Page 1

A diversified real estate company

Mortgage Financing Property Management Investments Brokerage

Office: Fax: Email: Web:

888.729.4948 561.807.2496 Justin@pax-properties.com www.pax-properties.com


TABLE OF CONTENTS

Executive Summary Portfolio Information Justin Ford Portfolio Ownership & Networth Refinancing Breakdown Debt Service Coverage Ratio Projections for Refinancing Property Valuations Investors Capital Purchase History Portfolio Rent Roll Purchase and Investment Information Zoning and Improvements Investor Equity Breakdown Photos and Leases Justin Ford Credit Information Tax Returns Closing Documentation and HUD Statements


Executive Summary Ford Loan & Borrower Information

Name of Borrower:

John Justin Ford

Borrower’s Street Address:

308 NW 1st Ave., Delray Beach, FL 33444

Date of Birth:

7-12-60

Social Security #:

126 58 7006

Tri Merge Credit Scores:

747 middle score (Experian report of 11/15 attached.)

Home Phone:

561 573 2295

Business Phone:

888 729 4948

Cell Phone:

561 573 2295

Email:

Justin@pax-properties.com

Websites:

www.pax-properties.com; www.beachpads.net; www.seedsofwealth.com

Borrower’s Occupation & Years of Experience

9 years as real estate investor, developer, & broker Borrower’s Profile & Resume is attached.

Degree’s and Certificates:        

BA, English Literature, Fordham University, NY 1983 Graduate Studies in finance & economics, 18 credits, Florida Atlantic University, 19992001 FL Licensed Real Estate Broker/Agent since 2003 (BK3234482) Certificate in Home Inspection with Gold Coast School of Real Estate, 2004 Owner of licensed brokerage, Pax Properties, LLC, since 2007 (CQ1037001) Licensed mortgage broker since 2007 (NMLS ID 386949) FL licensed Community Association Manager since 2010 (CAM38183) Fluent in English & Spanish, conversant in French & Italian

Prior Project Experience (Short Explanation): I have owned 32 rental properties in seven cities in four states in the last nine years, while maintaining high occupancy and never being late on a single mortgage payment. I have redeveloped and repositioned small multi family properties in Lake Worth, FL and Austin, TX, increasing rents by nearly 20% after renovations. I recently remodeled and


repositioned 45 units near the beach in Pompano and have leased them out at full occupancy. My overall portfolio averages 95% economic occupancy and a debt-service coverage ratio of over 1.5. Net Worth or Financial Strength of Primary Principal in USD, excluding this project:

$535,836

Borrower’s 3 Years Average Monthly Income:

$9,912.00

Liquid Financial Assets (including cash on hand):

$135,000.

Total Net Worth: $825,291. See attached Statement of Net Worth Are you a US Citizen?

YES

Have you been declared bankrupt in the last ten years?

NO

Are there any outstanding judgments against you?

NO

Are you a party to a lawsuit?

NO

Are you obligated to pay alimony or child support?

Yes, $2,400 a month.

Are any of your assets held in trust?

NO

Have you had property foreclosed upon or given title deed in lieu?

NO

Are you a permanent resident alien?

NO

Did you file the last 3 years personal tax returns?

YES

Did you file the last 3 years business tax returns?

YES

If yes, name of business:

Seeds of Wealth, Inc.

************* Business Name:

Seeds of Wealth, Inc.

Principal’s Name & Title Legal Structure: D/B/A, etc.

S Corp. 100% owned by principal, John Justin Ford

Street Address for Business

308 NW 1st Ave. Delray Beach, FL 33444

State of Registration

Florida


the one bank mortgage on one of the properties. Draw Schedule:

Full funding at closing of loan.

******* Project or Property Name

Lake Worth Residential Property Portfolio

There are three detailed Excel files accompanying this word doc. One covers my net worth; the other two cover the details of the property portfolio I am looking to refinance. For the property details, the first Excel file is called, “Portfolio NOI Valuations Payoff DSCR and Investors Nov 17 2011.” It has five tabs: “Portfolio Valuations,” “Purchase History & Cap Ex,” “Payoff Numbers & Equity,” “DSCR,” and “Investors Capital.” In short this covers the financial details of the portfolio, including gross revenues, units, property type, expenses, NOI and DSCR. The second Excel file covering property details is called “Lake Worth LLC Rent Roll Detail & Improvements 11 17 11.” It has two tabs: “Rent Roll” and “Property Details & Improvements.” Following are some factual highlights: Four of the properties (24 South L St, 26 South L St., 30 South L St. and 520 1st Ave. South) are contiguous and located in the heart of downtown (1/2 block from the local Starbucks). They abut the principal downtown municipal parking lot and have highdensity (30/acre) dual zoning (commercial/residential). These four produce an NOI covering proposed debt by at least 1.48 and also have significant development potential. Another property in the portfolio (131 North L St.) is one block north of the downtown Starbucks, with identical zoning and a DSCR of over 1.42. Four of the properties (15 South D St., 500 South D St., 532 North H St. and 231 South C St.) are in (or within one block of) a Community Redevelopment Zone that has received a $23.2 million federal grant for revitalization. They are also located between two I95 exits whose entrance roads have been beautified by the city within the past two years and cash flow strongly, with an average DSCR of 2.2 under proposed terms. All properties in the portfolio are in good condition, have current rental licenses; are at 100% economic occupancy and, combined, would have an average DSCR of 1.79, given the proposed refinancing range of rates and terms. P&L’s, General Ledgers and Balance Sheets are available on demand for each of these properties for 2011 and 2010. Tax returns are available for these properties for 2010. Who will manage the properties?

Pax Properties, LLC (manager already in place)


Date of Registration

July, 1999

Corporate Registration Number

P02000109428

Tax ID #

043717694

Name of Bank for Business

JP Morgan Chase

Street Address for Bank

1010 S. Federal Hwy, Delray Beach, FL 33444

Purpose of Loan

Refinance of income-property portfolio bought from banks with private investor funds

Amount of Financing Requested:

$1,128,250

Type of Financing

1st Mortgage Loan fixed for at least 7 years; amortization of 20 to 30 years

Term of Loan

7 to 30 years

Interest Rate Seeking

4.75 to 5.75%

Estimated Loan to Value (LTV)

65.6%

Debt Service Coverage Ratio

1.79

Net Operating Income

$146,275

Please Summarize the Funding Requested. Include any special issues, problems or needs: Refinance of twelve residential properties (with 22 units combined), ranging from singlefamily homes to 4-unit rentals. Properties are at 100% economic occupancy, with leases. Eleven of the properties were bought with cash since 2010, using private investor funds, from banks or in short sale at deep discounts. The 12th property was bought in 2003 using bank financing at a cash-flow price and has performed well ever since. The refinance funds will be used to return most or all of the funds of the private investors and to pay off the $165,000 mortgage of the one bank-financed property. The goal is to leave in place fixed-rate financing with a DSCR of at least 1.5 and to return funds to private investors, who have indicated they are interested in putting that money back to work as stakes for other cash-flow purchases. Provide a schedule of “Use of Proceeds�

100% of refinancing funds will be used to return all or most of the cash provided by private investors to fund purchase, renovations and stabilization, and to pay off


Joint venture project?

I am the managing member for all properties. Each have at least one other investor. Ten have just one investor member each; one property (330 South J Street) has two investor members and one property (514 South Street) has three investor members. Only one of the properties (26 South L Street) has a bank mortgage on it.

Exit Strategy

I am seeking a self-amortizing loan. If the only loan available has a term shorter than the amortization schedule, prior to the conclusion of the term, I will either refinance or sell. My preference is to hold for the long term for income and equity gains through amortization. We may also see gains from appreciation, but my strategy does not hinge on that, since market appreciation is the one thing an investor cannot control. This long-term approach is the reason I have never been late on a single loan payment through the boom and bust on over 30 properties.

Submitting Owner/Broker

Ramsay Stevens, NY, NY

It is agreed that the information submitted herein is, to the best of my/our knowledge, correct. I/we have not intentionally misrepresented any information supplied and agree to hold “PSC Funding� harmless for any errors.

Borrower: _____________________________

Date: November 24, 2011

John Justin Ford The more complete and accurate your financing package is, the faster and easier it is for a qualified Financial Provider to make a decision. Many loan requests are turned down simply because there was not enough information supplied to make a determination. Received by Business Development Representative: ________________________________________ Date: _________________


JUSTIN FORD PORTFOLIO OWNERSHIP & NETWORTH John Justin Ford

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Asset 26 South L St., Lake Worth, FL 308 NW 1st Ave, Delray Beach, FL 25 South C St., Lake Worth, FL 311 South K ST, Lake Worth, FL 820 South Federal Highway, Lake Worth, FL 2101 Park St., Lake Worth, FL 1205 S. M St. Lake Worth, FL 527 South L St., Lake Worth, FL 544 W 17th Street, Jacksonville FL 3146 Post St Jacksonville, FL 532 N H St Lake Worth, FL 30 South L St Lake Worth, FL 514 S L St Lake Worth FL 131 N L St Lake Worth FL 128 S K St. Lake Worth, FL 500 S D St Lake Worth, FL 330 S J St Lake Worth, FL 15 S D St Lake Worth, FL 906 N Riverside Dr. Pompano Beach, FL 632 N B St Lake Worth, FL 231 S C St. Lake Worth, FL 601 N Ocean Blvd Pompano Beach, FL 3225 NE 6th St., Pompano Beach, FL 3204 NE 9th St, Pompano Beach, FL 3208 NE 9th St, Pompano Beach, FL 3220 NE 7th St., Pompano Beach, FL 24 South L St., Lake Worth Florida 520 1st Ave. South, Lake Worth, FL

Statement of Net Worth

Type 4-unit Rental Property Single Family Home Single Family Home Duplex Rental Property Triplex Rental Property Single Family Home Duplex Rental Property Duplex Rental Property Duplex Rental Property 14-unit apartment building Single Family Home 2 unit Renal Property Single Family Home 2 unit Renal Property Single Family Home Single Family Home 2 unit Renal Property Single Family Home 9-unit Apartment Building Single Family Home Single Family Home 14-unit Apartment Building 11-unit Apartment Building 5-unit Apartment Building 5-unit Apartment Building Vacant lot zoned MF20 Single Family Home 4-unit Rental Property

Totals * Highlighted properties compose the portfolio to be refinanced.

30-Sep-11 Date Acquired Jan 2003 Aug 2003 Jan 2004 Feb 2004 Mar 2004 Oct 2004 Feb 2005 Jan 2006 Dec 2006 May 2007 Mar 2011 Apr 2011 May 2011 May 2011 Jun 2011 Jun 2011 Jun 2011 Jul 2011 Aug 2011 Sept 2011 Dec 2011 Jan 2012 May 2011 May 2011 May 2011 May 2011 Sept 2011 Aug 2011

Value as of Sept 2011 $ 259,000 $ 145,000 $ 105,000 $ 141,000 $ 147,000 $ 105,000 $ 155,000 $ 155,000 $ 62,000 $ 435,000 $ 65,000 $ 135,000 $ 125,000 $ 145,000 $ 105,000 $ 97,000 $ 145,000 $ 105,000 $ 585,000 $ 95,000 $ 98,000 $ 1,050,000 $ 626,000 $ 304,350 $ 304,230 $ 125,000 $ 130,000 $ 180,000 $

6,128,580

Various checking accounts for properties and businesses and IRA and stock brokerage accounts (cf cash accounts statement) Checking

$

134,222

Personal (e.g., cars, furniture, etc.)

$

25,000

Chattel

Bank Debt $ 164,290 $ 101,244 $ 130,904 $ 101,017 $ 100,624 $ 162,161 $ 166,584 $ 173,085 $ 58,250 $ 375,844

$ 1,534,003

$

-

Private Investor Loans

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

44,435 99,750 80,000 99,850 77,250 50,000 128,250 50,000 476,000 62,000 65,250 945,000 530,000 202,500 202,500 65,000 112,500 150,000

$

3,440,285

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Equity 94,710 43,756 (25,904) 39,983 46,376 (57,161) (11,584) (18,085) 3,750 59,156 20,565 35,250 45,000 45,150 27,750 47,000 16,750 55,000 109,000 33,000 32,750 105,000 96,000 101,850 101,730 60,000 17,500 30,000

$ 1,154,292

Personal Ownership in % 50% 50% 100% 100% 100% 100% 100% 50% 50% 40% 70% 50% 70% 70% 70% 70% 70% 70% 60% 70% 70% 70% 70% 70% 70% 100% 50% 50%

Personal Ownership in $ $ 47,355 $ 21,878 $ (25,904) $ 39,983 $ 46,376 $ (57,161) $ (11,584) $ (9,043) $ 1,875 $ 23,662 $ 14,396 $ 17,625 $ 31,500 $ 31,605 $ 19,425 $ 32,900 $ 11,725 $ 38,500 $ 65,400 $ 23,100 $ 22,925 $ 73,500 $ 67,200 $ 71,295 $ 71,211 $ 60,000 $ 8,750 $ 15,000 $

753,494

$

134,222

100% $

134,222

$

25,000

100% $

25,000

Less Seeds of Wealth Line of Credit

$

(87,425)

Net worth

$

825,291


REFINANCING SOUGHT

John Justin Ford, Applicant Ref # 1 2 3 4 5 6 7 8 9 10 11 12 FL Dec Mark Ford & Justin Zero Nine, Fl Jan Ten, FLL Feb Ten, Ford (in Personal Isabelle & Collin, FL Apr Ten, FL June Ten, FL Aug Ten, LLC LLC LLC* Entity LLC FL Mar Ten, LLC LLC FL May Ten, LLC LLC FL Jul Ten, LLC LLC FL Sep Ten, LLC Name) Address

30 S L St.

330 S J St

532 N H St.

15 S D St.

131 N L St.

500 S D St

Implied Value @ 8.5% cap

$ 158,241

$ 222,694

$

$

$

$

Loans Outstanding

$

Equity

$ 158,241

% Ownership of Justin Ford Refi Sought LTV

96,129

111,612

138,271

520 1st Ave S. 231 S C St

107,476

-

50% $ 100,000 63%

$ 222,694

$

67%

$

71%

71% $ 150,000

96,129

$

50,000

111,612

$

70% $

52%

Note All properties are in Lake Worth, FL 33460. All Properties Titled in "Entity Name," except‌ FL Apr Ten Titled in Justin Ford Personal Name FL Jan Ten titled in Pax Properties 26 South L St titled in personal names of Justin Ford and Mark Ford

50,000 45%

138,271

$

100,000 72%

$

50,000 47%

206,920

$

$

-

$

206,920 $

70%

71% $

107,476

$

150,000 72%

100,029

128 S K St

26 S L St

$

$

$

229,514 $

62,353

$

153,250 $

-

$

76,264 $

62,353

$

70%

50% $

100,029

514 S L St

$

65,000 65%

180,389

180,389

$

69% $

80,000 44%

107,247

107,247

70% $

80,000

50% $

75% TOTALS Implied Value Pay Off Total Equity Refi Sought Cash Out LTV

24 S L St.

153,250 $ 67%

$ $ $ $

$ 158,241 $ 222,694 $ 96,129 Note: Isabelle & Collin LLC's value at 8.5% is very understated. First, its market rent should be $1,110, not $850. We inherited the old undermarket lease and that will change in May 2012 Moreover, it is a single family home, downtown, one half bloc from the Starbucks. Its county appraised value is $103,000. Its market appraised value should come in at about $120,000 we believe.

1,658,524 153,250 1,505,274 1,028,250 $0 62.0%

$

1,720,876

100,000 $ * 160% *

1,128,250

50%

65.6%


DEBT SERVICE COVERAGE RATIO PROJECTS FOR REFINANCING Ownership Entity Asset Mark & Justin Ford (Personal 26 South L Name) St., Lake Worth, FL

Type

Implied Value at 8.5% Cap Rate

Units

Refinance Sought

LTV

Debt Service @ 4.5% 20 yr ammo

NOI

DSCR @ 4.5% 20 yrs

Debt Service Debt Service DSCR @ 5% 20 yr DSCR @ @ 5.5% 20 yr @5.5% 20 5% 20 yrs ammo ammo yrs

Implied Value at 8.5% Cap Rate

Justin Ford's Share of NOI

Mortgag ee

Loan #

Principal and Interest Payment(s)

Debt Service Coverage Ratio

Net Cash Flow

Justin Ford's % Ownershi Justin Ford's Share p of Cash Flow

4-unit Rental Property

4

$

229,514

$

153,250

67% $

19,509

$

11,586

1.68 $

12,137

1.61 $

12,652

1.54 $

229,514

$

9,754

Chase

061865275 4

$11,417

1.71 $

8,092

50%

4,046

30 South L St Lake Worth, FL

Duplex Rental Property

2

$

158,241

$

100,000

63% $

13,451

$

7,560

1.78 $

7,920

1.70 $

8,256

1.63 $

158,241

$

9,415

Private

NA

$ 6,750

1.99 $

6,701

70%

4,690

330 S J St Lake Worth, FL

Duplex Rental Property

2

$

222,694

$

150,000

67% $

18,929

$

11,340

1.67 $

11,880

1.59 $

12,384

1.53 $

222,694

$ 13,250

Private

NA

$ 9,619

1.97 $

9,310

70%

6,517

532 N H St Lake Worth, FL

Single Family Rental Property

1

$

96,129

$

50,000

52% $

8,171

$

3,780

2.16 $

3,960

2.06 $

4,128

1.98 $

96,129

$

5,720

Private

NA

$ 3,375

2.42 $

4,796

70%

3,357

FL Mar Ten LLC

15 S D St Lake Worth, FL

Single Family Rental Property

1

$

111,612

$

50,000

45% $

9,487

$

3,780

2.51 $

3,960

2.40 $

4,128

2.30 $

111,612

$

6,641

Private

NA

$ 3,750

2.53 $

5,737

70%

4,016

FL Apr Ten LLC

131 N L St Lake Worth FL

Duplex Rental Property

2

$

138,271

$

100,000

72% $

11,753

$

7,560

1.55 $

7,920

1.48 $

8,256

1.42 $

138,271

$

8,227

Private

NA

$ 7,500

1.57 $

4,253

70%

2,977

500 S D St Lake Worth, FL

Single Family Rental Property

1

$

107,476

$

50,000

47% $

9,136

$

3,780

2.42 $

3,960

2.31 $

4,128

2.21 $

107,476

$

6,395

Private

NA

$ 3,750

2.44 $

5,386

70%

3,770

FL Dec Zero Nine LLC

FL Jan Ten LLC

FL Feb Ten LLC

FL May Ten LLC

FL June Ten LLC

520 1st Ave. South, Lake Worth, FL 4 units

4

$

206,920

$

150,000

72% $

17,588

$

11,340

1.55 $

11,880

1.48 $

12,384

231 S C St. Lake Worth, FL

Single Family Rental Property

1

$

100,029

$

65,000

65% $

8,503

$

4,914

1.73 $

5,148

1.65 $

5,366

1.58 $

100,029

$

5,952

Private

NA

$ 4,875

1.74 $

3,628

70%

2,539

FL Aug Ten LLC

514 S L St Lake Worth FL

Duplex Rental Property

2

$

180,389

$

80,000

44% $

15,333

$

6,048

2.54 $

6,336

2.42 $

6,605

2.32 $

180,389

$ 10,733

Private

NA

$ 6,000

2.56 $

9,333

70%

6,533

FL Sep Ten LLC

128 S K St. Lake Worth, FL

Single Family Rental Property

1

$

107,247

$

80,000

75% $

9,116

$

6,048

1.51 $

6,336

1.44 $

6,605

1.38 $

107,247

$

Private

NA

$ 5,625

1.62 $

3,491

70%

2,444

Isabelle & Collin, LLC

24 S L St Lake Worth FL

SFH

1

$

62,353

$

100,000

160% $

5,300

$

7,560

0.70 $

7,920

0.67 $

8,256

0.64

146,275

$

85,296

1.71 $

89,357

1.64 $

93,148

$51,035

2.87

FL Jul Ten LLC

Totals

22

1,720,876

65.6%

1,128,250

5% 5.25% 5.50%

Combined Annl Payments at 5% to 5.5% on 20-30 yr Ammos 20 yr 25yr 89,357 79,203 91,253 81,234 93,148 83,265

5% 5.25% 5.50%

Combined DSCR at 5% to 5.5% on 20-30 yr Ammos 1.64 1.85 1.60 1.80 1.57 1.76

30 yr

72,704 74,871 76,902

2.01 1.95 1.90

1.79

1.42

1.57 $ 1,163,967

6,381

$ 65,354

$ 47,902

$

31,913


PROPERTY VALUATIONS

1

Ref # Entity

FL Dec Zero Nine, LLC

2 Fl Jan Ten, LLC

3

4

FLL Feb Ten, FL Mar Ten, LLC LLC

Titled Pax Address

30 S L St.

NOI

$

Impled Value @ 8.5% Cap $ Rate

330 S J St

6

7

FL May Ten, LLC

FL June Ten, LLC

500 S D St

8 FL Jul Ten, LLC

9

10

FL Aug Ten, LLC

FL Sep Ten, LLC

Isabelle & Collin, LLC

520 1st Ave. S. 231 S C St

514 S L St

128 S K St

24 S L St.

15 S D St.

131 N L St.

18,929

$

8,171

$

9,487

$

11,753 $

9,136

$

17,588

$

8,503

$

15,333

$

9,116

$

158,241 $ 222,694

$

96,129

$

111,612

$

138,271 $

107,476

$

206,920

$

100,029

$

180,389

$

107,247

$

13,451 $

11 Titled Personal Name

12 Total

Titled JJF 532 N H St.

1,413

Square Feet

5 FL Apr Ten, LLC

2,461

954

832

1,553

1,430

1,696

1,128

1,860

1,000

26 S L St

5,300

$

62,353 $ 1,304

19,509

$

146,275

229,514 $

1,720,876

3,112

$/SF per Implied Value

$

111.99 $

90.49

$

100.76

$

134.15

$

89.03 $

75.16

$

122.00

$

88.68

$

96.98

$

107.25

$

47.82

$

73.75

Gross Rents

$

20,100 $

25,800

$

10,800

$

12,300

$

16,200 $

12,300

$

29,160

$

13,140

$

21,780

$

12,000

$

10,200

$

33,660

GRM Note All properties are in Lake Worth, FL 33460

7.9

8.6

8.9

9.1

8.5

8.7

7.1

Imputed Cap Rate of… Leads to… Average $/SF Average GRM

8.5% $

102 8.1

7.6

8.3

8.9

6.1

6.8

18,743

$

217,440


INVESTORS CAPITAL

Entity

FL Dec Zero Nine, LLC

Fl Jan Ten, LLC

Address

30 S L St.

330 S J St

3 4 5 6 7 FLL Feb Ten, FL Mar Ten, FL Apr Ten, FL May Ten, FL June Ten, FL Jul Ten, LLC LLC LLC LLC LLC LLC 520 1st Ave. S. 231 S C St 532 N H St. 15 S D St. 131 N L St. 500 S D St

Estimated Value

$

158,241

$ 222,694

$

96,129

$

111,612

$

138,271

$

107,476

$

206,920

$

Capital Invested

$

100,000

$ 128,615

$

44,435

$

50,000

$

100,000

$

50,000

$

150,000

$

Ref #

Equity Investor (EI) # 1 EI Investment Amount

Address of Equity Investor 1

1

2

8 FL Aug Ten, LLC

FL Sep Ten, LLC

11 12 Isabelle & Collin, LLC 26 South L St

514 S L St

128 S K St

24 S L St

26 S L St

100,029

$

180,389

$

107,247

$

62,353

$

229,514

$

1,720,876

65,252

$

80,000

$

72,955

$

135,000

$

167,000

$

1,143,257 66.4%

Porter Paul Stansberry Denise Ford Bob Irish Romano Bob Irish Mark Ford Dr. Al Sears Mark Ford $ 100,000 $ 100,000 $ 29,435 $ 50,000 $ 100,000 $ 50,000 $ 150,000 $ 65,252 11903 Southern Blvd, 790 Andrews 238 N Ocean # 203 Palm 238 N Ocean 12134 Falls 122 NE 13th 790 Andrews 509 Palm Bvd. Delray Trail Delray Ave. E104 Ave. E104 St Delray Beach Bvd. Delray Road Delray Beach Beach FL Delray Beach Beach FL Cockeysville Beach FL Gardens, FL Beach FL 33483 FL 33483 33483 FL 33483 33483 MD 21030 33411 33483

9

JP Morgan Chase Loan # Mike Palmer Dr. Al Sears Mark Ford 0618652754 $ 30,000 $ 72,955 $ 135,000 $ 167,000 11903 Southern Blvd, 2375 Boston 238 N Ocean CHASE PO # 203 Palm Street, Bvd. Delray Box 78148 Beach Baltimore, Phoenix AZ Gardens, FL Beach FL 85062-8148 33483 33411 MD 21224

Equity Investor (EI) # 2 EI Investment Amount

Rob Gramer Al Sears $ 28,615 $ 15,000

Karim Rahemtulla $ 25,000

Address of Equity Investor 2

11903 Southern Blvd, # 203 Palm Beach Gardens, FL 33411

320 Azalea St, Palm Beach Gardens, FL 33410

931 Palmer Avenue, Winter Park, FL 32789

Equity Investor (EI) # 3 EI Investment Amount

Address of Equity Investor 3 Note All properties are in Lake Worth, FL 33460 with exception of 308 NW 1st Ave., which is in Delray Beach, FL 33444

10

Brian Sodi $ 25,000

1209 Southways Delray Beach, FL 33483


PURCHASE HISTORY

Ownership Entity Mark & Justin Ford (Personal Name) FL Feb Ten LLC FL Dec Zero Nine LLC FL Aug Ten LLC FL Apr Ten LLC FL Sep Ten LLC FL May Ten LLC FL Jan Ten LLC FL Mar Ten LLC FL Jul Ten LLC FL June Ten, LLC Isabelle & Collin, LLC

Asset 26 South L St 532 N H St 30 South L St 514 S L St 131 N L St 128 S K St 500 S D St 330 S J St 15 S D St 231 S C St 520 1st Ave. S. 24 S L St Totals

Type 4-units SFH Duplex Duplex Duplex SFH Duplex Duplex SFH SFH 4-units SFH

Date Units Acquired 4 1 2 2 2 1 1 2 1 1 4 1

Jan 2003 Apr 2011 May 2011 May 2011 Jun 2011 Jun 2011 Jun 2011 Jul 2011 Aug 2011 Dec 2010 Aug 2011 Sep 2011

Type of Purchase 20% Down; 80% Financing All Cash from Fannie Mae All Cash from FDIC All Cash Short Sale All Cash Short Sale All Cash Short Sale All Cash Short Sale All Cash from Fannie Mae All Cash REO All Cash Short Sale All Cash Resale All Cash Resale

22

*All properties in Lake Worth, FL 33460, except for 308 NW 1st Ave, which is in Delray Beach, FL 33444

Purchase Price

Approx. Closing Cost and Reserves

Capital Improvements Total Invested

Implied Value at 8.5% Cap Rate

$ 275,500 $ 61,900 $ 84,750 $ 71,000 $ 83,500 $ 77,500 $ 60,250 $ 127,500 $ 49,500 $ 63,500 $ 152,000 $ 110,000.00

$ 206,920 $ 96,129 $ 158,241 $ 180,389 $ 138,271 $ 107,247 $ 107,476 $ 222,694 $ 111,612 $ 100,029 $ 206,920 62352.94118

$ $ $ $ $ $ $ $ $ $ $ $

23,688 8,330 18,966 14,716 11,234 8,396 8,132 17,153 8,233 8,558 17,588 5,300

9% 13% 22% 21% 13% 11% 13% 13% 17% 13% 12% 5%

$

$ 1,635,929

$

136,676

11%

$ 233,000 $ 39,900 $ 67,000 $ 48,000 $ 81,000 $ 70,000 $ 49,000 $ 80,000 $ 41,000 $ 45,000 $ 140,000 $ 110,000

$ $ $ $ $ $ $ $ $ $ $ $

7,500 4,000 6,000 4,000 6,000 4,000 4,000 6,000 6,000 4,000 7,500 4,000

$ $ $ $ $ $ $ $ $ $ $ $

35,000 22,000 17,750 23,000 2,500 7,500 11,250 47,500 8,500 18,500 12,000 -

$1,003,900

$

63,000

$

205,500

1,216,900

NOI

ROI


PORTFOLIO RENT ROLL Address

Entity

Tenant

Tenant Since

Expires/Amount

Mthly Rent

231 C ST

FL July Ten, LLC

Alexis O connor

March 2011

3/14/2012 $

30 South L St # 1

FL Dec Zero Nine, LLC

Jean & Carla Gasiorows

August 2011

30 South L ST # 2

FL Dec Zero Nine, LLC

Pax Properties

July 2010

330 South J ST

FL Jan Ten, LLC

House: Nick Shafer

Dec 2010

330 South J ST

FL Jan Ten, LLC

Elisa Opalka

July 2011

532 North H St

FL Feb Ten, LLC

DIEGO LOPEZ

15 South D ST

FL Mar Ten, LLC

131 North L ST unit 1

Type

Utilities

1,095 Paid thru Nov 2011

3/1 Single Family home

Tenant Pays all Utilities & Takes Care of Lawn

6/30/2010 $

1,025 Paid thru Nov 2011

Duplex 2/1 Home + Studio Tenant Pays all Utilities

6/30/2010 $

650 Paid thru Nov 2011

Tenant Pays all Utilities

11/30/11

$

Paid thru Nov 2011; 1,500 Less $25 balance

Duplex House & Studio

Tenant Pays all Utilities & Takes Care of Lawn

mth to mth

$

650 Paid thru Nov 2011

Duplex House & Studio

Landlord Pays All Utiliites

July 2010

6/30/2011 $

Paid $750 for Nov; 900 $150 balance

2/1 Single Family home

Tenant Pays all Utilities & Takes Care of Lawn

OSCAR MACARIO

Aug 2010

7/31/2011 $

1,025 Paid thru Nov 2011

2/1 Single Family home

Tenant Pays all Utilities & Takes Care of Lawn

FL Apr Ten, LLC

Donna Rae Williams

July 2011

5/31/2011 $

675 Paid thru Nov 2011

Duplex two 1/1 Apts

Tenant Pays all Utilities

131 North L ST unit 2

FL Apr Ten, LLC

CATHERINE HOGDSON

June 2010

5/31/2011 $

675 Paid thru Nov 2011

Duplex two 1/1 Apts

Tenant Pays all Utilities

500 South D ST

FL May Ten, LLC

ROSALINA COLON July 2010

8/1/2011 $

1,025 Paid thru Nov 2011

2/1 Single Family home

Tenant Pays all Utilities & Takes Care of Lawn

514 South L ST

FL Aug ten, LLC

House: ALEX SALES

4/30/2011 $

1,125 Paid thru Nov 2011

2/1 Single Family home

Tenant Pays all Utilities

May 2009

Status


PORTFOLIO RENT ROLL

514 South L ST

FL Aug ten, LLC

Studio: VERNICE KNIGHT

July 2010

8/1/2011 $500 until January then rent goes up to $550 $

690 Paid thru Nov 2011

128 South K ST

FL Sep Ten, LLC

Rian McGuire

Oct 2010

9/30/2011 $

1,000 Paid thru Nov 2011

26 South L St unit 1

Mark & Justin Ford (personal name)

SUSAN MONTANA 2009

Monthly 3rd yr tenant

$

26 South L St unit 2

Mark & Justin Ford (personal name)

MARIO ONA

2008

Monthly 4th yr tenant

26 South L St unit 3

Mark & Justin Ford (personal name)

BRIDGETTE LUDDEN

2007

26 South L St unit 4

Mark & Justin Ford (personal name)

520 1st Ave. South # 1

Studio

Landlord Pays All Utiliites

2/1 single Family home & studio

Tenant Pays all Utilities

700 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

$

550 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

Monthly 5th yr tenant

$

780 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

PRINCESS DE l'ISLE 2005

5/31/2011 $760

$

775 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

FL June Ten, LLC

David Loricchio

May 2011

April 31, 2012

$

575 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

520 1st Ave. South # 2

FL June Ten, LLC

Shawn Slattery

May 2011

April 31, 2012

$

625 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

520 1st Ave. South # 3

FL June Ten, LLC

Rodney Waugh

June 2011

31-May-12 $

575 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

520 1st Ave. South # 4

FL June Ten, LLC

Keith Eisenhuth

August 2011

31-Jul-12 $

655 Paid thru Nov 2011

1/1 Apartment

Tenant Pays Electric

24 South L St.

Isabelle & Collin, LLC

Darryl Frank

May 2009

April 31, 2012

$

850 Paid thru Nov 2011

2/1 house

Tenant Pays all Utilities & Takes Care of Lawn

Monthly Annual

Total $ $

18,120 217,440


PORTFOLIO PURCHASE AND INVESTMENT INFORMATION

Entity

FL Dec Zero Nine, LLC Fl Jan Ten, LLC

FLL Feb Ten, FL Mar LLC Ten, LLC

Address

30 S L St.

532 N H St.

Property Type Purchase Price

Duplex Duplex $ 67,000 $

$ Closign Costs & Reserves Renovations Renovation Details

Total Invested to Date

1,675

330 S J St

$

SFH 80,000 $ 2,000 $

$ 46,615 Install nearly $20,000 of new impact windows in 4bedroom front house and in studio over garage; expand and redo 1st bath, install new kichen, new flooring in all new bedrooms, completely redo studio over garage w new kitchen bath, flooring, paint in and out, install new well and pump, new irrigation, lay new 91,175 $ 128,615

39,900 998

15 S D St. 131 N L St. 500 S D St

FL Jun Ten, LLC 520 1st Ave. South

SFH Duplex SFH $ 40,000 $ 90,000 $

4 unit Apt Bldg SFH $ 140,000 $

$

FL Apr Ten, FL May Ten, LLC LLC

1,500 $

$ 22,500 Complete rehab of rear stduio unit, new drywall, insulation, new kichen and bath, tile flooring, AC paint in & out. Paint int. of front house, new washer dryer and 2 Acs

$ 3,538 Install new flooring in kitchen; convert one half bath to laundry room, install all new appliances; repair central AC; install new privacy fence and landscaping, paint int and ext.

$ 8,500 New flooring throughout, new AC in sun room, redo bath, new water heater, do xeroscape landscapin g and install picket fence out front.

$

$

$ 50,000 $

44,435

2,250

$ 2,250 Minor repairs to AC; install exterior lighting

$

48,500 1,213

$ 17,500 Retile kitchen counters; install new laminate flooring in 2 bedrooms; repair roof; repair windows in sun room; install new Central Air Condenser; install new irrigation; lay new sods and plants; put up picket fence 94,500 $ 67,213

$

FL Aug Ten, LLC

FL Sep Ten, LLC

231 S C St

514 S L St

128 S K St

3,500 $

$ 1,500 Property had been rehabbed just before we bought it, with new paint in and out and new appliances throughout.

$

FL Jul Ten, LLC

45,000 1,125

$ 32,830 Create third bedroom with closet, replace 5 windows; new laminate flooring throughout; repair drywall; install entire new Central AC system, new kichent cabinets, new washer and dryer; paint roof with sealer; install new picket fence out front; xerosscape out front

145,000 $

78,955

Duplex $ $

SFH 48,000 $ 1,200 $

$ 30,800 Redo rear studio unit with new bath and kitchen; two new Acs, new windows; paint interior and ext; redo flooring in one room of hourse, install 2 new Acs and dryer; new fence and pavers out back; new; install new storage shed.

$

Mark Ford & Justin Ford

Total

26 South L St.

SFH 4 unit Apt Bldg 71,000 $ 110,000 $ 233,000 1,775 $

$ 6,180 Repair rear cotage, incl new water heater, AC, reshingle roof; new privacy fence; in main house repaiir porch and screens, install new gas water heater, install new washer and dryer; paint int and ext; repair Centra AC

80,000 $

Isabelle & Collin, LLC 24 South L St.

2,750 $

$ Acquired just three months ago with existing tenant; no repairs or improvement s yet, though may redo rear unit after current lease expires.

78,955 $

5,825

$ 37,500 Have owned this property for nine years. During that time, we have renovated all 4 apts, redoing kitchens and baths; also installed new irrigation and landscaping, 3 new water heaters and 3 new AC condensers; installed new roof in 2006

112,750 $

276,325 $

1,247,923


ZONING AND IMPROVEMENTS Address

Entity

FL July Ten, LLC FL Dec 30 South L Zero Nine, St LLC

231 C ST

330 South FL Jan J St Ten, LLC 532 North H St 15 South D St

Building Sq. Feet

# Units

Sq. Feet of Land

Year Built Zoning*

1

832

6,750

1955 SFTF14

2

1,413

3,375

1930 POMF30

2

2,461

6,750

Purchase Date

Purchase Price

Approx. Cost of Capital Improvements

Total Cost**

May-10 $

40,000

$

18,500

$

10-Apr $

67,000

$

17,750

$

1931 MF20

May-10 $

80,000

$

47,500

$

Improvements

Install central air; remove mold, install new drywall, install sub flooring, new laminate floor throughout, reconfigure interior walls to create 3rd bedroom (with closet), paint interior and exterior, new appliances, new 63,500 picket fence, landscaping, new appliances, refinish bath, exterior lighting, replace 3 windows; tent for termites Paint front house and do minor repairs; do extensive renovations on rear studio including new plumbing and electric, electric panel, new kitchen cabinets and countertop, new tile flooring, new drywall,, paint interior and 89,750 exterior, new bathroom, new appliances, tent for termites Redo main bath; new kitchen in house; redo all floors; install 22 new impact windows; renovate completely the studio apt over garage; install new garage door, new irrigation; new picket fence; new sod and plantings; paint 132,500 interior and exterior New kitchen; redo bath, install washer & dryer, put down new tile floor, new privacy fence and gardening; 66,900 treat for termites and bedbugs; paint interior and exterior New laminate flooring in 3 rooms, install new room AC, repair central Air, redo drywall in sun room; install new 53,500 water heater; new picket fence and xeroscap, refinish bath

FL Feb Ten, LLC FL Mar Ten, LLC

1

954

3,375

1970 MF20

Mar-10 $

39,900

$

22,000

$

1

832

6,750

1955 SFTF14

May-10 $

40,000

$

8,500

$

131 North FL Apr L St Ten, LLC

2

1,553

4,000

1938 POMF30

May-10 $

90,000

$

2,500

$

500 South FL May D St Ten, LLC

1

1,430

13,500

1959 SFTF14

10-Jul $

49,500

$

11,250

$

514 South FL Aug L St ten, LLC

2

1,860

6,750

1925 RM20

Apr-10 $

48,000

$

23,000

$

1

1,000

3,375

1926 MF30

Jul-10 $

71,000

$

7,500

$

4

3,112

6,750

1933 POMF30

Jan-03 $

233,000

$

35,000

$

Remodel 3 units entirely including new bathrooms and kitchens, paint interior, replace two AC condensers; 273,000 new roof in 2007; four new water heaters, redo landscaping, install irrigation; tent for termites

4

1,696

3,375

1935 POMF30

Aug-11 $

140,000

$

12,000

$

157,000 Paint interior and exterior, treat for termites; buy new appliances for four units; refinish bathrooms

1

1,304

3,375

1946 POMF30

Sep-11 $

110,000

$

-

$

115,000 Recent acquisition; leased when purchased. No improvements yet.

22

18,447

68,125

$

1,008,400

$

128 South FL Sep K St Ten, LLC Mark & Justin Ford 26 South L (personal St name) 520 1st Ave. FL June South Ten, LLC 24 South L Isabelle & St. Collin, LLC

205,500

$

* MF20 = multifamily, 20 units/acre; POMF = Professional Office/Multifamily 30 units/acre; SFTF14 = Single Family Homes 14 per acre. ** All Costs put in by me and my investment partners; except for 520 1st Ave South, which were put in by seller just before sale.

97,500 Fix electric panel, garage door; exterior lighting Repair roof; repair central AC; retile kichen cabinets, install new washer and dryer, new laminate flooring in two bedrooms, refinish bathroom, fix windows and flooring in sun room, paint interior and exterior; treat for 65,750 termites; install new irrigation; lay new sod and plants Complete renovation of rear unit; installation of new storage shed, new rear parking pad and pation area, install new stove and four new ACs, paint interior and exterior, landscaping, repair roof, install new kitchen and 76,000 bath in real unit; tent for termites Paint interior, install new washer and dryer; remove built in shelves and redo 1st bedroom, install new water heater, new screens on porch, repaint rear unit and fix roof for rear unit; treat for termites; redo wood floors 83,500 in house

1,273,900


INVESTOR EQUITY BREAKDOWN

Entity

1 2 3 4 5 6 7 8 9 10 11 12 FL Dec Zero Fl Jan Ten, FLL Feb FL Mar FL Apr Ten, FL Jul FL Aug Ten, FL Sep Ten, Isabelle & Mark Ford & Nine, LLC LLC Ten, LLC Ten, LLC LLC FL May Ten, LLC FL Jun Ten, LLC Ten, LLC LLC LLC Collin, LLC Justin Ford

Address

30 S L St.

Ref #

Mng Member's Equity

Investor 1 Investor Capital Investor Equity

330 S J St

50%

520 1st Ave. South

532 N H St. 15 S D St. 131 N L St. 500 S D St

71%

79%

73%

70%

81%

231 S C St 514 S L St 50%

70%

69%

70%

24 South L St.

26 South L St.

50%

50%

Porter Paul Mark Ford** Stansberry Denise Ford Bob Irish Romano Bob Irish Mark Ford** Al Sears Mike Palmer Al Sears Mark Ford** Mark Ford $ 100,000 $ 100,000 $ 29,435 $ 50,000 $ 100,000 $ 50,000 $ 150,000 $ 65,252 $ 30,000 $ 78,955 $ 140,000 $ 35,000 50.00% 22.88% 14.24% 26.51% 29.83% 19.00% 50.00% 30.00% 11.65% 30.00% 50.00% 50% Karim Rahemtulla $ 25,000 9.71%

Al Sears Rob Gramer $ 28,615 $ 15,000 6.55% 7.26%

Investor 2 Investor Capital Investor Equity

Brian Sodi $ 25,000 9.71%

Investor 3 Investor Capital Investor Equity Total Investor Funds

128 S K St

$ 100,000

$

128,615

$

44,435 $ 50,000 $ 100,000

$

50,000

26 South L Street has a 6% fully amortizing fixed rate loan payable to Chase, due in 2033. All Properties in this tab are in Lake Worth, FL 33460 Lake Worth Properties Owned in LLC's plus one property owned in personal name in partnership. Justin Ford is the Managing Member of all the LLC's Here Listed

$

150,000

$ 78,955

$

80,000 $

78,955

$ 140,000

$

Total Invested Funds $ 1,035,960 Total Invested Funds + the one Chase Mortgage $ 165,000 $ 1,200,960

35,000


15 South D Street


15 South D Street


30 L Street


30 L Street


128 South K Street


128 South K Street


131 North L Street


131 North L Street


231 South C Street


231 South C Street


330 J Street


330 J Street


500 South D Street


500 South D Street


514 South L Street


514 South L Street


520 1st Avenue (32 L Street)


520 1st Avenue (32 L Street)


532 North H Street


532 North H Street


532 North H Street


02013 03/24/2011 4:31 PM Pg 1

Form

IRS e-file Signature Authorization for Form 1065

8879-PE

OMB No. 1545-2042

2010

For calendar year 2010, or tax year beginning . . . . . . . . . . . . . . . , ending . . . . . . . . . . . . . . . . . Department of the Treasury Internal Revenue Service

 See instructions. Do not send to the IRS. Keep for your records.

Employer identification number

Name of partnership

FL Dec Zero Nine LLC Part I 1 2 3 4 5

80-0510669

Tax Return Information (Whole dollars only)

Gross receipts or sales less returns and allowances (Form 1065, line 1c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit (Form 1065, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary business income (loss) (Form 1065, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net rental real estate income (loss) (Form 1065, Schedule K, line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other net rental income (loss) (Form 1065, Schedule K, line 3c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

1 2 3 4 5

-1,650

Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return)

Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership’s 2010 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership’s electronic tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership’s return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership’s electronic income tax return. General Partner or Limited Liability Company Member Manager's PIN: check one box only

X

I authorize

Miriam B. Walling, CPA, PA

to enter my PIN

10669

as my signature

do not enter all zeros

ERO firm name

on the partnership’s 2010 electronically filed income tax return. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership’s 2010 electronically filed income tax return. General partner or limited liability company member manager's signature  Title  Managing Member John Justin

Part III

Date 

Ford

Certification and Authentication

ERO’s EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 65261834250 do not enter all zeros

I certify that the above numeric entry is my PIN, which is my signature on the 2010 electronically filed income tax return for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. ERO’s signature 

Miriam B. Walling CPA

Date 

03/24/11

ERO Must Retain This Form — See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice, see instructions.

DAA

Form

8879-PE (2010)


02013 03/24/2011 4:31 PM Pg 2

Form

1065

U.S. Return of Partnership Income For calendar year 2010, or tax year beginning . . . . . . . . . . . . .

Department of the Treasury Internal Revenue Service

 See separate instructions.

A Principal business activity

Rental B Principal product or service

Real Estate

OMB No. 1545-0099

, ending . . . . . . . . . . . . . . . . .

Print or type.

C Business code number

FL Dec Zero Nine LLC

80-0510669 E

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

30 South L Street Unit 2 Lake Worth

Date business started

12/01/2009 F

City or town, state, and ZIP code

531110

2010

D Employer identification number

Name of partnership

FL 33460

Total assets (see the instructions)

100,622

$

G Check applicable boxes: (1) X Initial return (2) Final return (3) Name change (4) Address change (5) Amended return (6) Technical termination - also check (1) or (2) Accrual Other (specify)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H Check accounting method:(1) X Cash (2) (3) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 .. J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions(see the instructions for limitations)

Income

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

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a Less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a 3,127 b Less depreciation reported on Schedule A and elsewhere on return . . . . . . . . . 16b 3,127 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . . . . . . . . . . . . . . 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a b 2 3 4 5

Sign Here

6 7 8 9 10 11 12 13 14 15

0

16c 17 18 19 20 21 22

0

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 general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see Yes No instructions)?

X

Signature of general partner or limited liability company member manager Print/Type preparer's name

Paid Miriam B. Walling CPA Preparer F Firm's name  Miriam Use Only Firm's address  355 NE

Date

Preparer's signature

Miriam B. Walling CPA

B. Walling, CPA, PA 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

For Paperwork Reduction Act Notice, see separate instructions.

DAA

1c 2 3 4 5

Date

03/24/11

PTIN if Check self-employed P00289917

Firm's EIN  Phone no.

59-2184316

561-272-5868 Form

1065 (2010)


02013 03/24/2011 4:31 PM Pg 3

Form 1065 (2010)

Schedule A 1 2 3 4 5 6 7 8 9a

b c d e

3 a

b

4 a

Page 2

Other Information

What type of entity is filing this return? Check the applicable box: Yes Domestic general partnership Domestic limited partnership b Domestic limited liability partnership d X Domestic limited liability company Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign partnership f At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

b

80-0510669

Cost of Goods Sold (see the instructions)

Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Additional section 263A costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check all methods used for valuing closing inventory: Cost as described in Regulations section 1.471-3 (i) Lower of cost or market as described in Regulations section 1.471-4 (ii) Other (specify method used and attach explanation)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . . . . . . . . . . . . . . . . . . .  Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? . . . . . . . . . . . . . . . . . . . . Yes No Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . . . . . . Yes No If "Yes," attach explanation.

Schedule B 1 a c e 2

FL Dec Zero Nine LLC

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

X

X

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Form

DAA

X

(iv) Percentage Owned in Voting Stock

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . (i) Name of Entity

No

1065 (2010)


02013 03/24/2011 4:31 PM Pg 4

Form 1065 (2010)

FL Dec Zero Nine LLC

80-0510669

Page 3 Yes

Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does the partnership satisfy all four of the following conditions? 6 a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms 8 modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 9 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2010, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country.  11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions  16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.  17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 

No

5

X

X X X X

X X X X X

X

X

Designation of Tax Matters Partner (see instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP

Pax Properties LLC John Justin Ford 30 South L Street Lake Worth FL 33460

Identifying number of TMP Phone number of TMP

83-0491866 888-729-4948 Form

DAA

1065 (2010)


02013 03/24/2011 4:31 PM Pg 5

Form 1065 (2010)

Schedule K

Alternative Other Information Minimum Tax (AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

1 2 3a b c 4 5 6 7 8 9a b c 10 11 12 13a b c d 14a b c 15a b c d e f 16a b c d g i l m n 17a b c d e f 18a b c 19a b 20a b c

FL Dec Zero Nine LLC

Page 4

80-0510669

Partners' Distributive Share Items

Total amount

Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a Expenses from other rental activities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 3b Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Other income (loss) (see instructions) Type  11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b Section 59(e)(2) expenditures: (1) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Amount  13c(2) Other deductions (see instructions)Type  13d Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c Other rental real estate credits (see instructions) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e Other rental credits (see instructions) Other credits (see instructions) Type  15f Name of country or U.S. possession  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level Passive category  . . . . . . . . . . . . . . . . . . . . . . e General category  . . . . . . . . . . . . . . . . . . . . . . . . f Other  16f Deductions allocated and apportioned at partner level Interest expense  . . . . . . . . . . . . . . . . . . . . . . . . . . . . h Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16h Deductions allocated and apportioned at partnership level to foreign source income Passive category  . . . . . . . . . . . . . . . . . . . . . . j General category  . . . . . . . . . . . . . . . . . . . . . . . . k Other  16k Total foreign taxes (check one): Paid Accrued 16l . ..... Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16m Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17c Oil, gas, and geothermal properties – gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17d Oil, gas, and geothermal properties – deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17e Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17f Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19b Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-1,650

0

301

Form DAA

1065 (2010)


02013 03/24/2011 4:31 PM Pg 6

Form 1065 (2010)

FL Dec Zero Nine LLC

80-0510669

Page 5

Analysis of Net Income (Loss) 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of 1 Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis by (iii) Individual (v) Exempt (ii) Individual (i) Corporate (iv) Partnership (active) (passive) organization partner type:

1 2a b 3 4 5 6 7 8

14

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year

21 22

End of tax year (b)

(c)

(d)

15,097

Other current assets ...................... (attach statement) Mortgage and real estate loans . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .

Buildings and other depreciable assets . . Less accumulated depreciation . . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . Less accumulated depletion . . . . . . . . . . . . . Land (net of any amortization) . . . . . . . . . . . Intangible assets (amortizable only) . . . . . Less accumulated amortization . . . . . . . . . .

18 19 20

Beginning of tax year (a)

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trade notes and accounts receivable . . . . Less allowance for bad debts . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. government obligations . . . . . . . . . . . . Tax-exempt securities . . . . . . . . . . . . . . . . . .

9a b 10a b 11 12a b 13

15 16 17

(vi) Nominee/Other

-825 -825

a General partners b Limited partners Balance Sheets per Books Schedule L Assets

-1,650

75,252 3,127

72,125 13,400

Other assets ............................. (attach statement)

100,622

Other current liabilities ..................... (attach statement) All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities ........................... (attach statement) Partners' capital accounts . . . . . . . . . . . . . . . . . . . . . .

See Stmt 1

2,437 100,000 -1,815 100,622

Total liabilities and capital . . . . . . . . . . . . . . .

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

1 2

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

-1,650

6

Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest$ . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

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

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

Guaranteed payments (other than health insurance) . . . . . . . . . . . . . . . . . . . . 4 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16I (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . b Travel and entertainment $ . . . . . . . . . . . . . . . . . . . . . . .

7

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

8 9

3

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

5

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

Schedule M-2 1 2 3 4 5 DAA

Deductions included on Schedule K, lines 1 through 13d, and 16I, not charged against book income this year (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... . ..........................................

-1,650

Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . . . . .

-1,650

Analysis of Partners' Capital Accounts

Balance at beginning of year . . . . . . . . . Capital contributed: a Cash . . . . . . . . . b Property . . . . . . Net income (loss) per books . . . . . . . . .

6

136

7

-1,650

Other decreases (itemize): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

Other increases ....................... (itemize):

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

301

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

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

-1,514

8 9

301 -1,815

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

1065 (2010)


02013 03/24/2011 4:31 PM Pg 7

Form

8825

(Rev. December 2010) Department of the Treasury Internal Revenue Service Name

Rental Real Estate Income and Expenses of a Partnership or an S Corporation

OMB No. 1545-1186

 See instructions on back.

 Attach to Form 1065, Form 1065-B, or Form 1120S. Employer identification number

FL Dec Zero Nine LLC

80-0510669

Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. See page 2 to list additional properties. Physical address of each property—street, city, Type—Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code see page 2 for list

1

A .

30 South L Street .30 . . . . .South . . . . . . . . .L . . . Street ....................................................................................................................... Lake Worth FL 33460 2 Multi-Fam Residence 365

B . .........................................................................................................................................

C . .........................................................................................................................................

D . .........................................................................................................................................

Properties 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Rental Real Estate Income Gross rents . . . . . . . . . . . . . . . . . . . . . . . Rental Real Estate Expenses Advertising . . . . . . . . . . . . . . . . . . . . . . . Auto and travel . . . . . . . . . . . . . . . . . . . . Cleaning and maintenance . . . . . . . . . Commissions . . . . . . . . . . . . . . . . . . . . . Insurance . . . . . . . . . . . . . . . . . . . . . . . . . Legal and other professional fees . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . Wages and salaries . . . . . . . . . . . . . . . Depreciation (see instructions) . . . . . Other (list)  . . . . . . . . . . . . . . . . . . . . .

See Statement 2

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

16 17 18a b 19 20a b

A

B

2

9,450

3 4 5 6 7 8 9 10 11 12 13 14

863 150 4,300 180

15

563

C

1,917 3,127

Total expenses for each property. Add lines 3 through 15 . . . . . . . . . . . . . 11,100 16 Income or (Loss) from each property. Subtract line 16 from line 2 -1,650 17 Total gross rents. Add gross rents from line 2, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Total expenses. Add total expenses from line 16, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b ( Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number . .............................................................................

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

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

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

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

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

Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on:  Form 1065 or 1120S: Schedule K, line 2, or  Form 1065-B: Part I, line 4 For Paperwork Reduction Act Notice, see back of form.

21

DAA

D

9,450 11,100 )

-1,650

21

Form

8825 (12-2010)


02013 03/24/2011 4:31 PM Pg 8

SCHEDULE B-1 (Form 1065)

Information on Partners Owning 50% or More of the Partnership

(December 2009) Department of the Treasury Internal Revenue Service

ď ľ Attach to Form 1065. See instructions on back. Employer identification number (EIN)

Name of partnership

FL Dec Zero Nine LLC Part I

OMB No. 1545-0099

80-0510669

Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a)

Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity

Part II

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b)

Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions).

(i) Name of Individual or Estate

(ii) Identifying Number (if any)

(iii) Country of Citizenship (see instructions)

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

Pax Properties LLC 83-0491866 United States

50.000000

085-38-9332 United States

50.000000

Mark M Ford Revocable Trust

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

DAA

Schedule B-1 (Form 1065) (12-2009)


02013 03/24/2011 4:31 PM Pg 9



Partner# 1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III

Amended K-1

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

1

Ordinary business income (loss)

2

Net rental real estate income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning ending

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

*

-825

3

Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Dec Zero Nine LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Part I

OMB No. 1545-0099

Information About the Partnership

A Partnership's employer identification number

80-0510669 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

83-0491866 F Partner's name, address, city, state, and ZIP code

Pax Properties LLC

G H I

30 South L Street Lake Worth X General partner or LLC X

FL 33460

member-manager

Limited partner or other LLC member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

A

151

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

Ending

50.000000 % 50.000000 % 50.000000 %

20

50.000000 % 50.000000 % 50.000000 %

Other information

Y*

STMT

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

2,436

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $ GAAP

126 -825 151 ) -850

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

Tax basis

Self-employment earnings (loss)

100,000

L Partner's capital account analysis:

X

14

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02013 03/24/2011 4:31 PM Pg 10



Partner# 2

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III

Amended K-1

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

1

Ordinary business income (loss)

2

Net rental real estate income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning ending

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

*

-825

3

Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Dec Zero Nine LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Mark M Ford Revocable Trust

10

Net section 1231 gain (loss)

11

Other income (loss)

G

235 NE 4th Ave Suite 101 Delray Beach FL 33483 X Limited partner or other LLC General partner or LLC

H

X

12

Section 179 deduction

13

Other deductions

Part I

OMB No. 1545-0099

Information About the Partnership

A Partnership's employer identification number

80-0510669 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

085-38-9332 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

A

150

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

Ending

50.000000 % 50.000000 % 50.000000 %

20

50.000000 % 50.000000 % 50.000000 %

Other information

Y*

STMT

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 -825 150 ) -965

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02013 03/24/2011 4:31 PM Pg 11

Form

Depreciation and Amortization

4562

OMB No. 1545-0172

2010

(Including Information on Listed Property)

Department of the Treasury Internal Revenue Service (99)

 See separate instructions.

Attachment Sequence No.

 Attach to your tax return.

67

Identifying number

Name(s) shown on return

FL Dec Zero Nine LLC

80-0510669

Business or activity to which this form relates

30 South L Street Part I

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

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

1 2 3 4 5 6

(a) Description of property

(b) Cost (business use only)

Part II

15 16

8 9 10 11 12

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions)

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

2,000,000

(c) Elected cost

7 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2009 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . 13 Carryover of disallowed deduction to 2011. Add lines 9 and 10, less line 12 . . . . . . . . 13 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. 14

500,000

1 2 3 4 5

14 15 16

987

17

0

69

MACRS Depreciation (Do not include listed property.) (See instructions.) Section A

17 18

MACRS deductions for assets placed in service in tax years beginning before 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 

Section B—Assets Placed in Service During 2010 Tax Year Using the General Depreciation System (a) Classification of property

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property

(b) Month and year placed in service

(c) Basis for depreciation (d) Recovery (business/investment use (e) Convention period only–see instructions)

987

04/22/10

72,762

5.0

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

HY

MM MM MM

(f) Method

200DB

Part IV

S/L S/L

12 yrs.

1,874

40 yrs.

MM

S/L S/L S/L

Summary (See instructions.)

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . . . . . . . . . . . . . . . . . 23 For assets shown above and placed in service during the current year, enter the 23 portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see separate instructions. DAA

197

S/L Nonresidential real S/L property MM S/L Section C—Assets Placed in Service During 2010 Tax Year Using the Alternative Depreciation System

20a Class life b 12-year c 40-year 21 22

(g) Depreciation deduction

21

3,127

22

Form

4562 (2010)

There are no amounts for Page 2


02013 FL Dec Zero Nine LLC 80-0510669 FYE: 12/31/2010

3/24/2011 4:31 PM Page 1

Federal Statements

Statement 1 - Form 1065, Schedule L, Line 17 - Other Current Liabilities Description Prepaid Property Tax Tenant Security Deposits Total

Beginning of Year

End of Year

$

$

$

0

$

912 1,525 2,437

Statement 2 - 30 South L Street - Form 8825, Line 15 - Other Description Bank Charges Licenses Office Expenses Property Management Fees Total

Amount $

$

25 139 15 384 563

1-2


02013 03/24/2011 4:31 PM Pg 13

Form

Reconciliation of Partners' Capital Accounts Worksheet

1065

For calendar year 2010, or tax year beginning Partnership Name

Employer Identification Number

FL Dec Zero Nine LLC Partner Number

1 2

2010

, and ending

Partner Name

80-0510669 Beginning Capital

Capital Contributed

Lines 3, 4, & 7 Schedule M-2

Withdrawals & Distributions

Ending Capital

Pax Properties LLC Mark M Ford Revocable Trust

0 126 -825 151 -850 0 10 -825 150 -965 ___________ ___________ ___________ ___________ ___________

Total Partners' Capital

0 136 -1,650 301 -1,815 =========== =========== =========== =========== ===========

Page 1 of 1


02013 FL Dec Zero Nine LLC 80-0510669 FYE: 12/31/2010 Asset

Description

03/24/2011 4:31 PM Page 1

Federal Asset Report 30 South L Street Date In Service

Cost

5-year GDS Property: 3 Appliances

5/17/10

1,974 1,974

Residential Real Property: 1 30 South L Street Building

4/22/10

72,762 72,762

Other Depreciation: 2 30 South L Street Land 4 Closing Costs Total Other Depreciation

4/22/10 4/22/10

Bus Sec Basis % 179Bonus for Depr

X

987 987

PerConv Meth

5 HY 200DB

Prior

Current

0 0

1,184 1,184

72,762 27 MM S/L 72,762

0 0

1,874 1,874

13,400 516 13,916

13,400 516 13,916

0 0 0

0 69 69

Total ACRS and Other Depreciation

13,916

13,916

0

69

Grand Totals Less: Dispositions and Transfers Less: Start-up/Org Expense Net Grand Totals

88,652 0 0 88,652

87,665 0 0 87,665

0 0 0 0

3,127 0 0 3,127

0 -- Land 5 MO S/L


02014 03/26/2011 10:46 AM Pg 1

Form

IRS e-file Signature Authorization for Form 1065

8879-PE

04/12/10

OMB No. 1545-2042

2010

12/31/10

For calendar year 2010, or tax year beginning . . . . . . . . . . . . . . . , ending . . . . . . . . . . . . . . . . . Department of the Treasury Internal Revenue Service

 See instructions. Do not send to the IRS. Keep for your records.

Employer identification number

Name of partnership

FL Jan Ten, LLC Part I 1 2 3 4 5

27-2330452

Tax Return Information (Whole dollars only)

Gross receipts or sales less returns and allowances (Form 1065, line 1c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit (Form 1065, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary business income (loss) (Form 1065, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net rental real estate income (loss) (Form 1065, Schedule K, line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other net rental income (loss) (Form 1065, Schedule K, line 3c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

1 2 3 4 5

-11,547

Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return)

Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership’s 2010 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership’s electronic tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership’s return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership’s electronic income tax return. General Partner or Limited Liability Company Member Manager's PIN: check one box only

X

I authorize

Miriam B. Walling, CPA, PA

to enter my PIN

30452

as my signature

do not enter all zeros

ERO firm name

on the partnership’s 2010 electronically filed income tax return. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership’s 2010 electronically filed income tax return. General partner or limited liability company member manager's signature  Title  LLC Member Pax Properties

Part III

Date 

LLC

Certification and Authentication

ERO’s EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 65261834250 do not enter all zeros

I certify that the above numeric entry is my PIN, which is my signature on the 2010 electronically filed income tax return for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. ERO’s signature 

Miriam B. Walling CPA

Date 

03/26/11

ERO Must Retain This Form — See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice, see instructions.

DAA

Form

8879-PE (2010)


02014 03/26/2011 10:46 AM Pg 2

Form

1065

U.S. Return of Partnership Income 04/12/10, ending . .12/31/10 .............. .

Department of the Treasury Internal Revenue Service

Rental Real Estate

2010

 See separate instructions.

A Principal business activity

B Principal product or service

OMB No. 1545-0099

For calendar year 2010, or tax year beginning . . . . . . . . . . . . .

D Employer identification number

Name of partnership

Print or type.

C Business code number

FL Jan Ten, LLC

27-2330452 E

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

30 South L Street F

City or town, state, and ZIP code

Lake Worth

531110

Date business started

04/12/2010 FL 33460

Total assets (see the instructions)

139,783

$

G Check applicable boxes: (1) X Initial return (2) Final return (3) Name change (4) Address change (5) Amended return (6) Technical termination - also check (1) or (2) Accrual Other (specify)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H Check accounting method:(1) X Cash (2) (3) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 .. J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions(see the instructions for limitations)

Income

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

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a Less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a 3,047 b Less depreciation reported on Schedule A and elsewhere on return . . . . . . . . . 16b 3,047 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . . . . . . . . . . . . . . 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a b 2 3 4 5

Sign Here

6 7 8 9 10 11 12 13 14 15

0

16c 17 18 19 20 21 22

0

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 general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see Yes No instructions)?

X

Signature of general partner or limited liability company member manager Print/Type preparer's name

Paid Miriam B. Walling CPA Preparer F Firm's name  Miriam Use Only Firm's address  355 NE

Date

Preparer's signature

Miriam B. Walling CPA

B. Walling, CPA, PA 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

For Paperwork Reduction Act Notice, see separate instructions.

DAA

1c 2 3 4 5

Date

03/26/11

PTIN if Check self-employed P00289917

Firm's EIN  Phone no.

59-2184316

561-272-5868 Form

1065 (2010)


02014 03/26/2011 10:46 AM Pg 3

Form 1065 (2010)

Schedule A 1 2 3 4 5 6 7 8 9a

b c d e

3 a

b

4 a

Page 2

Other Information

What type of entity is filing this return? Check the applicable box: Yes Domestic general partnership Domestic limited partnership b Domestic limited liability partnership d X Domestic limited liability company Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign partnership f At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

b

27-2330452

Cost of Goods Sold (see the instructions)

Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Additional section 263A costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check all methods used for valuing closing inventory: Cost as described in Regulations section 1.471-3 (i) Lower of cost or market as described in Regulations section 1.471-4 (ii) Other (specify method used and attach explanation)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . . . . . . . . . . . . . . . . . . .  Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? . . . . . . . . . . . . . . . . . . . . Yes No Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . . . . . . Yes No If "Yes," attach explanation.

Schedule B 1 a c e 2

FL Jan Ten, LLC

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

X

X

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Form

DAA

X

(iv) Percentage Owned in Voting Stock

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . (i) Name of Entity

No

1065 (2010)


02014 03/26/2011 10:46 AM Pg 4

Form 1065 (2010)

FL Jan Ten, LLC

27-2330452

Page 3 Yes

Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does the partnership satisfy all four of the following conditions? 6 a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms 8 modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 9 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2010, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country.  11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions  16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.  17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 

No

5

X

X X X X

X X X X X

X

X

Designation of Tax Matters Partner (see instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP

Pax Properties LLC John Justin Ford 30 South L Street Unit 2 Lake Worth FL 33460

Identifying number of TMP Phone number of TMP

83-0491866 888-729-4948 Form

DAA

1065 (2010)


02014 03/26/2011 10:46 AM Pg 5

Form 1065 (2010)

Schedule K

Alternative Other Information Minimum Tax (AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

1 2 3a b c 4 5 6 7 8 9a b c 10 11 12 13a b c d 14a b c 15a b c d e f 16a b c d g i l m n 17a b c d e f 18a b c 19a b 20a b c

FL Jan Ten, LLC

Page 4

27-2330452

Partners' Distributive Share Items

Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a Expenses from other rental activities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 3b Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Other income (loss) (see instructions) Type  11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b Section 59(e)(2) expenditures: (1) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Amount  13c(2) Other deductions (see instructions)Type  13d Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c Other rental real estate credits (see instructions) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e Other rental credits (see instructions) Other credits (see instructions) Type  15f Name of country or U.S. possession  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level Passive category  . . . . . . . . . . . . . . . . . . . . . . e General category  . . . . . . . . . . . . . . . . . . . . . . . . f Other  16f Deductions allocated and apportioned at partner level Interest expense  . . . . . . . . . . . . . . . . . . . . . . . . . . . . h Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16h Deductions allocated and apportioned at partnership level to foreign source income Passive category  . . . . . . . . . . . . . . . . . . . . . . j General category  . . . . . . . . . . . . . . . . . . . . . . . . k Other  16k Total foreign taxes (check one): Paid Accrued 16l . ..... Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16m Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17c Oil, gas, and geothermal properties – gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17d Oil, gas, and geothermal properties – deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17e Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17f Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19b Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total amount

-11,547

0

Form DAA

1065 (2010)


02014 03/26/2011 10:46 AM Pg 6

Form 1065 (2010)

FL Jan Ten, LLC

27-2330452

Page 5

Analysis of Net Income (Loss) 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of 1 Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis by (iii) Individual (v) Exempt (ii) Individual (i) Corporate (iv) Partnership (active) (passive) organization partner type:

1 2a b 3 4 5 6 7 8

14

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year

21 22

Beginning of tax year (a)

End of tax year (b)

(c)

(d)

-1,928

Other current assets ...................... (attach statement) Mortgage and real estate loans . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .

Buildings and other depreciable assets . . Less accumulated depreciation . . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . Less accumulated depletion . . . . . . . . . . . . . Land (net of any amortization) . . . . . . . . . . . Intangible assets (amortizable only) . . . . . Less accumulated amortization . . . . . . . . . .

18 19 20

-2,641

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trade notes and accounts receivable . . . . Less allowance for bad debts . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. government obligations . . . . . . . . . . . . Tax-exempt securities . . . . . . . . . . . . . . . . . .

9a b 10a b 11 12a b 13

15 16 17

(vi) Nominee/Other

-8,906

a General partners b Limited partners Balance Sheets per Books Schedule L Assets

-11,547

128,758 3,047

16,000

Other assets ............................. (attach statement)

139,783 3,137

Other current liabilities ..................... (attach statement) All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities ........................... (attach statement) Partners' capital accounts . . . . . . . . . . . . . . . . . . . . . .

100,000 36,646 139,783

Total liabilities and capital . . . . . . . . . . . . . . .

Schedule M-1

125,711

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

1 2

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

-11,547

6

Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest$ . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

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

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

Guaranteed payments (other than health insurance) . . . . . . . . . . . . . . . . . . . . 4 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16I (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . b Travel and entertainment $ . . . . . . . . . . . . . . . . . . . . . . .

7

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

8 9

3

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

5

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

Schedule M-2 1 2 3 4 5 DAA

Deductions included on Schedule K, lines 1 through 13d, and 16I, not charged against book income this year (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... . ..........................................

-11,547

Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . . . . .

-11,547

Analysis of Partners' Capital Accounts

Balance at beginning of year . . . . . . . . . Capital contributed: a Cash . . . . . . . . . b Property . . . . . . Net income (loss) per books . . . . . . . . .

6

48,193

7

-11,547

Other decreases (itemize): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

Other increases ....................... (itemize):

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

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

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

36,646

8 9

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

36,646 Form

1065 (2010)


02014 03/26/2011 10:46 AM Pg 7

Form

8825

(Rev. December 2010) Department of the Treasury Internal Revenue Service Name

Rental Real Estate Income and Expenses of a Partnership or an S Corporation

OMB No. 1545-1186

 See instructions on back.

 Attach to Form 1065, Form 1065-B, or Form 1120S. Employer identification number

FL Jan Ten, LLC

27-2330452

Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. See page 2 to list additional properties. Physical address of each property—street, city, Type—Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code see page 2 for list

1

A .

330 South J Street .330 . . . . . . South . . . . . . . . . .J . . .Street ..................................................................................................................... Lake Worth FL 33460 1 Single Fam Residence 365

B . .........................................................................................................................................

C . .........................................................................................................................................

D . .........................................................................................................................................

Properties 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Rental Real Estate Income Gross rents . . . . . . . . . . . . . . . . . . . . . . . Rental Real Estate Expenses Advertising . . . . . . . . . . . . . . . . . . . . . . . Auto and travel . . . . . . . . . . . . . . . . . . . . Cleaning and maintenance . . . . . . . . . Commissions . . . . . . . . . . . . . . . . . . . . . Insurance . . . . . . . . . . . . . . . . . . . . . . . . . Legal and other professional fees . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . Wages and salaries . . . . . . . . . . . . . . . Depreciation (see instructions) . . . . . Other (list)  . . . . . . . . . . . . . . . . . . . . .

See Statement 1

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

16 17 18a b 19 20a b

A 2 3 4 5 6 7 8 9 10 11 12 13 14 15

B

C

1,195 100 3,085 3,486 3,047 1,408

Total expenses for each property. Add lines 3 through 15 . . . . . . . . . . . . . 12,321 16 Income or (Loss) from each property. Subtract line 16 from line 2 -11,547 17 Total gross rents. Add gross rents from line 2, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Total expenses. Add total expenses from line 16, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b ( Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number . .............................................................................

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

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

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

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

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

Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on:  Form 1065 or 1120S: Schedule K, line 2, or  Form 1065-B: Part I, line 4 For Paperwork Reduction Act Notice, see back of form.

21

DAA

D

774

774 12,321 )

-11,547

21

Form

8825 (12-2010)


02014 03/26/2011 10:46 AM Pg 8

SCHEDULE B-1 (Form 1065)

Information on Partners Owning 50% or More of the Partnership

(December 2009) Department of the Treasury Internal Revenue Service

ď ľ Attach to Form 1065. See instructions on back. Employer identification number (EIN)

Name of partnership

FL Jan Ten, LLC Part I

OMB No. 1545-0099

27-2330452

Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a)

Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity

Part II

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b)

Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions).

(i) Name of Individual or Estate

(ii) Identifying Number (if any)

(iii) Country of Citizenship (see instructions)

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

Pax Properties LLC 83-0491866 United States

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

DAA

77.120000

Schedule B-1 (Form 1065) (12-2009)


02014 03/26/2011 10:46 AM Pg 9



Partner# 1

Final K-1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Part III 1

For calendar year 2010, or tax

04/12/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

20

Other information

year beginning

Information About the Partnership

Net rental real estate income (loss)

-8,906 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

6a

Ordinary dividends

6b

Qualified dividends

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

Pax Properties LLC

10

Net section 1231 gain (loss)

11

Other income (loss)

G

30 South L Street Unit 2 Lake Worth FL 33460 X General partner or LLC Limited partner or other LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2330452 B Partnership's name, address, city, state, and ZIP code

FL Jan Ten, LLC 30 South L Street Lake Worth

FL 33460

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

83-0491866 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

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

Ending

77.120000 % 77.120000 % 77.120000 %

77.120000 % 77.120000 % 77.120000 %

Y*

STMT

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

3,137

14

100,000

L Partner's capital account analysis:

*See attached statement for additional information.

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $ Tax basis

GAAP

48,183 -8,906 )

39,277

Section 704(b) book

Other (explain)

For IRS Use Only

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

X

Self-employment earnings (loss)

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02014 03/26/2011 10:46 AM Pg 10



Partner# 2

Final K-1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Part III 1

For calendar year 2010, or tax

04/12/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

20

Other information

year beginning

Information About the Partnership

Net rental real estate income (loss)

-2,641 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

6a

Ordinary dividends

6b

Qualified dividends

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

Frank Porter Stansberry

10

Net section 1231 gain (loss)

12134 Falls Road Cockeysville

11

Other income (loss)

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2330452 B Partnership's name, address, city, state, and ZIP code

FL Jan Ten, LLC 30 South L Street Lake Worth

FL 33460

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

593-58-1549 F Partner's name, address, city, state, and ZIP code

G H I

X

General partner or LLC member-manager

X

MD 21030

Domestic partner

Limited partner or other LLC member Foreign partner

What type of entity is this partner?

Individual

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

Ending

22.880000 % 22.880000 % 22.880000 %

22.880000 % 22.880000 % 22.880000 %

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

*See attached statement for additional information.

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 -2,641 )

-2,631

Section 704(b) book

Other (explain)

For IRS Use Only

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02014 03/26/2011 10:46 AM Pg 11

Form

Depreciation and Amortization

4562

Department of the Treasury Internal Revenue Service (99)

OMB No. 1545-0172

2010

(Including Information on Listed Property)  See separate instructions.

Attachment Sequence No.

 Attach to your tax return.

67

Identifying number

Name(s) shown on return

FL Jan Ten, LLC

27-2330452

Business or activity to which this form relates

330 South J Street Part I

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

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

1 2 3 4 5 6

(a) Description of property

(b) Cost (business use only)

Part II

15 16

8 9 10 11 12

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions)

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

2,000,000

(c) Elected cost

7 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2009 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . 13 Carryover of disallowed deduction to 2011. Add lines 9 and 10, less line 12 . . . . . . . . 13 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. 14

500,000

1 2 3 4 5

14 15 16

150

17

0

MACRS Depreciation (Do not include listed property.) (See instructions.) Section A

17 18

MACRS deductions for assets placed in service in tax years beginning before 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 

Section B—Assets Placed in Service During 2010 Tax Year Using the General Depreciation System (a) Classification of property

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property

(b) Month and year placed in service

05/19/10

(c) Basis for depreciation (d) Recovery (business/investment use (e) Convention period only–see instructions)

127,469

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

MM MM MM

(f) Method

S/L S/L

Part IV

12 yrs. 40 yrs.

MM

S/L S/L S/L

Summary (See instructions.)

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . . . . . . . . . . . . . . . . . 23 For assets shown above and placed in service during the current year, enter the 23 portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see separate instructions. DAA

2,897

S/L Nonresidential real S/L property MM S/L Section C—Assets Placed in Service During 2010 Tax Year Using the Alternative Depreciation System

20a Class life b 12-year c 40-year 21 22

(g) Depreciation deduction

21

3,047

22

Form

4562 (2010)

There are no amounts for Page 2


02014 FL Jan Ten, LLC 27-2330452 FYE: 12/31/2010

Federal Statements

3/26/2011 10:46 AM Page 1

Statement 1 - 330 South J Street - Form 8825, Line 15 - Other Description Bank Charges Casual Labor Lawn Maintenance Total

Amount $

$

134 40 1,234 1,408

1


02014 FL Jan Ten, LLC 27-2330452 FYE: 12/31/2010

3/26/2011 10:46 AM Page 1

Federal Statements Pax Properties LLC 83-0491866

Schedule K-1, Line 2 - Net Rental Real Estate Income (Loss) Description 330 South J Street

$

Amount -8,906

Schedule K-1, Line 20Y - Additional Supplemental Information Description Analysis of "At Risk" versus Not "At Risk" Liabilities "At Risk" Not "At Risk" Nonrecourse 0 3,137 Qualified Nonrecourse 0 0 Recourse 100,000 0


02014 FL Jan Ten, LLC 27-2330452 FYE: 12/31/2010

3/26/2011 10:46 AM Page 1

Federal Statements Frank Porter Stansberry 593-58-1549

Schedule K-1, Line 2 - Net Rental Real Estate Income (Loss) Description 330 South J Street

$

Amount -2,641


02014 03/26/2011 10:46 AM Pg 15

Partner# 1 Analysis of Partner's K-1, Current Year Increase (Decrease) Worksheet Schedule

K-1

2010

For calendar year 2010, or tax year beginning

04/12/10

, and ending

12/31/10

Partnership Name

Employer Identification Number

FL Jan Ten, LLC

27-2330452

Partner's Name

Taxpayer Identification Number

Pax Properties LLC

83-0491866

Items Included in Current Year Increase (Decrease):

Schedule K Additions: Net Rental Real Estate Income/Loss

-8,906 ____________ Subtotal

-8,906 ____________

Total per Schedule K-1, Current Year Increase (Decrease)

-8,906 ============

Page 1 of 1


02014 03/26/2011 10:46 AM Pg 16

Partner# 2 Analysis of Partner's K-1, Current Year Increase (Decrease) Worksheet Schedule

K-1

2010

For calendar year 2010, or tax year beginning

04/12/10

, and ending

12/31/10

Partnership Name

Employer Identification Number

FL Jan Ten, LLC

27-2330452

Partner's Name

Taxpayer Identification Number

Frank Porter Stansberry

593-58-1549

Items Included in Current Year Increase (Decrease):

Schedule K Additions: Net Rental Real Estate Income/Loss

-2,641 ____________ Subtotal

-2,641 ____________

Total per Schedule K-1, Current Year Increase (Decrease)

-2,641 ============

Page 1 of 1


02014 03/26/2011 10:46 AM Pg 17

Partner# 1 Schedule

Partner's Basis Worksheet, Page 1

K-1

For calendar year 2010, or tax year beginning

04/12/10

, and ending

Partnership Name

2010 12/31/10 Employer Identification Number

FL Jan Ten, LLC Partner's Name

27-2330452 Taxpayer Identification Number

Pax Properties LLC

83-0491866

Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Increases: Capital contributions: . . . . Cash . . . . . . . . . . . . . . . . . . . . 48,183 . . . . . . . . . . . . . . . . . . . Property . . . . . . . . .(adjusted . . . . . . . . .basis) ................................. "Excess" depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income items:

0 48,183

Net income from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net gain under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax-exempt interest and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other increases: Transfer of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gain (loss) on disposition of section 179 assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....................................................................................................

Distributions: Cash Property (adjusted basis) Increase (decrease) in share of partnership liabilities . . .P/Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C/Y . . . . . . . . . . . . . 103,137 ................ Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Distribution in excess of partner basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Decreases: Noncap items:

Loss items:

Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 179 expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deductions related to portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest expense on investment debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 59(e) expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

103,137 151,320

8,906

Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other decreases:

8,906

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

End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note to partner: This worksheet was prepared based on partnership records. Please consult with your tax advisor for adjustments.

142,414


02014 03/26/2011 10:46 AM Pg 18

Partner# 2 Schedule

Partner's Basis Worksheet, Page 1

K-1

For calendar year 2010, or tax year beginning

04/12/10

, and ending

Partnership Name

2010 12/31/10 Employer Identification Number

FL Jan Ten, LLC Partner's Name

27-2330452 Taxpayer Identification Number

Frank Porter Stansberry

593-58-1549

Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Increases: Capital contributions: . . . . Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 . . . . . . . . . . . Property . . . . . . . . .(adjusted . . . . . . . . .basis) ................................. "Excess" depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income items:

0 10

Net income from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net gain under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax-exempt interest and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other increases: Transfer of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gain (loss) on disposition of section 179 assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....................................................................................................

Distributions: Cash Property (adjusted basis) Increase (decrease) in share of partnership liabilities . . .P/Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C/Y ............................. Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Distribution in excess of partner basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Decreases: Noncap items:

Loss items:

Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 179 expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deductions related to portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest expense on investment debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 59(e) expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

10

Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other decreases:

10

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

End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note to partner: This worksheet was prepared based on partnership records. Please consult with your tax advisor for adjustments.

0


02014 03/26/2011 10:46 AM Pg 19

Partner# 2 Schedule

Partner's Basis Worksheet, Page 2

K-1

For calendar year 2010, or tax year beginning

04/12/10

, and ending

Partnership Name

2010 12/31/10 Employer Identification Number

FL Jan Ten, LLC

27-2330452

Partner's Name

Taxpayer Identification Number

Frank Porter Stansberry

Suspended Amount

593-58-1549

Current Year

Total Loss

Percent

Allowed Loss

Disallowed Loss

Nondeductible noncap exps: Nondeductible expenses Charitable contributions Foreign taxes Total nonded noncap exps Losses and deductions: Ordinary loss Rental real estate loss Other rental activity loss Royalties Short-term capital loss Long-term capital loss Other portfolio loss Section 1231 loss Other losses Section 179 expense Portfolio inc. deductions Other deductions Investment debt interest Section 59(e) expenses Depletion Total losses and deductions

2,641

2,641 100.00

10

2,631

2,641

2,641

10

2,631

*Note to partner: This worksheet was prepared based on partnership records. Please consult with your tax advisor for adjustments.


02014 03/26/2011 10:46 AM Pg 20

Form

Schedule K-1 Summary Worksheet

1065

For calendar year 2010, or tax year beginning

04/12/10

, and ending

2010 12/31/10

Partnership Name

Employer Identification Number

FL Jan Ten, LLC

27-2330452 Partner Name

Column A . . . . . . . . . . . . Column B . . . . . . . . . . . Column C . . . . . . . . . . . Column D . . . . . . . . . . .

Pax Properties LLC Frank Porter Stansberry

Schedule K Items 1 2 3c 4 5 6a 6b 7 8 9a 9b 9c 10 11

SSN/EIN

Ordinary income Net income-rent Net inc-oth rent Guaranteed pmts Interest income Ordinary dividends Qual dividends Royalties Net ST capital gain Net LT capital gain Collectibles 28% gain Unrecap Sec 1250

Column A

-8,906

Column B

83-0491866 593-58-1549

Column C

Column D

Sch K Total

-2,641

-11,547

Net Sec 1231 gain Other income 12 Sec 179 deduction 13a Contributions 13b Invest interest exp 13c Sec 59(e)(2) exp 13d Other deductions 14a Net SE earnings 14b Gross farming inc 14c Gross nonfarm inc 15a Low-inc house 42j5 15b Low-inc house other 15c Qualif rehab exp 15d Rental RE credits 15e Other rental credits 15f Other credits 16b Gross inc all src 16c-f Tot foreign income 16g-kTot foreign deds 16l-mTotal foreign taxes 17a Depr adjustment 17b Adj gain or loss 17c Depletion 17d Inc-oil/gas/geoth 17e Ded-oil/gas/geoth 17f Other AMT items 18a Tax-exempt int 18b Other tax-exempt 18c Nonded expense 19a Cash distributions 19b Property distributions 20a Invest income 20b Invest expense

Page 1 of 1


02014 03/26/2011 10:46 AM Pg 21

Form

Reconciliation of Partners' Capital Accounts Worksheet

1065

For calendar year 2010, or tax year beginning

04/12/10

, and ending

Partnership Name

Employer Identification Number

FL Jan Ten, LLC Partner Number

1 2

2010

12/31/10 27-2330452

Partner Name

Beginning Capital

Capital Contributed

Lines 3, 4, & 7 Schedule M-2

Withdrawals & Distributions

Ending Capital

Pax Properties LLC Frank Porter Stansberry

0 48,183 -8,906 0 39,277 0 10 -2,641 0 -2,631 ___________ ___________ ___________ ___________ ___________

Total Partners' Capital

0 48,193 -11,547 0 36,646 =========== =========== =========== =========== ===========

Page 1 of 1


02014 FL Jan Ten, LLC 27-2330452 FYE: 12/31/2010

3/26/2011 10:46 AM Page 1

Federal Statements

Form 1065, Schedule L, Line 16 - Mortgage, Notes, Bonds Payable Less Than 1 Yr Description Prepaid Property Tax Tenant Security Deposit Total

Beginning of Year $ $

$ 0

$

End of Year 1,637 1,500 3,137


02014 FL Jan Ten, LLC 27-2330452 FYE: 12/31/2010 Asset

Description

03/26/2011 10:46 AM Page 1

Federal Asset Report 330 South J Street Date In Service

Cost

Bus Sec Basis % 179Bonus for Depr

Residential Real Property: 1 330 South J Street Building

5/19/10

127,469 127,469

Other Depreciation: 2 330 South J Street Land 3 Closing Costs Total Other Depreciation

5/19/10 5/19/10

16,000 1,289 17,289

16,000 1,289 17,289

17,289 144,758 0 0 144,758

Total ACRS and Other Depreciation Grand Totals Less: Dispositions and Transfers Less: Start-up/Org Expense Net Grand Totals

PerConv Meth

127,469 27 MM S/L 127,469

Prior

Current

0 0

2,897 2,897

0 0 0

0 150 150

17,289

0

150

144,758 0 0 144,758

0 0 0 0

3,047 0 0 3,047

0 -- Land 5 MO S/L


02011 03/11/2011 2:37 PM Pg 1

Form

8879-PE

IRS e-file Signature Authorization for Form 1065 02/08/10

OMB No. 1545-2042

2010

12/31/10

For calendar year 2010, or tax year beginning . . . . . . . . . . . . . . . , ending . . . . . . . . . . . . . . . . . Department of the Treasury Internal Revenue Service

 See instructions. Do not send to the IRS. Keep for your records.

Employer identification number

Name of partnership

FL Feb Ten, LLC Part I 1 2 3 4 5

30-0602746

Tax Return Information (Whole dollars only)

Gross receipts or sales less returns and allowances (Form 1065, line 1c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit (Form 1065, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary business income (loss) (Form 1065, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net rental real estate income (loss) (Form 1065, Schedule K, line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other net rental income (loss) (Form 1065, Schedule K, line 3c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

1 2 3 4 5

685

Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return)

Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership’s 2010 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership’s electronic tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership’s return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership’s electronic income tax return. General Partner or Limited Liability Company Member Manager's PIN: check one box only

I authorize

to enter my PIN

as my signature

do not enter all zeros

ERO firm name

on the partnership’s 2010 electronically filed income tax return.

X

As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership’s 2010 electronically filed income tax return.

General partner or limited liability company member manager's signature  Justin Ford Title  Managing Member

Part III

Date 

Certification and Authentication

65261834250 ERO’s EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. do not enter all zeros

I certify that the above numeric entry is my PIN, which is my signature on the 2010 electronically filed income tax return for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. ERO’s signature 

Miriam B. Walling CPA

Date 

03/11/11

ERO Must Retain This Form — See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice, see instructions.

DAA

Form

8879-PE (2010)


02011 03/11/2011 2:37 PM Pg 2

Form

1065

U.S. Return of Partnership Income 02/08/10, ending . .12/31/10 .............. .

Department of the Treasury Internal Revenue Service

Rental Real Estate

2010

 See separate instructions.

A Principal business activity

B Principal product or service

OMB No. 1545-0099

For calendar year 2010, or tax year beginning . . . . . . . . . . . . .

D Employer identification number

Name of partnership

Print or type.

C Business code number

FL Feb Ten, LLC

30-0602746 E

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

30 South L Street Unit 2 F

City or town, state, and ZIP code

Lake Worth

531110

Date business started

02/08/2010

FL 33460

Total assets (see the instructions)

59,447

$

G Check applicable boxes: (1) X Initial return (2) Final return (3) Name change (4) Address change (5) Amended return (6) Technical termination - also check (1) or (2) Accrual Other (specify)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H Check accounting method:(1) X Cash (2) (3) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 .. J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions(see the instructions for limitations)

Income

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

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a Less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a 2,166 b Less depreciation reported on Schedule A and elsewhere on return . . . . . . . . . 16b 2,166 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . . . . . . . . . . . . . . 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a b 2 3 4 5

Sign Here

6 7 8 9 10 11 12 13 14 15

0

16c 17 18 19 20 21 22

0

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 general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see Yes No instructions)?

X

Signature of general partner or limited liability company member manager Print/Type preparer's name

Paid Miriam B. Walling CPA Preparer F Firm's name  Miriam Use Only Firm's address  355 NE

Date

Preparer's signature

Miriam B. Walling CPA

B. Walling, CPA, PA 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

For Paperwork Reduction Act Notice, see separate instructions.

DAA

1c 2 3 4 5

Date

03/11/11

PTIN if Check self-employed P00289917

Firm's EIN  Phone no.

59-2184316

561-272-5868 Form

1065 (2010)


02011 03/11/2011 2:37 PM Pg 3

Form 1065 (2010)

Schedule A 1 2 3 4 5 6 7 8 9a

b c d e

3 a

b

4 a

Page 2

Other Information

What type of entity is filing this return? Check the applicable box: Yes Domestic general partnership Domestic limited partnership b Domestic limited liability partnership d X Domestic limited liability company Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign partnership f At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

b

30-0602746

Cost of Goods Sold (see the instructions)

Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Additional section 263A costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check all methods used for valuing closing inventory: Cost as described in Regulations section 1.471-3 (i) Lower of cost or market as described in Regulations section 1.471-4 (ii) Other (specify method used and attach explanation)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . . . . . . . . . . . . . . . . . . .  Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? . . . . . . . . . . . . . . . . . . . . Yes No Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . . . . . . Yes No If "Yes," attach explanation.

Schedule B 1 a c e 2

FL Feb Ten, LLC

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

X

X

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Form

DAA

X

(iv) Percentage Owned in Voting Stock

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . (i) Name of Entity

No

1065 (2010)


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Form 1065 (2010)

FL Feb Ten, LLC

30-0602746

Page 3 Yes

Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does the partnership satisfy all four of the following conditions? 6 a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms 8 modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 9 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2010, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country.  11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions  16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.  17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 

No

5

X

X X X X

X X X X X

X

X

Designation of Tax Matters Partner (see instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP

Pax Properties, LLC John Justin Ford 30 South L Street Lake Worth FL 33460

Identifying number of TMP Phone number of TMP

83-0491866 888-729-4948 Form

DAA

1065 (2010)


02011 03/11/2011 2:37 PM Pg 5

Form 1065 (2010)

Schedule K

Alternative Other Information Minimum Tax (AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

1 2 3a b c 4 5 6 7 8 9a b c 10 11 12 13a b c d 14a b c 15a b c d e f 16a b c d g i l m n 17a b c d e f 18a b c 19a b 20a b c

FL Feb Ten, LLC

Page 4

30-0602746

Partners' Distributive Share Items

Total amount

Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a Expenses from other rental activities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 3b Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Other income (loss) (see instructions) Type  11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b Section 59(e)(2) expenditures: (1) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Amount  13c(2) Other deductions (see instructions)Type  13d Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c Other rental real estate credits (see instructions) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e Other rental credits (see instructions) Other credits (see instructions) Type  15f Name of country or U.S. possession  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level Passive category  . . . . . . . . . . . . . . . . . . . . . . e General category  . . . . . . . . . . . . . . . . . . . . . . . . f Other  16f Deductions allocated and apportioned at partner level Interest expense  . . . . . . . . . . . . . . . . . . . . . . . . . . . . h Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16h Deductions allocated and apportioned at partnership level to foreign source income Passive category  . . . . . . . . . . . . . . . . . . . . . . j General category  . . . . . . . . . . . . . . . . . . . . . . . . k Other  16k Total foreign taxes (check one): Paid Accrued 16l . ..... Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16m Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17c Oil, gas, and geothermal properties – gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17d Oil, gas, and geothermal properties – deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17e Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17f Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19b Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

685

0

583

Form DAA

1065 (2010)


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Form 1065 (2010)

FL Feb Ten, LLC

30-0602746

Page 5

Analysis of Net Income (Loss) 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of 1 Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis by (iii) Individual (v) Exempt (ii) Individual (i) Corporate (iv) Partnership (active) (passive) organization partner type:

539

a General partners b Limited partners Balance Sheets per Books Schedule L Assets 1 2a b 3 4 5 6 7 8

14

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year

21 22

Beginning of tax year (a)

End of tax year (b)

(c)

(d)

3,304

Other current assets ...................... (attach statement) Mortgage and real estate loans . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .

Buildings and other depreciable assets . . Less accumulated depreciation . . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . Less accumulated depletion . . . . . . . . . . . . . Land (net of any amortization) . . . . . . . . . . . Intangible assets (amortizable only) . . . . . Less accumulated amortization . . . . . . . . . .

18 19 20

146

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trade notes and accounts receivable . . . . Less allowance for bad debts . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. government obligations . . . . . . . . . . . . Tax-exempt securities . . . . . . . . . . . . . . . . . .

9a b 10a b 11 12a b 13

15 16 17

685 (vi) Nominee/Other

50,329 2,166

48,163 7,980

Other assets ............................. (attach statement)

59,447

Other current liabilities ..................... (attach statement) All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities ........................... (attach statement) Partners' capital accounts . . . . . . . . . . . . . . . . . . . . . .

See Stmt 1

2,145 44,435 12,867 59,447

Total liabilities and capital . . . . . . . . . . . . . . .

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

1 2

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

685

6

Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest$ . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

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

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

Guaranteed payments (other than health insurance) . . . . . . . . . . . . . . . . . . . . 4 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16I (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . b Travel and entertainment $ . . . . . . . . . . . . . . . . . . . . . . .

7

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

8 9

3

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

5

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

Schedule M-2 1 2 3 4 5 DAA

Deductions included on Schedule K, lines 1 through 13d, and 16I, not charged against book income this year (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... . ..........................................

685

Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . . . . .

685

Analysis of Partners' Capital Accounts

Balance at beginning of year . . . . . . . . . Capital contributed: a Cash . . . . . . . . . b Property . . . . . . Net income (loss) per books . . . . . . . . .

6

12,765

7

685

Other decreases (itemize): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

Other increases ....................... (itemize):

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

583

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

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

13,450

8 9

583 12,867

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

1065 (2010)


02011 03/11/2011 2:37 PM Pg 7

Form

8825

(Rev. December 2010) Department of the Treasury Internal Revenue Service Name

Rental Real Estate Income and Expenses of a Partnership or an S Corporation

OMB No. 1545-1186

 See instructions on back.

 Attach to Form 1065, Form 1065-B, or Form 1120S. Employer identification number

FL Feb Ten, LLC

30-0602746

Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. See page 2 to list additional properties. Physical address of each property—street, city, Type—Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code see page 2 for list

1

A .

532 North H Street .532 . . . . . . North . . . . . . . . . .H . . .Street ..................................................................................................................... Lake Worth FL 33460 2 Multi-Fam Residence 365

B . .........................................................................................................................................

C . .........................................................................................................................................

D . .........................................................................................................................................

Properties 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Rental Real Estate Income Gross rents . . . . . . . . . . . . . . . . . . . . . . . Rental Real Estate Expenses Advertising . . . . . . . . . . . . . . . . . . . . . . . Auto and travel . . . . . . . . . . . . . . . . . . . . Cleaning and maintenance . . . . . . . . . Commissions . . . . . . . . . . . . . . . . . . . . . Insurance . . . . . . . . . . . . . . . . . . . . . . . . . Legal and other professional fees . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . Wages and salaries . . . . . . . . . . . . . . . Depreciation (see instructions) . . . . . Other (list)  . . . . . . . . . . . . . . . . . . . . .

See Statement 2

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

16 17 18a b 19 20a b

A 2 3 4 5 6 7 8 9 10 11 12 13 14 15

B

C

423 1,710 16 1,286 2,166 704

Total expenses for each property. Add lines 3 through 15 . . . . . . . . . . . . . 6,305 16 Income or (Loss) from each property. Subtract line 16 from line 2 685 17 Total gross rents. Add gross rents from line 2, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Total expenses. Add total expenses from line 16, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b ( Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number . .............................................................................

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

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

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

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

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

Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on:  Form 1065 or 1120S: Schedule K, line 2, or  Form 1065-B: Part I, line 4 For Paperwork Reduction Act Notice, see back of form.

21

DAA

D

6,990

6,990 6,305 )

685

21

Form

8825 (12-2010)


02011 03/11/2011 2:37 PM Pg 8

SCHEDULE B-1 (Form 1065)

Information on Partners Owning 50% or More of the Partnership

(December 2009) Department of the Treasury Internal Revenue Service

ď ľ Attach to Form 1065. See instructions on back. Employer identification number (EIN)

Name of partnership

FL Feb Ten, LLC Part I

OMB No. 1545-0099

30-0602746

Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a)

Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity

Part II

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b)

Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions).

(i) Name of Individual or Estate

(ii) Identifying Number (if any)

(iii) Country of Citizenship (see instructions)

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

Pax Properties, LLC 83-0491866 United States

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

DAA

78.500000

Schedule B-1 (Form 1065) (12-2009)


02011 03/11/2011 2:37 PM Pg 9



Partner# 1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III 1

02/08/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

539 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Feb Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9b

Collectibles (28%) gain (loss)

F Partner's name, address, city, state, and ZIP code

9c

Unrecaptured section 1250 gain

Pax Properties, LLC

10

Net section 1231 gain (loss)

11

Other income (loss)

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

30-0602746 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

83-0491866

G H I

30 South L Street Lake Worth X General partner or LLC X

FL 33460

member-manager

Limited partner or other LLC member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

A

446

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

Ending

78.500000 % 78.500000 % 78.500000 %

20

78.500000 % 78.500000 % 78.500000 %

Other information

Y*

STMT

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

2,145

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $ GAAP

12,745 539 446 ) 12,838

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

Tax basis

Self-employment earnings (loss)

44,435

L Partner's capital account analysis:

X

14

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02011 03/11/2011 2:37 PM Pg 10



Partner# 2

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Final K-1

Part III 1

For calendar year 2010, or tax

02/08/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

97 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Feb Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Denise Ford

10

Net section 1231 gain (loss)

11

Other income (loss)

G

122 NE 13th Street Delray Beach FL 33483 X Limited partner or other LLC General partner or LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

30-0602746 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

066-40-9614 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Individual

A

91

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

Ending

14.240000 % 14.240000 % 14.240000 %

20

14.240000 % 14.240000 % 14.240000 %

Other information

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

Section 704(b) book

Other (explain)

10 97 91 ) 16

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02011 03/11/2011 2:37 PM Pg 11



Partner# 3

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Final K-1

Part III 1

For calendar year 2010, or tax

02/08/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

49 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Feb Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Rob Gramer

10

Net section 1231 gain (loss)

11

Other income (loss)

G

320 Azalea Street Palm Beach Gardens FL 33410 X Limited partner or other LLC General partner or LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

30-0602746 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

106-66-8008 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Individual

A

46

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

Ending

7.260000 % 7.260000 % 7.260000 %

20

7.260000 % 7.260000 % 7.260000 %

Other information

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

Section 704(b) book

Other (explain)

10 49 46 ) 13

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02011 03/11/2011 2:37 PM Pg 12

Form

Depreciation and Amortization

4562

Department of the Treasury Internal Revenue Service (99)

OMB No. 1545-0172

2010

(Including Information on Listed Property)  See separate instructions.

Attachment Sequence No.

 Attach to your tax return.

67

Identifying number

Name(s) shown on return

FL Feb Ten, LLC

30-0602746

Business or activity to which this form relates

532 North H Street Part I

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

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

1 2 3 4 5 6

(a) Description of property

(b) Cost (business use only)

Part II

15 16

8 9 10 11 12

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions)

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

2,000,000

(c) Elected cost

7 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2009 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . 13 Carryover of disallowed deduction to 2011. Add lines 9 and 10, less line 12 . . . . . . . . 13 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. 14

500,000

1 2 3 4 5

14 15 16

570

17

0

82

MACRS Depreciation (Do not include listed property.) (See instructions.) Section A

17 18

MACRS deductions for assets placed in service in tax years beginning before 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 

Section B—Assets Placed in Service During 2010 Tax Year Using the General Depreciation System (a) Classification of property

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property

(b) Month and year placed in service

(c) Basis for depreciation (d) Recovery (business/investment use (e) Convention period only–see instructions)

570

03/26/10

48,641

5.0

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

HY

MM MM MM

(f) Method

200DB

Part IV

S/L S/L

12 yrs.

1,400

40 yrs.

MM

S/L S/L S/L

Summary (See instructions.)

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . . . . . . . . . . . . . . . . . 23 For assets shown above and placed in service during the current year, enter the 23 portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see separate instructions. DAA

114

S/L Nonresidential real S/L property MM S/L Section C—Assets Placed in Service During 2010 Tax Year Using the Alternative Depreciation System

20a Class life b 12-year c 40-year 21 22

(g) Depreciation deduction

21

2,166

22

Form

4562 (2010)

There are no amounts for Page 2


02011 FL Feb Ten, LLC 30-0602746 FYE: 12/31/2010

3/11/2011 2:37 PM Page 1

Federal Statements

Statement 1 - Form 1065, Schedule L, Line 17 - Other Current Liabilities Description Prepaid Property Taxes Tenant Security Deposits Total

Beginning of Year

End of Year

$

$

$

0

$

395 1,750 2,145

Statement 2 - 532 North H Street - Form 8825, Line 15 - Other Description Bank Charges Office Expenses Property Management Fees Total

Amount $

$

204 50 450 704

1-2


02011 03/11/2011 2:37 PM Pg 14

Form

Reconciliation of Partners' Capital Accounts Worksheet

1065

For calendar year 2010, or tax year beginning

02/08/10

, and ending

Partnership Name

Employer Identification Number

FL Feb Ten, LLC Partner Number

1 2 3

2010

12/31/10 30-0602746

Partner Name

Beginning Capital

Capital Contributed

Lines 3, 4, & 7 Schedule M-2

Withdrawals & Distributions

Ending Capital

Pax Properties, LLC Denise Ford Rob Gramer

0 12,745 539 446 12,838 0 10 97 91 16 0 10 49 46 13 ___________ ___________ ___________ ___________ ___________

Total Partners' Capital

0 12,765 685 583 12,867 =========== =========== =========== =========== ===========

Page 1 of 1


02011 FL Feb Ten, LLC 30-0602746 FYE: 12/31/2010 Asset

Description

03/11/2011 2:37 PM Page 1

Federal Asset Report 532 North H Street Date In Service

Cost

Bus Sec Basis % 179Bonus for Depr

5-year GDS Property: 3 Refrigerator & Stove

6/14/10

1,140 1,140

Residential Real Property: 1 532 North H Street Building

3/26/10

48,641 48,641

Other Depreciation: 2 532 North H Street Land 4 Closing Costs Total Other Depreciation

3/26/10 3/26/10

7,980 548 8,528

7,980 548 8,528

8,528 58,309 0 0 58,309

Total ACRS and Other Depreciation Grand Totals Less: Dispositions and Transfers Less: Start-up/Org Expense Net Grand Totals

X

570 570

PerConv Meth

5 HY 200DB

Prior

Current

0 0

684 684

0 0

1,400 1,400

0 0 0

0 82 82

8,528

0

82

57,739 0 0 57,739

0 0 0 0

2,166 0 0 2,166

48,641 27 MM S/L 48,641

0 -- Land 5 MO S/L


02017 03/09/2011 4:46 PM Pg 1

Form

IRS e-file Signature Authorization for Form 1065

8879-PE

04/12/10

OMB No. 1545-2042

2010

12/31/10

For calendar year 2010, or tax year beginning . . . . . . . . . . . . . . . , ending . . . . . . . . . . . . . . . . . Department of the Treasury Internal Revenue Service

 See instructions. Do not send to the IRS. Keep for your records.

Employer identification number

Name of partnership

FL March Ten, LLC Part I 1 2 3 4 5

27-2330491

Tax Return Information (Whole dollars only)

Gross receipts or sales less returns and allowances (Form 1065, line 1c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit (Form 1065, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary business income (loss) (Form 1065, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net rental real estate income (loss) (Form 1065, Schedule K, line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other net rental income (loss) (Form 1065, Schedule K, line 3c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

1 2 3 4 5

965

Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return)

Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership’s 2010 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership’s electronic tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership’s return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership’s electronic income tax return. General Partner or Limited Liability Company Member Manager's PIN: check one box only

X

I authorize

Miriam B. Walling, CPA, PA

to enter my PIN

30491

as my signature

do not enter all zeros

ERO firm name

on the partnership’s 2010 electronically filed income tax return. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership’s 2010 electronically filed income tax return. General partner or limited liability company member manager's signature  Title  LLC Member Pax Properties,

Part III

Date 

LLC

Certification and Authentication

ERO’s EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 65261834250 do not enter all zeros

I certify that the above numeric entry is my PIN, which is my signature on the 2010 electronically filed income tax return for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. ERO’s signature 

Miriam B. Walling CPA

Date 

03/09/11

ERO Must Retain This Form — See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice, see instructions.

DAA

Form

8879-PE (2010)


02017 03/09/2011 4:46 PM Pg 2

Form

1065

U.S. Return of Partnership Income 04/12/10, ending . .12/31/10 .............. .

Department of the Treasury Internal Revenue Service

Rental Real Estate

2010

 See separate instructions.

A Principal business activity

B Principal product or service

OMB No. 1545-0099

For calendar year 2010, or tax year beginning . . . . . . . . . . . . .

D Employer identification number

Name of partnership

Print or type.

C Business code number

FL March Ten, LLC

27-2330491 E

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

30 South L Street Unit 2 F

City or town, state, and ZIP code

Lake Worth

531110

Date business started

04/12/2010

FL 33460

Total assets (see the instructions)

59,380

$

G Check applicable boxes: (1) X Initial return (2) Final return (3) Name change (4) Address change (5) Amended return (6) Technical termination - also check (1) or (2) Accrual Other (specify)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H Check accounting method:(1) X Cash (2) (3) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 .. J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions(see the instructions for limitations)

Income

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

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a Less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a 656 b Less depreciation reported on Schedule A and elsewhere on return . . . . . . . . . 16b 656 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . . . . . . . . . . . . . . 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a b 2 3 4 5

Sign Here

6 7 8 9 10 11 12 13 14 15

0

16c 17 18 19 20 21 22

0

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 general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see Yes No instructions)?

X

Signature of general partner or limited liability company member manager Print/Type preparer's name

Paid Miriam B. Walling CPA Preparer F Firm's name  Miriam Use Only Firm's address  355 NE

Date

Preparer's signature

Miriam B. Walling CPA

B. Walling, CPA, PA 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

For Paperwork Reduction Act Notice, see separate instructions.

DAA

1c 2 3 4 5

Date

03/09/11

PTIN if Check self-employed P00289917

Firm's EIN  Phone no.

59-2184316

561-272-5868 Form

1065 (2010)


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Form 1065 (2010)

Schedule A 1 2 3 4 5 6 7 8 9a

b c d e

3 a

b

4 a

Page 2

Other Information

What type of entity is filing this return? Check the applicable box: Yes Domestic general partnership Domestic limited partnership b Domestic limited liability partnership d X Domestic limited liability company Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign partnership f At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

b

27-2330491

Cost of Goods Sold (see the instructions)

Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Additional section 263A costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check all methods used for valuing closing inventory: Cost as described in Regulations section 1.471-3 (i) Lower of cost or market as described in Regulations section 1.471-4 (ii) Other (specify method used and attach explanation)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . . . . . . . . . . . . . . . . . . .  Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? . . . . . . . . . . . . . . . . . . . . Yes No Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . . . . . . Yes No If "Yes," attach explanation.

Schedule B 1 a c e 2

FL March Ten, LLC

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

X

X

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Form

DAA

X

(iv) Percentage Owned in Voting Stock

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . (i) Name of Entity

No

1065 (2010)


02017 03/09/2011 4:46 PM Pg 4

Form 1065 (2010)

FL March Ten, LLC

27-2330491

Page 3 Yes

Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does the partnership satisfy all four of the following conditions? 6 a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms 8 modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 9 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2010, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country.  11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions  16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.  17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 

No

5

X

X X X X

X X X X X

X

X

Designation of Tax Matters Partner (see instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP

Pax Properties, LLC John Justin Ford 30 South L Street Unit 2 Lake Worth FL 33460

Identifying number of TMP Phone number of TMP

83-0491866 888-729-4948 Form

DAA

1065 (2010)


02017 03/09/2011 4:46 PM Pg 5

Form 1065 (2010)

Schedule K

Alternative Other Information Minimum Tax (AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

1 2 3a b c 4 5 6 7 8 9a b c 10 11 12 13a b c d 14a b c 15a b c d e f 16a b c d g i l m n 17a b c d e f 18a b c 19a b 20a b c

FL March Ten, LLC

Page 4

27-2330491

Partners' Distributive Share Items

Total amount

Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a Expenses from other rental activities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 3b Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Other income (loss) (see instructions) Type  11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b Section 59(e)(2) expenditures: (1) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Amount  13c(2) Other deductions (see instructions)Type  13d Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c Other rental real estate credits (see instructions) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e Other rental credits (see instructions) Other credits (see instructions) Type  15f Name of country or U.S. possession  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level Passive category  . . . . . . . . . . . . . . . . . . . . . . e General category  . . . . . . . . . . . . . . . . . . . . . . . . f Other  16f Deductions allocated and apportioned at partner level Interest expense  . . . . . . . . . . . . . . . . . . . . . . . . . . . . h Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16h Deductions allocated and apportioned at partnership level to foreign source income Passive category  . . . . . . . . . . . . . . . . . . . . . . j General category  . . . . . . . . . . . . . . . . . . . . . . . . k Other  16k Total foreign taxes (check one): Paid Accrued 16l . ..... Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16m Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17c Oil, gas, and geothermal properties – gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17d Oil, gas, and geothermal properties – deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17e Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17f Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19b Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

965

0

229

Form DAA

1065 (2010)


02017 03/09/2011 4:46 PM Pg 6

Form 1065 (2010)

FL March Ten, LLC

27-2330491

Page 5

Analysis of Net Income (Loss) 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of 1 Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis by (iii) Individual (v) Exempt (ii) Individual (i) Corporate (iv) Partnership (active) (passive) organization partner type:

710

a General partners b Limited partners Balance Sheets per Books Schedule L Assets 1 2a b 3 4 5 6 7 8

14

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year

21 22

Beginning of tax year (a)

End of tax year (b)

(c)

(d)

14,786

Other current assets ...................... (attach statement) Mortgage and real estate loans . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .

Buildings and other depreciable assets . . Less accumulated depreciation . . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . Less accumulated depletion . . . . . . . . . . . . . Land (net of any amortization) . . . . . . . . . . . Intangible assets (amortizable only) . . . . . Less accumulated amortization . . . . . . . . . .

18 19 20

255

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trade notes and accounts receivable . . . . Less allowance for bad debts . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. government obligations . . . . . . . . . . . . Tax-exempt securities . . . . . . . . . . . . . . . . . .

9a b 10a b 11 12a b 13

15 16 17

965 (vi) Nominee/Other

37,250 656

36,594 8,000

Other assets ............................. (attach statement)

59,380

Other current liabilities ..................... (attach statement) All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities ........................... (attach statement) Partners' capital accounts . . . . . . . . . . . . . . . . . . . . . .

See Stmt 1

1,644 50,000 7,736 59,380

Total liabilities and capital . . . . . . . . . . . . . . .

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

1 2

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

965

6

Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest$ . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

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

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

Guaranteed payments (other than health insurance) . . . . . . . . . . . . . . . . . . . . 4 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16I (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . b Travel and entertainment $ . . . . . . . . . . . . . . . . . . . . . . .

7

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

8 9

3

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

5

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

Schedule M-2 1 2 3 4 5 DAA

Deductions included on Schedule K, lines 1 through 13d, and 16I, not charged against book income this year (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... . ..........................................

965

Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . . . . .

965

Analysis of Partners' Capital Accounts

Balance at beginning of year . . . . . . . . . Capital contributed: a Cash . . . . . . . . . b Property . . . . . . Net income (loss) per books . . . . . . . . .

6

7,000

7

965

Other decreases (itemize): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

Other increases ....................... (itemize):

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

229

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

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

7,965

8 9

229 7,736

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

1065 (2010)


02017 03/09/2011 4:46 PM Pg 7

Form

8825

(Rev. December 2010) Department of the Treasury Internal Revenue Service Name

Rental Real Estate Income and Expenses of a Partnership or an S Corporation

OMB No. 1545-1186

 See instructions on back.

 Attach to Form 1065, Form 1065-B, or Form 1120S. Employer identification number

FL March Ten, LLC

27-2330491

Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. See page 2 to list additional properties. Physical address of each property—street, city, Type—Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code see page 2 for list

1

A .

Single-Family House .15 . . . . .South . . . . . . . . .D . . . Street ....................................................................................................................... Lake Worth FL 33460 1 Single Fam Residence 365

B . .........................................................................................................................................

C . .........................................................................................................................................

D . .........................................................................................................................................

Properties 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Rental Real Estate Income Gross rents . . . . . . . . . . . . . . . . . . . . . . . Rental Real Estate Expenses Advertising . . . . . . . . . . . . . . . . . . . . . . . Auto and travel . . . . . . . . . . . . . . . . . . . . Cleaning and maintenance . . . . . . . . . Commissions . . . . . . . . . . . . . . . . . . . . . Insurance . . . . . . . . . . . . . . . . . . . . . . . . . Legal and other professional fees . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . Wages and salaries . . . . . . . . . . . . . . . Depreciation (see instructions) . . . . . Other (list)  . . . . . . . . . . . . . . . . . . . . .

See Statement 2

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

16 17 18a b 19 20a b

A

B

2

5,000

3 4 5 6 7 8 9 10 11 12 13 14

671 100 1,203 78

15

352

C

975 656

Total expenses for each property. Add lines 3 through 15 . . . . . . . . . . . . . 4,035 16 Income or (Loss) from each property. Subtract line 16 from line 2 965 17 Total gross rents. Add gross rents from line 2, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Total expenses. Add total expenses from line 16, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b ( Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number . .............................................................................

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

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

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

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

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

Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on:  Form 1065 or 1120S: Schedule K, line 2, or  Form 1065-B: Part I, line 4 For Paperwork Reduction Act Notice, see back of form.

21

DAA

D

5,000 4,035 )

965

21

Form

8825 (12-2010)


02017 03/09/2011 4:46 PM Pg 8

SCHEDULE B-1 (Form 1065)

Information on Partners Owning 50% or More of the Partnership

(December 2009) Department of the Treasury Internal Revenue Service

ď ľ Attach to Form 1065. See instructions on back. Employer identification number (EIN)

Name of partnership

FL March Ten, LLC Part I

OMB No. 1545-0099

27-2330491

Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a)

Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity

Part II

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b)

Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions).

(i) Name of Individual or Estate

(ii) Identifying Number (if any)

(iii) Country of Citizenship (see instructions)

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

Pax Properties, LLC 83-0491866 United States

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

DAA

73.490000

Schedule B-1 (Form 1065) (12-2009)


02017 03/09/2011 4:46 PM Pg 9



Partner# 1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III 1

04/12/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

710 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL March Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9b

Collectibles (28%) gain (loss)

F Partner's name, address, city, state, and ZIP code

9c

Unrecaptured section 1250 gain

Pax Properties, LLC

10

Net section 1231 gain (loss)

11

Other income (loss)

G

30 South L Street Unit 2 Lake Worth FL 33460 X General partner or LLC Limited partner or other LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2330491 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

83-0491866

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

A

158

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

Ending

73.490000 % 73.490000 % 73.490000 %

20

73.490000 % 73.490000 % 73.490000 %

Other information

Y*

STMT

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

1,664

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $ GAAP

6,990 710 158 ) 7,542

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

Tax basis

Self-employment earnings (loss)

50,000

L Partner's capital account analysis:

X

14

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02017 03/09/2011 4:46 PM Pg 10



Partner# 2

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Final K-1

Part III 1

For calendar year 2010, or tax

04/12/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

255 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL March Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Bob Irish

10

Net section 1231 gain (loss)

11

Other income (loss)

G

1225 Vista del Mar Delray Beach FL 33483 X Limited partner or other LLC General partner or LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2330491 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

044-48-6808 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Individual

A

71

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

Ending

26.510000 % 26.510000 % 26.510000 %

20

26.510000 % 26.510000 % 26.510000 %

Other information

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 255 71 ) 194

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02017 03/09/2011 4:46 PM Pg 11

Form

Depreciation and Amortization

4562

OMB No. 1545-0172

2010

(Including Information on Listed Property)

Department of the Treasury Internal Revenue Service (99)

 See separate instructions.

Attachment Sequence No.

 Attach to your tax return.

67

Identifying number

Name(s) shown on return

FL March Ten, LLC

27-2330491

Business or activity to which this form relates

Single-Family House Part I

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

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

1 2 3 4 5 6

(a) Description of property

(b) Cost (business use only)

Part II

15 16

8 9 10 11 12

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions)

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

2,000,000

(c) Elected cost

7 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2009 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . 13 Carryover of disallowed deduction to 2011. Add lines 9 and 10, less line 12 . . . . . . . . 13 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. 14

500,000

1 2 3 4 5

14 15 16

42

17

0

MACRS Depreciation (Do not include listed property.) (See instructions.) Section A

17 18

MACRS deductions for assets placed in service in tax years beginning before 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 

Section B—Assets Placed in Service During 2010 Tax Year Using the General Depreciation System (a) Classification of property

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property

(b) Month and year placed in service

07/02/10

(c) Basis for depreciation (d) Recovery (business/investment use (e) Convention period only–see instructions)

36,831

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

MM MM MM

(f) Method

S/L S/L

Part IV

12 yrs. 40 yrs.

MM

S/L S/L S/L

Summary (See instructions.)

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . . . . . . . . . . . . . . . . . 23 For assets shown above and placed in service during the current year, enter the 23 portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see separate instructions. DAA

614

S/L Nonresidential real S/L property MM S/L Section C—Assets Placed in Service During 2010 Tax Year Using the Alternative Depreciation System

20a Class life b 12-year c 40-year 21 22

(g) Depreciation deduction

21

656

22

Form

4562 (2010)

There are no amounts for Page 2


02017 FL March Ten, LLC 27-2330491 FYE: 12/31/2010

3/9/2011 4:46 PM Page 1

Federal Statements

Statement 1 - Form 1065, Schedule L, Line 17 - Other Current Liabilities Description Prepaid Property Tax Tenant Security Deposit Total

Beginning of Year

End of Year

$

$

$

0

$

744 900 1,644

Statement 2 - Single-Family House - Form 8825, Line 15 - Other Description Bank Charges Office Expenses Property Management Total

Amount $

$

25 15 312 352

1-2


02017 03/09/2011 4:46 PM Pg 13

Form

Reconciliation of Partners' Capital Accounts Worksheet

1065

For calendar year 2010, or tax year beginning

04/12/10

, and ending

Partnership Name

Employer Identification Number

FL March Ten, LLC Partner Number

1 2

2010

12/31/10 27-2330491

Partner Name

Beginning Capital

Capital Contributed

Lines 3, 4, & 7 Schedule M-2

Withdrawals & Distributions

Ending Capital

Pax Properties, LLC Bob Irish

0 6,990 710 158 7,542 0 10 255 71 194 ___________ ___________ ___________ ___________ ___________

Total Partners' Capital

0 7,000 965 229 7,736 =========== =========== =========== =========== ===========

Page 1 of 1


02017 FL March Ten, LLC 27-2330491 FYE: 12/31/2010 Asset

Description

03/09/2011 4:46 PM Page 1

Federal Asset Report Single-Family House Date In Service

Cost

Bus Sec Basis % 179Bonus for Depr

Residential Real Property: 2 30 South D Street House

7/02/10

36,831 36,831

Other Depreciation: 1 15 South D Street Land 3 Closing Costs Total Other Depreciation

7/02/10 7/02/10

8,000 419 8,419

8,000 419 8,419

8,419 45,250 0 0 45,250

Total ACRS and Other Depreciation Grand Totals Less: Dispositions and Transfers Less: Start-up/Org Expense Net Grand Totals

PerConv Meth

36,831 27 MM S/L 36,831

Prior

Current

0 0

614 614

0 0 0

0 42 42

8,419

0

42

45,250 0 0 45,250

0 0 0 0

656 0 0 656

0 -- Land 5 MO S/L


02010 04/05/2011 4:38 PM Pg 1

Form

IRS e-file Signature Authorization for Form 1065

8879-PE

04/09/10

OMB No. 1545-2042

2010

12/31/10

For calendar year 2010, or tax year beginning . . . . . . . . . . . . . . . , ending . . . . . . . . . . . . . . . . . Department of the Treasury Internal Revenue Service

 See instructions. Do not send to the IRS. Keep for your records.

Employer identification number

Name of partnership

FL Apr Ten, LLC Part I 1 2 3 4 5

27-2313052

Tax Return Information (Whole dollars only)

Gross receipts or sales less returns and allowances (Form 1065, line 1c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit (Form 1065, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary business income (loss) (Form 1065, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net rental real estate income (loss) (Form 1065, Schedule K, line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other net rental income (loss) (Form 1065, Schedule K, line 3c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

1 2 3 4 5

1,908

Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return)

Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership’s 2010 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership’s electronic tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership’s return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership’s electronic income tax return. General Partner or Limited Liability Company Member Manager's PIN: check one box only

X

I authorize

Miriam B. Walling, CPA, PA

to enter my PIN

13052

as my signature

do not enter all zeros

ERO firm name

on the partnership’s 2010 electronically filed income tax return. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership’s 2010 electronically filed income tax return. General partner or limited liability company member manager's signature  Title  LLC Member Pax Properties

Part III

Date 

LLC

Certification and Authentication

ERO’s EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 65261834250 do not enter all zeros

I certify that the above numeric entry is my PIN, which is my signature on the 2010 electronically filed income tax return for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. ERO’s signature 

Miriam B. Walling CPA

Date 

04/05/11

ERO Must Retain This Form — See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice, see instructions.

DAA

Form

8879-PE (2010)


02010 04/05/2011 4:38 PM Pg 2

Form

1065

U.S. Return of Partnership Income 04/09/10, ending . .12/31/10 .............. .

Department of the Treasury Internal Revenue Service

Real Estate Rentals

2010

 See separate instructions.

A Principal business activity

B Principal product or service

OMB No. 1545-0099

For calendar year 2010, or tax year beginning . . . . . . . . . . . . .

D Employer identification number

Name of partnership

Print or type.

C Business code number

FL Apr Ten, LLC

27-2313052 E

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

30 South L Street Unit 2 F

City or town, state, and ZIP code

Lake Worth

531110

Date business started

04/09/2010

FL 33460

Total assets (see the instructions)

103,783

$

G Check applicable boxes: (1) X Initial return (2) Final return (3) Name change (4) Address change (5) Amended return (6) Technical termination - also check (1) or (2) Accrual Other (specify)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H Check accounting method:(1) X Cash (2) (3) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 .. J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions(see the instructions for limitations)

Income

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

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a Less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a 2,130 b Less depreciation reported on Schedule A and elsewhere on return . . . . . . . . . 16b 2,130 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . . . . . . . . . . . . . . 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a b 2 3 4 5

Sign Here

6 7 8 9 10 11 12 13 14 15

0

16c 17 18 19 20 21 22

0

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 general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see Yes No instructions)?

X

Signature of general partner or limited liability company member manager Print/Type preparer's name

Paid Miriam B. Walling CPA Preparer F Firm's name  Miriam Use Only Firm's address  355 NE

Date

Preparer's signature

Miriam B. Walling CPA

B. Walling, CPA, PA 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

For Paperwork Reduction Act Notice, see separate instructions.

DAA

1c 2 3 4 5

Date

04/05/11

PTIN if Check self-employed P00289917

Firm's EIN  Phone no.

59-2184316

561-272-5868 Form

1065 (2010)


02010 04/05/2011 4:38 PM Pg 3

Form 1065 (2010)

Schedule A 1 2 3 4 5 6 7 8 9a

b c d e

3 a

b

4 a

Page 2

Other Information

What type of entity is filing this return? Check the applicable box: Yes Domestic general partnership Domestic limited partnership b Domestic limited liability partnership d X Domestic limited liability company Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign partnership f At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

b

27-2313052

Cost of Goods Sold (see the instructions)

Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Additional section 263A costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check all methods used for valuing closing inventory: Cost as described in Regulations section 1.471-3 (i) Lower of cost or market as described in Regulations section 1.471-4 (ii) Other (specify method used and attach explanation)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . . . . . . . . . . . . . . . . . . .  Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? . . . . . . . . . . . . . . . . . . . . Yes No Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . . . . . . Yes No If "Yes," attach explanation.

Schedule B 1 a c e 2

FL Apr Ten, LLC

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

X

X

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Form

DAA

X

(iv) Percentage Owned in Voting Stock

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . (i) Name of Entity

No

1065 (2010)


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Form 1065 (2010)

FL Apr Ten, LLC

27-2313052

Page 3 Yes

Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does the partnership satisfy all four of the following conditions? 6 a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms 8 modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 9 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2010, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country.  11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions  16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.  17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 

No

5

X

X X X X

X X X X X

X

X

Designation of Tax Matters Partner (see instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP

Pax Properties LLC John Justin Ford 30 South L Street Unit 2 Lake Worth FL 33460

Identifying number of TMP Phone number of TMP

83-0491866 888-729-4948 Form

DAA

1065 (2010)


02010 04/05/2011 4:38 PM Pg 5

Form 1065 (2010)

Schedule K

Alternative Other Information Minimum Tax (AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

1 2 3a b c 4 5 6 7 8 9a b c 10 11 12 13a b c d 14a b c 15a b c d e f 16a b c d g i l m n 17a b c d e f 18a b c 19a b 20a b c

FL Apr Ten, LLC

Page 4

27-2313052

Partners' Distributive Share Items

Total amount

Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a Expenses from other rental activities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 3b Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Other income (loss) (see instructions) Type  11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b Section 59(e)(2) expenditures: (1) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Amount  13c(2) Other deductions (see instructions)Type  13d Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c Other rental real estate credits (see instructions) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e Other rental credits (see instructions) Other credits (see instructions) Type  15f Name of country or U.S. possession  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level Passive category  . . . . . . . . . . . . . . . . . . . . . . e General category  . . . . . . . . . . . . . . . . . . . . . . . . f Other  16f Deductions allocated and apportioned at partner level Interest expense  . . . . . . . . . . . . . . . . . . . . . . . . . . . . h Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16h Deductions allocated and apportioned at partnership level to foreign source income Passive category  . . . . . . . . . . . . . . . . . . . . . . j General category  . . . . . . . . . . . . . . . . . . . . . . . . k Other  16k Total foreign taxes (check one): Paid Accrued 16l . ..... Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16m Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17c Oil, gas, and geothermal properties – gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17d Oil, gas, and geothermal properties – deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17e Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17f Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19b Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,908

0

335

Form DAA

1065 (2010)


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Form 1065 (2010)

FL Apr Ten, LLC

27-2313052

Page 5

Analysis of Net Income (Loss) 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of 1 Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis by (iii) Individual (v) Exempt (ii) Individual (i) Corporate (iv) Partnership (active) (passive) organization partner type:

1,339

a General partners b Limited partners Balance Sheets per Books Schedule L Assets 1 2a b 3 4 5 6 7 8

14

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year

21 22

Beginning of tax year (a)

End of tax year (b)

(c)

(d)

4,561

Other current assets ...................... (attach statement) Mortgage and real estate loans . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .

Buildings and other depreciable assets . . Less accumulated depreciation . . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . Less accumulated depletion . . . . . . . . . . . . . Land (net of any amortization) . . . . . . . . . . . Intangible assets (amortizable only) . . . . . Less accumulated amortization . . . . . . . . . .

18 19 20

569

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trade notes and accounts receivable . . . . Less allowance for bad debts . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. government obligations . . . . . . . . . . . . Tax-exempt securities . . . . . . . . . . . . . . . . . .

9a b 10a b 11 12a b 13

15 16 17

1,908 (vi) Nominee/Other

74,793 2,130

72,663 18,000

Other assets ............................. (attach statement)

See Stmt 1

8,559 103,783

Other current liabilities ..................... (attach statement) All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities ........................... (attach statement) Partners' capital accounts . . . . . . . . . . . . . . . . . . . . . .

See Stmt 2

1,351 100,000 2,432 103,783

Total liabilities and capital . . . . . . . . . . . . . . .

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

1 2

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

1,908

6

Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest$ . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

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

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

Guaranteed payments (other than health insurance) . . . . . . . . . . . . . . . . . . . . 4 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16I (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . b Travel and entertainment $ . . . . . . . . . . . . . . . . . . . . . . .

7

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

8 9

3

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

5

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

Schedule M-2 1 2 3 4 5 DAA

Deductions included on Schedule K, lines 1 through 13d, and 16I, not charged against book income this year (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... . ..........................................

1,908

Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . . . . .

1,908

Analysis of Partners' Capital Accounts

Balance at beginning of year . . . . . . . . . Capital contributed: a Cash . . . . . . . . . b Property . . . . . . Net income (loss) per books . . . . . . . . .

6

859

7

1,908

Other decreases (itemize): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

Other increases ....................... (itemize):

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

335

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

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

2,767

8 9

335 2,432

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

1065 (2010)


02010 04/05/2011 4:38 PM Pg 7

Form

8825

(Rev. December 2010) Department of the Treasury Internal Revenue Service Name

Rental Real Estate Income and Expenses of a Partnership or an S Corporation

OMB No. 1545-1186

 See instructions on back.

 Attach to Form 1065, Form 1065-B, or Form 1120S. Employer identification number

FL Apr Ten, LLC

27-2313052

Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. See page 2 to list additional properties. Physical address of each property—street, city, Type—Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code see page 2 for list

1

A .

131 North L Street .131 . . . . . . North . . . . . . . . . .L . . .Street ..................................................................................................................... Lake Worth FL 33460 2 Multi-Fam Residence 365

B . .........................................................................................................................................

C . .........................................................................................................................................

D . .........................................................................................................................................

Properties 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Rental Real Estate Income Gross rents . . . . . . . . . . . . . . . . . . . . . . . Rental Real Estate Expenses Advertising . . . . . . . . . . . . . . . . . . . . . . . Auto and travel . . . . . . . . . . . . . . . . . . . . Cleaning and maintenance . . . . . . . . . Commissions . . . . . . . . . . . . . . . . . . . . . Insurance . . . . . . . . . . . . . . . . . . . . . . . . . Legal and other professional fees . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . Wages and salaries . . . . . . . . . . . . . . . Depreciation (see instructions) . . . . . Other (list)  . . . . . . . . . . . . . . . . . . . . .

See Statement 3

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

16 17 18a b 19 20a b

A 2 3 4 5 6 7 8 9 10 11 12 13 14 15

B

C

1,188 100 2,735 90 -21 422 2,130 611

Total expenses for each property. Add lines 3 through 15 . . . . . . . . . . . . . 7,255 16 Income or (Loss) from each property. Subtract line 16 from line 2 1,908 17 Total gross rents. Add gross rents from line 2, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Total expenses. Add total expenses from line 16, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b ( Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number . .............................................................................

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

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

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

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

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

Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on:  Form 1065 or 1120S: Schedule K, line 2, or  Form 1065-B: Part I, line 4 For Paperwork Reduction Act Notice, see back of form.

21

DAA

D

9,163

9,163 7,255 )

1,908

21

Form

8825 (12-2010)


02010 04/05/2011 4:38 PM Pg 8

SCHEDULE B-1 (Form 1065)

Information on Partners Owning 50% or More of the Partnership

(December 2009) Department of the Treasury Internal Revenue Service

ď ľ Attach to Form 1065. See instructions on back. Employer identification number (EIN)

Name of partnership

FL Apr Ten, LLC Part I

OMB No. 1545-0099

27-2313052

Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a)

Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity

Part II

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b)

Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions).

(i) Name of Individual or Estate

(ii) Identifying Number (if any)

(iii) Country of Citizenship (see instructions)

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

Pax Properties LLC 83-0491866 United States

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

DAA

70.170000

Schedule B-1 (Form 1065) (12-2009)


02010 04/05/2011 4:38 PM Pg 9



Partner# 1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III 1

04/09/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

1,339 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Apr Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Pax Properties LLC

10

Net section 1231 gain (loss)

11

Other income (loss)

G

30 South L Street Unit 2 Lake Worth FL 33460 X General partner or LLC Limited partner or other LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2313052 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

83-0491866 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

A

267

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

Ending

70.170000 % 70.170000 % 70.170000 %

20

70.170000 % 70.170000 % 70.170000 %

Other information

Y*

STMT

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

1,351

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $ GAAP

849 1,339 267 ) 1,921

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

Tax basis

Self-employment earnings (loss)

100,000

L Partner's capital account analysis:

X

14

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02010 04/05/2011 4:38 PM Pg 10



Partner# 2

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Final K-1

Part III 1

For calendar year 2010, or tax

04/09/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

569 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Apr Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

A Partnership's employer identification number

27-2313052 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

116-40-1176 F Partner's name, address, city, state, and ZIP code

Paul Romano 509 Palm Trail Delray Beach G H I

FL 33483 X

General partner or LLC member-manager

X

Domestic partner

Limited partner or other LLC member Foreign partner

What type of entity is this partner?

Individual

A

68

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

Ending

29.830000 % 29.830000 % 29.830000 %

20

29.830000 % 29.830000 % 29.830000 %

Other information

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 569 68 ) 511

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02010 04/05/2011 4:38 PM Pg 11

Form

Depreciation and Amortization

4562

Department of the Treasury Internal Revenue Service (99)

OMB No. 1545-0172

2010

(Including Information on Listed Property)  See separate instructions.

Attachment Sequence No.

 Attach to your tax return.

67

Identifying number

Name(s) shown on return

FL Apr Ten, LLC

27-2313052

Business or activity to which this form relates

131 North L Street Part I

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

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

1 2 3 4 5 6

(a) Description of property

(b) Cost (business use only)

Part II

15 16

8 9 10 11 12

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions)

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

2,000,000

(c) Elected cost

7 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2009 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . 13 Carryover of disallowed deduction to 2011. Add lines 9 and 10, less line 12 . . . . . . . . 13 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. 14

500,000

1 2 3 4 5

14 15 16

252

17

0

MACRS Depreciation (Do not include listed property.) (See instructions.) Section A

17 18

MACRS deductions for assets placed in service in tax years beginning before 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 

Section B—Assets Placed in Service During 2010 Tax Year Using the General Depreciation System (a) Classification of property

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property

(b) Month and year placed in service

04/30/10

(c) Basis for depreciation (d) Recovery (business/investment use (e) Convention period only–see instructions)

72,904

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

MM MM MM

(f) Method

S/L S/L

Part IV

12 yrs. 40 yrs.

MM

S/L S/L S/L

Summary (See instructions.)

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . . . . . . . . . . . . . . . . . 23 For assets shown above and placed in service during the current year, enter the 23 portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see separate instructions. DAA

1,878

S/L Nonresidential real S/L property MM S/L Section C—Assets Placed in Service During 2010 Tax Year Using the Alternative Depreciation System

20a Class life b 12-year c 40-year 21 22

(g) Depreciation deduction

21

2,130

22

Form

4562 (2010)

There are no amounts for Page 2


02010 FL Apr Ten, LLC 27-2313052 FYE: 12/31/2010

4/5/2011 4:37 PM Page 1

Federal Statements

Statement 1 - Form 1065, Schedule L, Line 13 - Other Assets Description Receivable Pax Properties Utility Deposit Total

Beginning of Year $

$

$

0

$

End of Year 8,000 559 8,559

Statement 2 - Form 1065, Schedule L, Line 17 - Other Current Liabilities Description Tenant Security Deposits Total

Beginning of Year $ $

0

$ $

End of Year 1,351 1,351

Statement 3 - 131 North L Street - Form 8825, Line 15 - Other Description Bank Charges Office Expenses Property Management Fees Total

Amount $

$

113 30 468 611

1-3


02010 04/05/2011 4:38 PM Pg 13

Form

Reconciliation of Partners' Capital Accounts Worksheet

1065

For calendar year 2010, or tax year beginning

04/09/10

, and ending

Partnership Name

Employer Identification Number

FL Apr Ten, LLC Partner Number

1 2

2010

12/31/10 27-2313052

Partner Name

Beginning Capital

Capital Contributed

Lines 3, 4, & 7 Schedule M-2

Withdrawals & Distributions

Ending Capital

Pax Properties LLC Paul Romano

0 849 1,339 267 1,921 0 10 569 68 511 ___________ ___________ ___________ ___________ ___________

Total Partners' Capital

0 859 1,908 335 2,432 =========== =========== =========== =========== ===========

Page 1 of 1


02010 FL Apr Ten, LLC 27-2313052 FYE: 12/31/2010 Asset

Description

04/05/2011 4:37 PM Page 1

Federal Asset Report 131 North L Street Date In Service

Cost

Bus Sec Basis % 179Bonus for Depr

PerConv Meth

Prior

Current

Residential Real Property: 1 131 N L Street Building

4/30/10

72,904 72,904

72,904 27 MM S/L 72,904

0 0

1,878 1,878

Other Depreciation: 2 131 North L Street Land 3 Closing Costs Total Other Depreciation

4/30/10 4/30/10

18,000 1,889 19,889

18,000 1,889 19,889

0 0 0

0 252 252

Total ACRS and Other Depreciation

19,889

19,889

0

252

Grand Totals Less: Dispositions and Transfers Less: Start-up/Org Expense Net Grand Totals

92,793 0 0 92,793

92,793 0 0 92,793

0 0 0 0

2,130 0 0 2,130

0 -- Land 5 MO S/L


02024 03/28/2011 2:01 PM Pg 1

Miriam B. Walling, CPA, PA 355 NE 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

Pax Properties, LLC 30 South L Street Unit 2 Lake Worth, FL 33460


02024 03/28/2011 2:01 PM Pg 2

Miriam B. Walling, CPA, PA 355 NE 5th Avenue, Suite 6 Delray Beach, FL 33483-5542 561-272-5868

March 28, 2011 CONFIDENTIAL Pax Properties, LLC 30 South L Street Unit 2 Lake Worth, FL 33460 Dear Partner: We have prepared the enclosed copy of your Schedule K-1 for FL May Ten, LLC limited liability company. It contains your share of the limited liability company's items of income/loss, deductions, credits, and other information for the limited liability company's tax year ended December 31, 2010. These items are to be reported on your federal income tax return; therefore, this schedule should be retained with your tax records and documentation. Also enclosed is state K-1 information, if applicable. This information should also be retained with your tax records and documentation. Also enclosed is your basis information. This information consists of your basis in the limited liability company and, if applicable, your share of any suspended or disallowed losses. Retain this information with your tax records; it may be needed to complete your federal income tax return. If you have any questions, or if we can be of assistance in any way, please call. Sincerely, Miriam B. Walling, CPA, PA


02024 03/28/2011 2:01 PM Pg 3



Partner# 1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III 1

04/06/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

-1,045 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL May Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9b

Collectibles (28%) gain (loss)

F Partner's name, address, city, state, and ZIP code

9c

Unrecaptured section 1250 gain

Pax Properties, LLC

10

Net section 1231 gain (loss)

11

Other income (loss)

G

30 South L Street Unit 2 Lake Worth FL 33460 X General partner or LLC Limited partner or other LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2284407 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

83-0491866

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

A

53

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

Ending

81.000000 % 81.000000 % 81.000000 %

20

81.000000 % 81.000000 % 81.000000 %

Other information

Y*

STMT

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

2,249

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $ GAAP

12,990 -1,045 53 ) 11,892

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

Tax basis

Self-employment earnings (loss)

50,000

L Partner's capital account analysis:

X

14

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


Schedule K-1 (Form 1065) 2010 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 Passive loss See the Partner's Instructions 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 Schedule E, line 28, column (j) 4. Guaranteed payments Form 1040, line 8a 5. Interest income Form 1040, line 9a 6a. Ordinary dividends Form 1040, line 9b 6b. Qualified dividends Schedule E, line 4 7. Royalties Schedule D, line 5, column (f) 8. Net short-term capital gain (loss) Schedule D, line 12, column (f) 9a. Net long-term capital gain (loss) 28% Rate Gain Worksheet, line 4 9b. Collectibles (28%) gain (loss) (Schedule D instructions) See the Partner's Instructions 9c. Unrecaptured section 1250 gain See the Partner's Instructions 10. Net section 1231 gain (loss) 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 Form 1040, line 21 or Form 982 E Cancellation of debt 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%) See the Partner's D Noncash contributions (30%)  Instructions E Capital gain property to a 50% organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense Form 4952, line 1 I Schedule E, line 18 Deductions—royalty income 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 Form 2441, line 12 O Dependent care benefits See the Partner's Instructions P Preproductive period expenses 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 See the Partner's Instructions 42(j)(5)) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings See the Partner's Instructions C Low-income housing credit (section 42(j)(5)) from post-2007 buildings Form 8586, line 11 D Low-income housing credit (other) from post-2007 buildings Form 8586, line 11 E Qualified rehabilitation expenditures (rental real estate)  See the Partner's Instructions F Other rental real estate credits G Other rental credits H Undistributed capital gains credit Form 1040, line 71; check box a Alcohol and cellulosic biofuel fuels I Form 6478, line 8 credit Form 5884, line 3 J Work opportunity credit DAA

Report on Code See the Partner's Instructions K Disabled access credit L Empowerment zone and renewal Form 8844, line 3 community employment credit M Credit for increasing research activities See the Partner's Instructions N Credit for employer social security Form 8846, line 5 and Medicare taxes Form 1040, line 61 O Backup withholding See the Partner's Instructions P Other credits 16. Foreign transactions A Name of country or U.S. possession  Form 1116, Part I B Gross income from all sources 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 Passive category I 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 O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Partner's Instructions

17. Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment B Adjusted gain or loss See the Partner's C Depletion (other than oil & gas) Instructions and  D Oil, gas, & geothermal—gross income the Instructions for Form 6251 E Oil, gas, & geothermal—deductions F Other AMT items 18. 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 19. Distributions A Cash and marketable securities B Distribution subject to section 737  See the Partner's Instructions C Other property 20. Other information A Investment income B Investment expenses C Fuel tax credit information D Qualified rehabilitation expenditures (other than rental real estate) E Basis of energy property F Recapture of low-income housing credit (section 42(j)(5)) G Recapture of low-income housing credit (other) H Recapture of investment credit I Recapture of other credits J Look-back interest—completed long-term contracts K Look-back interest—income forecast method L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(I)(3) information P Section 453A(c) information Q Section 1260(b) information R Interest allocable to production expenditures S CCF nonqualified withdrawals T Depletion information—oil and gas U Amortization of reforestation costs V Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Other information

Form 4952, line 4a Form 4952, line 5 Form 4136 See the Partner's Instructions See the Partner's Instructions Form 8611, line 8 Form 8611, line 8 See Form 4255 See the Partner's Instructions See Form 8697 See Form 8866

the Partner's  See Instructions


02024 FL May Ten, LLC 27-2284407 FYE: 12/31/2010

3/28/2011 2:01 PM Page 1

Federal Statements Pax Properties, LLC 83-0491866

Schedule K-1, Line 2 - Net Rental Real Estate Income (Loss) Description Single-Family House

$

Amount -1,045

Schedule K-1, Line 20Y - Additional Supplemental Information Description Analysis of "At Risk" versus Not "At Risk" Liabilities "At Risk" Not "At Risk" Nonrecourse 0 2,249 Qualified Nonrecourse 0 0 Recourse 50,000 0


02024 03/28/2011 2:01 PM Pg 6

Partner# 1 Analysis of Partner's K-1, Current Year Increase (Decrease) Worksheet Schedule

K-1

2010

For calendar year 2010, or tax year beginning

04/06/10

, and ending

12/31/10

Partnership Name

Employer Identification Number

FL May Ten, LLC

27-2284407

Partner's Name

Taxpayer Identification Number

Pax Properties, LLC

83-0491866

Items Included in Current Year Increase (Decrease):

Schedule K Additions: Net Rental Real Estate Income/Loss

-1,045 ____________ Subtotal

-1,045 ____________

Total per Schedule K-1, Current Year Increase (Decrease)

-1,045 ============

Page 1 of 1


02024 03/28/2011 2:01 PM Pg 7

Partner# 1 Schedule

Partner's Basis Worksheet, Page 1

K-1

For calendar year 2010, or tax year beginning

04/06/10

, and ending

Partnership Name

2010 12/31/10 Employer Identification Number

FL May Ten, LLC Partner's Name

27-2284407 Taxpayer Identification Number

Pax Properties, LLC

83-0491866

Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Increases: Capital contributions: . . . . Cash . . . . . . . . . . . . . . . . . . . . 12,990 . . . . . . . . . . . . . . . . . . . Property . . . . . . . . .(adjusted . . . . . . . . .basis) ................................. "Excess" depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income items:

0 12,990

Net income from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net gain under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax-exempt interest and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other increases: Transfer of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gain (loss) on disposition of section 179 assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....................................................................................................

Distributions: Cash Property (adjusted basis) 53 Increase (decrease) in share of partnership liabilities . . .P/Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C/Y . . . . . . . . . . . . . . . 52,249 ..............

53 52,249

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Distribution in excess of partner basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

65,186

Decreases: Noncap items:

Loss items:

Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 179 expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deductions related to portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest expense on investment debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 59(e) expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,045

Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other decreases:

1,045

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

End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note to partner: This worksheet was prepared based on partnership records. Please consult with your tax advisor for adjustments.

64,141


02024 03/28/2011 2:01 PM Pg 8

Miriam B. Walling, CPA, PA 355 NE 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

Bob Irish 1225 Vista del Mar Delray Beach, FL 33483


02024 03/28/2011 2:01 PM Pg 9

Miriam B. Walling, CPA, PA 355 NE 5th Avenue, Suite 6 Delray Beach, FL 33483-5542 561-272-5868

March 28, 2011 CONFIDENTIAL Bob Irish 1225 Vista del Mar Delray Beach, FL 33483 Dear Limited Liability Company Member: We have prepared the enclosed copy of your Schedule K-1 for FL May Ten, LLC limited liability company. It contains your share of the limited liability company's items of income/loss, deductions, credits, and other information for the limited liability company's tax year ended December 31, 2010. These items are to be reported on your federal income tax return; therefore, this schedule should be retained with your tax records and documentation. Also enclosed is state K-1 information, if applicable. This information should also be retained with your tax records and documentation. Also enclosed is your basis information. This information consists of your basis in the limited liability company and, if applicable, your share of any suspended or disallowed losses. Retain this information with your tax records; it may be needed to complete your federal income tax return. If you have any questions, or if we can be of assistance in any way, please call. Sincerely, Miriam B. Walling, CPA, PA


02024 03/28/2011 2:01 PM Pg 10



Partner# 2

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III 1

04/06/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

-245 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL May Ten, LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Bob Irish

10

Net section 1231 gain (loss)

11

Other income (loss)

G

1225 Vista del Mar Delray Beach FL 33483 X Limited partner or other LLC General partner or LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2284407 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

044-48-6808 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Individual

A

12

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

Ending

19.000000 % 19.000000 % 19.000000 %

20

19.000000 % 19.000000 % 19.000000 %

Other information

Y*

STMT

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 -245 12 ) -247

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


Schedule K-1 (Form 1065) 2010 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 Passive loss See the Partner's Instructions 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 Schedule E, line 28, column (j) 4. Guaranteed payments Form 1040, line 8a 5. Interest income Form 1040, line 9a 6a. Ordinary dividends Form 1040, line 9b 6b. Qualified dividends Schedule E, line 4 7. Royalties Schedule D, line 5, column (f) 8. Net short-term capital gain (loss) Schedule D, line 12, column (f) 9a. Net long-term capital gain (loss) 28% Rate Gain Worksheet, line 4 9b. Collectibles (28%) gain (loss) (Schedule D instructions) See the Partner's Instructions 9c. Unrecaptured section 1250 gain See the Partner's Instructions 10. Net section 1231 gain (loss) 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 Form 1040, line 21 or Form 982 E Cancellation of debt 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%) See the Partner's D Noncash contributions (30%)  Instructions E Capital gain property to a 50% organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense Form 4952, line 1 I Schedule E, line 18 Deductions—royalty income 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 Form 2441, line 12 O Dependent care benefits See the Partner's Instructions P Preproductive period expenses 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 See the Partner's Instructions 42(j)(5)) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings See the Partner's Instructions C Low-income housing credit (section 42(j)(5)) from post-2007 buildings Form 8586, line 11 D Low-income housing credit (other) from post-2007 buildings Form 8586, line 11 E Qualified rehabilitation expenditures (rental real estate)  See the Partner's Instructions F Other rental real estate credits G Other rental credits H Undistributed capital gains credit Form 1040, line 71; check box a Alcohol and cellulosic biofuel fuels I Form 6478, line 8 credit Form 5884, line 3 J Work opportunity credit DAA

Report on Code See the Partner's Instructions K Disabled access credit L Empowerment zone and renewal Form 8844, line 3 community employment credit M Credit for increasing research activities See the Partner's Instructions N Credit for employer social security Form 8846, line 5 and Medicare taxes Form 1040, line 61 O Backup withholding See the Partner's Instructions P Other credits 16. Foreign transactions A Name of country or U.S. possession  Form 1116, Part I B Gross income from all sources 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 Passive category I 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 O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Partner's Instructions

17. Alternative minimum tax (AMT) items A Post-1986 depreciation adjustment B Adjusted gain or loss See the Partner's C Depletion (other than oil & gas) Instructions and  D Oil, gas, & geothermal—gross income the Instructions for Form 6251 E Oil, gas, & geothermal—deductions F Other AMT items 18. 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 19. Distributions A Cash and marketable securities B Distribution subject to section 737  See the Partner's Instructions C Other property 20. Other information A Investment income B Investment expenses C Fuel tax credit information D Qualified rehabilitation expenditures (other than rental real estate) E Basis of energy property F Recapture of low-income housing credit (section 42(j)(5)) G Recapture of low-income housing credit (other) H Recapture of investment credit I Recapture of other credits J Look-back interest—completed long-term contracts K Look-back interest—income forecast method L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(I)(3) information P Section 453A(c) information Q Section 1260(b) information R Interest allocable to production expenditures S CCF nonqualified withdrawals T Depletion information—oil and gas U Amortization of reforestation costs V Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Other information

Form 4952, line 4a Form 4952, line 5 Form 4136 See the Partner's Instructions See the Partner's Instructions Form 8611, line 8 Form 8611, line 8 See Form 4255 See the Partner's Instructions See Form 8697 See Form 8866

the Partner's  See Instructions


02024 FL May Ten, LLC 27-2284407 FYE: 12/31/2010

3/28/2011 2:01 PM Page 1

Federal Statements Bob Irish 044-48-6808

Schedule K-1, Line 2 - Net Rental Real Estate Income (Loss) Description Single-Family House

$

Amount -245

Schedule K-1, Line 20Y - Additional Supplemental Information Description Distribution in Excess of Partner Basis

2


02024 03/28/2011 2:01 PM Pg 13

Partner# 2 Analysis of Partner's K-1, Current Year Increase (Decrease) Worksheet Schedule

K-1

2010

For calendar year 2010, or tax year beginning

04/06/10

, and ending

12/31/10

Partnership Name

Employer Identification Number

FL May Ten, LLC

27-2284407

Partner's Name

Taxpayer Identification Number

Bob Irish

044-48-6808

Items Included in Current Year Increase (Decrease):

Schedule K Additions: Net Rental Real Estate Income/Loss

-245 ____________ Subtotal

-245 ____________

Total per Schedule K-1, Current Year Increase (Decrease)

-245 ============

Page 1 of 1


02024 03/28/2011 2:01 PM Pg 14

Partner# 2 Schedule

Partner's Basis Worksheet, Page 1

K-1

For calendar year 2010, or tax year beginning

04/06/10

, and ending

Partnership Name

2010 12/31/10 Employer Identification Number

FL May Ten, LLC Partner's Name

27-2284407 Taxpayer Identification Number

Bob Irish

044-48-6808

Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Increases: Capital contributions: . . . . Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 . . . . . . . . . . . Property . . . . . . . . .(adjusted . . . . . . . . .basis) ................................. "Excess" depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income items:

0 10

Net income from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net gain under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax-exempt interest and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other increases: Transfer of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gain (loss) on disposition of section 179 assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....................................................................................................

Distributions: Cash Property (adjusted basis) 12 Increase (decrease) in share of partnership liabilities . . .P/Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C/Y .............................

12

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Distribution in excess of partner basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-2 2

Decreases: Noncap items:

Loss items:

Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss from other rental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net long-term capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other portfolio loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net loss under section 1231 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 179 expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deductions related to portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest expense on investment debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 59(e) expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other decreases: .................................................................................................

End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note to partner: This worksheet was prepared based on partnership records. Please consult with your tax advisor for adjustments.

0


02024 03/28/2011 2:01 PM Pg 15

Partner# 2 Schedule

Partner's Basis Worksheet, Page 2

K-1

For calendar year 2010, or tax year beginning

04/06/10

, and ending

Partnership Name

2010 12/31/10 Employer Identification Number

FL May Ten, LLC

27-2284407

Partner's Name

Taxpayer Identification Number

Bob Irish

044-48-6808

Suspended Amount

Current Year

Total Loss

Percent

Allowed Loss

Disallowed Loss

Nondeductible noncap exps: Nondeductible expenses Charitable contributions Foreign taxes Total nonded noncap exps Losses and deductions: Ordinary loss Rental real estate loss Other rental activity loss Royalties Short-term capital loss Long-term capital loss Other portfolio loss Section 1231 loss Other losses Section 179 expense Portfolio inc. deductions Other deductions Investment debt interest Section 59(e) expenses Depletion Total losses and deductions

245

245 100.00

245

245

245

245

*Note to partner: This worksheet was prepared based on partnership records. Please consult with your tax advisor for adjustments.


02012 04/01/2011 10:02 AM Pg 1

Form

IRS e-file Signature Authorization for Form 1065

8879-PE

04/26/10

OMB No. 1545-2042

2010

12/31/10

For calendar year 2010, or tax year beginning . . . . . . . . . . . . . . . , ending . . . . . . . . . . . . . . . . . Department of the Treasury Internal Revenue Service

 See instructions. Do not send to the IRS. Keep for your records.

Employer identification number

Name of partnership

FL Aug Ten LLC Part I 1 2 3 4 5

27-2437670

Tax Return Information (Whole dollars only)

Gross receipts or sales less returns and allowances (Form 1065, line 1c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit (Form 1065, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary business income (loss) (Form 1065, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net rental real estate income (loss) (Form 1065, Schedule K, line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other net rental income (loss) (Form 1065, Schedule K, line 3c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

1 2 3 4 5

3,338

Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return)

Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership’s 2010 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership’s electronic tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership’s return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership’s electronic income tax return. General Partner or Limited Liability Company Member Manager's PIN: check one box only

X

I authorize

Miriam B. Walling, CPA, PA

to enter my PIN

47187

as my signature

do not enter all zeros

ERO firm name

on the partnership’s 2010 electronically filed income tax return. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership’s 2010 electronically filed income tax return. General partner or limited liability company member manager's signature  Title  Managing Member John Justin

Part III

Date 

Ford

Certification and Authentication

ERO’s EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 65261834250 do not enter all zeros

I certify that the above numeric entry is my PIN, which is my signature on the 2010 electronically filed income tax return for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. ERO’s signature 

Miriam B. Walling CPA

Date 

04/01/11

ERO Must Retain This Form — See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice, see instructions.

DAA

Form

8879-PE (2010)


02012 04/01/2011 10:02 AM Pg 2

Form

1065

U.S. Return of Partnership Income 04/26/10, ending . .12/31/10 .............. .

Department of the Treasury Internal Revenue Service

Real Estate Rentals

2010

 See separate instructions.

A Principal business activity

B Principal product or service

OMB No. 1545-0099

For calendar year 2010, or tax year beginning . . . . . . . . . . . . .

D Employer identification number

Name of partnership

Print or type.

C Business code number

FL Aug Ten LLC

27-2437670 E

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

30 South L Street Unit 2 F

City or town, state, and ZIP code

Lake Worth

531110

Date business started

04/26/2010

FL 33460

Total assets (see the instructions)

148,364

$

G Check applicable boxes: (1) X Initial return (2) Final return (3) Name change (4) Address change (5) Amended return (6) Technical termination - also check (1) or (2) Accrual Other (specify)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H Check accounting method:(1) X Cash (2) (3) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 .. J Check if Schedules C and M-3 are attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions(see the instructions for limitations)

Income

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

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a Less returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b Cost of goods sold (Schedule A, line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Other income (loss) (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total income (loss). Combine lines 3 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Salaries and wages (other than to partners) (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a Depreciation (if required, attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a 1,749 b Less depreciation reported on Schedule A and elsewhere on return . . . . . . . . . 16b 1,749 17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . . . . . . . . . . . . . . . . . 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a b 2 3 4 5

Sign Here

6 7 8 9 10 11 12 13 14 15

0

16c 17 18 19 20 21 22

0

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 general partner or limited liability company member manager) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see Yes No instructions)?

X

Signature of general partner or limited liability company member manager Print/Type preparer's name

Paid Miriam B. Walling CPA Preparer F Firm's name  Miriam Use Only Firm's address  355 NE

Date

Preparer's signature

Miriam B. Walling CPA

B. Walling, CPA, PA 5th Avenue, Suite 6 Delray Beach, FL 33483-5542

For Paperwork Reduction Act Notice, see separate instructions.

DAA

1c 2 3 4 5

Date

04/01/11

PTIN if Check self-employed P00289917

Firm's EIN  Phone no.

59-2184316

561-272-5868 Form

1065 (2010)


02012 04/01/2011 10:02 AM Pg 3

Form 1065 (2010)

Schedule A 1 2 3 4 5 6 7 8 9a

b c d e

3 a

b

4 a

Page 2

Other Information

What type of entity is filing this return? Check the applicable box: Yes Domestic general partnership Domestic limited partnership b Domestic limited liability partnership d X Domestic limited liability company Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign partnership f At any time during the tax year, was any partner in the partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner), or a nominee or similar person? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

b

27-2437670

Cost of Goods Sold (see the instructions)

Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Additional section 263A costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check all methods used for valuing closing inventory: Cost as described in Regulations section 1.471-3 (i) Lower of cost or market as described in Regulations section 1.471-4 (ii) Other (specify method used and attach explanation)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) Check this box if there was a writedown of "subnormal" goods as described in Regulations section 1.471-2(c) . . . . . . . . . . . . . . . . . . .  Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership? . . . . . . . . . . . . . . . . . . . . Yes No Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . . . . . . . . . . . . Yes No If "Yes," attach explanation.

Schedule B 1 a c e 2

FL Aug Ten LLC

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

X

X

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Form

DAA

X

(iv) Percentage Owned in Voting Stock

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . (i) Name of Entity

No

1065 (2010)


02012 04/01/2011 10:02 AM Pg 4

Form 1065 (2010)

FL Aug Ten LLC

27-2437670

Page 3 Yes

Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Does the partnership satisfy all four of the following conditions? 6 a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or Item L on Schedule K-1. Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms 8 modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 9 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 At any time during calendar year 2010, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If "Yes," enter the name of the foreign country.  11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than entities wholly-owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions  16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.  17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. 

No

5

X

X X X X

X X X X X

X

X

Designation of Tax Matters Partner (see instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of designated TMP If the TMP is an entity, name of TMP representative Address of designated TMP

Pax Properties LLC John Justin Ford 30 South L Street Unit 2 Lake Worth FL 33460

Identifying number of TMP Phone number of TMP

83-0491866 888-729-4948 Form

DAA

1065 (2010)


02012 04/01/2011 10:02 AM Pg 5

Form 1065 (2010)

Schedule K

Alternative Other Information Minimum Tax (AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

1 2 3a b c 4 5 6 7 8 9a b c 10 11 12 13a b c d 14a b c 15a b c d e f 16a b c d g i l m n 17a b c d e f 18a b c 19a b 20a b c

FL Aug Ten LLC

Page 4

27-2437670

Partners' Distributive Share Items

Total amount

Ordinary business income (loss) (page 1, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a Expenses from other rental activities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 3b Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9b Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Other income (loss) (see instructions) Type  11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b Section 59(e)(2) expenditures: (1) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Amount  13c(2) Other deductions (see instructions)Type  13d Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14a Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15a Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c Other rental real estate credits (see instructions) Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d Type  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15e Other rental credits (see instructions) Other credits (see instructions) Type  15f Name of country or U.S. possession  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b Gross income sourced at partner level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c Foreign gross income sourced at partnership level Passive category  . . . . . . . . . . . . . . . . . . . . . . e General category  . . . . . . . . . . . . . . . . . . . . . . . . f Other  16f Deductions allocated and apportioned at partner level Interest expense  . . . . . . . . . . . . . . . . . . . . . . . . . . . . h Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16h Deductions allocated and apportioned at partnership level to foreign source income Passive category  . . . . . . . . . . . . . . . . . . . . . . j General category  . . . . . . . . . . . . . . . . . . . . . . . . k Other  16k Total foreign taxes (check one): Paid Accrued 16l . ..... Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16m Other foreign tax information (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17a Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17c Oil, gas, and geothermal properties – gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17d Oil, gas, and geothermal properties – deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17e Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17f Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19b Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,338

0

690

Form DAA

1065 (2010)


02012 04/01/2011 10:02 AM Pg 6

Form 1065 (2010)

FL Aug Ten LLC

27-2437670

Page 5

Analysis of Net Income (Loss) 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of 1 Schedule K, lines 12 through 13d, and 16l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis by (iii) Individual (v) Exempt (ii) Individual (i) Corporate (iv) Partnership (active) (passive) organization partner type:

2,302

a General partners b Limited partners Balance Sheets per Books Schedule L Assets 1 2a b 3 4 5 6 7 8

14

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . Liabilities and Capital Accounts payable . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year

21 22

Beginning of tax year (a)

End of tax year (b)

(c)

(d)

2,549

Other current assets ...................... (attach statement) Mortgage and real estate loans . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .

Buildings and other depreciable assets . . Less accumulated depreciation . . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . Less accumulated depletion . . . . . . . . . . . . . Land (net of any amortization) . . . . . . . . . . . Intangible assets (amortizable only) . . . . . Less accumulated amortization . . . . . . . . . .

18 19 20

1,036

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trade notes and accounts receivable . . . . Less allowance for bad debts . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. government obligations . . . . . . . . . . . . Tax-exempt securities . . . . . . . . . . . . . . . . . .

9a b 10a b 11 12a b 13

15 16 17

3,338 (vi) Nominee/Other

57,934 1,749

56,185 9,600

Other assets ............................. (attach statement)

See Stmt 1

80,030 148,364

Other current liabilities ..................... (attach statement) All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities ........................... (attach statement) Partners' capital accounts . . . . . . . . . . . . . . . . . . . . . .

See Stmt 2

1,977 80,000 66,387 148,364

Total liabilities and capital . . . . . . . . . . . . . . .

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. Schedule M-3 may be required instead of Schedule M-1 (see instructions).

1 2

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

3,338

6

Income recorded on books this year not included on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest$ . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

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

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

Guaranteed payments (other than health insurance) . . . . . . . . . . . . . . . . . . . . 4 Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 16I (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . b Travel and entertainment $ . . . . . . . . . . . . . . . . . . . . . . .

7

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

8 9

3

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

5

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

Schedule M-2 1 2 3 4 5 DAA

Deductions included on Schedule K, lines 1 through 13d, and 16I, not charged against book income this year (itemize): a Depreciation $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... . ..........................................

3,338

Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5 . . . . .

3,338

Analysis of Partners' Capital Accounts

Balance at beginning of year . . . . . . . . . Capital contributed: a Cash . . . . . . . . . b Property . . . . . . Net income (loss) per books . . . . . . . . .

6

63,739

7

3,338

Other decreases (itemize): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..........................................

Other increases ....................... (itemize):

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

690

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

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

67,077

8 9

690 66,387

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

1065 (2010)


02012 04/01/2011 10:02 AM Pg 7

Form

8825

(Rev. December 2010) Department of the Treasury Internal Revenue Service Name

Rental Real Estate Income and Expenses of a Partnership or an S Corporation

OMB No. 1545-1186

 See instructions on back.

 Attach to Form 1065, Form 1065-B, or Form 1120S. Employer identification number

FL Aug Ten LLC

27-2437670

Show the type and address of each property. For each rental real estate property listed, report the number of days rented at fair rental value and days with personal use. See instructions. See page 2 to list additional properties. Physical address of each property—street, city, Type—Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code see page 2 for list

1

A .

514 South L Street .514 . . . . . . South . . . . . . . . . .L . . .Street ..................................................................................................................... Lake Worth FL 33460 2 Multi-Fam Residence 365

B . .........................................................................................................................................

C . .........................................................................................................................................

D . .........................................................................................................................................

Properties 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Rental Real Estate Income Gross rents . . . . . . . . . . . . . . . . . . . . . . . Rental Real Estate Expenses Advertising . . . . . . . . . . . . . . . . . . . . . . . Auto and travel . . . . . . . . . . . . . . . . . . . . Cleaning and maintenance . . . . . . . . . Commissions . . . . . . . . . . . . . . . . . . . . . Insurance . . . . . . . . . . . . . . . . . . . . . . . . . Legal and other professional fees . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . Wages and salaries . . . . . . . . . . . . . . . Depreciation (see instructions) . . . . . Other (list)  . . . . . . . . . . . . . . . . . . . . .

See Statement 1,3

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

16 17 18a b 19 20a b

A 2 3 4 5 6 7 8 9 10 11 12 13 14 15

B

C

1,237 2,669 1,056 1,749 1,032

Total expenses for each property. Add lines 3 through 15 . . . . . . . . . . . . . 7,743 16 Income or (Loss) from each property. Subtract line 16 from line 2 3,338 17 Total gross rents. Add gross rents from line 2, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a Total expenses. Add total expenses from line 16, columns A through H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b ( Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Net income (loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line 20a. Attach a schedule if more space is needed: (1) Name (2) Employer identification number . .............................................................................

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

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

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

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

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

Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on:  Form 1065 or 1120S: Schedule K, line 2, or  Form 1065-B: Part I, line 4 For Paperwork Reduction Act Notice, see back of form.

21

DAA

D

11,081

11,081 7,743 )

3,338

21

Form

8825 (12-2010)


02012 04/01/2011 10:02 AM Pg 8

SCHEDULE B-1 (Form 1065)

Information on Partners Owning 50% or More of the Partnership

(December 2009) Department of the Treasury Internal Revenue Service

ď ľ Attach to Form 1065. See instructions on back. Employer identification number (EIN)

Name of partnership

FL Aug Ten LLC Part I

OMB No. 1545-0099

27-2437670

Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3a)

Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity

Part II

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 3b)

Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions).

(i) Name of Individual or Estate

(ii) Identifying Number (if any)

(iii) Country of Citizenship (see instructions)

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

Pax Properties LLC 83-0491866 United States

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

DAA

68.930000

Schedule B-1 (Form 1065) (12-2009)


02012 04/01/2011 10:02 AM Pg 9



Partner# 1

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

For calendar year 2010, or tax

Final K-1

Part III 1

04/26/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

2,302 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Aug Ten LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Pax Properties LLC

10

Net section 1231 gain (loss)

11

Other income (loss)

G

30 South L Street Unit 2 Lake Worth FL 33460 X General partner or LLC Limited partner or other LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2437670 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

83-0491866 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Disregarded Entity

A

478

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

Ending

68.930000 % 68.930000 % 68.930000 %

20

68.930000 % 68.930000 % 68.930000 %

Other information

Y*

STMT

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

1,977

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $ GAAP

63,709 2,302 478 ) 65,533

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

Tax basis

Self-employment earnings (loss)

80,000

L Partner's capital account analysis:

X

14

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02012 04/01/2011 10:02 AM Pg 10



Partner# 2

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Final K-1

Part III 1

For calendar year 2010, or tax

04/26/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

388 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Aug Ten LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

Michael Palmer

10

Net section 1231 gain (loss)

11

Other income (loss)

G

2375 Boston Street Baltimore MD 21224 X Limited partner or other LLC General partner or LLC

H

X

12

Section 179 deduction

13

Other deductions

A Partnership's employer identification number

27-2437670 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

213-68-5061 F Partner's name, address, city, state, and ZIP code

I

member-manager

member

Domestic partner

Foreign partner

What type of entity is this partner?

Individual

A

80

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

Ending

11.650000 % 11.650000 % 11.650000 %

20

11.650000 % 11.650000 % 11.650000 %

Other information

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 388 80 ) 318

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02012 04/01/2011 10:02 AM Pg 11



Partner# 3

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Final K-1

Part III 1

For calendar year 2010, or tax

04/26/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

324 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Aug Ten LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

A Partnership's employer identification number

27-2437670 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

265-97-6547 F Partner's name, address, city, state, and ZIP code

Karim Rahemtulla 931 Palmer Avenue Winter Park G H I

X

General partner or LLC member-manager

X

FL 32789

Domestic partner

Limited partner or other LLC member Foreign partner

What type of entity is this partner?

Individual

A

66

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

Ending

9.710000 % 9.710000 % 9.710000 %

20

9.710000 % 9.710000 % 9.710000 %

Other information

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 324 66 ) 268

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02012 04/01/2011 10:02 AM Pg 12



Partner# 4

2010

Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service

Final K-1

Part III 1

For calendar year 2010, or tax

04/26/2010 ending 12/31/2010 2 * Partner's Share of Income, Deductions, Credits, etc.  See back of form and separate instructions. 3 Part I

Amended K-1

OMB No. 1545-0099

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

Ordinary business income (loss)

15

Credits

16

Foreign transactions

17

Alternative minimum tax (AMT) items

18

Tax-exempt income and nondeductible expenses

19

Distributions

year beginning

Information About the Partnership

Net rental real estate income (loss)

324 Other net rental income (loss)

4

Guaranteed payments

5

Interest income

FL Aug Ten LLC

6a

Ordinary dividends

30 South L Street Unit 2 Lake Worth FL 33460

6b

Qualified dividends

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

A Partnership's employer identification number

27-2437670 B Partnership's name, address, city, state, and ZIP code

C IRS Center where partnership filed return

Ogden, UT D

Check if this is a publicly traded partnership (PTP)

Part II

Information About the Partner

E Partner's identifying number

589-14-8291 F Partner's name, address, city, state, and ZIP code

Brian Sodi 1209 Southways Delray Beach G H I

FL 33483 X

General partner or LLC member-manager

X

Domestic partner

Limited partner or other LLC member Foreign partner

What type of entity is this partner?

Individual

A

66

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

Ending

9.710000 % 9.710000 % 9.710000 %

20

9.710000 % 9.710000 % 9.710000 %

Other information

K Partner's share of liabilities at year end: 14

Nonrecourse . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Qualified nonrecourse financing . . . . . . . . . . . . $

Self-employment earnings (loss)

Recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

L Partner's capital account analysis:

Current year increase (decrease) . . . . . . . . . . . $ Withdrawals & distributions . . . . . . . . . . . . . . . . $ ( Ending capital account . . . . . . . . . . . . . . . . . . . $

X

Tax basis

GAAP

10 324 66 ) 268

Section 704(b) book

Other (explain)

For IRS Use Only

*See attached statement for additional information.

Beginning capital account . . . . . . . . . . . . . . . . . $ Capital contributed during the year . . . . . . . . . . $

M Did the partner contribute property with a built-in gain or loss?

X

Yes No If "Yes", attach statement (see instructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. DAA

Schedule K-1 (Form 1065) 2010


02012 04/01/2011 10:02 AM Pg 13

Form

Depreciation and Amortization

4562

Department of the Treasury Internal Revenue Service (99)

OMB No. 1545-0172

2010

(Including Information on Listed Property)  See separate instructions.

Attachment Sequence No.

 Attach to your tax return.

67

Identifying number

Name(s) shown on return

FL Aug Ten LLC

27-2437670

Business or activity to which this form relates

514 South L Street Part I

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

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

1 2 3 4 5 6

(a) Description of property

(b) Cost (business use only)

Part II

15 16

8 9 10 11 12

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions)

Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

2,000,000

(c) Elected cost

7 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2009 Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . 13 Carryover of disallowed deduction to 2011. Add lines 9 and 10, less line 12 . . . . . . . . 13 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. 14

500,000

1 2 3 4 5

14 15 16

223

17

0

MACRS Depreciation (Do not include listed property.) (See instructions.) Section A

17 18

MACRS deductions for assets placed in service in tax years beginning before 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 

Section B—Assets Placed in Service During 2010 Tax Year Using the General Depreciation System (a) Classification of property

19a b c d e f g h i

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental property

(b) Month and year placed in service

(c) Basis for depreciation (d) Recovery (business/investment use (e) Convention period only–see instructions)

223

04/27/10

57,488

5.0

25 yrs. 27.5 yrs. 27.5 yrs. 39 yrs.

HY

MM MM MM

(f) Method

200DB

Part IV

S/L S/L

12 yrs.

1,481

40 yrs.

MM

S/L S/L S/L

Summary (See instructions.)

Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . . . . . . . . . . . . . . . . . 23 For assets shown above and placed in service during the current year, enter the 23 portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see separate instructions. DAA

45

S/L Nonresidential real S/L property MM S/L Section C—Assets Placed in Service During 2010 Tax Year Using the Alternative Depreciation System

20a Class life b 12-year c 40-year 21 22

(g) Depreciation deduction

21

1,749

22

Form

4562 (2010)

There are no amounts for Page 2


02012 FL Aug Ten LLC 27-2437670 FYE: 12/31/2010

4/1/2011 10:02 AM Page 1

Federal Statements

Statement 1 - Form 1065, Schedule L, Line 13 - Other Assets Description Receivable Pax Properties Total

Beginning of Year $ $

0

$ $

End of Year 80,030 80,030

Statement 2 - Form 1065, Schedule L, Line 17 - Other Current Liabilities Description Prepaid Property Tax Prepaid Rent Tenant Security Deposits Total

Beginning of Year

End of Year

$

$

$

0

$

952 550 475 1,977

Statement 3 - 514 South L Street - Form 8825, Line 15 - Other Description Bank Fees Casual Labor Closing Costs Office Expenses Property Management Fees Total

Amount $

$

94 60 269 30 579 1,032

1-3


02012 04/01/2011 10:02 AM Pg 15

Form

Reconciliation of Partners' Capital Accounts Worksheet

1065

For calendar year 2010, or tax year beginning

04/26/10

, and ending

Partnership Name

Employer Identification Number

FL Aug Ten LLC Partner Number

1 2 3 4

2010

12/31/10 27-2437670

Partner Name

Beginning Capital

Capital Contributed

Lines 3, 4, & 7 Schedule M-2

Withdrawals & Distributions

Ending Capital

Pax Properties LLC Michael Palmer Karim Rahemtulla Brian Sodi

0 63,709 2,302 478 65,533 0 10 388 80 318 0 10 324 66 268 0 10 324 66 268 ___________ ___________ ___________ ___________ ___________

Total Partners' Capital

0 63,739 3,338 690 66,387 =========== =========== =========== =========== ===========

Page 1 of 1


02012 FL Aug Ten LLC 27-2437670 FYE: 12/31/2010 Asset

Description

04/01/2011 10:02 AM Page 1

Federal Asset Report 514 South L Street Date In Service

Cost

Bus Sec Basis % 179Bonus for Depr

5-year GDS Property: 3 Frigidaire Stove

8/31/10

446 446

Residential Real Property: 1 514 South L Street Building

4/27/10

57,488 57,488

Other Depreciation: 2 514 South L Street Land Total Other Depreciation

4/27/10

9,600 9,600

9,600 9,600

9,600 67,534 0 0 67,534

Total ACRS and Other Depreciation Grand Totals Less: Dispositions and Transfers Less: Start-up/Org Expense Net Grand Totals

X

223 223

PerConv Meth

5 HY 200DB

Prior

Current

0 0

268 268

0 0

1,481 1,481

0 0

0 0

9,600

0

0

67,311 0 0 67,311

0 0 0 0

1,749 0 0 1,749

57,488 27 MM S/L 57,488

0 --

Land


HUD-1 A. Settlement Statement

U.S. Department of Housing and Urban Development

OMB No. 2502-0265

B. Type of Loan 1. FHA

2. FmHA

3. Conv. Unins.

4. V.A.

5. Conv. Ins.

6. File Number

7. Loan Number

8. Mortg. Ins. Case Num.

09-1783 ID:

C. NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p.o.c.)" were paid outside the closing; they are shown here for informational purposes and are not included in the totals. FL DEC ZERO NINE, LLC, a Florida Corporation

D. NAME OF BORROWER:

308 NW 1st Avenue, Delray Beach, Florida 33444

Address of Borrower:

Federal Deposit Insurance Corporation as Receiver for AmTrust Bank

E. NAME OF SELLER:

1601 Bryan Street, Dallas, Texas 75201

Address of Seller:

TIN:

F. NAME OF LENDER: Address of Lender: G. PROPERTY LOCATION:

30 South L Street, Lake Worth, Florida 33460

H. SETTLEMENT AGENT: Place of Settlement:

Capital Abstract & Title

I. SETTLEMENT DATE:

4/20/10

TIN: 59-2780789

10115 W. Sample Rd., Coral Springs, Florida 33065

J. Summary of borrower's transaction 100. Gross amount due from borrower: 101. Contract sales price

Phone: 954-344-8420 DISBURSEMENT DATE: 4/20/10

K. Summary of seller's transaction 400. Gross amount due to seller: 67,000.00 401. Contract sales price

102. Personal property

67,000.00

402. Personal property

103. Settlement charges to borrower (Line 1400)

674.60 403.

104.

404.

105. Adjustments for items paid by seller in advance: 106. City/town taxes

405. Adjustments for items paid by seller in advance: 406. City/town taxes

107. County taxes

407. County taxes

108. Assessments

408. Assessments

109.

409.

110.

410.

111.

411.

112.

412.

120. Gross amount due from borrower: 200. Amounts paid or in behalf of borrower: 201. Deposit or earnest money

67,674.60 420. Gross amount due to seller: 500. Reductions in amount due to seller: 10,000.00 501. Excess deposit (see instructions)

202. Principal amount of new loan(s)

502. Settlement charges to seller (line 1400)

203. Existing loan(s) taken subject to

503. Existing loan(s) taken subject to

204. Principal amount of second mortgage

504. Payoff of first mortgage loan

205.

505. Payoff of second mortgage loan

206.

506. Deposits held by seller

207. Principal amt of mortgage held by seller

507. Principal amt of mortgage held by seller

208.

67,000.00

8,158.72

508.

209. Permits closure Adjustments for items unpaid by seller: 210. City/town taxes

120.00 509. Permits closure Adjustments for items unpaid by seller: 510. City/town taxes

120.00

211. County taxes from 01/01/10 to 04/20/10

911.12 511. County taxes from 01/01/10 to 04/20/10

911.12

212. Assessments

512. Assessments

213.

513.

214.

514.

215.

515.

216.

516.

217.

517.

218.

518.

219.

519.

220. Total paid by/for borrower: 300. Cash at settlement from/to borrower:

11,031.12 520. Total reductions in amount due seller: 600. Cash at settlement to/from seller:

301. Gross amount due from borrower (line 120)

67,674.60 601. Gross amount due to seller (line 420)

302. Less amount paid by/for the borrower (line 220) 303. Cash (

From

To

) Borrower:

9,189.84 67,000.00 (9,189.84)

(11,031.12) 602. Less total reductions in amount due seller (line 520) 56,643.48

603. Cash (

To

From

) Seller:

57,810.16

Substitute Form 1099 Seller Statement: The information contained in blocks E, G, H, and I and on line 401 is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction will be imposed on you if this item is required to be reported and the IRS determines that it has not been reported. Seller Instructions: If this real estate was your principal residence, file Form 2119, Sale or Exchange of Principal Residence, for any gain, with your tax return; for other transactions, complete the applicable parts of Form 4797, Form 6262 and/or Schedule D (Form 1040).

DoubleTime速


HUD-1

U.S. Department of Housing and Urban Development

L. Settlement charges $67,000.00 @

700. Total Sales/Brokers Com. based on price 701.

2,010.00

702.

2,010.00

6.0000 % = 4,020.00

3.0000 % to The Pier Group 3.0000 % to Keller Williams

% to

802. Loan discount

% to

to The Pier Group

Paid from Seller's Funds at Settlement

195.00 Borrower POC Seller POC

803. Appraisal fee

to

804. Credit report

to

805. Lender's inspection fee

to

806. Mortgage insurance application fee

to

807. Assumption Fee

to

808.

to

809.

to

810.

to

to 811. 900. Items required by lender to be paid in advance: 901. Interest from to 902. Mortgage insurance premium for

Paid from Borrower's Funds at Settlement

4,020.00

703. Commission paid at settlement 704. Transaction/Processing Fee 800. Items payable in connection with loan: 801. Loan origination fee

Borrower POC Seller POC

@

/day

months to

903. Hazard insurance premium for

years to

904. Flood insurance premium for

years to

905. 1000. Reserves deposited with lender: 1001. Hazard insurance

years to Borrower POC Seller POC

months @

per month

1002. Mortgage insurance

months @

per month

1003. City property taxes

months @

per month

1004. County property taxes

months @

per month

1005. Annual assessments

months @

per month

1006. Flood insurance

months @

per month

1007.

months @

per month

1008.

months @

per month

1009. Aggregate accounting adjustment 1100. Title charges: 1101. Settlement or closing fee

to Capital Abstract & Title

1102. Abstract or title search

to Old Republic National Title Insurance Company

1103. Title examination

to

1104. Title insurance binder

to

1105. Document preparation

to

1106. Notary fees

to

1107. Attorney's Fees

to

Borrower POC Seller POC

295.00

220.00 100.00

)

(includes above item numbers: 1108. Title Insurance

Page 2

Borrower POC Seller POC

to Capital Abstract & Title

385.25 )

(includes above item numbers: 1109. Lender's coverage (Premium): 1110. Owner's coverage (Premium):

$67,000.00 ($385.25)

1111. Endorse: 1112.

to

1113. Courier Fed Ex Wire Email to Capital Abstract & Title 1200. Government recording and transfer charges: $49.60 Mortgage(s) 1201. Recording fees Deed 1202. City/county tax/stamps

Deed

Mortgage(s)

1203. State tax/stamps

Deed

$469.00 Mortgage(s)

1204.

to

1205. 1300. Additional settlement charges: 1301. Survey

to

1302. Pest Inspection 1303. Wire In - Wire Out 1304. Document Storage 1305. Lien Search 1306. Outstanding Invoices 1307. Payoff Code Lien 1308. Payoff Utility Lien

50.00 49.60

Releases

469.00

Borrower POC Seller POC

to to to Capital Abstract & Title to Record Keepers

35.00

to Clear Choice Tax and Lien Service to Florida Home Sweet Home, Inc.

190.00 1,293.52

to City of Lake Worth to City of Lake Worth

1309. 1400. Total settlement charges: ( Enter on lines 103, Section J and 502, Section K )

35.00

50.00

1,000.00 445.95

674.60

8,158.72

DoubleTime速


HUD-1 SETTLEMENT STATEMENT ADDENDUM File Number:

09-1783

I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD-1 Settlement Statement.

Borrower(s) FL DEC ZERO NINE, LLC By:

_____________________________________ John J Ford Managing-Member (Corporate Seal)

Seller(s) Federal Deposit Insurance Corporation as Receiver for AmTrust Bank FDIC as Receiver for AmTrust Bank By:

_____________________________________ FDIC as Receiver for AmTrust Bank Attorney in Fact (Corporate Seal)

Settlement Agent The HUD-1 Settlement Statement which I have prepared is a true and accurate account of this transaction. I have caused or will cause the funds to be disbursed in accordance with this statement. Capital Abstract & Title By:

Date:

WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For details see: Title 18 U.S. Code Section 1001 and Section 1010.

DoubleTime速


A.

Settlement Statement

U.S. Department of Housing and Urban Development

OMB No. 2502-0265

B. Type of Loan 1. 3. 5. 7.

¨ FHA ¨ Conv Unins ¨ Conv Ins. ¨ Cash Sale

C. Note:

2. ¨ FmHA 4. ¨ VA 6. ¨ Seller Finance

6. File Number 22-7147ss

7. Loan Number

8. Mortgage Ins Case Number

This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p.o.c.)" were paid outside the closing; they are shown here for informational purposes and are not included in the totals.

D. Name & Address of Borrower John J. Ford

E. Name & Address of Seller Nicholas Michael Schiavone

F. Name & Address of Lender

,,

131 North L Street #1, Lake Worth, FL 33460

,

G. Property Location

H. Settlement Agent Name Universal Land Title, LLC 1555 Palm Beach Lakes Blvd., Suite 500 West Palm Beach, FL 33401 Tax ID: 26-4805964

Townsite of Lucerne (Now Lake Worth), Block 22, Lot pt 11&12 Palm Beach County 131 North L Street Lake Worth, FL 33460

Place of Settlement Universal Land Title, LLC 1926 10th Avenue North, Suite 204 Lake Worth, FL 33461 K. Summary of Seller's Transaction

J. Summary of Borrower's Transaction 100. Gross Amount Due from Borrower 101. Contract Sales Price

$90,000.00 401. Contract Sales Price

$90,000.00

402. Personal Property

103. Settlement Charges to borrower

$1,211.70 403.

104.

404.

105.

405.

Adjustments for items paid by seller in advance 106. City property taxes

Adjustments for items paid by seller in advance 406. City property taxes

107. County property taxes

407. County property taxes

108. Assessment Taxes

408. Assessment Taxes

109. School taxes

409. School taxes

110. Other taxes

410. Other taxes 411. Other taxes

111. Other taxes 112. Nonadvalorem 4/30-9/30/2010 113. Buyers Contribution to Short Sale Payoff

$334.81 412. Nonadvalorem 4/30-9/30/2010 $977.50 413. Buyers Contribution to Short Sale Payoff

114.

414.

115.

415.

116.

416.

120. Gross Amount Due From Borrower 200. Amounts Paid By Or in Behalf Of Borrower 201. Deposit or earnest money

$92,524.01 420. Gross Amount Due to Seller 500. Reductions in Amount Due to Seller 502. Settlement Charges to Seller (line 1400)

203. Existing loan(s) taken subject to 204. Loan Amount for 2nd Lien

503. Existing Loan(s) Taken Subject to

205.

505. Payoff of second mortgage loan

206.

506.

207.

507.

208.

508.

504. Payoff Short Sale1st mtg (see line 114)

209.

509.

Adjustments for items unpaid by seller

Adjustments for items unpaid by seller

210. City property taxes

$977.50

$91,312.31

$8,047.50 $82,908.78

510. City property taxes 01/01/10 thru 04/30/10

$356.03 511. County property taxes

01/01/10 thru 04/30/10

212. Assessment Taxes

512. Assessment Taxes

213. School taxes

513. School taxes

214. Other taxes

514. Other taxes

215. Other taxes

515. Other taxes

216. Nonadvalorem 4/30-9/30/2010

516. Nonadvalorem 4/30-9/30/2010

217.

517.

218.

518.

219. 220. Total Paid By/For Borrower 300. Cash At Settlement From/To Borrower 301. Gross Amount due from borrower (line 120) 302. Less amounts paid by/for borrower (line 220)

$356.03

519. $9,356.03 520. Total Reduction Amount Due Seller 600. Cash At Settlement To/From Seller

$91,312.31

$92,524.01 601. Gross Amount due to seller (line 420)

$91,312.31

$9,356.03 602. Less reductions in amt. due seller (line 520) $83,167.98 603. Cash Seller

Section 5 of the Real Estate Settlement Procedures Act (RESPA) requires the following: • HUD must develop a Special Information Booklet to help persons borrowing money to finance the purchase of residential real estate to better understand the nature and costs of real estate settlement services; • Each lender must provide the booklet to all applicants from whom it receives or for whom it prepares a written application to borrow money to finance the purchase of residential real estate; • Lenders must prepare and distribute with the Booklet a Good Faith Estimate of the settlement costs that the borrower is likely to incur in connection with the settlement. These disclosures are mandatory.

Previous Editions are Obsolete Printed: 04/06/2010 10:07 AM

$334.81

$9,000.00 501. Excess Deposit

202. Principal amount of new loan(s)

303. Cash From Borrower

Fund:

400. Gross Amount Due to Seller

102. Personal Property

211. County property taxes

I. Settlement Date

$91,312.31 $0.00

Section 4(a) of RESPA mandates that HUD develop and prescribe this standard form to be used at the time of loan settlement to provide full disclosure of all charges imposed upon the borrower and seller. These are third party disclosures that are designed to provide the borrower with pertinent information during the settlement process in order to be a better shopper. The Public Reporting Burden for this collection of information is estimated to average one hour per response, including the time for reviewing instructions searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. The information requested does not lend itself to confidentiality.

Page 1

form HUD-1 (3/86) Handbook 4305.2


L. Settlement Charges 700. Total Sales/Broker's Commission based on price Division of Commission (line 700) as follows: 701. $3,150.00 702. $3,150.00

$90,000.00

Paid From

@7 % = $6,300.00

Borrower's

to HmS II Inc

Funds at

Funds at

to Pier Group

Settlement

Settlement

703. Commission Paid at Settlement 704. Processing Fee

802. Loan Discount

$0.00 to Pier Group

800. Items Payable in Connection with Loan 801. Loan Origination Fee % %

Paid From Seller's

$6,300.00

$195.00

to to

803. Appraisal Fee

to

804. Credit Report

to

805. Lender's Inspection Fee

to

806. Mortgage Insurance Application

to

807. Assumption Fee

to

900. Items Required by Lender To Be Paid in Advance 901. Interest from to @ $0/day 902. Mortgage Insurance Premium for months

to

903. Hazard Insurance Premium for years

to

1000. Reserves Deposited With Lender 1001. Hazard insurance

months @

per month

1002. Mortgage insurance

months @

per month

1003. City property taxes

months @

per month

1004. County property taxes

months @

$90.24 per month

1005. Assessment Taxes

months @

per month

1006. School taxes

months @

per month

1007. Other taxes

months @

per month

1008. Other taxes

months @

per month

1009. Nonadvalorem 4/30-9/30/2010

0

months @

1011. Aggregate Adjustment 1100. Title Charges 1101. Settlement or closing fee

to Universal Land Title, LLC

$250.00

1102. Abstract or title search

to Universal Land Title, LLC

$300.00

1103. Title examination

to

1104. Title insurance binder

to

1105. Document preparation

to

1106. Notary fees

to

1107. Attorney's fees

to

(includes above items numbers:

$600.00

) Universal Land Title, LLC/ to Fidelity National Title Insurance

1108. Title insurance (includes above items numbers:

$517.50 )

$0.00/$0.00 .

1109. Lender's coverage 1110. Owner's coverage

$90,000.00/$517.50

1111. City Lien Search

to Permit Searches Plus, Inc.

1112. Reimbursement for Estoppel Fees

to Universal Land Title, LLC

1200. Government Recording and Transfer Charges 1201. Recording Fees ; Mortgage Deed $10.60 1202. City/county tax/stamps

Deed

1203. State tax/stamps

Deed $630.00

; Mortgage ; Mortgage

; Releases

$85.00

$10.60

to to Clerk of the Circuit Court Palm Beach County

1204. Tax certificates

to

1205. Sat. Servicing Fee Record Term of 1206. Notice/commenc/contractor 1300. Additional Settlement Charges 1301. Survey

to Require Release Tracking Clerk of the Circuit Court Palm Beach to County

1302. Pest Inspection

to

1303. Holdback for Final Water Bill

to Lake Worth Utility Department

$630.00

$35.00 $36.10

to

1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K) Previous Editions are Obsolete Page 2 Printed: 04/06/2010 10:07 AM

$300.00 $1,211.70 $8,047.50 form HUD-1 (3/86) Handbook 4305.2


File No. 22-7147ss

I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a completed copy of pages 1, 2 and 3 of this HUD-1 Settlement Statement.

______________________________________________________________ ________________________________________________________________ John J. Ford Nicholas Michael Schiavone

SETTLEMENT AGENT CERTIFICATION The HUD-1 Settlement Statement which I have prepared is a true and accurate account of this transaction. I have caused the funds to be disbursed in accordance with this statement.

Warning: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For details see: Title 18 U.S. Code Section 1001 and Section 1010.

____________________________________ ___________________ Settlement Agent Date

Previous Editions are Obsolete Printed: 04/06/2010 10:07 AM

Page 3

form HUD-1 (3/86) Handbook 4305.2


12/14/10 10:19 AM

A. U.S. Department of Housing and Urban Development

OMB No. 2502-0265 B. Type of Loan

FINAL

1. [ ] FHA

2. [ ] FMHA

4. [ ] VA

5. [ ] Conv. Ins.

6. File Number

3. [ ] Conv. Unins. 7. Loan Number

2010045

Settlement Statement

D. Name of Borrower:

8. Mortgage Ins. Case No. This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked ("POC") were paid outside the closing: they are shown here for information purposes and are not included in the totals. JOHN J. FORD C/O FL JULY TEN LLC

E. Name of Seller:

KEITH ROBINSON, 10213 NW 54TH PLACE, CORAL SPRINGS, FL 33076

C. Note:

F. Name of Lender: G. Property Location:

Lot 16, Block 71, TOWN OF LAKE WORTH 231 SOUTH C STREET, LAKE WORTH, FL 33460

H. Settlement Agent: Place of Settlement: I. Settlement Date:

TIN:

FLORIDIAN TITLE, LLC 1603 OAK SPRINGS PLACE, LAKE MARY, FL 32746 12/15/2010

Proration Date:

J. Summary of Borrower's Transaction 100.

Gross amount due from borrower:

101.

Contract sales price

102.

Personal property

103.

Settlement charges to borrower (line 1400)

104.

12/15/2010

K. Summary of Seller's Transaction 400. 45,000.00 401. 402.

Gross amount due to seller: Contract sales price

45,000.00

Personal property

654.10 403. 404.

105.

405.

Adjustments for items paid by seller in advance:

Adjustments for items paid by seller in advance:

106.

City/town taxes

406.

107.

County taxes

407.

County taxes

108.

Assessments

408.

Assessments

109.

Master Association Fees Condo/Homeowner

409.

Master Association Fees Condo/Homeowner

110.

870779138

111.

410.

City/town taxes

411.

112.

412. 45,654.10 420.

Gross amount due to seller:

120.

Gross amount due from borrower:

200.

Amounts paid by or in behalf of the borrower:

201.

Deposit or earnest money

202.

Principal amount of new loan(s)

502.

Settlement charges to seller (line 1400)

203.

Existing loan(s) taken subject to

503.

Existing loan(s) taken subject to

204.

504.

Payoff of first mortgage loan

205.

505.

Payoff of second mortgage loan

206.

506.

207.

507.

208.

508.

209.

509.

Adjustments for items unpaid by seller:

500. 500.00 501.

Excess deposit (see instructions) 4,115.00 40,885.00

Adjustments for items unpaid by seller:

210.

City/town taxes

510.

City/town taxes

211.

County taxes

511.

County taxes

212.

Assessments

512.

Assessments

213.

Master Association Fees

513.

Master Association Fees

214.

Condo/Homeowner Fees

514.

Condo/Homeowner Fees

215.

515.

216.

516.

217.

517.

218.

518.

219.

45,000.00

Reduction in amount due to seller:

519.

220.

Total paid by/for borrower:

500.00 520.

300.

Cash at settlement from/to borrower:

301.

Gross amount due from borrower (line 120)

45,654.10 601.

302.

Less amount paid by/for borrower (line 220)

500.00 602.

303.

CASH (X)FROM ()TO BORROWER

600.

45,154.10 603.

Total reduction in amount due seller:

45,000.00

Cash at settlement to/from seller: Gross amount due to seller (line 420)

45,000.00

Less total reduction in amount due seller(line 520)

45,000.00

CASH ()FROM ()TO SELLER

0.00

SUBSTITUTE FORM 1099 SELLER STATEMENT - The information contained in Blocks E, G, H and I and on line 401 (or, if line 401 is asterisked, lines 403 and 404), 406, 407 and 408-412 (applicable part of buyer's real estate tax reportable to the IRS) is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction will be imposed on you if this item is required to be reported and the IRS determines that it has not been reported. SELLER INSTRUCTION - If this real estate was your principle residence, file form 2119, Sale or Exchange of Principal Residence, for any gain, with your income tax return; for other transactions, complete the applicable parts of form 4797, Form 6252 and/or Schedule D (Form 1040). You are required by law to provide FLORIDIAN TITLE, LLC with your correct taxpayer identification number. If you do not provide FLORIDIAN TITLE, LLC with your correct taxpayer identification number, you may be subject to civil or criminal penalties.

KEITH ROBINSON


L. Settlement Charges 700.

12/14/10 10:19 AM

Total sales/broker commission

based on : $45,000.00 @ 6.0000% = $2,700.00

Division of commission (line 700) as follows: 701.

$1,350.00

to

COASTLINE REALTY, INC.

702.

$1,350.00

to

THE PIER GROUP

703.

Commission paid at settlement $2,700.00

File Number: 2010045 Paid From

Paid From

Borrower's

Seller's

Funds at

Funds at

Settlement

Settlement 2,700.00

704. 705. 706. 800.

Items payable in connection with loan

801.

Loan origination fee

802.

Loan discount

803.

Appraisal fee

804.

Credit report

805.

Lender's inspection fee

806.

Mortgage insurance application fee

807.

Assumption fee

808.

Underwriting Fee

809.

Flood Certification Fee

810.

Tax Service Fee

811.

Processing Fee

812. 813. 814.

Yield Spread Premium

900.

Items required by lender to be paid in advance

901.

Interest from

902.

Mortgage insurance premium for

903.

Hazard insurance premium for

904.

Windstorm Insurance

905.

Flood Insurance

906.

VA Funding Fee

907. 1000.

Reserves deposited with lender

1001.

Hazard insurance

1002.

Mortgage insurance

1003.

City property taxes

1004.

County property taxes

1005.

Annual assessments (maint.)

1006.

Windstorm Insurance

1007.

Flood Insurance

1008. 1009.

Aggregate Adjustment

1100.

Title charges

1101.

Settlement or closing fee

to

FLORIDIAN TITLE, LLC

1102.

Abstract or title search

to

WESTCOR LAND TITLE INSURANCE COMPANY

1103.

Title examination

1104.

Title insurance binder

1105.

Document preparation

1106.

Notary fees

1107.

Attorney's fees to

1108.

Title insurance

to

FLORIDIAN TITLE, LLC

525.00

750.00

75.00

includes above items no.: 350.00

includes above items no.: 1109.

Lender's coverage

1110.

Owner's coverage

1111.

Reissue Credit

1112.

ALTA 8.1

1113.

ALTA 4.1/5.1/6.1

1114.

FL Form 9

1115.

MUNI-LIEN SEARCH

1200.

Government recording and transfer charges

1201.

Recording fees:

1202.

City/county tax/stamps:

1203.

State tax/stamps:

1204.

Intangible Tax

$45,000.00

to

$350.00

CITY OF LAKE WORTH Deed $19.10

35.00 19.10

Deed $315.00

315.00

1205. 1206. 1300.

Additional settlement charges

1301.

Survey

1302.

Pest inspection

1303.

Home Warranty Plan

1304.

FedEx/Copies/Wire Fee

1305.

EDoc Fee

1306.

Electronic Storage

1307. 1400.

Total settlement charges (entered on lines 103, section J and 502, section K)

654.10

4,115.00


CERTIFICATION: I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of HUD-1 Settlement Statement.

JOHN J. FORD C/O FL JULY TEN LLC

KEITH ROBINSON

To the best of my knowledge, the HUD-1 Settlement Statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction.

FLORIDIAN TITLE, LLC Date SELLER'S AND/OR PURCHASER'S STATEMENT Seller's and Purchaser's signature hereon acknowledges his/their approval of tax prorations and signifies their understanding that prorations were based on taxes for the preceding year, or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not. Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom. Any escrow fees paid by any party involved in this transaction shall only be for checkwriting and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for any interest or other charges on the earnest money and shall be under no duty to invest or reinvest funds held by it at any time. Sellers and Purchasers hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Company has or may have other banking relationships and further consent to the retention by Title Company and/or its affiliates of any and all benefits (including advantageous interest rates on loans) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. The parties have read the above sentences, recognize that the recitations herein are material, agree to same, and recognize Title Company is relying on the same. Purchasers/Borrowers

Sellers

JOHN J. FORD C/O FL JULY TEN LLC

KEITH ROBINSON

WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For details see: Title 18: U.S. Code Section 1001 and Section 1010.


Pax Properties Packet  

Pax Properties Packet