening and closing inventory? lf "Yes,"
attach explanation n Yes nruo

Sectlon references are to the lnternal merchandise is an income-producing Small business taxpayer. A small
Revenue Code unless otherwise noted. factor. See Regulations section 1.471-1 .lf business taxpayer is a taxpayer that (a) has
inventories are required, you generally average annual gross receipts of $25
What's New must use an accrual method of accounting million or less (indexed for inflation) for the
Small business taxpayers. For tax years for sales and purchases of inventory items. 3 prior tax years, and (b) is not a tax shelter
beginning after December 31 ,2017 , the Exception for certain taxpayers. A small (as defined in section 448(dX3). See Pub.
following apply. business taxpayer (defined below), can 538.
. A small business taxpayer (defined adopt or change its accounting method to Uniform capitalization rules. The uniform
below), may use a method of accounting for account for inventories in the same manner capitalization rules of section 263A
inventories that either: (1) treats inventories as material and supplies that are non- generally require you to capitalize, or
as nonincidental materials and supplies, or incidental, or conform to its treatment of include in inventory, certain costs incurred
(2) conforms to the taxpayer's Jinancial inventories in an applicable financial in connection with the following,
accounting treatment of inventories, statement (as defined In section 451(bX3)), r The production of real property and
. A small business taxpayer is not required or if it does not have an applicable financial tangible personal property held in inventory
to caoitalize costs under section 2634. statement, the method of accounting used or held for sale in the ordinary course of
in its books and records prepared in business,
General Instructions accordance with its accounting o Real property or personal property
procedures. See section a71(cX3). (tangible and intangible) acquired for resale,
Purpose of Form A small business taxpayer claiming . The production of real properly and
Use Form 1 125-A to calculate and deduct exemption from the requirement to keep
cost of goods sold for certain entities. tangible personal propedy for use in its
inventories is changing its method of trade or business or in an activity engaged
Who Must File accounting for purposes of section 481. in for orofit,
For additional guidance on this method of
Filers of Form 1 120, 1 120-C, 1 120-F, accounting, see Pub. 538, Accounting A small business taxpayer (defined
1 120S, or 1065, must complete and attach above) is not required to capitalize costs
Periods and Methods. For guidance on
Form '1 125-A if the applicable entity reports changing to this method of accounting, see under section 2634, See section 263A(D.
a deduction for cost of goods sold, Form 31 1 5 and the Instructions for Form See the discussion on section 2634
lnventories 3115. uniform caoitalization rules in the
instructions for your tax return before
Generally, inventories are required at the completing Form 1125-A. Also see
beginning and end of each tax year if the Regulations sections 1,2634-1 through
production, purchase, or sale of 'l ,2634-3. See Regulations section
1.2634-4 for rules for property produced In
a farming business.

For Paperwork Reduction Act Notice, see instructions. BAA REV o2l04/20 pRo form 1 1 25-A (Rev. 1 1 -201 8)
 b? 111,1
OMB No. 1545-0123
Schedule K-1
(Form 1120-S)
Department of the Treasury
Internal Revenue Service

/ /201
Shareholder's Share of Income, Deductions,
Credits, etc. ) See back of form and separate instructions.

For Paperwork Reduction Act Notice, 6ee the Instructions for Form 1 120-5, www.lrs,gov/Form1 120S REV 02/04/20 PRo Schedule K-1 (Form t 1 20-S) 201 I
BAA
.Schedule K-1 (Form 1120-S) 2019 Page 2
This list identifies the codes used on Schedule K-l for all shareholders and provides summarized reporting information for shareholders who tile Form 1040
or 1040.SR. For detailed reporting and filing information, see the separate Shareholder's Instructions for Schedule K-l and the instructions for your income
tax return.

1. Ordlnary business income (loss). Determlne whether the income (loss) is Code ReporT on
passlve or nonpasslve and enter on your return as follows:
N Credit for employer social
Report on security and Medicare taxes 1
Passive loss See the Shareholder's lnstructlons O Backup wlthholding See tho Shareholder's Instructions
Passive incomg Schedule E, line 28, column (h)
Nonoassive loss See tho Shareholder's lnstructlons
P Other credits I
Nonoassive income Schedule E, line 28, column (k) 14' Forelgn transactions
2, Net rental real estatE income (loss) See the Shareholdor's Instructions A Name of country or U.S.
3, Other net rental income (loss)
possession I
Schedule E, line 28, column (h)
B Gross Income from all sources ] Form 1116, Part I

Net income
See the Shareholder's lnstructions
C Gross income sourced at
Net loss )
shareholder level
4. lnterest Income Form'1040 or'1040-SR, llne 2b
Foreign gross income sourced at corporate level
5a. Ordinary dividends Form 1040 or 1040-SR, line 3b D Reservod forfuture use
5b. Qualified dividends Form '1040 or 1040-SR, line 3a E Foreign branch category 'l
6, Royalties Schedule E, lin6 4
7. Net short-term capital gain (loss) Schedule D, line 5 : BH:H::t3:il f Formlrl6,Part'

8a. Net long-term capital gain (loss) Schedule D, line 12 H other )

8b, Collectibles (28%) gain (loss) 28Yo RaIe Gain Worksheot, line 4 Deductions allocated and apportioned at sharaholder level
(Schedule D instructlons) I Interest exponse Form 1116, Part I

8c, Unrecaptured section 1250galn See the Shareholder's lnstructions

J
Other Form1116,Partl
Daductions allocated and appotlioned at corporate level to foreign source
9. Net section 1231 gain (loss) See the Shareholder's lnstructions
income
10. Other Income (loss) K Resorved for future use
Code L Foreign branch category \
A Other portfolio income (loss) Ses the Shareholder's Instructions M Passive category I
B Involuntary conversions See the Shareholder's Instructions N General category II Form 1 1 16, Part I
C Sec, 1256 contracts & straddles Form 6781, llne 1 O Oiher )
D Mining exploration costs recapturo See Pub.535
Other information
E R€senved for fulure use P Total forelgn taxes paid Form1116,Partll
F Ssction 965(a) incluslon 't
Q Total loreign taxes accrued Form 1116, Parl ll
G Income undersubpart F (other I R Beduction In taxes available for
than inclusions under sections ) See the Shareholder's Instructions credit Form 1 1 16, line 12
951A and 965) S Foreign trading gross receipls Form 8873
I
H Other income (loss) ) T Extraterritorlal incomsoxclusion Form 8873
11. Seotion 179 deduction See the Shareholder's Instructions U
Section 965 informatlon Seo the Shareholder's Instructions
12. Otherdeductions V
Other forelgn transactlons See the $hareholder's Instructions
A Cash contributions (60%) \ 15. Alternatlve minimum tax (AMT) Items
B Cash contributions (30%) I A Post-l9S6depreciationadiustmont'l
C Noncash contributions (50%) | B Adiusted galn or loss I
D Noncash contributions (30%) \ See the Shareholder's Instructions C Depletion (other than oil & gas) [ See the Shareholder's Instructions
E Capital gain property to a 50% I D Oil, gas, &geothermal-gross income I and the Instructions for Form 6251
organization (30%) I E Oil, gas, & geothermal-deductions I
F Capital galn property (20%) | F Other AMT items ,
G Contributions (100o/o) ) 16' Items affecting shareholder basis
H lnvostment interest exPense Form 4952, line 1 A Tax-exemDt interest incomo Form 1040 or 1040-SR' line 2a
I Deductions-royalty income Schedule E, lino 19
B Other tax-exempt income 'l
J Section 59(eX2) expenditures Soe the Shareholder'3 lnstructlons
C Nondeductlble expenses I
K Section 965(c) deduction See the Shareholder's Instructions
D Distributions ) Soe the Shareholder's Instructions
L Deductions-portfolio (other) Schedule A, llne 16
E Repayment of loans from
M Preproductive perlod expenses See the Shareholder's Instructions I
shareholders )
N Commercial revitalization deduction
'17' Other informatlon
from rental real estate activities See Form 8582 instructions
O Reforestation expense deduction Se€ ihe Shareholdefs Instructlons
A lnvestment income Form 4952, line 4a

P through R Ressrved for future use

B lnvestment expenses Form 4952, line 5

S Other deductlons See the Shareholder's Instructlons C Qualified rehabilitatlon expenditures

(other than rental real estate) See the Shareholder's Instructions
13, Credits D Basis of energy property See the Shareholder's lnstructions
A Low-lncome houslng credii (section E Recapture of low-income housing
a20(5)) from pre-2008 bulldings 42(jX5)) I
credit (sectlon Form 861 1, line
B Low-incomo housing credit (other) F Flecapture of low-income housing
from pre-2008 buildings
oredit (other) Form 8611, line 8
C Low-income housing credit (section G Rocapture of investment credit See Form 4255
42(jxs)) from post-2007 buildings
See the Shareholder's H Recapture ofother credits See the Shareholder's Instructions
D Low-income housing credit (othe$ lnstructions I Look-back Interest-completed
from post-2007 buildings long-term coniracts See Form 8697
E Qualified rehabilitatlon expenditures J Look-back intorest-income
(rental real estate)
forecast method See Form 8866
F Other rental real estate crediis
K Dispositions of property with
G Other rental credits section 179 deductlons
Scheduls 3 (Form 1040 or 1040-SR), lino L See the Shareholder's Instructlons
H Undistributed capltal gains credit 13,boxa
Recaoture of section lT9 deduotion
M through U
I Biofuel producer credlt \ V Section 1994 information
J Work oppotlunity credit I \,V through Z Reserved for {uture use
K Disabled access credit I See the Shareholder's
AA Excess taxable income
L Ernpowerment zone employrnent credit
I Instructions
AB Excess business interest incoms See the Sharaholdor's Instructions
M Credlt for increasing research I AC Other informatlon
activities J o2l04/20 PRo
^EV
Statement A-QBI Pass-through Entity Reporting
Page 1

Corporation's name: Advanced Transmissions & Emissions Corporation's EIN: 5 6'2496'1 32

Shareholder's name: Gregorv Kaiser Shareholder's identifying no: 37 L-8 0-5 1 92

11205, Line 2L

! prp I prp I prp

! Aggregated J Aggregated I Aggregated
n ssre I ssrs JDOItr
Shareholder's share of l
QBI or qualified PTP ltems subJuect to shareholder-speclfic determinatlons:
Ordinary business income (loss) 141_,896.
Rental income {loss)

Rovalty income (loss)

Section 1231 gain (loss)

Other income (loss)

Section 179 deduction

Charitable contributions

Other deductions

W-2 wages. L71,281 .

UBIA of qualitled property 119,845

Section 1994 dlvldends .

Statement A-QBl Pass-through Entity Reporting

Corooratlon's name: orporation's EIN:
Shareholder's namer Shareholder's ldentlfvlns no:

I prp fl prp I prp

n Aggregated n Aggregated J Aggregated
n ssra tr ssra I ssre
Shareholder's share of I

QBI or quallfled PTP items subjuect to shareholder-speclflc determlnatlons:

Ordinary business income (loss)
Bental income (loss)
Rovaltv income (loss)

Section 1231 galn (loss)

Other income (loss)

Section '179 deduction

Charitable contributions

Other deductions

W-2 waqes.

UBIA of qualitied property

Sectlon 1994 dividendS .
no'-' 11 25'E Gompensation of Officets
OMB No.1545-0123
(Rev. OctobBr 201 6)
)AttachtoFormll20''1120-C,1120'F,1120'RE1T,1120'RlC'or1120S'
) lnformation about Form 1125-E and its separate instructions is at wwwirs,govlformll2Se'
Depanment of tho Troasury
lntarnal Rovenue Service
Employer identif lcation numb€r
Name
56-24967 32
Advanced Transmissions & Emissions
definition of total receipts.
Notet Complete Form 1 12s-E only if total receipts are $500,000 or more. see instructions for
(c) Percent of Percent of stock owned (0 Amount of
(b) Social security number
(a) Name of officer (see Instructions) (d) Common (e) Preferred compensation
business

Ka i ser: 371- 8 0-51- 92 100 % t_00 % o/o 2r, 650

ol % %

o/o o/o
%

o/o
% %

o/o o/o %

% % %

o/o o/o o/o

o/o D/o %

o/o o/o
%

o/o o/o o/o

o/o o/o o/o

o/o
% %

o/o o/a %

o/o %
%

o/o o/o o/o

o/( o/o o/o

o/o % ol

o/o
% %

o/o o/o
%

o/o o/o
%

2 2r, 650
2 Total compensation of officers

nlaimar{ nn Fnrm 1125-A or elsewhefe fetufn 3

^\) ^^*^^6^^+i^^
vvlI lygt leqlrvr ^{ a#iaavo
I vr v
On

page 1, line 12 or the

4 Subtract line 3 from line 2. Enter the result here and on Form 1120, 4 2L, 650
REV 02/04/20 PRO F. 25-E rnev. l0-20161
(Rev
f* pup"*otk Reduction Act Notice, see separate instructions' BAA
 Form 1120S 199A Statement A Summary 2019

QuickZoom to Other Copy

Corporation's Name: Advanced Transmissions & Emissions Corporation's EIN: 56-24961 32

iii?g{,.ii

1120S

Shareholder's share of:

QBI or qualifled PTP items subject to shareholder-specific determinations:

Ordinary business inc (loss) , , 1-41/896.

Rental income (loss)
Royaltyincome(loss),, .' . .

Section 1231 gain (loss) ... .

Other income (loss) .

Section 179 deduction
Charitable contributions.
Other deductions
W-2 wages r17 ,28'7 ,

UBIA of qualified proPertY ... ' 119,845.

Section 199A dividends

Fir:i*?"isiib-

PTP
Aggregated
SSTB

Shareholder's share of:

QBI or qualified PTP items subject to shareholder-specific determinations:

Ordinary business inc (loss) ' .

Rental income (loss)

Royalty income (loss) .
Section 1231 gain (loss) ''' .

Other income (loss) .

Section 179 deduction
Charitable contributions.
Other deductions
W-2 wages
UBIAofqualifiedproperty . .' .

Section 199A dividends

spsw9907.SCR'12/14119
 Form 1120S Other Liabilities 2019
Schedule L and Adjustments to Shareholders' Equity

Name Employer lD Number

Advanced Transmissions & Emissions 56-24967 32

Beginning of End of
Other Current Liabilities: tax year tax year

Sales fax navable 1,561 1,800

'16
Bank overdraft .

Totalto Form 1120S, Schedule L, line 18 1,87 6 ,

Beginning of Eno ot
Other Liabilities: tax year tax year

Total to Form 1120S' Schedule L, line 21

Beginning of End of
Adjustments to Shareholders' Equity: tax year tax year

Totalto Form 1120S, Schedule L' line 25

 Section 1.263(a)'1(f)
>Attach to your income tax return

Name(s) Shown on Return ldentification Number

Advanced Transmissions & Emissions 56-24967 32

Tax Year: 20re

section 1.263(a)-1(0
De Minimis Safe Harbor Election

The taxpayer elects to make the de minimis safe harbor election under the Regulation I '263(a)-1(0

Name: Advanced lransmissions & Emissions

Address: 2849 E BelI Road nix AZ 85032
ldentification Number: 56-24967 32

ldiv9801.SCR 09/25/18
 199A Worksheet bY ActivitY 2019
> KeeP for Your records

sosw9906.SCR 01/30/20
 56-2496732 1

Advanced Transmissions & Emissions

Tax Return for S Corp

Additional information from your 2919 US Form 1120S: lncome

Form 1120S: S'Corporation Tax Return

Continuation Statement
Other Deductions

4,813.
Automobil.e and truck expense
Bank charges 10,330
Discounts
Dues and subscriPtions a o'AA
Insurance L0 ,932 ,

LaundrY and cfeani l_or 35J

Leqal and Professionaf
Meals (50%)
Office expense 1,l-48.
Permits and fees
Postage
Q6^rrri f \/
4t'1 64.
vvve! + el

Supplies 13,586.
Telephone
B ,324
ilities
Ut
Contract labor ro2, 163 .
Total