The Client was a property investor. The size of the real estate projects ranged from $5 to $10 million, with 5 partners. The client was looking for a cost effective and efficient way to provide operating information to the co-tenants requiring the least amount of work for each of the co-tenants and their tax accountants. In addition, the reporting prepared by the property manager while appropriate for proving information related to operations, was not appropriate for income tax reporting by an individual. These reports needed to be converted to a cash basis and allocated for each co-tenant’s ownership and related tenancy in common agreement.

The AGT tax consultants created a special set of supplemental schedules to include along with the project financial statements which provide each co-tenant with their respective share of operating revenues and expenses, fixed asset additions, and reconciliations from the income tax basis financial statements to the property manager financial statements.