Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 20

                                       - 20 -                                         
          associated with the seven LKHP properties as allocated to both              
          the amended trust and Hillgren, as reported on their respective             
          Schedules K-1.  The partnership also filed a statement with the             
          1997 return notifying the IRS that it intended to file an amended           
               For 1997, LKHP filed an additional Form 1065 as an amended             
          return (1997 first amended return).  The 1997 first amended                 
          return made an election to adjust the basis in the LKHP                     
          properties under section 754.  The Schedule K and Schedules K-1             
          remained the same as in the original return.                                
               Also for 1997, LKHP filed an additional Form 1065 as an                
          amended return (1997 second amended return).  The 1997 second               
          amended return was filed to correct the allocation of partnership           
          income as 75 percent to the amended trust and 25 percent to                 
          Hillgren.  The Schedules K-1 for the amended trust, and for                 
          Hillgren, were adjusted for this change, showing that the amended           
          trust held a 99.0027-percent capital interest and a 75-percent              
          profit interest and that Hillgren held a .9973-percent capital              
          interest and a 25-percent profit interest.  As a result, the net            
          income from real estate and the depreciation on the Schedules K-1           
          were reallocated accordingly.  The reported distribution of                 
          $100,601 to the amended trust remained allocated to the amended             
          trust on the Schedule K-1.                                                  

Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011