Free Memorandum - District Court of Federal Claims - federal

Case 1:05-cv-00296-FMA
_or_ 1065
Oeo.... .
Internal Rf,vonue 5erwce _. Pnnclpai business

Document 66-4
Partnership

02,509
Return
LTD.
box, see page

Filed 12/20/2006
of Income

82 =141=69o7-o
oM8_o ,545oo99

Page 1 of 13

US
act_vKy Name

Lof_he[...... y

For calendaryear 1999, or tax year bdglnnmg .......... 1999,and ending .............. · See separate instructions.
of partnership

]®99
started

/'

D Employer identification

number

SALES/SERVICE_RS_
E] Prmopal product or service label.

u_ Otherwise, please print ortype. (1) _

GRAPEVINE
_umu_r. street, a_d room

IMPORTS,
or suite no If a P O

75
12 of the instructions

i 2642974

E Date business

AUTOMOBILES C Businesscode number 441110 G H I

P.O. BOX 1688 C_tyor town.state, and ZIP code GRAPEVINE, Initial return (2) [] TEXAS Final return 76099 (3) [] Change in address

11/15/97
$ 125818331

_'7

/

F Totalassets(seepage12 of the instructions)

Check apphcable boxes:

(4) []

Amended return

Check accounting method: (1) [] Cash (2) [] Accrual (3) [_ Other (specif_) · ...................................... Number of Schedules K-I. Attach one for each person who was a partner at any tEmedunng the tax year · ......... 3.............................

Caution:

Include only trade or business income and expenses on lines la through 22 below. See the instructions
,% ,

for more information.

la Gross receipts or sales b Less returns

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

la lb

_'_L_

and allowances

1(: 85349736
Z 3

2 3 O --= 4 5 6 7 8

Cost of goods sold (Schedule Gross profit. Subtract

A, line 8) .................. estates, and trusts 1040)) ............. (attach schedule).

799258
5423902

3 4

line 2 from line lc ..................

Ordinary income (loss) from other partnersmps, Net farm profit (loss) (attach Schedule F (Form Net gain (loss) from Other income Total income

4 5 6

Form 4797, Part II, hne 18 ................ schedule) ............ 7 . .

(loss) (attach

S.C}'/EDULE .
*,. . .. ,' ; ,

7 . 8

1 503083

(loss). Combine

lines 3 through

_

........

692-6985

o

10 11

;_

::dd _; gme:n _: rptahr (to _ne;o i

'

) ........

10 93208309 11 14745

Repairsandmalntenance... 8addebts .........

_

12 13

:i'--'_ . .

._._,',t_-\

........

12 13 14 15 _.&._ .t_ j___ 16c 17 18 19

12944
545610 60263R A47qq'7

Rent ...........

_'_.W_-_'_I

' .-['C._,_.._/ ........ .........

-_ 14 15 =

Taxes and licenses ....... _ Interest ............................. .......

16a DepreciationOf requlred, attach Form 4562)

_

b Less depreclation reportedon Schedule A and elsewhere on return _ 17 Depletion (Do not deduct oil and gas depletion.) .............. 18 Retirement plans, etc ......................... o 19 Employee benefit programs (attach ...................... ............ shown in the far right column

222118

],87911
2720049

20 (D c_ 21

Other deductions Total deductions.

schedule)

S.CHEDU. .E . L
for hnes 9 throucJh 20

.

Zo 21

Add the amounts

7961721

22

Ordinary

income

(loss) from trade or business

acuvltles.

Subtract

line 21 from line 8

22

( 1 0 3 47 3 6

Underpenaltes oi'perjury I declarethat I haveexaminedthis return, includingaccompanying schedulesand statements, nd to the bestof myknowledge a and behet it _strue. correct, and complete Deqlaratlonof prepar_j" (diner than general partner or I_m_ted liamhtycompany membeq_sbasedon all

Plea
Here

e

informationof which preparerhas any kno_

1-

_
Prepar's

/_--_r,¥

,,,
_ .0 te I _l_atf _ " Preparers SSNor PTIN
:

;_' S,gnFure ol_ener_ Piarmer/_m..,_edI,ao,l,t',illlfOr_pany memoer -

Check;T"

P Firm 5 name-'_{_ J - ' _rse_rervsl...... r..,_.r_.,o..:= WZ[-_

A_

N

S

N

p .P'."

·

EIN·
ZIP code l_ _ Cat. No. 11390Z

J. and address For Paperwork

Y

_

Reduction Act Notice, see separate instructions.

Form

1065

(1999}

5

Case 1:05-cv-00296-FMA

Document 66-4

Filed 12/20/2006

Page 2 of 13

Form 1065 (1999)

Page 2

Cost of Goods

Sold (see page 17 of the Instructtons)

1 2 3 4 5 6 7 8 9a

b c d e

!nventory at begmmng of year ....................... 1 5459821 Purchases less cost of items withdrawn for personal use .............. I 2 180564097 Costoflabor .......................... ! 3 ! 759853 AddEttonal section 263A costs (attach schedule) ................. 4 Other costs (attach schedule) ....................... 5 Total. Add hnesl through 5 ....................... I 6 IRF,'783"7"7] Inventory at end of year ......................... t 7 I 6857937 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 ..... I 8 i? 9 9 2 58 34 Check all methods used for valuing closmg inventory: (i) _ Cost as described in Regulations section 1.471-3 (ii) _ Lower of cost or market as described _nRegulations section 1.471-4 (iii) [] Other (specify method used and attach explanation) I_ ....................................................................... Check thts box if there was a writedown of "subnormal" goods as described in RegulatJonssection 1.471-2(c). . I_ Check thts box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970). . I_ Do the rules of section 263A (for property produced or acquired for resale) apply to the partnership?. [] Yes Was there any change in determining quantities, cost, or valuations between opening and closing inventory? i--] Yes If "Yes," attach explanation. B Other Information

[] [] [] No _ No

Schedule 1

What type of entity is fihng this return? Check the applicable box: a [] General partnershfp b _] Limited partnership ¢ [] Limited liability company d [] Limited liability partnershtp e [] Other I_ ................................................................. 2 Are any partners in this partnership also partnershtps? .................... 3 Is this partnership a partner in another partnership? .................... Is thrs partnership subject to the consoltdated audit procedures of sections 6221 through 6233? If "Yes," see Designation of Tax Matters Partner below ....................... 5 Does this partnership meet ALL THREE of the following requirements? 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 $600,000; AND 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. If "Yes," the partnership Jsnot required to complete Schedules L, M-l, and M-2; Item F on page 1 of Form 1065; or Item J on Schedule K-1 ............................. Does this partnership have any foreign partners? ..................... Is this partnership a publicly traded partnershtp as defined in section 469(k)(2)? ........... Has thrs partnership filed, or is it required to file, Form 8264, Application for Registration of a Tax Shelter?. At any time during calendar year 1999, dtd 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 page 18 of the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes," enter the name of the foreign country. I_ ................................................................................ Durmg the tax yea/, 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. See page 18 of the instructions .... 4

No

}[ X X

X

6 7 8 9

X X

10 11

Was there a d_stribution of property or a transfer (e.g., by sale or death) of a partnership interest during the tax year? If "Yes." you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement descnbed under Elections Made By the Partnership on pa£1e7 of the instructIons ...... Designation of Tax Matters Partner (see page 18 of the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return:
I

Name of designated TMP _ Address of designated TMP k

Identifying number of TMP iv

k
1065

Form

{1999)

Case 1:05-cv-00296-FMA
1065(1999) Partners' Shares

Document 66-4

Filed 12/20/2006
etc.

Page 3 of 13
Page :3

of Income, Credits, Deductions, (a) Distributive share items

(b) Total amount 1 2 ( [ 034"736 )

1 2

Ordinary income (loss) from trade or business activities (page 1.8825) 22) ....... Net income (loss) from rental real estate actlwt{es (attach Form line ........

3a Gross income from other rental actiwt_es ........ b Expenses from or.her rental acttvittes (attach schedule) .... c Net income (loss) from other rental actlwties 4 Portfolio income (loss). a Interest income b Ordinary dividends c Royalty income d Net short-term e Net long-term ......................... ........................ ......................... capital gain (loss) (attach Schedule D (Form 1065)) . capital gain (loss) (attach Schedule D (Form 7065)): ........................... . . (2) Total for year ....... . · . SCT-]F.DUT,£ 4a 4b 4(: 1 66 5 9 "7z_ 2 1 8 8 4 Subtract line 3b from line 3a ...... 3c

)

.

4d
"" 4e(2}

)

(1) 28% rate gain (loss) · 5 6 7 8 9 10 11

f Other portfolio income (loss) (attach schedule)

HA.RGIN .I.NT.ER_..ST .
.

4f
5 6 ?

295?

)

Guaranteed payments to partners ................... Net section 1231 gain (loss) (other than due to casualty or theft) (attach Form 4797) Other income (loss) (attach schedule) .................. Charitable contributions (attach schedule) .............. ............. Section 179 expense deduction (attach Form 4562). Deductions related to portfolio income (itemize) ............... Other deductions (attach schedule) ................... housing credit:

=.

.

.

8 9 10 11

1 2 2 9

12a Low-income

(1) From partnerships to which section 420)(5) apphes for property placed in service (2) Other than on line 12a(1) for property placed in service before 1990 (3) From partnerships to which section 420)(5) apphes for property .......

before1990.

12a(1] 12a(2] 12a(3]

placed in service after 1989

(4) Other than on hne 12a(3) for property placed In service after 1989 ......... 12a(4] b Qualified rehabilitation expenditures related to rental real estate actiwties (attach Form 3468) " 12b c Credits (other than cred_Ls shown on lines 12a and 12b} related to rental real estate activities d Credits related to other rental activittes .................. 13 Other credtts .......................... 14a Interest expense on investment debts .................. b (1) Investment income included on lines 4a. 4b, 4c, and 4f above (2) Investment expenses included on line 10 above .............. 1Sa Net earmngs (loss) from self-employment ................. b Gross farming or fishmg Income .................... c Gross nonfarm income ....................... 16a Depreciation c Depletion adjustment on property placed in service after 1986 ..................... properties ........... .......... ......... , . . . 12c 12d 13 14a 14b(1', 14b(Z 1Sa 15b 15c 16a 16b 16c 16(1( _, 1 16d(2', 16e

.........

b Adjusted gain or loss

(other than oil and gas)

d (1) Gross income from od. gas, and geothermal

(2) Deductions allocable to oil, gas. and geothermal properties e Other adjustments and tax preference items (attach schedule) 17a Type of income ·

................................................................................... · ................................................. ...... ! . . . ' 17c: 17d! 17e 17f 17_1 b Amount · 18b 19 20 securities} ............ ..... ;)1 22 I I

b Name of foreign country or U.S. possession

c Total gross income from sources outside the United St.ates (attach schedule) d Total applicable deductions and losses (attach schedule) e Total foreign taxes (check one) · [] Prod [] Accrued f Reduction Jntaxes available for credit (attach schedule) g Other forelcjn tax information 18 19 20 21 22 23 24 Section 59(e)(2) expenditures: Tax-exempt interest income income Other tax-exempt (attach schedule) ............... ............ .........
............

I

a Type · .......................................... .....................

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

Nondeductible of expenses DIstrlbuuons money (cash and marketable

32548t ]. 295 ? 58
/
t

DiS,rlbUtlOnsofpropertyotherthanmoney Other _tems and amounts reaulred to be reported sel_aratel),to partners (a_tachschedule)

23 _0197429 for= 1065

I
1999)

Case 1:05-cv-00296-FMA
=orm, 106= "999_

Document 66-4

Filed 12/20/2006

Page 4 of 13
Page 4

Analysts 1
2

of Net Income

(Loss)
I

Netlncome(Ioss) Combine ScheduleK. hnes 1 through 7 rn column(b) From the result subtract the _,Jmof ScheduLeK lines 8 through qq i,t.a, 7Te and lgb .
Analysis by " i (u) In(]l,,,_aua' [ (iii) Inow,ct.a;

F J t 1 ( 1077391 I(v0 !

I ', )

(v) Exempt

partner type

'1

(i) Co-oora[e +

i

iacuve.

I

(Dasswe_

(w) PartnersnJp

organization

Nommee/O:ne r

a General partners , ( 10773)! j { b Limited partners ; ( 1066618 )1 I [.-'f'_,'1":Ct;ITIF:It Balance Sheets per Books (No[ required it Question 5 on Schedule Beglnmn of tax year Assets (a) (b) 1 Cash ............... [ 630592T 2a Trade notes and accounts receivable .... 2878228 b Less allowance for bad debt_ ...... 0 2878228 3 Inventones ............. _ 4 U S government, obhgatJons ....... 5 Tax-exempt securities ......... 6 Other current assets (attach schedule) 19999 7 Mortgage and real estate loans ...... 8 Other investments (attach schedule) .... 9a Buildings and other depreclable assets 10 ? 930 ? b Less accumulated depreciation ...... 152753 926553, 10a Deplet.able assets .......... i _ b Less accumulated depletion ....... 11 Land (net of any amortization) ...... 12a Intangible assets (amortizable only)..... .-. b Less accumulated amortization ...... 13 14 15 16 17 18 Other assets (attach schedule) ...... Total assets ............ _ 8667964 " - _

I I B is answered "Yes ") Endof tax year (c) (d) 0 0 0

0

-'1::". ;

0 0 · _..: .... 0

Liabilities and Capital '- ",,_....-' .." ..... Accounts payable .......... :':-(_.,,_,;'.: _'_-_,_.._ Mortgage's, otes, bonds payablein lessthan 1 year..=-'_,-,,_:'_*_,'-_._'_-,-,._,:_5_ n _,,..__......_ _-'_'-_:"_'- _, Other current liabilities (attach schedule) " ,._"_,X"___ _ All nonrecourse loans .........

: _:, '" _.E_,_,_,_'_,,:;.':,_ ,:....... .... _-_,,_3_e.'_,J_"_"-'.,_

_

..

_:

0 o

20 Other liabilities (attach schedule) ..... 21 Partners' capital accounts ....... _ 0 19 Mortgages,notes, bonds payablein 1 year or more . __ 0 22 Total liabilitiesand capital ....... _ 0 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Schedule M-1 (Not required if Question 5 on Schedule B is answered "Yes." See page 29 of the instructions.) 1 Net mcome (loss) per books ..... [ 11099_9 ) 6 Incomerecordedon booksthisyearnot incluoed 2 Income included on Schedule K, lines 1 on Schedule K, lines 1 through 7 (Item_ze). through 4, 6, and 7, not recorded on books a Tax-exempt interest $ ....................... this year (itemize): ................................................. 3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1 4 insurance) Expenses recorded on books this year not included on Schedule K, lines 1 through 11, 14a, 17e, and 18b (itemize): a Depreciation $ ..................................................... b Travel and entertainment $ ............... through 11, 14a, 17e, and 18b, not charged against book income this year (itemize} a Depreciation $ ............................... ................................................ ........................... 8 Add lines 6 and 7 9

5010 2"/538

0

.:B_.$.ERY_,S .............. 5 Addhneslthroucjh4 ....... 1_1-4[FcrlrllFl_v_Et,,I Analysis of Partners' 1 3 4 5 2 Balance at beginning of year

[10223911
Capital Accounts 6

Income (loss) (Analysis of Net Income (LossJ. hnel) Subtract line 8 from line 5 . (1077391) (Not required if Question 5 on Schedule B ts answered "Yes.") Distributions: a Cash

I 45_905 I

1275?58

Net income (loss) per books ..... ( 7 Other decreases (itemize): .................. Other increases (ttemlze)' ............................................................. ................................................ 8 Add lines6and 7 ........ Add hnes 1 throuqh 4 ....... Capital contributed during year .... _ 9 Balance endof b Property ...... 8 from line5 at _ear Subtractline
(_

].1_73187 ]. 019 ? 429 0
Form

1065

[1999)

Case 1:05-cv-00296-FMA _o,_4562 (O)
DePartment the Treasury of Imernal RevenueServtce ,e(s) shown on return

Document 66-4

Filed 12/20/2006

Page 5 of 13 OMB 15_5-0_72 ,_o. i999
Attachment Sequence No

Depreciation and Amortization (IncludingInformation ListedProperty) on
I_ See separate instructions. I_ Attach this form to your return. Busmess or actw_ty to whrch th=sfc_m relates'

67

Identifying number

GRAPEVINE Election complete 1 2 3 4 5

IMPORTS,

LTD.

AUTOMOBILE

SALES/SERVICE

75-2642974 "listed property," S19, 000 __ __ __. | . I 5 ,

To Expense Certain Tangible Property Part V before you complete Part I.)

(Section

179) (Note: If you have any

Maximum dollar limitation. If an enterpnse zone busaness, see page 2 of the _nstruct_ons . Total cost of section 179 property placed in serv,ce. See page 2 of the instructions Threshold cost of section 179 property before reduction in limitation Reduction _n hmltation. 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 page 2 of the instructions .............. . .

.

$200,000

6 7 8 9 10 11 12

(a) Descnphon of property

(b) Cost (business use only)

(cl) Elected cost

]

Listed property. Enter amount from line 27 ..........

I 7 I

,

{ J

Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 Tentative deductzon. Enter the smaller of line 5 or hne 8 ............. Carryover of disallowed deduction from 1998. See page 2 of the instructions ...... _. Businessincomelimitation. Enterthe smallerof businessincome (not lessthanzero)or line5 (seeinstructions) Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . I 12 I

13 Carryover of disallowed deduchon to 2000. Add lines 9 and 10, less line 12 I_ _ Note: Do not use Part II or Part III below for listed property (automobiles, certain other vehicles, cellular telephones, certain computers, or property used for entertainment, recreation, or amusement). Instead, use Part V for listed property MACRS Depreciation Listed Property.) for Assets Placed in Service ONLY During Election Your 1999 Tax Year (Do Not Include

Section A_eneral

Asset Account

If you are making the election under sechon 168(i)(4) to group any assets placed in service clunng the tax year Lnto one or more general asset accounts, check this box. See page 3 of the mstructions ............ · [] Section B_General Depreciation System (GDS} (See page 3 of the instructions.
(a) Classification of property (b} Month and year placed =n service (c) Basts for depreciation (bus_nessJmvestment use only--see inslructlons) (d} Recovery period (e) Convention (f) Method (9) Del3recratlon deduct=on

15a b c d e f

3-year property 5-year property 7-year property 10-year property 15-year property 20-year property

3437 25963 20223

3YRR 5YRS 7YRS

859 3151 1199

g 25-year property h Residential rental i property Nonresldenhal real property Section C--Alternative 16a Class hfe Depreciation

I 25 },rs. ! _,"7.5 yrs. I27.5 /rs. I 39 yrs.

HM HM HH q I

S/L S/L S/L S/L

i HH S/L ! System (ADS) (See page 5 of the Instruchon', )

b
17 18 19 "n

12-year

I I ::,,,rs.
Depreciation I (Do Not Include / Listed 40 yrs. Property.)

s,'L s/T_
17 18 19 20 21

I

c 40-year I:,F_ilII Other

HH S/L (See page 5 of the _nstructlons.) 212187

GDS and ADS deductions for assets placed in service =n tax years beginning before 1999 Property subject to section 168(0(1) etechon ........ ACRS and other depreciation ............. Summary (See page 6 of the ,nstruchons.) Listed property. Enter amount from line 26 ............... Total. Add deductions on line 12. lines 15 and 16 in column (g). and lines 17 through 20. Enter here and on the appropnate lines of your return Partnerships and S corporahons--see Instructions. For assets shown above and placed In service dunng the current year, enter the port:on of the bas_s attributable to sechon 263A costs
Reduction Act Notice, see page 9 of the instructions.

lt_i31I'l

_---

"

4722
212118

22

22
Cat No. 12906N Form

For Paperwork

4562

11999)

GPO 1999 JACKET 456-552

Case 1:05-cv-00296-FMA
Form 4562 (1999)

Document 66-4

Filed 12/20/2006
Vehicles, Cellular or Amusement

Page 6 of 13
Page 2

Listed Property--Automobiles, Ce ,rtain Other Property Used for Entertainment, Recreation,

Telephones,

Certain

Computers,

and

Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete or_B_ 23a, 23b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section A--Depreciation and Other Information (Caution: See page 7 of the instructions for limits for passenger automobiles.) 23a D0you haveevidenceto supportthe business/investment claimed?[] Yes [] No I 23b If "Yes" _sthe evidence written? [] Yes [] No use
Type (a) of property veh,cles first) (list Date (b) placed serv,ce tn 8us,nes_J _nvestment use percentage

(c,

(d) Cost or other _..... .....

II

. . (I) . l_asls for aepreclahon I ( bu s in ess/mvestment use only)

a

t
l

(f) I Recover'., I -" period

I I

'
M

et

,=, h

0'1) oct/ Depreciation deduction I ETected sectiOncost179

L.onvent,on

24 Property used more than 50% in a qualified business use (See pacje 6 of the instructions.): COMPANY % VEHICLES 25 1998 100% % Property used 50% or less in a qualified business use (_ee page 6 of the instructions.): % S/L % SIL % S/L " 23612 23612 5YRS 4722,

Add amounts in column (h). Enter the total here and on line 20, page 1 ...... I 26 4722 Add amounts in column (0. Enter the total here and on line 7, page 1 ............ Section B---Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person. If you providedvehiclesto your employees,irstanswerthe questionsin SectionC to see if you meetan exceptionto completing f thissectionfor thosevehicles. 28 T0talbuslness/investmentmllesdrivenduring theyear(O0NOTinclude commutingm_les-seepage1 of the mstructi0ns) .... Totalc0mmutmgmilesdnvendunngtheyear Total other personal (noncommuting) miles driven ......... Total miles driven during the year. Add lines 28 through 30 ..... Yes 32 33 34 Was the vehicle available for personal use during off-duty hours? .... Was the vehicle used pnmanly by a more than 5% owner or related person? Is another vehicle available for personal use? ........ No Yes No Yes No Yes No Yes No Yes No " (a)
Vehicle 1

26 27

(b}
Vehicle 2

(c)
Vehicle 3

(d)
Vehicle 4

(e)
Vehicle 5

(1')
Vehicle 6

29 30 31

Section C--Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these quesbons to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. Yes l No 35 36 37 38 39 Do you mmntmn a wntten policy statement that prohibits all personal use of vehicles, including commuting, by your employees? .............................. 0o you maintaina wntten pohcy statement that prohibetspersonal use of vehicles, except commuting, by your employees? See page 8 of the instructions for vehicles used by corporate officers, directors, or 1% or more owners ..... Do you treat all use of vehicles by employees as personal use? ............... Do you prowde more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retmn the information received? ............ Do you meet the requirements concermngquahfied automobile demonstrahon use? See page 8 of the instructions . Note: If your answer to 35, 36, 37, 38. or 39 ls "Yes," you need not complete Section B for the covered vehicles. Amortization
(a) Description of COSTS Date (b) amotltzatlon begJns . (c) Amortizable amount (d) Code section (e) Amortization _enod or percentage (f} Amortization thrs year for

J,0

Amortlzahon of costs that begtns durincj your 1999 tax year: /

I

i

41 42

Amort_zat_en of costs that began before 1999 ................ Total. Enter here and on "Other Deductions" or "Other Expenses" hne of your return
Prtntedonrecycledl=aOer

I 41 I .
Form

4562

(1999)

Case 1:05-cv-00296-FMA

Document 66-4

Filed 12/20/2006

Page 7 of 13

TAXPAYER - GRAPEVINE IMPORTS, LTD. PARTNERSHIP RETURN ON INCOME FOR 1999 I. D. #75-2642974

OTHER INCOME FINANCE AND INSURANCE - NET AFTERMARKET SALES OTHER INCOME

$1217419 3512 282152 $1503083

OTHER DEDUCTIONS DELIVERY EXPENSE ADVERTISING POLICY ADJUSTMENTS TRAINING OUTSIDE SERVICES FREIGHT SUPPLIES AND SMALL TOOLS OFFICE SUPPLIES AND POSTAGE DATA PROCESSING TELEPHONE AND UTILITIES LEGAL AND ACCOUNTING INSURANCE TRAVEL AND ENTERTAINMENT OTHER DEDUCTIONS

$

24112 1328058 133657 64756 371618 43618 142108 56532 177401 204006 43084 47974 5758 77367

2720049

SCHEDULE K - SHORT-TERM LOSSES U.S. TREASURY NOTES PURCHASED 12/99 SOLD 12/99 SHORT-TERM LOSS

$10000003 9978119 $21884

Case 1:05-cv-00296-FMA

Document 66-4

Filed 12/20/2006

Page 8 of 13

SCHEDULE K-1

Partner's Share of Income, Credits, Deductions, etc.

io_B 7.5.00. No

Imem, e_.r_e,tea,,., De_n_r_(F°rm R 1065)o_ the4m,ce For_ S _ IS99or tax_imar See separate instructions. ndend_n_ be_l_nnin_l Ib , 1999. a I]®99 Partner'sder,tif_Ir,g I number I_ 75 - 1998230 PartnershIp's identifyln 9 number I_ 75 12642974 Partner's name, address, and ZIP code Parrmership'sname, address, and ZIP code T-TECH, INC. 4415 MEANDERING COLLEYVILLE, A B C D WAY TEXAS 76034 GRAPEVINE P. 0. BOX GRAPEVINE, IMPORTS, 1688 TEXAS LTD. 76099

]'

E J

This partner is a [] general partner [] limited parm_ F Partner's share of liabilities(see JnstPJCtions): [] limited liability company member Nonrecourse ........ $ .................... What type of entity is this partner7 I_ ....S...C..O.R...P. ....... Qualified nonrecomse financing $ .................... Is this partner a [] domesdc or a ^[-] foreign partner? Other .......... $ .................... Enterpartner's percentageof: _ orterm_ion ue_orehange 00 Er_ot c G Tax shelter reg}stratJonnumber. I_ .......................... Profit sharing ............ x... % .... _ % H Check here if this parme_hip is a publicly txaded Loss sharing ............ 1.... % ....... Q % partne_fp as defined in section 469(kX2) ..... [] Ownemhip ofcapital ......... L.. % ....... Q % IRS Center where partnership filed return: AUSTIN I Check applicable boxes: (1) [] Final K-1 (2) rT AmendedK-1 Analpts of partr_s ca p_ accou.t: (a) _ accoun_ a[ (b) -.al_ C c_ (=)pem_or's (mr _ accoum mmd ol 3,4, and7,shamofttm_ Form 1065, (d)WlthdrawMs zmd beg_nmg yew _ cm_w_j )_a_r _.M-Z _ yeer mmugh (<_ _ _ co_umrB 3807 20z_iO ( 11099) ( 13118 0 (_ _ 1 2 3 4 :a b s_r= _,em 1 2 3 48 4b 4¢1 I 4¢ e(1) e_ M S e 7 ( 167 I 0 2 18 ) (b)Amoum ( 10348 ) (c) lOdmfliers enter on: amount In c:=(Umn me _1_ I seep_ge sotPa,t,_s )_ f=mmKM, K-1 J (Form 0SS). ..... 1 Sch. B.Part1,line 1 S<:h. , PartII, line5 6 Sch.D, I_.eS,c_. 01 Sch.E. PintL fine4 Sch. D, line12, col.(.q) Sch.D. line12,co_. ) _ B,_= ,I_,c_w_ )w" m__w _u,_ _ Seepage6ofParme_sK-1 [_ for_ J [Form _o6s). _,,=,m_-_,_,o_t_,,_

Ordinary income (loss)from trade or businessactk'itles . Netincome(loss) otherreal activities ..... fromrental estatectivities a ........ Ne_income(loss).from rental Portfolioincome (loss): Interest ................... Ordinarydividends...............

8 I¢

d Net short-termcapital gain(loss) .......... e Net iong-term cap4talgain0oss): c Roya_a,3 .................. (1) 28% rate gain 0oss) ............. (2) Total for year................ f Other portfolio income{k_s) _ schedu/e) ...... 6 Guaranteedpayments to partner .......... 6 Netsectk_ 1231 gainOoss)(other duetocasuM_orthe(t) than . 7 Omerlncome(Ioss)(attachsched_) . . ........

(' .

.(

_9)

i_ :2

9 e 10 !11

Section 179 expense deduction........... Charttableconuimmons(seeinsUuctkx_(attachschedu_. Deductionsrelatedto portfolioincome (attach _). OUter deductkx_ (a//ach scttedu/e).

9 8 10 11 / / a(1) a(Z_L E-_I a(4) 12b _ 12¢ 12d 13 Ca(.No.11394R

Ii

/ Seepages 7andeof _ Sch.A.,ne,Sorle for Pa.n_s z_uc0o.s J sct_Ae K-1Formio6s). ,,

12a Low-incomehotF_KJcredit: (1) From sec_on 42_(5) parmershtpsfor property p4aced in service before 1990 .............. (2) Olherthanon llne12a(1)for property pla:edin service before1990 (3) From section 420)(5) partnershipsfor property placed in (4) Othe_ thanon line 12a(3)for propertyplacedin .servicefl_r 1989 a b QuaEmd rehabgitatlonexp_ndtba_ retatedto rentalreal estete activities .................. c Credits (other tttancreditsshown on lines 12a and 12b) related to rental real estate actlvttk_ ............ d Creditsrelatedto othe¢rental activities ........ 13 Othercl'edits................. For PaperemrkReductionAct Nol_ce,see I_ for Form 10_S,

, Form8586.l_e S ,,

S_epageaofPortner's ,Insttuc_la_s forSchedu_ -1 K [Form _o_5-). I, SchedlJile (Form 1065)1999 K.1

Case 1:05-cv-00296-FMA
Schedule K-T (Form ?065) 1999

Document 66-4

Filed 12/20/2006

Page 9 of 13
Page Z

(a) Dlstdbc_m share item

(I))Amount

(c) 1040 fliers enterthe an'mumm column(b)on: Form4952.I_leI 1Seepage of Parma's K-1 9 forSchedule _Ins_.ctlons J(Fcrrn 1065). Sch.SE.Section or B A "_Seepage ofPartner's trt_uuctlons for S¢'heclu_ K-1 9 ) _Form 1065). Seepage90l PaC, J'l_r's Insuuc.om for Scheduile K-1 (Form 1065) nd a _mJcttomforForm 6251. Form 1116od'_k_ Form1116.PartI

14La Interestexpense on investmentdebts ......... b (1) investmentincomeincludedon lines4a. 4b. 4c. and 4f · (2) Investmentexpensesincludedon line 10 ....... 15a Net earnings0oss) from self-employment....... . b GrossfarmIng or fishing income, .......... c G_'oss norlfarm income .............. 16a b c d Oepreciataon adjustmenton Ixoperty Placed In serviceafter 1986 Adjustedgain or loss .............. Depletion(otherthan oil and gas) .......... (1) Gross income from oil. gas. and geothermalproperties . (23Deductionsallocableto oil. gas. and geothermalproperties e Other a(_ustmentsand tax preferenceitems (attach schedu/e_

14e b(1) b(2) lSa
lSb

15¢ lk 161) l&C _1) d(_ 1641

178 Ty_ ofirm_'_ I_ ................................................. b Name of foreigncountl_jor possosskm, ....................... c Totalgross incomefromsourcesoutsidethe UnitedStates(attach schedule) .................. d Totatapplicabledeductionsand losses(attach schedc_.
e Total forek:j_ taxes (check one): I_ [] Pa_

17c 17d
17e Form 1116, Part II

·

f Reduction in taxes availablefor credit _l/.ach _10_her forek_ln information tax (attach sc_ 18 b 19 20 21 22 ;13 24 a b 26

[-]Accrued sched_

. .

......

17f 17(i _ 181) 19 20 21 22

Form1116.PartIB See blsolJctlo_ Form fox 1116, '[ Seepege ot Parml"s 9 f_" S4:l'te, In_ du_ j" 0:onn 10¢,fl. Form1040.line81) 326 1 2 "71 1
K-I

Section 59(eX2)expenditures:a Type I_ ......................... Amot.mt .................. Tax-exempt Intmestincome ............ Other tax-exempt income............. Nondeductlbteexpenses ............. Dlstz'ibution5 f money(cash and marketableseo.er_les), o DislxtbutJons propertyoth_ than mo_ of ....... Recaptureof low-income hou.s_j cnsdlt: From section420)(5)pmtxtec_ps .......... Other than on line 24a ..............

Seepages andm ot 9 _'s insuuctions for Sche=h_ K-1(Form 10_.

Z4e 2411)

J _

Form 8811.line8 if more space is

SupplementalInformationrequired to be reported separatelyto each parme¢(attach _ needed):
......................................................... o................................................................................

j
i ..........................................................................................................................................

o..

(_

5Q'_Jul= K-I (Form 106,5") 1999

Case 1:05-cv-00296-FMA

Document 66-4

Filed 12/20/2006

Page 10 of 13

SCHEDULE -1 K
Departmem of trm Tre_y

Partner's

Share of Income, Credits, Deductions, etc.
1999or tax par be_nn_ separate Ib See , lS_l, mslructlons. and erKling Partnership's identifying number Partner_hip's lb

IOMB__,s,50o_

In._mal Revenue For calendar_." (Fol'ff11065) _ Partner'sidemifylrKjmaN:,_l_

- - - ---- -------

75 .2642974
LTD.

I'

I]®99

Partner's name, address, and ZIP code --------------------------general partner member I). IND.LV.Z]_UAI_... [] foreign partner? _ a_ore change (Z) Endot or termination .... ]..0Year. .4.9.,._. % % _9...,_. 49_5. filed return: (I__ d_Ing _ear__ 6065405 share Item % % ...... ...... .0. % O. % or a

name, address, and ZiP code IMPORTS, 1688 TEXAS

------_ limited partner F

GRAPEVINE P. O. BOX GRAPEVINE,

-----------A B C D This partner is a [] []

76099

Partner% share of liabilities (see instructions): Nonrecou_se Other .......... ........ $ $ $ .................... .................... .................... Qualified nonrecourse financing

limited liability company []

What type of entity is this pam_r?. Is this partner a domestic of: Enter partner's percentage Profit sharing ....... Loss sharing ....... Ownership of capital

G H

Tax shelter registration number.

II_ .......................... traded []

Check here if this partnership is a publicly partnership as defined in section 469(k)(2] ..... Check applicable boxes: (1]_FInalK-1

....

E

IRS Center where partnec_ip (a} Capta_acoma_ at beglnntng o_yeer 224049 _J. ] I

AUSTIN

I

(2)r-]AmendedK-1 (e) Ca_¢_ accoumm end_ ysm (comO_ co_m_ 0d

_) Parmar'ssham_f llnes a 3, 4, Schec_eM-21065, anti 7. Form .(549420

(¢Q _ W11tclrawals and

(a) _lxCU_ 1 2 3 4 a ,

(b) Ammm¢ ___ 5 12 19 4

(¢) 1040 met= emm tl_ amou_ In column (b) ¢¢¢ Seepage6 of P=tner, _ for SdzBd_ K.t Form 10S5).

"

Ordinary income (loss) from trade or business activities Net income (loss) from rental real estate acthritms ..... Net income (loss),from other rental activities .......... Portfo_o income (loss): Interest '. ................... " ..........

.(.

8

5ch. B, Part L li.e 1 Sch. B, Part IL gre 5 Sch. E, Pan I. line 4 Sch. D, line 5. col (tl

b Ordlna_ dividends c Royalties .................. d e Net st,xt-term capital gain (loss)

Net long-term capital gain (toss): (1) 28% rate gain (toss) ............. (2) Total for year ................ OtherporffotioincomeOoss](attach_) Guaranteed paymtmts to partner .......... Net section 1231 gain (loss) (other than due to _ Sch. O, line 12, coJ.(.q) Sch. D, line 12. col (f) r.m_on_+k:_+me_,owrfmm+ or theft) . See pageSot Pmtner's K-_ msmacu_s _ mmedub (Form IO&S).

8 ¢: f S 6

......

? oth_-income (a.a_ _) Ooss)
. _ S 10 11 12a

.........
609 sc_.A,_ne_so_e Partners m_ for Sd_lu_e K-1 (Form_06S).

Charitabiec_(see_-Uuctions)(atrachschedu/e). Deductions related to portfoto income (attach schedule). Other deducOons (attach _) .......... Low-income hou_ credtk for property placed In

(1} From secUon 420)(5) partnerships service bet'are 1990 ..............

(2) Otherthan on line 12a(1) for properly placedin service before 1990 (3) From section 42(])(5) partne_ps for property placed in Form 8586. Une 5

i O

(4) Other than on line 12a(3) for property placed in service afl_r 1989 service arm 1989 ............... b Qualifmd rehabilitation expe_:lit_es related to rental real estate activities .................. Credits (other than credits shown on lines 12a and 12b) related to rental real estate activities ............ d Credits related to other rental activities ........ 13 Other credits ................. c s_ + e o_P_+ , Ins_uctlorts forSctteduleK-1 Form tO65). ca_ No, 11394R _K-1 (Form 101_ 1_9

For Pa _nvork

Reductk)n Act Notice, m

_

for Form 106_.

Case 1:05-cv-00296-FMA
ScheduleK-1 (Form1065) 1999

Document 66-4

Filed 12/20/2006

Page 11 of 13
Page Z

(a) Distributive share item

(hi Amount

(c) 1040 fliers emm the amount k_ column (b) or= Form 4952, line 1 Ir_uc_ 9 of Partner's K.I for Schedule See J(Form 1065) Sch. SE, Sectic_ A or B _ Seepage9 of PBtne_s / (Form1065). SchaduteK-1 Irt_tJCtJiz_ for see page9 ot partner's Insuuctlo_s _ for ScheC_le K-1 j (Formloss) and | izlsolJctlorts Form6251. for

14a b 1._ b 18a

Interest expense on investment debts ......... (1) _vestrnem Income included on lines 4a, 4b, 4c, and 4f , ( Investment ex s inckJded on line 10 ...... Net earnings (loss) from self-employment ........ Gross farming or fishing income. .......... Depreciation adjustment on property p4aced in service after 1986 .......... :

14a b(1) b(2) 15a 15b 16c 18a 161b 16¢ d(l_) ¢1_ 16o L_ _l_ _ 17d 17e 17f 17¢ 17g _18b 19 20 . . 22 _@._ 6 4 ] 5 2 3

C Gross norffarm income. b Adjusted gain or loss .............. c Depletion (other than oil and gas)

d (1) Gross income from oil. gas, and geo_ermal properties (2) Deductions allocable to oil, gas, and geott_lulllal properties e Other adjustments and tax preference items (attach schedule_ 17a i ! b c Type of income · ................................................. .......................

)

Form 1116. ctte_ boxes

Name of foreign country or possession ·

Tot_ gross income from sources outside the United Slates (aCxach . . ..... . .

Fo_n 1116. Part I

d Total applicable deductions and losses (attach schedu/e). Total forelgn taxes (check one): · ['-]Paid r-]Accn_d. ReducUon in taxes available for credit _rtach schedu/e) schedule) .................. Other forei_ tax mformaUon (attach schedule) ...... Amount ................ Section 59(e)(2) expenditures: a Type · Tax-exempt InteresZtncome ............ Other tax-exempt bY.J)rne.............

Fon_1116. Part, Form 11"1. Part I, e
See bt,J_UClJm_ for From 1118.

j lg b _19

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

i,o
· 22 23 24 ]21 25

_ns forSchedu_ K-1 Form lOSS). ] Seepage9 at Partner's Form 1040. Ik_Sb

DIstribuUons of money (cash and marketable securities) . Distributions o,"property other than money Recapture of low.income housing credit: From section 420)(5) partnerships Other than on line 24a .............. Nondeductlbleexpenses ............. . . . ....

Pmtner's W_z_'ck_ lot Sched_eK-1 (Form1065).

..........

24e 24b 21

16111

t ,

Form e611. _ 8 ot S_ pa_, and10 if more space is

Supplememal informaUon required to be reported separately to each partner _rach needed:
..........................................................................................................................................

add/t/ona/schedu/es

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

o ......................................

i

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

¢1. Q.
(I) ..........................................................................................................................................

(_

Schedule K-1 (Form 1066) 199g

Case 1:05-cv-00296-FMA

Document 66-4

Filed 12/20/2006

Page 12 of 13

SCHEDULE K-1 I

Partner's Share of Income, Credits, Deductions, etc.

LoMB No,5.0o.

Inmmsl 1065) (Formm_e Ser_ce [ For¢aJemKImr 1999 tax_pJar Seeseparate instxuctiolts. ndending _lr or _i_ . 1999, a Partner'si_nundl:m¢l_ ----------Partnership's_nuamberl_ 75i2642974 Pa_ner's name. address, and ZIP ---Par_nership's name, aQdress, and ZfP code VIRGINIA B. TIGUE ---------------------------------F GRAPEVINE P. O. BOX GRAPEVINE, IMPORTS, 1688 TEXAS LTD. 76099

®99

A This partner is a [] general partner [] limited partner 1"7 limited liability company member S What type of entity is this _ I_ I..N..D..I..V..I..DU..A.L C Is this partner a I_ domestic or a [] foreign pammr? (0 Berate change _ Endof O Enterpartner'spercentageof: Profit sharing ......................... or_*_,% y_r % Loss sharing ........ 49+,.5. % ..... .0.,. % Ownership of capital ..... .49..5 % ..... .0.. % E IRS Center where partnership rded return: AUSTIN (a)cepe_accoum a_ I beginning otyear _ (b)__ during )ma£ 6065406

Partner's share of liabilities (seeinstnJctlons): Nonrecota'se ........ $ .................... Qualified nonrecoume financing $ .................... Other .......... $ .................... G Tax shelter registrationnumber. I_ ........................ H Check here if thispartnersh_ is a publicly traded partnership as defined In section 469(k)(2) ..... [] I Check appflcabte boxes: (1)[_FinalK-1 (2) [--I Amended K-1

(c4Pm'U_s _ or t_nes 3. 4,and7, Fo_m Schedule 1065, M-2

(¢1) Wltl_immwMs _ amd
(b) AmmaX

(_ capedaccounz azendo* yem- tl,¢o_ _(¢1_ (a) (combine 9__
(¢) 10410 flklcs ec_lw o_ an_unt In cobmn e_life

(a) Dts_butlve sham imm 1 2 3 4 Ordinaryincome (loss)from trade or business activities Net income (loss)from rentalrental activities......... ..... Net income Ooss).Wornther realestate ac_ o Portfoliok_come(loss): a Interest ..................

5 1 2 1 94

} Seepage SofPaemer's ) mm.z,mm _ scmmum K-; J (Form lOSS). Sc_. B, Pat I, me 1 sch. B. PartII, _ 5 Sd_.E. PartI, line4

8246 37

b Ordinarydividends............... c Royalties .................. e Net Iong-terr. capital gain (loss): (1) 28% rate gain(loss) ............. d NetTotal for year................ (loss) .......... (2) short-termcapita_gain f OtherportfolloincomeOoss)(attachschedule) ...... 5 Guaranteed paymentsto partner .......... fl Net section1231 gain(loss) (otherthandueto casualt or the_) . 7 7 Other incorne_)(am_ _ ......... 8 C__ 10 9 11 Charitabtec_(seeinsmuctions)(attachschedu_. Deductionsrelated to deduction........... Section 179 expanse portfoliomlcome(attach schedu/e) . Other deductions(attach scheob_) ..........

i

Sch.D, lrm 12.col (9) S_. O,Mne S,col.(t) s,:,. O.line12,col.(I) E"m°"_W_JU'h°IYw"_ m_ucuons Schedu_ _ K-1 } Seepage ofPlaner's 6 Fcxmloss).

609

Sch.A. line15or16 Parmer's 7 ande o_ Inrauc_mfor Seepages-1Form10_. Schedule K

12a Low-incomehousingcred¢. (1) From secUon 420)(5) pam_'ships for property placed in servicebefore 1990 .............. (2) Otherthan(m line12a(1)forproperty placed service in before1990 (3) From section 420)(5) partnerships for property placed in ._ (j serviceafter 1989 ............... (4) Otherthanon line 12a(3)for property placed service in afle_1989 b Quaked rehabilitationexpenditures.related rental real estate to activities .................. Seepage of Rume_'sK-1 8 forScbedu_ Instructions (Form 106S). Form 8586.lineS

c Credits (other than c_editsshown on lines12a and 12b)related to rentalreal estate activities ............ d Creditsrelated to other rental acttvit_ ........ 13 Other credits ................. For Palpenvo_k ReductionAct Notice, see Instructionsfor Form 10_S.

Cat No.11394R

Schedule K-1 (Form 1065)1999

Case 1:05-cv-00296-FMA
Schedule K-1(Form 1065) 999 1 (a) _e

Document 66-4

Filed 12/20/2006

Page 13 of 13
Page2

shareitem

Co)/Imno(=nt

(c) 1040 film enter the amoum in column(b)on: Form49.52, fine1

_-'_ I J i=

14a Interestexpense on investmentdebts ......... b (1) investme_ income inctudedon lines 4a. 4b. 4c. and4f .

(2)I_vastmem expenses included on_ 10......

.

K-1 a'_ page9ror°f Insu_c_nsSee P,mer'Sscheck_ J (Form 1065).

i_

b Gross farming or f'_'mg Income. .......... ¢ Gross nonfarm income .............. 15a Net earnings(loss)from serf-employment....... . I_ 18a Depreciationadjustmenton propertyplaced in serviceafter1986 b AdJusted galn or toss .............. d (1) Gross income fromoil. gas. and geothermalproperties . . (2) Deductionsallocableto oil. gas. and geothermalproperties c l:)el:)_=ti_ than tax preferenceitems (attachschedule] (other ollandgas) .......... e Other adjustrnemsand 17a Type of income II. ................................................. b Name of foreign count_ or possessionI_ ....................... c Totalgrossincomefrom sourcesoutsidethe UnKedStatas(altadl schedu/e) .................. d e f _ 18 Total deductionsand losses(attach schedule). Total foreig_ taxes (check one): I_ F-]Paid F]Accrued. Reductionin taxes availablefor credit (attach sc,'le_te) . Otherforetcjn information(attach schedule) ...... tax
.........................

9 ofPartner's K-1 Sc_ SE.sect]= A or B

]_j

seepage9of Paruw's Instructions FormlO65) nd a InsuucUons [orForm 6251. Form 1116,check boxes Form1118.Pmtl

_
:_ i_ -_ O M. _

,ro_in=l,,= s K-I

appacab_

.

Form1116, artll P Form1116,P=1tU Seelnsmctions forFo_1116. _. seepage of I_rmer's K- 1 Ins_lJcOom [or S<:_I:Uw 9 J (Fccm 10tL9. Form1040._ St) Pmlnm's Insm,ct.k:_ls for Seepages 9and10of _ K-1(Form 1065).

Section 59(P.J_2) exper_litums:a Type · b Arrlou_ .................. 19 Tax-exempt interestIncome ............ 20 Other tax-exempt income............. 21 2Z [aS 24

............. Nondeductil_ expenses DlstribuUons money (cash and marketablesecurities) . of DismbuUonsor propertyouter than money ....... Recaptt_ of low-incomehousingcredit:

16111 6 4 15 2 4

a From section42_)(5)partnerships .......... b Other lttan on line 24a .............. 2S SuppJemen_ Irffo.nal._ required to be reported separatelyto each parmer (a_ac_ _

It Form8611,linee

J

schedu/es if more space is

need_:

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

°...........................................................................................................

i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
el v) (_ ScheduleK-1 (Form106_ lggl