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HomeMy WebLinkAbout05-17-12 1505610143 ~ REV-1500 °"°'-10) OFFlCIAL USE ONLY PA Department of Revenue eons vanla P Yf County ((:otle Year Flle Number Bureau of Individual Taxes nrsrmvsxror nevexva Po Box.zaosot INHERITANCE TAX RETURN 2 1 11 0 0 613 Harrisburg, PA t7t28-osot RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Social Security Number Date of Death Date of Birth OS 13 2011 Decedents Last Name Suffix Decedents First Name MI HATTER KATHRYN E (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name MI Spouse's Social Security Number THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS FlLL IN APPROPRIATE OVALS BELOW ® 1. Original Retum ^ 2. Supplemental Retum ^ 3. fiemalnder Retum (dale of death prior to 12-13.82) ^ 4. Limited Estate ^ qa. FNUre Irnereat Compromise ^ 5. Federal Estate Tax Retum Requlretl (eats d tleatn after 12-12-82) ^ g Decedent Dktl Testate ^ (Attach Copy d Wilp ~ Decatlern Maintainetl a Living Test 8. Total Number of Safe Deposit Boxes (Attach Copy d Trust) ^ 9. Litigation Proceeds Received ^ 70. Spousal Pwem CrecM~tlate d tleatn ^ t t. Election to tax under Sec. g113(A) t 1231 1 t 95 b M ween - - e a - ) (Attach Sch. O) CORRESPONDENT-THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTAL TAX INFORMATION SHOULD BE DIRECTED TO: Name Deydme Telephone Number SAMUEL L ANDES 71'7 761 5361 First Ilne of address 525 NORTH 12TH 3TREET Seeond line of address Ctty or Post Office LEMOYNE corresponderd's e-mau address: I aw a n d es S a o I. o o m Underoenel8es d padurv. I declare that I have examined this return. inclutlin( Road STE E159 . AK 99709 State ZIP Code PA 17043 M. Hatter Samuel L Andes REGISTER OFV~IC$tUSE Of~y" ~ a c~.~ C ~s r ~ rl D _ O c r' S ' -r. - ~~ DATE Eb O ''. _. iTi `~ O "~i 2 DATE 525 North 12th Street, Lemoyne, PA 17043 Side 1 1505610143 1505610143 ~ ~~ 1505610243 REV-1500 EX Decedem~s NSme: HATTER, KATHRYN E. Dec:edenYS Social Security Number RECAPITULATION t. Real Estate (Schedule A) ........................................................................................ .. t. 17 5, 0 0 0. 0 0 2. Stocks and Bonds (Schedule B) .............................................................................. . 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C)........ .. 3. 2 8 6 , 3 8 8 . 2 2 4. Mortgages R Notes Receivable (Schedule D) ........................................................ .. 4. 5. Cash, Bank De sits 8 Miscellaneous Personal Pro a Po p rty (Schedule E) ............... . 5. 3 9, 8 0 0. 7 6 6. Jointly Owned Property (Schedule F) ^ Separate Billing Requested ............ . 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) ^ Separate Billing Requested 7 4 0 9 0 8 a 6 ............ . . , . 8. Total Grose Assets (total Lines 1-7) ...................................................................... . 8. 5 4 2, 0 9 7. 2 4 9. Funeral Expenses & Administrative Costs (Schedule H) ................................ ......... 9. 4 2 , 0 6 4 . 1 0 10. Debts of Decedent, Mortgage Liabilities, R Liens (Schedule I) ....................... ......... 10. 14 4 , 6 6 3.51 t i. Total Deductions (total Lines s & t o) ............................................................. ......... i t. 18 6 , 7 2 7.61 12. Net Value of Estate (Line 8 minus Line 11) ................................................... .......... 72. 3 5 5 , 3 6 9 . 6 3 13. Charitable and Govemmenfal Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) ........................................ ......... 13, t4. Net Value SubJeet to Tax (Line 12 minus Line 13) ........................................ ......... 14. 3 5 5 , 3 6 9 . 6 3 TAX COMPUTATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amouni of Line 141axable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) X .00 15. 15. Amount of Line 141axable at lineal rate x .045 3 5 5, 3 6 9. 6 3 15. 17. Amount of Line 14 taxable at sibling rate X .12 17. 18. Amount of Line 14 taxable at collateral rate X .15 18. 19. Tax Due ....................................................................................................-----......._ _ 19. 20. FlLL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT. 15,991.63 15,991.63 Side 2 L 1505610243 1505610243 REV-1500 EX Page 3 Decedent's Complete Address: File Number 21 - 111 - 00613 Hatter, Kathryn E. STREET ADDRESS 833 Meadow Lane CITY Camp Hill STATE PA ZIP 17011 Tax Payments and Credits: 1. Tax Due (Page 2, Line 19) (1) 15, 991.63 2. Credits/Payments A. Prior Payments 18,000.00 e. Discount 799.58 Total Credits (A+B) (2) 18,799.58 3. Interest (3) 0.00 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. (4) 2, 807.95 Check box on Page 2 Llne 20 to request a refund 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) Make Check Payable to: REGISTER OF WILLS, AGENT. PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yea No a. retain the use or income of the property transferced :................................................................................... x b. retain the right to designate who shall use the property transferred or its income :............:........................ x c. retain a reversionary interest: or ..............................:................................................................................... x d, receive the promise for life of either payments, benefits or rare7 ............................................................... x 2. If death occurred after December 12, 1962, did decedent transfer properly within one year of death without receiving adequate consideretron7 ....................................................................................................................... ^ ^x 3. Did decedent own an "in trust for" or payable upon death bank account or secudty at hi:> or her death7......... ^ ^x 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation7 ...................................................................................................................... 0 ^ IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE: G AND FILE rr AS PART OF THE RETURN. For dates of death on or after JuN t, 7994 and before Jan. t, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3 percent [72 P.S. §9116 (a) (1.1) (i)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse Is 0 percent [72 P.S. §9116 (a) (1.1) tii)). The statute does not exempt a transfer to a surviving spouse from tax, and the statutory requirements for discbsure of assets and filing a lax rectum are still applicable even if the surviving spouse is the onty beneficiary. For dates of death on or after July 1, 2000: • The tax rate imposed on the net value of transfers from a deceased child 21ye ars of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is 0 percent [72 P.S. §9116 (a) (1.2)]. • The tax rate imposed on the net value of transfers to or for the use of the decedents lineal beneficiaries is 4.5 percent, except as noted in 72 P.S. §9118 1.2) [72 P.S. §9118 (a) (1)]. • The fax rate Imposed on the net value of transfers to or for the use of the decedents siblings is 12 percent [72 P.S. 59116 fa) (1.311. A sibling is defined under Section 9102, as an individual who has at least one parent in common with the decedent, ether y blood or adoption. SCHEDULE A COMMOHWEKTH OC pENNSnvuau REAL ESTATE INHFARRNCETAX pETUHN pESNeiT DECEDEM FILE NUMBER ESTATE OF Hatter, Kathryn E. 21 - 11 - 00613 All real property owned solely or as a tenant In common must be repported at fair market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a wilting seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant facts. Real property which is Jointly-owned with right of survivorship must be disclosed on schedule F. Attach a copy of the settlement sheet if the property has been sold. Include a copy of the deed showing decedenPs interest if owned as tenant in common. ITEM DESCRIPTION VALUE AT DATE OF NUMBER DEATH 1 Single family residence at 833 Meadow Lane, Camp Hili, Hampden Township, Cumberland 175,000.00 County, Pennsylvania. Value based upon sale on 16 September 2011. TOTAL (Also enter on Llne 1, Recapitulation) I 175,000.00 SCHEDULE C CLOSELY-HELD CORPORATION, 'w~TM~~"'"~°""'" PARTNERSHIP or NHEHRANCE TA%FENHN p~~E"T°~~°°" SOLE-PROPRIETORSHIP FILE NUMBER ESTATE OF Hatter, Kathryn E. 21 - i t -00613 Schedule C-1 or C-2 (Including all supporting information) must be attached for each closely-held corporatioNpartnership interest of the decedent, other than asole-proprietorship. See instructions for the supporting information to ba submilted for sole-propnetorships. ITEM I DESCRIPTION I VALUE AT DATE OF NUMBER DEATH At the time of her death, decedent was a 50 percent owner in a partnership known as Queens Court Partnership, which owned real estate at 41-76 Queen Avenue in Enola, East Pennsboro Township, Cumberland County, Pennsylvania. Upon the death of decedent, the partnership was dissolved, its assets liquidated, and its debts paid. Following the liquidation of the debts and assets and the dissolution of the partnership, final distribution was made to both partners. From that disposition, decedent's estate received the following payments: 1. Payment from the proceeds of the sale of the partnership real estate ($271,000.00). 2. One-half of the balance in the partnership bank account ($6,486.77). 3. Final distribution of proceeds of sale, after paying all remaining debts ($8,901.45). The total of those is $286,388.22. Attached hereto are copies of the following documents relating to the dissolution of the partnership and the distribution of the proceeds of its liquidation: A. The original partnership agreement dated 8 October 1986. B. The unanimous consent of the partners to the partnership, including the decedent's estate, to the sale of the partnership real estate. C. The settlement sheet for the sale of the partnership's real estate. D. A copy of the check received by the estate immediately after sale of the renal estate for a portion of the proceeds (a portion of the proceeds were withheld until the final liquidation of the partnership's assets and liabilities was concluded). E. A letter and final accounting by the surviving and managing partner of the partnership regarding the final distribution of the proceeds of liquiidation of the partnership. F. Copies of the checks received by the estate for the balance of the estate's :share of the proceeds of liquidation of the partnership. G. A copy of the final federal income tax return filed for the partnership, for year 2011. 286,388.22 TOTAL (Also enter on Line 3, Recapitulation) I 266,388.22 COMMONWEALTH OF PENNSYLVANIA WHEARANCETq%R[TURN RESE)ENT DECEOENf SCHEDULE C CLOSELY-HELD CORPORATION, PARTNERSHIP or SOLE-PROPRIETORSHIP continued FILE NUMBER ESTATE OF Hatter, Kathryn E. 2i - 1 t - oos13 Schedule C-1 or C-2 (Including all supporting information) must be attached for each closely-held corporation/partnership interest of the decedent, other than asole-proprietorship. See instructions for the supporting information to be submitted for sole-propnetorships. ITEM DESCRIPTION VALUE AT DATE OF NUMBER DEATH The estate submits that the sale of the partnership's real estate and the liquiidation of its other assets and liabilities establish the fair market value of decedent's interest in the partnership on the date of her death to be $286,388.22. Page 2 of Schedule C SCHEDULE E CASH, BANK DEPOSITS, & MISC. DOMMDNWEILTH OF FENNSnvPflu PERSONAL PROPERTY WMEPRNiCETAX PETUHN PES[IEM DECEDEM FILE NUMBER ESTATE OF Hatter, Kathryn E. 21 - 11 -00613 Include the proceeds of litigation and the date the proceeds were received by the estate. All property lolntly-owned with the right of survivorship must be disclosed on schedule F. ITEM NUMBER DESCRIPTION VALUE AT DATE OF DEATH 1 2003 Jeep Grand Cherokee. Value per Kelly Blue Book website 7,700.00 2 1999 Ford Explorer. Value per Kelly Blue Book website 6,000.00 3 Checking account with Metro Bank 750.20 4 Metro Bank money market account 18,462.84 5 Checking account No. 10000590178535 with Wells Fargo Bank 50.81 6 Checking account No. 9019126 with Mid-Penn Bank 228.04 7 Checking account No. 127219736 with ING Direct 7,87 8 Household furnishings and other tangible personal property 6,600.00 TOTAL (Also enter on Llne 5, Recapltulatlon) ~ 39,800.76 COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE G INTER-VIVOS TRANSFERS & MISC. NON-PROBATE PROPERTY ESTATE OF Hatter, Kathryn E. FNLE NUMBER 21 - 11 - 00613 This schedule. must be completed and filed If the answer to any of questions 1 through 4 on page 21s yes. ITEM NUMBER DESCRIPTION OF PROPERTY IncWtle th name d tFle transferee, tliei! reWtioreN to tlecetleM antl Llte Eale of transfer. Atlacft a cgpyW Ne Eeetl areal estate. DATE ~ DEATH VALUE OF ASSET %OF DECD'3 INTEREST' E%CLAISION OF APPLICABLE) TAXABLE VALUE 1 Annuity contract No.9920-3394310 withRiversource zs,aza.tt 1ppe~, 25,428.11 2 Individual retirement account with Investco ts,a8o.t5 100% 15,480.15 TOTAL (Also enter on Ilne 7, Recapltulatlon) 40,908.26 ~~ ~Spg~i~E~DULEHr~M COMMONWEKTH OF PENNSriVPNIA 1~611/'1L wr..l~ WHEPRANCETAX aENHN I~rMIm~CT~I1Tr/C /~/Y"fr eESIDENT DECEDENT ~~IIY~`~~7 ~ f W r r1lG W~7 r ~7 FILE NUMBER ESTATE OF Hatter, Kathryn E. 21 - 11 -00613 Debts of decedent must be reported on Schedule I. ITEM NUMBER FUNERAL EXPENSES: DESCRIPTION AMOUNT A. 1 Auer Cremation Services 1,545.00 2 Premier Catering Service (reception) 120.00 B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name of Personal Representative(s) Sireet Address City State Zip Year(s) Commission paid 2. Attorneys Fees Samuel L. Andes 3, Family Exempllon: (If decedents address is not the same as clalmanrs, attach explanation) Claimant Street Address City State Zip Relationship of Claimant to Decedent 4. Probate Fees Register of Wills Register of Wills 5. Accountant's Fees 6. Tax Return Preparer's Fees 7. Other Administrative Costs 1 Obituary 16,000.00 445.00 8.00 206.47 TOTAL (Also enter on Ilne 9, Recapltulatlon;l 42,064.10 Schedule H COMMONWEALTH OF PENNSYLVANIA ~L~y.~ ..;,~~~,~y ~ /may. ~,~y INHERITANCE TAX RETURN ry ~~~~~~q~yg yypv-~yy~ry~~, ESTATE OF Hatter, Kathryn E. r"` I""m°`~ 2'I - 11 - 00613 2 Fulton Bank (bank fees and check purchase) 49.58 3 Cumberland Law Journal (advertising) 75.00 4 The Sentinel 157.68 5 U.S. Postal Service (postage for tax payment) 2.56 6 Expenses incurred to preserve and sell residence at 833 Meadow Lane, Camp Hill, 21,406.01 PA, until its sale and other costs associated with the sale (see itemized list attached) 7 Larry Foote (appraisal of real estate) 1,600.00 8 Mechanical repairs to vehicle prior to its disposition 448.80 Page 2 of Schedule H SCHEDULEI DEBTS OF DECEDENT, MORTGAGE °OM~NHERRINCE~N{q~E'fUS gNµw LIABILITIES, & LIENS PESIDEM DECEDEM FILE NUMBER ESTATE OF Hatter, Kathryn E. 21 - 11 - 00613 Report debts incurred by the decedent prior to death that remained unpaid at the date of death, including unreimbursed medical expenses. ITEM NUMBER DESCRIPTION AMOUNT 1 2 I Balance owed to Wells Fargo Bank on first mortgage against residence. Paid at sale of I 99,588.39 residence. 3 I Balance owed to Wells Fargo Bank on home equity loan against residence. Paid at sale of I 26,095.28 residence. 4 ~ Holy Spirit Hospital (emergency room service) ~ 85.00 5 ~ Erie Insurance (vehicle insurance) ~ 149.00 6 I Pennsylvania Department of Transportation (Jeep registration) ~ 36.00 7 I Erie Insurance (vehicle insurance) ~ 267.00 8 ~ Oakwood Center (radiation treatment) ~ 660.00 9 ~ Sadler Oil Company (fuel oil for residence) ~ 1,451.12 10 I Wal-Mart (credit card payoff) ~ 1,331.68 11 ~ Home Depot (credit card payoff) ~ 852.10 12 I FIA Credit Card Service (credit card payoff) ~ 8,372.40 13 I Chase Bank (credit card payoff) ~ 5,775.54 TOTAL (Also enter on Llne 10, Reoapituletlon) I 144,663.51 REV-1513 EX+111-08) r ~ r SCHEDULE J CDM IH ERITAINCE TAX flETURNANIA BENEFICIARIES RESIDENT DECEDENT ESTATE OF Hatter, Kathryn E. FILE NUMBER 21 - 11 - 00613 NUMBER NAME AND ADDRESS OF PERSONS O RELATIONSHIP TO ea uaDm.~ SHARE OF ESTATE (Words) AMOUNT OF ESTATE ($$$) RECEIVING PROPERTY Do q I, TAXABLE DISTRIBUTIONS[includeoutrightspousal distributions, and transfers under Sec. 9116 (a) (1.2)) 1 Jeremy M. Hatter Son 3875 Geist Road STE E159 Fairbanks, AK 99709 2 Erinn Hatter Daughter 5015 NE 23rd Avenue Portland, OR 97221 Enter dollar amounffi for distributions shown above on lines 1 5 through 18 on Rev 1500 cover sheet, as appropriate. II NON-TAXABLE DISTRIBUTIONS: A SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAXIS NOT TAKEN B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART II -ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET 0.00 ESTATE OF I(ATHRYN E. HATTER -FILE NO. 2011-00613 COSTS INCURRED FOR PRESERVATION AND SALE OF RESIDENCE AT 833 MEADOW LANE Caldwell Coldwell Banker Homestead group -Realtor's commission 10,500.00 Additional broker fee to Coldwell Banker realtor 200,00 Settlement fee to Dorothea R. Butkus 110.00 Pennsylvania realty transfer tax 1,750.00 Repair of termite damage to Peak Construction 465.00 Termite treatment to Bowers Pest Control 421.35 Mortgage payments to Wells Fargo through date of sale 3,818.58 Installment payments on home equity loan to Wells Fargo through date of sale 600.00 Hampden Township -sewer and trash fees to date of sale 300.00 PPL -electric for house 691.70 Criterium Yingst -termite analysis 350.00 Scott Dale -lawn maintenance 4pp.Op Erie Insurance -homeowners insurance 268.25 Home Depot -cleaning supplies 104.05 Cathys Cleaning - to clean house prior to sale 500.00 Jesse Pownell -repairs to kitchen 867.08 Ed Young -repairs to house 60.00 TOTAL 21,406.01 EjN°"'o°~ OMB Approval No. 2502.0265 d7~ o ~'~~ § A. Settlement Statement (HUD-1) e = "4v eryE~ 8. Typo of Loan 1.Q FHA 2.~ RHS 3. QConv. Unins. 4.QVA S.~Cwv. Ina. 6. Flls Number: 201100193 7. Loan NurMer. 57D7287270~ 8. Mortpepe Ireurance Case Number. C. Note: Thls tam is Nmishetllo Akre you a sfeNmenf ofaduel sefllemenf cosh. AmouMS paltl b and by Me setllement spent ere shown. same merked'(p.o.c.)' were paid outside the cbahp; Neyere shown here for M7omleponal purposes ant ere not MGudedln the bfels. D. Name and Atldreas of Borrower: Davld F. Haas and M. Denise Haas 536 Oek Grove Road Pine Grove, PA 17963 E. Name eerltl Address of Seler. Esbte of Kathryn E. Hager F. Name end Adtlreee of Lender. Futtan Bank, N. A One Penn Square Lancaster, PA 17602 G. Property LOptlon: 833 Meadow Lane Camp HIII, PA 77011 Cumberland County, Pennsylvania H. SettlemenlApenC 20-2039731 CapBal Area Abatracbre, LLP 500 North Propreas Avenue HaMSburp, PA 77109 Ph. (717)920-9179 I. Settlement Date: December ifi, 2011 Place of Settlement 500 North Progress Avenue Hardaburp, PA 17109 J. Summary of BorroweYS franuctlon K Summary' of SsttsYS tranaaglon 100. Gross Amount Due from Borrowrer. 400. Grove Amount Dw b Seller. 10Y. ConimUSales ce 175,000.00 401. Contractsales w 175000.00 702. Perecnal 402. Personal 103. Settlement Cho s b Borrower Llne 7400 7139.05 403. 704. 404. 105. 405. Ad wtrnelds for ttema Id Salier in advance Ad uNmerde for Items Id Seller In advance 108. q rtown Taxes b tm. cow taxes tvnm b olrovtz 108. Scholl 12/17/11 b 07ro1/72 zz.os 1175.85 d08. CI own Tama to 407. coon razes 1vn/r1 m o7rov7z 408. School 12/17/11 b 07ro1/72 zz.os 1115.65 109. sewer cha 12/17/71 b01/01/12 24.48 409. saner charges iTJ17/11 b07ro7/12 24.46 110. 410. 111. 411. 172. 472. 720. Gross Amoum Dw tram Bamower 183,301.27 420. Grose Amount Dw to SeINr 178,762.16 20 . Amaums Pald a In Behalf of Borrower 500. Reducdoru In Amoum Due Ssibr. 201. De tar gamest 20 . Pdrld al amoumof new ban a 203. E~dstl loan a taken su act b 1500.00 100000.00 501. Excess tt see bsWCtlans 502. SBBbment ch b Seler a 1400 503. Eldetl bans taken sub G b 13448.35 204. 504. Payoff Flat Modpapa b Well6 Fargo Bank 99,588.39 20. a bWelc a an 28095.28 206. 508. 201. 507. it<Iiso. as roceetls zo6. sob. zo9. so9. Atl usfinents for ttems un b Seiler Ad ustmen4 for Items un tl Salbr 270. q own lazes to 570. CI ?own 7axee to 211. Coon Taxes to 517. Coon Taxes to 212. School b 512. ScMo m 279. 513. 274. 574. 275. 575. 276. 516. 217. 517. 218. 518. 219. 519. 220. Total Pald r Bomwer 700. Cash at SeNlemaM from/to Borrower 301. Gross emounldw from BomOwer Ina 120 302. Less amount aid Borrower Ilne 220 309. Cash X^ From ~ To Borrower 101,500.00 783 30121 ( 101,500.00 87,807.21 520. ToW Reduction Amoum Dw Seller 800. Curt al settlement tolhom Seller 607. Gross amount due b Seller Ilw 420 802. Less reductlona due Seller I1w 520 803. Cuh '] To ~ From Seller 139,130.02 776162.16 ( 739,730.0 37,032.14 The uMenlpned hereby admowled0a receipt o(a completed copy of Nis afatement 8 any at~chmanb referred b rat Bonoarer ~ Seller Davitl F. Haas M Kam .Harr ,.~ ~a~~e Melee Heae T,e PUMC FrWaq avOm bNY mla]t dY,MmOYmbNareW&]6 ninlW pxieapmrervmrNbp,rwwve, wM rtpNYgWMa. RLYWnrympYrclmMYMYMdmeW.n.W fw, vent rap,YHb uv,lplae ahbm.uMaeYaer4esp WnnarvW CMamnhd rvbbv. Nom,NVWyRy Yevured aibW Ve Y nvMeby.ll,b N 6vYa,tl bpviM MrwIW be RESPP Went Ysnaetn NN Inkmplbn e,,, b y b e w u..,. n o, o m... Papa 1 of 3 HUD-1 ,r 1 , i PARTNERSHIP AGREEMENT THIS AGREEMENT executed , 1986, by and among Larry L. hereinafter referred to as a referred to as an "Individual"; referred to as the "Partners." .~ is of this g day of ac°~~55/l~ , Hatter and Kathryn E. Hatter, each "Partner"; each inc9ividual shall be and all parties shah. be collectively WITNESSETH: 1. Name and Purpose. The parties do hereby form a Partnership under the name Queens Court to acquire real and personal • property including, but not limited to the real estate described in Exhibit A attached hereto situate in East Pennsboro ,Township, Cumberland County, Pennsylvania (the "Property"), and to acquire, own, sell, option, build upon, alter, repair, rent„ lease, operate, invest in, lend on, .borrow against, manage, develop, and otherwise deal with real and personal property of any kind or. description, as agreed between the Partners. 2. Place of Business. The principal office of the Partnership shall be maintained at 833 Meadow bane, Cumberland County, Pennsylvania, 17011, or such other place a:; shall be agreed upon, from time to time, between the Partners. 3, Term. The Partnership shall begin as of Jw ~ Y a ~ ., ~` 1986, and shall continue until , unless sooner terminated; provided, however, that any acts, including, but not limited to the entry into negotiations foe and the execution of any agreements, commitments, contracts, writings or othe>.r understandings by any Partner in furtherance of the business of` the Partnership prior to such date is hereby ratified and confirmed as an authorized and valid action of the Partnership, 4. Partnership Interests, The initial ownership interests (also herein referred to as "Partnership interests") of the Partners, subject to other provisions of this Agreement, shall be as follows: Larry L. Hatter 508 Kathryn E. Hatter 508 5, Capital. The capital of the Partnershig shall consist initially of Three Thousand (3,000.00) Dollars which shall be used for organization, asset acquisition, construction, financing, engineering, subdivision, legal, accountipg and such other expenses and gurposes as agreed upon between the Partners, A separate capital account shall be maint~sined for each Partner. A Partner shall not be entitled to interest on his capital contribution. No Partner shall withdraw any parr: of his capital account without the written consent of the remaining Partners. If • the capital account of a Partner becomes impaired, his share of subsequent Partnership profits shall be first credited to his capital account until that account has been restored, before such profits are credited in his income account, The initial capital accounts of the Partners are as follows: Larry L. Hatter $1,500.00 Kathryn E. Hatter $1r500,00 6. Additional Funds and Adjustments, • ia) Call for Funds. The Partners recognize that the income produced by the Partnership properties may be insufficient to pay the "operating costs" of the properties. If additional funds are reasonably required to pay such operating costs, the additional funds may be called for by any Partner and shall be contributed by the Partners in proportion to their capital interest in the Partnership. As used above, the term "operating costs" shall include, but not be limited to: principal and interest payments on Partnership loans, whether or not secured by mortgages on Partnership properties; costs or repair, maintenance and improvements, including a fee for property management of three (38) percent of the gross rents collected; insurance premiums; real estate taxes, assessments or other governmental charges; and operating expenses of the Partnership directly relating to the operation of the property, . (b) Contributions .for Nondefaulting Partners. In the event any Partner is unable or unwilling to make any or all of his proportional contribution, then the remaining Partners who are able and willing to do so may make a contribution in excess of their proportionate share, in such amounts as they may agree among themselves. If they are unable to agree, each Partner who is able and willing to make a contribution shall have the primary right to contribute that portion of such excess which the Portion of such Partner's capital interest in the Partnership bears to the aggregate capital interest of all such Partners and a secondary right to contribute any remaining gortion of such excess which is not desired • to be contcibuted by any other Partner in exercise of his primary right. If there is more than one il) Partner desiring to exercise . secondary rights, they shall be entitled to contribute the remaining portion of such excess in the same proportion as stated above with regard to their primary rights. (c) Contributions by Defaulting Partners, Any Partner who makes a contribution to the Partnership pursuant to Paragraph 6(b) above shall have the option to: (i} treat the contribution as additional capital of the Partnership; or (ii) treat the contribution as a loan to the defaulting Partner, which election shall be made, in waiting, at the time the contribution is made. (i) If the contributing Partner elects to treat his contribution as additional capital, such funds shall be allocated to his capital account. After such contributions are made, each Partner's percentage interest in the profits, losses and cash flow of • the Partnership shall be adjusted and determined by dividing the aggregate cash contributions of all the Partners to the Partnership since- 'the inception of the Partnership, into the aggregate cash contributions of each Partner; the resulting quotient with respect to each Partner shall be the adjusted percentage interest of such Partner. Such adjusted percentage interest of each Partner shall supersede the percentage interest of such Partner as set forth in Paragraph 4 above. (ii) If the contributing Partner elects to treat his contribution 'as a loan to the defaulting Partner, then no adjustment shall be made to the contributing Partner's capital account, and his • share in profits, losses and cash flow of the :Partnership shall remain the same, However, the capital account of the defaulting Partner shall be increased by the amount of t:he loan, and a defaulting Partner's share in the profits, losses and cash flow of the Partnership shall be adjusted as if he had made a contribution to Che capital of the Partnership in the amount of the .Loan. The amount advanced by the Partner on behalf of the defaulting Partner shall be a debt of the defaulting Pactnec to the contributing Partner and shall bear interest at the prime rate of interest as published in The Wall Street Journal, or any successor publication, adjusted quarterly on the first business day thereof (the "Prime Rate"), plus three (38) percent. Thereafter, all distributions of cash fro;~n the Partnership due to the defaulting Partner shall be paid too the Partner (or • prorata to the Partners) who have elected to treat the contributions as loans, until such time as the principal and interest of the • loan(s) are paid in full. 7. Profits and Loss. The net losses, net profits and cash flow of the Partnership shall be allocated among and distributed to the Partners in accordance with their respective Partnership ownership interests. A separate income account sh~sll be maintained for each Partner. Partnership profits and losses shall be charged to or credited to -the separate income account of ea~ah Partner. If a Partner has no credit balance in his income account, losses shall be charged to his capital account. Accumulated cash not reasonably necessary as a reserve for alterations, repairs, replacements, improvements or other imminent and ascertainable expenses shall be . distributed among the Partners periodically, but, :in no event, less than semi-annually. 8. Salaries and Drawings. No Partner or Individual shall receive any salary, compensation or guaranteed payments unless such salary, compensation or guaranteed payments be appro~red by a majority vote of the Partners and is reduced to writing within one week from such vote. Each .Partner may, from time to time, with the prior approval of a majority of the Partners, withdraw tine credit balance inuring to any Partner by reason of his capital or income account being in excess of the capital or income account of the others. }, r .` ., ~ j • 9. Interest. No interest shall be paid on the initial contributions to the capital of the Partnership or on any subsequent contributions of capital. If, however, the Partners unanimously agree to borrow money from any Partner, and that borrowing is evidenced by a note excuted by all Partners, i:hen interest in accordance with the terms of the note may be paid, 10. Management, Duties and Restrictions. (a) The Partnership shall have a Managing Partner who shall, in the intervals between Partnership meetings, be entitled and authorized to make decisions and/or execute agreements, contracts, checks and other written instruments in the ;Partnership name concerning or relating to the management, administration and affairs of the Partnership. To the extent possible, prior to making decisions and/or executing documents, in the intervals between Partnership meetings, the Managing Partner shall consult with the Partners personally or by telephone concerning the material factors affecting any such decision, but the decision of the Managing Partner shall be final and binding upon the Partnership. The first Managing Partner shall be Larry L. Hatter and he may be succeeded by such other Partner as designated by him or as shall achieve a vote of two- thirds (2/3) other Partners in the case of inclusion of other Partners. t r .. • (b) Notwithstanding any other provision of this Partnership Agreement, the consent of all of the Partnership interests shall be required with respect to the following matters of management, conduct and operatiot} of the Partnership business: (1) to mortgage property owned by the Partnership, whether such mortgage be z: first or second mortgage lien; (2) to borrow any sum of money, they result of which would be to increase the debt of the Partnership, exclusive of trade or regular accounts payable, by Ten Thousand ($10,000.D0) Dollars more than such debt at the immediately preceec9ing Partnership meeting; (3) to lend money on behalf of the Partnership; (4) to lease the Property owned by the Partnership or any part thereof at a net rental of less than $ per square foot annually; and (5) to admit a new partner or partners. • (c) Each Partner may have other business interests and may engage in any other business or trade, profession or employment whatsoever, on his own account, or in Partnership with or as an employee of or as an officer, director or shareholder of any other person, firm or corporation, and he shall not be required to devote his entire time to the business of the Partnership. No Partner shall be obligated to devote more time and attention to the conduct of the business of the Partnership than shall be required for the supervision of the ownership, operation and management of the Partnership.. • 1.. .~ 1: 11. Banking. All funds of the Partnership shall be deposited in its name in such checking account or accounts as shall be designated by the Partners. Withdrawals therefrom may be made upon checks signed by any Partner as agreed upon. 12. Books. The Partnership books shall be maintained at the office of the Partnership, provided that each Partner or his duly authorized attorneys or accountants shall at all fames have access thereto. The taxable year of the Partnership sha1:L be the calendar year. The books shall be closed and balanced at the end of each such calendar year. If requested by any Individual, anc9 audit which may or may not be certified, as the Partners shall agree, shall be made as of the end of each taxable year, and the expense of any such audit • shall be a Partnership expense. If any Individual should so request in writing prior to the end of the taxable year, the Partnership shall have, at its expense, an audit performed for such year. 13. Voluntary Termination. The Partnership may be dissolved at any time by agreement of the Partners, in which event the Partners shall proceed with reasonable promptness to sell any personal or real property owned by the Partnership and to liquidate the business of the Partnership. Upon dissolution, the assets of the Partnership business shall be used and distributed in the following order: (a) to pay or provide for the payment of all Partnership liabilities and liquidating expenses and obligations (including salaries to the Partners so entitled); (b) in proportion to their Partnership interests, to discharge the balance of the income accounts of the j r 1: ., . other Partners; (c) to balance the capital accounts of the Partners, in proportion to their Partnership interests; (d) to discharge the balance of the capital accounts of the Partners; and (e) any excess shall be distributed prorata in accordance with the Partnership interests. 14. Withdrawal/Sale to Third Party. (a) Any Partner shall have the right to withdraw from the Partnership, providing that .the nonwithdrawing Partners or Partnership shall have the right of first refusal to purchase all or a portion of the Partnership interest of the withdrawing Partner. The withdrawing Partner shall present to the nonwithdrawing Partners • and the Partnership written notice of intention to withdraw and the material terms of the sale. The withdrawal of a Partner shall have no effect upon the continuation of the Partnershilp business. The remaining Partners, (herein "Partners") shall, at their option, have the .right (1) to cause the Partnership to purchase the interest of the withdrawing Partner; or (2) to purchase themselves the withdrawing Partner's interest in the Partnership; or I3) to terminate and liquidate the Partnership business; oY (4) to consent to a transfer of such Partnership interest to a third party. If the remaining Partners elect to have the Partnership purchase or to purchase themselves the interest of the withdrawiing Partner, they shall serve notice in writing of such election upon the withdrawing Partner at the office of the Partnership within two (2) weeks after • receipt of his presentation of material terms of sale. If the •~ ~ ~ Partnership determines not to purchase the Partnership interest of i the withdrawing Partner, any one or group of remaining Partners may, individually or collectively, purchase said interest under the same rights and conditions as if the remaining Partners, acting for the Partnership, elected to so purchase. (b) If either the Partnership or one or. more remaining Partners elect to purchase the interest of the withdrawing Partner or Partners in the Partnership, the purchase price and method of payment shall be the same as stated in the material terms of sale or as otherwise agreed among the selling and buying .parties. If not specified in the offer, settlement shall take place on or before sixty (60) days from receipt of notice of election to purchase the Partnership interest. (c) If neither the Partnership nor one or more remaining Partners elect to purchase the interest of the withdrawing Partner in the Partnership, the withdrawing Partner may sell his interest to a third party at the price contained in the material terms of sale, or at a higher price (provided that the third party must receive the unanimous approval of thg Partners as required iin Paragraph 10(b) hereof). If the withdrawing~Partner shall offer to ;sell the interest to a third party for a lower price or upon materially different terms, or if he does not sell his interest within six (6) months thereafter, he shall reoffer such interest to the Partnership and Partners. ~J S (d) if the withdrawing Partner decides to sell and assign his Partnership interest, and if the remaining Partners consent to such transfec'r the Partner oc Partners acquiring said interest shall succeed to this interest of the withdrawing Partner for all purposes of this Agreement. The acquiring Partner(s) shall stand in the place of the withdrawing Partner, shall enjoy all rights and bear all liabilities just as the withdrawing Partner would have so done had he remained a Partner hereunder. Any acquiring Partner shall execute a Joinder Agreement which shall be a counterpart of this agreement and any revisions or restatements hereof. 15, Withdrawal/Sale to Partnership. After January 1, 1993, any. Partner may elect to withdraw from the Partnership and requite the Partnership to purchase the Partnership interest by providing the Partners written notice of intention to withdraw under .t lie provisions of Paragraph 15 of this Partnership Agreement. SucYi notice shall be served at the office of the Partnership,' In t:he event of such election, the provisions governing sale at death set forth in Paragraphs 16(b) through 16(j) hereof shall apply, except that the withdrawing Partner need not first submit an offer to sell, and the Partnership shall have no right to refuse to purchase the Partnership interest. G ~.., `\ ,i a. ,~ 16. Death. (a) Upon the death of a ?artner (hereinaft?r "decedent"), the estate of the decedent, and upon termination of` the estate, his beneficiaries shall have the right to continue in the Partnership or to sell the decedent's Partnership interest to the Partnership. IE the decedent's interest in the Partnership passes to a trust upon termination of his estate, then the powers he[<~in granted to a beneficiary or beneficiaries shall be exercised by the trustee or trustees acting in accordance with the instrument of trust. In the event of a Partner's death, no beneficiary, executor or trustee shall have any tight to management or to control or oth~arwise to vo!-e in any Partnership decision except t~~ designate an MAI appraiser; 4 provided, however, that the remaining Partners shall continue to act for the best interests of the Partnership with due regard foe their legal obligations to the representative(s) of the decedent, as a Partner, and shall not amend the Partnership Agreement not take any Partnership action which would adversely and materially affect the decendent's Partnership interest. (b) If the estate of the decedent, or thereafter a beneficiary thereof, determines to terminate the interest in the Partnership, it ar he shall first submit to the Partnership an aEfer to sell the Partnership interest to the Partnerships or to the remaining Partners (at the election of the remaining Partners) upon such terms and conditions as are acceptable to the estate or the beneficiaries. If the Partnership or the remaining Partners do not elect to purchase the tendered Partnership interest upon the terms and conditions submitted, or if negotiated terms and conditions of ,~ sale are not agreed to within sixty (60) days from-the tender to the Partnera~ip or the remaining Partners, then the Partnership, by vote of all Partnership interests (including those o£ the decedent} in proportion to the ownership of these interests, shall select an MAI appraiser and other qualified professional to value all Partnership assets, including personal property and accounts receivable. If an MAI appraiser is not selected within fifteen (15) days from the termination of the aforesaid 60-day period, any Partner may, upon ten (10) days' written notice and failure of the Partnership to cure, petition an appropriate court to make such appointment(s). The expense of said appraisal(s) shall be paid by the Partnership, but any court expenses shall be paid by the parties incurring the same. Thereafr.er, the value r.f ?~i Partnership liabilities applicable t~ ~, the Partnership assets shall be deducted from the appraised value of the assets to reach a "net value" for the entire Partnership, and the deceased Partner's estate or trust shall be paid the value thereof multiplied by the decedent's Partnership interest. (c) The decision of the i~1AI appraiser and other qualified professional as to the value of the assets of the Partnership shall be binding upon all interested parties, unless an entity or person possessing a Partnership interest files •dith the Partnership at the principal office of the Partnership, within Fifteen (15) days Erom receipt of the final report of the MAI appraiser or other qualified professional a notice in writing dissenting from said appraisal(s) and containing the reasons therefor. (.9) Upon filing such dissent, the dissenting interest shall immediately hire, at his or its own expense, anoti~er MAI appraiser and qualified expert to value and appraise the assets of the Partnership. If more than one party dissents, the dissenting parties may agree on a second appraiser or may each employ an MAI appraiser and/or other qualified professional. (e) In the event of the employment by a dissenting party or parties of additional MAI appraisers or other qualified professional (the cost of which shall be borne by the dissenting patty or parties), the appraised value of the assets Eor the dissenting party or parties shall be determined by averaging all appraisals for the dissenting party ~~: parties. Thereafter, the dissenting p~:':ies' mean value (their appraised value) shall be averaged with the appraised value reached by the Partnership's appraiser, and the mean value thereof shall be binding upon all parties. (f) For purposes of determining the applicable Partnership liabilities, the latest Einapcial statement for the Partnership, adjusted. by transactions occurring Erom the date of the Financial statement as determined by the Partnership's certified public accounting Eirm, shall be binding in all cases. (g) If a Partnership interest is purchased pursuant to the provisions of this Paragraph 16, the Partnership or the remaining Partners acquiring the Partnership interest shall, at the election of the Partnership or of the remaining Partners, make payment for the Partners!nip interest, either in cash within thirty (34) Days of a determination of the value of the Partnership interest, or in five (5) annual installments, the first such installment I.o be paid within thirty (30) days Erom a final determination of the value of the Partnership and the remaining installments to be paid on the respective anniversary dates of payment of the first installment. IE the five (5) installment pay-out method is elected,, the Partnership shall pay quarterly interest at a rate equal to one (12) percent below the Prime Rate during the applicable quarter, as determined on the first business day of such calendar quarter, 1`.or each quarter, said interest to commence with payment of the first installment. (h) IF the surviving Partners do not elect- to purchase the C" Partnershii, intere:,* cE the decedent, or thereafter of a beneficiary, t they shall proceed with reasonable promptness to :sell the real and personal property owned by the Partnership and to liquidate the business of the Partnership. The survivine Partners and the legal representative of the decedent, or thereafter a b.=_neficiary, shall share prorate in accordance with their Partnership interests, in the profits and losses of the Partnership during the period of liquidation. No compensation shall be paid to the surviving Partners for services in liquidation. (i) The Partners, for themselves, their heirs, representatives and assigns, hereby agree that the method of valuing the Partnership. assets herein provided shall be the sole, exclusive and binding method upon all parties and Partnership interests and hereby waive the right to have such asset valuation determined in a court or any other judicial forum. (j) If at any time during the valuation. process, prior to acceptan<:e of the valuation, the representative(s) of the decedent determin~a that the purchase price determined by the: appraisal(s) is unsatisfactory, such cepresentative(s) may terminate the valuation and purchase procedure by withdrawing the offer to sell. If the valuation process is terminated after receipt of an initial appraisal or incurring expense thereof, then the representative(s) having instituted such process shall not be entitled to reinstitute the same Eor a period of one year from the date such representative(s) shall have cermi~:.ited~ it. Furthermore, iE such representative(s) do reinstitute to appraisal process after one year, buy within two years from having terminated the same, the cost of making the initial appraisal(s) which would otherwise be paid by the Partnership shall be paid by the representative(s) reinstituting the appraisal process. L7. Votiny. Except as otherwise provided herein, each Partner shall be entitled to vote in proportion to their Partnership interests in all matters requiriny consent or other Partnerhip decision, provided that death, insolvency, bankruptcy or receivership shall terminate the Partner's voting rights and any and all other decision-making rights hereunder. In the event of the death, insolvency or bankruptcy of an Individual, the individual's managerial rights and any and all other decision-making rights hereunder shall terminate. In the event of an occurrence described in this; paragraph, the remaining Partners shall have full power and authority to vote, manage and decide as to all Partnership matters. 18. Insurance. The Partnership shall procure adequate liability and fire insurance; the type, amount and company or companies must be determined by the unanimous agreement of the Partners, notwithstanding any other provision hereof. 19. Assignment. Except as provided herein, neither this Agreement nor any interest of any of the parties herein (incuding any interest in monies belonging to or which may accrue to the Partnership as a res:~It of lease rentals or sales of property) may be r- assigned, pledged, transferred or hypothecated without the prior ~,,,~ written consent of the other Partners. The right of any person, firm or corporation claiming by, through or under any party hereto (including, but not limiting the' same to judgement or other creditors, receivers, trustees, assignees, garnishees, executors, administrators, etc.) to assert any claim against t:he right, title or interest of any Partner shall be limited solely to the right to claim or receive after the distribution of cash receipt to the respective parties has been completed, and then, only subject to the equities of the other parties as in this Agreement set forth. 20. Gender. When the context so requires, the masculine gender may be substituted for the Feminine, the feminine for the masculine, and the neuter for either, and vice versa. The sinyular shall be substituted for the plural, and vice versa:. 21. Interpretation. This Agreement shall be interpreted in accordance with the laws of the Commonwealth of Pennsylvania. Paragraph headings are for convenience only. This Agreement shall be binding upon all the parties hereto, their heirs, representatives, successors and assigns. IN WITNESS WHEREOF, the parties hereto, :CNTENDING TO BE LEGALLY BOUND, have executed this Agreement the day and yeac Eirst above written. WITNESS: Larry L. Hatter Kathryn E. Hatter UNANIMOUS WRITTEN CONSENT OF THE PARTNERS OF QUEENS COURT The undersigned, being all of the general gartners of Queens Court, a Pennsylvania general partnership (the "Partnership"), do hereby consent in writing to the adoption of the following resolutions to be effective the date hereof: WHEREAS, the Partnership is the owner of the real property located at 41 to 76 Queen Avenue, East Pennsboro Township, Cumberland County, Pennsylvania (the "Property"), and WHEREAS, the Partnership has entered into an Agreement of Sale to sell the Property to Sukhvinder S. Longia and Sukhwinder Collotia (the "Buyer") for a net purchase price of $1,850,000, and WHEREAS, it is deemed to be in the best interests of the: Partnership to complete the sale of the Property to the Buyer or their designee by enteriltg into a Special Warranty Deed, Assignment of Leases and Rents, Title Company Settlement Sheet and an Owner's Title Affidavit (collectively the "Settlement Documents). NOW THEREFORE, BE IT RESOLVED, that the Partnership hereby ratifies and approves the Settlement Documents, and FURTHER RESOLVED, that the Partnership hereby ratifies and approves the authority of Larry Hatter as a general partner of the Partnership to enter unto and execute the Settlement Documents and such other documents as he shall deem reasonable and necessazy in order to sell and convey the Property to the Buyer or their designee. This written consent may be executed in counterparts, each of which shall constitute an orignaal and all of which when assembled together shall constitute one and the same document. Telecopied signatures may be relied upon as originals. IN WITNESS WHEREOF, the undersigned have executed this 'Written Consent as of this day of November, 2011. Larry L. Hatter By: _ Estate of Kathryn E.:Hatter By: y.- ax remy M. Hatter; Executor S:\DOCS\HATTER\Queeos CowtlSale\GP Coascnt l.doc JL m e. TYPE OF LOAN w. SERLEUENi biATFMEHt Numrc fIM 3. FMIU Ms[ac[ Land Associates, Inc. L ^ vA x ~ coxv.Ixs. 3972 Market Street x Escnav mE xvNBER C.NOTE: T)de Bm:YA:mItl:M lopW lone LS'meµe/ecNYwtllemeMroali AmWµepW beMb/gefeBNmeNepn(a'P wwm Itrmi mrbCTP.0.GP xen pbautrktr IM clmMq; Fray an aroxn RsefnbbrmatlwmlWrymweMwrDJNCbtledb qe 101ax O.HMIEOF BORROWER: SUkhVindeF S. LOn9I0 aI1d SUkhW111der COlOtla AOOaEU a aoRaaw[a: 5146 South ~eefieM Avenue _ M h ksb m PA 1]055 E XP.a1EOF SELLER: paeans COUrt ADDRESS OF SELLER ~F. xAREOF IENDER Mltl Penn Sank ADDRESS OF 1ExosR; 349 Union Street Millersburg, PA 17061 c. PRDPFAn LDeenox 41-78 Queen Avenue Enola, PA 17025 Cumberland County 09-13-1002-169 Parcel #99-13-1002-169 x. sETnEU6xr ACExr: Abstract Land Associates, inc. PucE w sEmFNENn 3912 Madcat Streal, Camp HIII, PA 17011 L SETTLEXFM BAre 11l30J2011 PRORATpN DATE: 1113012911 OISOUR8F33EMi GATE: 11l3W201t nnpRIWFR'.V IPAKCAC K SUM.MRYOSElLER81MMaiC1pN 1%. cam..a seba Pnce 1,ns,DDD.BD LD1. LOMrwl sebn Pha 1,%s,a9D.BD t02 PononalPnlnRy L@. Peronal RPgM 1%. SeNemenl darywbeDrtaxN (Ym 11W) 20,050.01 Lei 1a. Lw. _ 101 4M. AOJUS]MENIS FOR PNO BYSELLER NAP/NJL E AONSIMENIB icR RENSPNO BYbE11ER NAWANCE 106. Ci ?awn Tam 906. C axn TSns 1%. tears Twee unwu m 12nun 303.08 LD7. ca Taw nr3orn 1O tanvn !else 106 AeweemanLL E00. AewemaMa tp3. $NplTm 11/JN11 to OS(JO/12 0385.8E LOB. ScXOa Tm[ 11/3W11 b CNJN12 O~BL 110. Sewer?:x 11!34'11 1B 12A1/11 1 %0.28 N0. SOwar?rk 11/3N11 b 1LJ1f11 100.29 111. Ins Fee 11Ad11 to t2(31g1 I6& tll. Inw Fee 1/3411 l0 17nt111 i6.M H2. ^2 113. Lu. uL. Lu. ns. na _ 120. GROSS W10UMiW FROMBDRROKEfl: 2m:PWLMSPNeHY1N eE{WFDF RIYIN£R 201. pepwd Neement Y 1,913,931.90 !a: : . ^••]? 50.000.00 EN1, Ofl08BAY0UN1011[T08ELLE2 ~ :R6160DTI9k15.M0.e190NLdE1o m:• fi01. Eveu Dell we Nµnxibna ". IB15.%&B$ '-.• 202 PY:MpY anwuM a'ns'Mben(a) 1,500,OW.OD 682 SNlbmenl Me t03eM Nne 1000 100,%0.03 201 Ebn16q ban(s) bk eubya b 503. F Jetl ba a takOn eu W 20E, 501, Pa atYm .bn1D Mltl Perm Bank t,ifi],95218 p5 206 2%. SaNxNebt SeMr CRN9 br Re ak 25,KO.O3 1.008.00 503. W8. 601. P nawwnfi me •bm 8etler Aastrl SeM LrMM br Repir 25,WO.W 1•W0.00 200. 300. 203. 509. AONS]MENIS FOR IIE UMNO BY SELIFR; A0.1USIaEMS nOAS UXPAq BYbELLER: 210. Cly?awn TVkw 510 C Rewn Tgan 211. GouMy Taws 611. Cap Tun 212. AuwLrcnln 512 AnwFmOnla 213. 51A 2H. Tnmfer beoutly aepw0v 16,10].50 511. Trowbr SewMy pepaeN 10.161.50 215 515. 2t6. 318. 210 S1). 216 510. 210 220. TMAL FAq BYRORBWRWJIR: 300. CASH AY 9GRROY;O.*: ]%. Once emauM tlu6M1em Barwnr(Ikn 1M) 1,590,1%.EO ~'~P5 tz' 3/~`w":. 1.B13,B3E.86 S1B. SLQ TOTALREWCTOXB WAYWXFOU[9CLLER: . BW-DA99'AT; :TtlFl10M391EIb x•: 8%. GlOn unwM Uw 108eIIn INne 1201 1.316.1 0].66 . '.' 1,865_%8.85 302. Lew amwM peNlhynar ODrtwnr (Ow 22D) 1!81,1%.5 0 6D2 . lace nEwLCnbvrouµ Dw SeM1r(Nne 5201 1,]10,10].05 303. LABx1 ®FROY) 1 ^ TOI BORROWER: 318.]8).0 3 803 . OANII^ mOY) 1®TO)SELLER: 500,829.29 L_SFJ;lEp~R' mM: rornLSUSUegolo:rvscop6fssroN: ~, _ , • .. ,:,, Poc. _;. &OSED OH PRILE{ 1,OSO.W0.00 p X° 5]3.000.00 ONISpN Oi COMMl48X]M 6HE ]DfIA4 FOLLGWB: PgIDfROM &OnROWEnSFUNOb qi 9Ei)LEMEHi Pqw FfWM BENER'b FLNOS AT T11, f 35.000.00 b PeRBax Req N>aletu sETRD1ENI ]02 S 3) OOO.D3 b Lrval Ru LLL )W Canmiubn wN al fawwnml iJ,000.00 l0A Wln Fee to RUUU ReeM/Nwc tO.W '®0:.11Ep5 PAVgsEENbfAlNECTI YBRILA4N. ,•s; ,.. ... .::. P.O.C. : :.:. .. ~.. . " 801. Loen IneNm Fee 803. ben WwuntFm 003. nWl Fee _ BOA CMIIR Dtl BDS. Lenten lna kn Fee BOS. M Innunwq ticnFm Bo). Naum Mon Fee BM. OwP Fee to l9l Penn BaM )50.00 0W. Floatl Cetl Fee ro ME PpnOW 12.00 _ 010. 811. 900:.ITEU4.REpURiD BY.1EBIDER, OEEPNON:ALVANOE 't',', 'i:' PDC, `' ' Itlayal 901. Inlenal Fmm to ®0key X 502 Moyc9e Inrvrand Pmmlum br MoMMaI la _ ~'J. Haxea lniunnm Pmmlum br Teanlfl to 9Jd. 905. 1000: REBFJ{VE$_OEPDSfrEDVAMLEMER.~ - :. 1wt. HavMlnaunnw mWUO3 enmwun 100]. Mollpage Inaurem2 manta p f W mnP 1003. LIIy PmpeMTam naNUpf pMmmN 1Wd. CBUn1Y PrvpwlyT a m+rMepf pmmN f ~mnNpf prmmn 1005. Nnuel Naeumenle 1a96 menwpf Pnmm:P - ICO). imwn.pf Pn~u _ 1MB. mmswps Pmm~N 1100 ~tiR1'E~GMCE6:.. ..,. , ,.;x. ~.. ..,.g4s ,.~ ~. ~ PD ., r cx ,~ r v ;.- flat. sewemenl or tloninBM tt02 " Nnlfna a We wPmM1 1103 Tllb ewminatlon 11w. nW luunMA Mxaa 1105 ppcumeM pnwr lim 1106 Nae fees b Bellbmenl OBker db.00 1000 110). gttom •Fam to Lsx gOmn GrNem ABMs 1J.B00.00 M'AMee low aam.meren.: 1 1108 Tltla lwurePCe bNalna bW RUOWka, Inu e,d38.01 - ryewnep>nll.n. nunene 1 _ 1108. Lenten wven 1500 W].CO _ 1119. owners cow s t,x]s,DOD.oo 1111. EW..loo, 3o0,nD to Nxlna L.W gaeoa.M.,bc 1w.o9 1112. Inaulatl Cba L tler b OM fle uMC Nelbnal TMM Ina. Ca. ]5.00 111]. Doc TIenMWin MFwfto Abs00a UM NfiMagS IIM. 80.00 ~~ 43001 G0yFAN1FNT•i£ IAIM.ANO CIWRfiF$. tPA C; . 1.: 1301. RewNln FroC. tl3 68.OOMOtl of )B OD Rebaseb 1d2W 13112 CI n IWaI Oe0tl5 18]50.00 0 10,)SOW I20J. Bleu laWalMn • 0.eC 1B )SO,OOMM e S 18,)50.03 1200. MwMNSgMmMaRenb to Ramtlerof Oeetla JS.OD 1305. ^See eNNetl lry beeMEOVm dd].00 1300-PWR~bNgk CW1RC£S',_ a ,fAO .~„ -.: V+. _ 1301. Survey 1302 PeM lnePoabn 1]03. RenUl lns eabnFU b Eact Pannabom TMSifMq 5)5.0] t30d. Tn LM FU Re IeemeM le Nslntl LVM NaMaea,lrc. 10W 1305. MNUtl ROW MpIMkm~EU le ImpMel GUeen UnMOwwM1Nan. 1,808.80 1308. 130). 1<W. )OTK SETREMEM)LINAGE51EnWm Ma10.1,bnllml-ne-an5W,8xbnlQ 38,850.01 109,02800 aw.uwao~ wllsfisfimlrnaz ESRFAKDOWN OF PAYOFF ON HUD LINE 504 \Aitl Penn Bank Deacrip6on Amount Principal Balance 1,163,635.57 Interest 4,238.59 ..Dank 500047477 Recording 77.00 Total Payoff 1,16],95246 total as Chown on HUD Ilnc 604. 1,167,962.16 Evox ninaer 01115B56aa1 MAZ HUD 1200 DETAILED BREAKDOWN OF GOVERNMENT RECORDING AND TRANSFER FEES Buyer Seller Amount Pmounl 1202. City 8 County Taz15[amps City TawStemps: Deed $10,750.00 Total as shown on HUD page 2 Line #1202 18,]50.00 Buyer Seller Amount Amount 1203. Stale TaxlStamps State Taz/Slamps: Deed S1B,750A0 Total as shown on HUD page 2 Line #1203 18,750.00 HUD 1205 DETAILED BREAKDOWN OF ADDITIONAL RECORDING AND TRANSFER CHARGE:i Dascrip0on 1208. Rewrtl Roatl Maintenance Agr. to Recorder or Deeds 1207. Racortl Secontl Amentlment to Recorder of Deetls 1208. Record Firs[ Amentlment to Recorder of Deetls Seller AmomR 217.00 109.00 37.00 Total as shown on NUD page 2 Lina #1205 4A3.00 ~'• .•. .. y~pw 4~1~0 ~ 'TMP4 ~~A~X NVNK ~ N N q 4i 3 4'V •ri 8 O o °,i o Y~ ~g m m~, m OYj u E `w ~2en 23 6 C 3g<~ Z Z 6 r a~~ 4_ 0 W w ~~ F~ } aC a c m e r C> Y" s M i [.~ fLl a Ill Q F O O M '. m O R! N N °o. 4i o 0 N r O r J a c d E S.r' O 0 NW W d r °o 0 0 N N a c E N Y N (a e a LARRY HATTER P. O. BOX 1218 MECHAIVICSBURG, PA 17055 March 5, 2012 Mi. Sam Andes 525 N. 12~ St. Lemoyne, PA 17043 Dear Mr. Andes: Enclosed is the'final check in the amount of $8901.45 closing the "Queen's Court Settlement" acaount. Also enclosed is the final check closing the general working account in the amount of $6486.77. I delivered the tax returns prepazed by Martin Flannery to your office several days ago and this concludes the Queen's Court operation. Sincerely, .~ Larry L. Hatter Statement Queen's Court Settlement Account Initial Deposit Expenses: Patriot News PPL PA Am. Water PPL PA Am. Water Shenxin-Williams Lauer Electric Martin Flannery Acctg Estate Acctg Partnership Acctg 770.69 82.76 41.25 20.50 30.26 45.13 303.80 1920.00 920.00 $24,929.29 Less Total Expenses 4.134.39 Account Balance $20,794.90 Half of Balance to Larry Hatter $10,397.45 Less Legal Balance - 424.00 9,973.45 Plus Estate Accounting + 1.920.00 Balance Due to Lany~ Hatter $11,893.45 Half of Balance to Kathryn Hatter Estate $10,397.45 Less Estate Accounting -1.920.00 8,477.45 Plus Legal Balance 424.00 Balance Due to Kathryn Hatter Estate $ 8,901.45 MARTIN J FLANNERY & ASSOCIATES 430 N ENOLA DRIVE ENOLA PA 17025 717-732-2331 QUBENSCOURT C/O LARRY L HATTBR P O BOX 1218 IviBCHANICSBURG PA 17055 AS OF FEBRUARY 24, 2012 ACCOUNTING SERVICES ESTATI3 RELATED TAX CALCULATIONS 743 ADNSTMBNT5-RESEARCH $1,920.00 PREPARB PARTN$RSH1P RBTURN 920.00 TOTAL DUE $ 2.540.00 8 ~~~~ w~.a ~.P a ~ ~ ~~,~~ ~~"iT:'.. ~~ :,>(a~~~vC E'er n'~~~ 894 N River Rd ~ Halifax PA 17032 TemD-Retum Service Requested hNPEN ACCOUNT: DOCUMENTS-: ~~ ~u ~~~~u~~~~u n~~~u ~~~uu~~U~~~u ~~~~u~~u~~~~n~uu~~~ 003023 0.5200 AT 0.374 TR00016 ~~ °-_ Queens Court i C/O Larry Hatter PO SOX 1218 Mechanicsburg PA 17055-1216 30 0 0 **Mid Penn Bank is pleasedto offer overdraft protection options that can protect your account against unplanned overdrafts. Please contact us at 1-866-642-7736 ox stop by any of our convenient branch locations to discuss your available options.** . yV FREE BUSINESS CHKG ACCOUNT ~DDC1263 -~ DESCRIPTION - DEBITS CREDITS DATE BALANCE nn'[nur.E ..LASS ST~_..___-.-.-. •.-...-.-.-.-.-.-.-.-.-..,,.,-.-,-.,-.-.-r~.2 /-3.0%11 1?..,9-73.54- ~ -- BALANCE THIS 5TRTEMENT ............................... 01f3~1/12 12,973.54 TO'PAL CREDITS (0) .00 MINIMUM BALANCE 12,973.54 TOTAL DEBITS (0) .00 AVG AVAILABLE BALANCE 12,973.54 AVERAGE BALANCE 12,973.54 - - - ITEMIZATION OF OVERDRAFT AND RETURNED ITEM[ FEES - - - O N 0 0 0 ti 0 N O 0 O '1 O O O m O r1'-1 O N O rl ~~ W O pS• N **#**#***+**++*****k}+*}##***+#**}++}*+##}+#*#+******#**#*********************** * ~. ) TOTAL FOR I TOTF~I, I PREVIOUS * * I THIS PERIOD I YEAR TO DATE I YEAR TOTAL * TOTAL OVERDRAFT FEES: I .00 I .00 I .00 * TOTAL RETURNED ITEM FEES: I .00 I .00 I .00 Phone: 1.866-642.7736 www.midpembank.com PAGE: 1 XXX1263 01/31/2012 0 Member FDIC n°0:2b38n° C0 3 5 30880 7~: 950126~~~3~i' QUEENS COUIii Kathryn IE. Hatter Estate 1213 8 316/2012 Final Settlement of Accouht 6,486.77 5125 Form 1065 U.S. Return of Partnership Income OMB No. 1545-0099 Departmentdthe Treasury For calendar year 2011, or tax year beginning ,entling 2011 Internal Revenue Service - See separate instructions. A Prirx:ipal business edivity Name o<partnership D Employer ltlanUnwtion number LARRY L HATTER & KATHRYN E HATTER REAL ESTA'.CE Print UEENS COURT 23-2421823 B Prindpal protlud or service Dr Number, street, entl room a suite rw. tl a P.O. box, sae the insWdians. E Data business stadetl RENTAL type POST OFFICE BOX 1218 10/01/1986 C Business cotle number City or town, state, and ZIP cotla Total assets (see the Insiruclions) 531110 MECHANICSBURG PA 17055 s 0 G Check applicable boxes: (1) Initial return (2) ~X Final return (3) ~ Name change (4) QX Address change (5) ~ Amended return (6) Technical termination -also check (1) or (2) H Check accounting method: (1) X Cash (2) ~ Accrual (3) ~ Other (specify) - ...................................... 1 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 SchedulesCand M-3 are attached.._._...._ ...................._..................._.......___................. _....................... Caution. Include only trade or business income and expenses on lines to through 22 below. See the instructions for more information. 1a Merchant czrd and third-parry payments (including amounts reported on Form(s) 1099-K). For 2011, enter-0- ~ 1a 0 ~~ <`` "~. b Gross recesipts or sales not reported on line to (see instmctions) .. ~ ~ ~ , . 1b c Total. Add lines 1a and tb is ~ e '~'~'~~''~ s~~~>:<::: d d Returns and allowances plus any other adjustments to line 1 a (see instructions) 1 d ..,.. B e Subtract line 1d from line tc 1e ~ ~'~~~»~~:~: ` 2 Cost of odds sold attach Form 1125-A ~ . ~~ ~~ ~ ..~. •.. 3 Gross profit. Subtract line 2 from line to .................................................................. ........... 3 . 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) .............................. ........... 4 5 Net farm plro0t (loss) (attach Schedule F (Form 1040)) ................................................... ........... g 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Forth 4797) ...................................... ........... g 7 Other income (loss) (attach statement) ................................................................... ~ ........... 7 8 Total Income loss .Combine lines 3 throw h 7 g 0 9 Salaries and wages (other than to partners) (less employment credits) ................................. ............ g m . 10 Guarantet;d payments to partners ....................................................................... ............ 10 E = 11 Repairs aind maintenance 11 y 12 Bad debts .......................................................................................... . ip `0 13 Rent ...................................................................................................... ..... 13 2 14 Taxes anti licenses ...................................................................................... ............ iq 15 Interest 15 ~ 16a Depreciation (if required, attach Form 4562) 16a 30 57 9 ~`'s`--~`~ b Less depreciation reported on Forth 1125-A and elsewhere on return 16b 30 57 9 16c 0 w c 17 Depletion (Do not deduct oil and gas depletion.) 17 ~ 18 Retirement plans, etc. . ...... ig o ~ 19 Employees benefit programs ........ ..................................................................... ...... ........... 1g ~ d 20 ( j Other deductions attach statement ..................................................................... . ... . 20 0 21 Total deductions. Add the amounts shown in the far ri_ ht column for lines 9 throw h 20 .. . ....... ............ 21 0 22 Ordinary business loco a loss). Subtract line 2l from line8 ........................................ ... 22 Under penalties of perjury, I tledere that I have exeminetl this relum, indutling exampenylnp schedules entl statements, end to the best of my knoMedgo end belief, it is true, cpned, entl wmplete. Dedaration of praparar (dhar than general partner or limited liability company member Sign manager) is based o n ell' o xa(i tat has any knawletlge. May the IRS diswss this return Here p p g ;~ ' - ~tedIR~I~ ' with the preperer shown below see insWdions)7 ~ Yea ~ No Signature of general partner a limited liabiliry wmpeny member manager Dale PrinVTypa preparers name Preparers signature Dala PTIN Chedc tl Paid MARTIN J. FLANNERY 02 23/12 self-employed P00513282 Preparer Firm'snaine - MARTIN M. SACKS & ASSOCIATES FimisElN- 23-1979781 Use On ly Finn's adiiress - 4775 LINGLESTOWN ROAD HARRISBURG PA 17112 Pnoneno. 717-657-1300 For Paperwork Reduction Act Not(be, see separate instructions. Form 1065t2o11) DAA 5125 Form toss(zott) IUEENS COURT 23-24«82:3 Paget €i~~ctia":tft~~' Other Information t What type of entity is filing this return? Check the applicable box: Yes No a c X Domestic gtaneral partnership b Domestic limited partnership ~ Domestic limited liability company d ~ Domestic limited liability partnership ' ?s~~?~ y ~ ~ yl ~ ~- ~~ e Foreign partnership f Other - ' . ~~~>`~~~`^' ~~'~'?'~ 2 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 3 ............... At the end of the tax year: ...... a Did any foreign or domestic corporation, partnership (incuding any entity treated as a partnership), trust, or taz-exempt orgldnization, or any foreign government own, directly or indirectly, an interest of 50°/a or more in the proft, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attelch Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . ... . . . . . . .. . . ....... . . ... . . . . .... _ .. , , . }{ b 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 4 At the end of the tax year, did the partnership: a Own directly 2CI% or more, or own, directly or indirectly, 50°/a 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,"cem lete (i. throw h iv below ......, ................. ...... _ .. .... X (p Nama of Corporation (III Employer Identification Number (d airy) (all Country ~ Irwon~Oratlon IV ( I Percentage Ownetl in Votirg Stack b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50°/a 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 tnlst7 For rules of constructive ownershi ,see instructions. If "Yes," com lete (i) throw h (v below . . . ..... . : . . . . ..... . . . . .. . . X (q Name or Entity (111 Employer Itlen~cation Number if an li T ( 1 YPe of Entity (iv) Country of Organization (v) Maximum Percerdaga Owned in prom, LOSS, or Ce dal Farm 1065 (zot f ) oan 5125 Form toss (tot t) (IUEENS COURT 23-2•.. _8:?3 Page3 Yes No 5 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 . X ... .... 6 Does the partnership satisfy all fourof the following condifions7 a The partnershif s total receipts for the tax year were less than $250,000. b The partnershif s total assets at the end of the tax year were less than $1 million. c Schedules K-1 are fled with the return and furnished to the partners on or before the due date (including exlensions)for the partnership return. ~ d The partnership is not filing and is not required to file Schedule M-3 X 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. 7 Is this partnersni a ubliG traded artnershi as defined in section 469(k 2 ? X 8 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the prtnGlPal amount of the debt? .. .............................. . .... . X 9 Has this partnership fled, or is it required to file, Fonn 8918, Material Advisor DisGOSUre Statement, to provide information on env reportable transaction? X 10 Ai any time during calendar year 2011, 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, secud8es account, or other financial account)? See the instructions for exceptions and filing requirements for Fonn TD F 90-22.1, Report of Foreign Bank and - Financial Accounts If "Yes "enter the name of the foreign country. - X 11 At any lime during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If'Nes;'the partnership may have fo file Form 3520, Annual Return To Report Transactions VJth Foreign Trusts and Receipt of Certain Foreign Gitis. See InsW Gions X 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election? _ . _, .. , , . , . X See instructions for details regartling a section 754 election. b Did the partnership make for this lax 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 _.... _:IEE.. STATEMENT. , ,1. , , X c Is the partnership required to adjust U1e basis of partnership assets under section 743(b) or 734{b) because of a substantial built-in loss (as defined uMer section 743(d)) or substantial basis reduction (as defined under section _ -- 13 Check this bor: if, during the current or prior tax year, the partnership distributed any property received in a Fke-kind exchange or contribute8 such properly to another entity (other than disregarded entities wholly-owned by the partnership~throughout the tax year) .. ........ .......... - 14 At any lime during the lax year, did the partnership distribute to any partner atenancy-in-common or other 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 17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached I l 18a Did you make any payments in 2011 that would require you to file Form(s) 1099? See instruGions ............................................. X b I("Yes," did you or will you file all required Form(s) 1099? ................................................................ X 19 Enter the number of Form(s) 5471, Information Return of U.S. Persons With RespeG To Certain Foreign 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 Idenrdying ' designated ~ number of TMP TMP If th TMP is en , Pb numher Oe / emit ,name T n Address of DAA Ponn 1065 (zott) 5125 Fonn 1065 (2011) pUEENS COURT 23-24__823 Page4 ':...G.::~$~., t1.t.Af`:., s Partners' Distributive Share Items Total amount 1 Ordinar/ business income (loss) (page 1, line 22) ............................................................... 1 2 Net rental real estate income (loss) (attach Form 8825) ......................................................... 2 23 937 3a Other gnoss rental income (loss) 3a b Expenses from other rental activities (attach statement) 36 c Other net rental income (loss): Subtract line 3b from line 3a ~~ .................................................... ~3c~~~ H 4 Guaranteed payments ....................................................... q J 5 Interest income 5 .................................................................................................. y 6 Dividends: a Ordinary dividends _ ................................... .................. 6a ~ _.. ::: b Qualified dividends 6b ~ : qtr ..,, ;_::, v 7 Royalties........... _....... _ ............. . .................................................................. 7 ~ .. 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) g 9a Net long-term captal gain (loss) (attach Schedule D (Form 1065)) 9a b Collectibles (28%) gain (loss) gb ~- c Unrecapturedsection1250gain(attachstatement) SEE STATEMENT 2 9c 673 436 10 Net section 1231 gain (loss) (attach Form 4797) . .................................................... 10 1 5 7 6 8 4 8 11 Other income (loss) (sea instructions) Type- 11 rn 12 Section 179 deduction attach Form 4562 ~ p 13a Contributions ................................................................................ 13a b Investment interest expense ..................................................................................... 1 3b ~ a c Sectior: 59(e)(2) expenditures: p (1) Type - ........................................... _ ....................................... (2) Amount - i7ct4) d Other deductions (see instructions) Type - 13d i; 14a Net earnings (loss) from self-employment ............................. 1qy ~:- o. c v b Gross (farming or fshing income .................................. ............................................... 14b inw E c Grossinonfarmincome .,,.,,.,_..._,,..,,,,__...__, 14c 15a Low-income housing credit (section 426)(5)) ......... .. _ ...... .. .......... _ _ . _ .... 15a b Low-income housing credit (other) ................................................................. ............ 15b c Qualifed rehabilitation expenditures (rental real estate) (attach Form 3468) .................................... 15c ~ d Other rental real estate credits (see instructions) Type - 15d U ......................_ ............ e Other rental credits (sea instructions) Type - ...................................... 15e f Other credits (see instructions) Type - 15f 16a Name of country or U.S. possession - ::;!':::~::s: m ......................................................................... b Gross income from all sources .:.16b~ ~ p c Gross income sourced at partner level ........................ _ ................................................ 16c Foreign gross income sourced at partnership level m N d Passive category - e General category - f Other - ... ......... .... ...... ....... 16f m Deductions allocated and apportioned at partner level :.<;:;:y:r t- 9 Interest expense- .................................. h Other - ........... 16h ~ Deductions allocated and apportioned at padnership level to foreign source income 'r;;; ~'~.:%~ '` i Passive cafe o - 9 ry .......................... J Generalcategory- ...............,..... k Other - .,:.:..:... ~~~~~~~~~~ 16k LL I Total foreign taxes (check one): - Paid ~ Accrued ~ ,. _.. 161 m Reduction in taxes available for credit attach statement ( ).._ ........................... 16m ._......._............ n ter oreign tax in onnation (attach statement) ~~ :a!i;: .:.,,;:., sc;:.,....o:........r :..:::..:.:.:::.:.:.. ,:. st2st;^>r;:.;.;yr:uu;!i:;;;rs ~ ...... n;:. x 17a Post-1986 depreciation adjustment 17 9 4 2 2 ....................................................... ............. a ~ f•- ~ b Adjusted gain or loss ......................................................... ............ ~ ~ ~ ~ ~ ~ ~ ~ 17b -2 6 4 4 67 :; c DepleP.ion (other than oil and gas) 17 ~ ............................................................................... 0 ` ~ F, d Oil, gays, and geothermal properties -gross income ~~ 17d :;,cam a Oil, gas, and geothermal properties-deductions 17 Q ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~~~~~~~~~-~~-~~~~~ e Q ~ f Other AMT items (attach statement) ............. 17f r_ 0 18a Tax-e;cempt interest income ..................................................................................... 18a ;~ ~ b Other tax-exempt income ............................................................ _.................. _...... 18b ~ c Nondeductible expenses ......................................................................................... 1 8c p r 19a Distrit~utions of cash and marketable securities _ ...................... ~ ~ ~ ~ ~ ~ ~ ~ 19a 5 9 8 5 6 4 e b Distributions of other property ................................................................................... 19b y 20a Investment income ............................ _ ................................................_ ............... 20a 0 b Investment expenses 20b ...................................................... c Other items and amounts (attach statement) ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ '~`~~'^~ e:._:;::>xr~^:~°»~~:«~>:.,:>;•.~~~..:,,.. onn Form 1065 (20„ I 5125 Form 1065 1 Net income (loss). Combine Schedule K, lines 1 throw h 11 From the result subtract the sum of S I 2 Analysis by partner type: a General partners E • c,~JuleK lines l2tluuu n too,anDtot t 1 bUU /tSS (II) Individual (iii) Individual v (i) Corporate active (iv) Partnership ()Exempt (vl) ( ) (passive) organization Nominee/Other 804 754 796 031 alanco Shook nor RnnLc n__:__:__ _~.__ Assets 1 Cash ......................................... 2a Trade notes arld accounts receivable b Less allowance for bad debts ............... 3 Inventories ................................... 4 U.S. government obligations ................ 5 Tax-exempt securities ...................... 6 Other wnent assets (enaM stetemanp .............................. 7a Loans to parNer.> (or persons related to partners) b Mortgage and real estate Loans ............. ONer investments (anadi statement) .............. .... ........... .. 9a Buildings and other depreciable assets b Less accumulated depreciation ............. 10a Depletable as:oets ........................... ti Less accumulated depletion ................. 11 Land (net of any amortization) ............... 12a Intangible assets (amortizable only) b Less accumulated amortization ............. OMar assets (anach statement) ................................. 14 Total assets ................................. Liabilities and Capital 15 Accounts payable ........................... 16 Mortgages, note:;, bonds payable in less Nan 1 year 17 Other anent liabilities (anech statameM) ............................ 18 NI nonremurse loans ............................. 19a Loans from padners (or persons related to partners) b Mortgages, notes, Iwntls payable in i yeaf a more zo Olherliabilities SEE STMT 3 (mach slalamenq ................................. 21 Painers' capital accounts 22 Total liabilities and capital .................. 1 tn0 O1 taX tteconcil~iation of Income (Loss) per Books With Income (Loss) per Note. Schedule M-3 may be required instead of Schedule M-1 )sew incrn valnncl 1 Net income (lass) per books 1 6 0 0 7 8 5 6 Income recorded on books this ear not in l d d 2 Income included on Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not rewrded on books this year (itemize) :................................. . ........................................... a y c u e on Schedule K, lines 1 through 11 (itemize): Tax-exempt interest $ ........................... ................................................... arant d U ............................... .................... ee payments (o er Nan healN insurance) .... 7 Deductions indudetl on Schedule K lines 1 Nrou h 13d 4 b Expenses recorded on books Nis year not included on Schedule K, lines 1 through 13d, and 161(itemize): Depredation Travel antl '""""""""""""" anedeinmenl $ .............. ............. a , g , and 161, notch arged against bookinwme this year (itemize): Depreciation $ ................................................... ........................................... 8 Add lines 6 and 7 ................................ ~ ~ ~ ~ ~ ............................ 9 Income (loss) (Analysis of Net Income 5 9C Add lines 1 throw h 4 ............ °. ' 'uI~Aj~!.`+ Anai sis of Partn ers' 1 60 0 7 8 5 Ca ital Accoun ts Loss line t .Subtract line 6 from line 5........ 1 6 0 0 7 8 5 1 2 Balance at beginning of year Capital contributed: a C h -1 002 221 6 Distributions: a Cash ~""""~"'~~~"~""~~" 598 564 as ........... b Property b P t ....................... roper y s 4 Net income(loss)perbooks ............. 1 600 785 7 Other decreases SEE; STMT otheriruxeeaee SEE STMT 9 (itemi:ac .................. .. ... .... OS 34 5 (Itemize) :........... .......................... 505 345 ,. 505 345 5 505 345 6 ...... Addlines6and7 5 Add lineslthrou h4 ~""~"~~~~'~` '~ 1 103 909 . ....... __ ........ 10 3 9 0 9 9 Balance at end of veer. Subtract line a rrn,n hno s n ~ 823 Pages inn Form 1065 (2011) 5125 F $$25 J rt al Keal tstate Income ana txpe. a or a orm Partnershi or an S Cor oration p p OMB No. 1545-1}g6 Rev. December 2010) Department of the Treasury - See I nstructlons on back . Internal Revenue service - - Attach to Forth 1065, Form 1065-B, or Form 1120$. Name Employer Itlentincetion number UEENS COURT 23-2421823 1 Show the type and address of each property. For each rental real estate property listed, report the number of days rentetl et fair rental value and da s with ersonal use. See instructions. See a e 2 to list additional ro erties. Physical address of each property-street, city, Type-Enter code 1-8; Fair Rental Days Personal Use Days state, ZIP code: see pa e 2 for list CONDOS 41-76 QUEEN STREET ... .... .... . . . A .._...__ ............... _......... _........... ........_........ ENOLA PA 17025 ~~~~~~~ .......... _.......... ~~~~~~~~~~~~~~~~ 2 ...._............. .. . . .. .. MULTI-FAM RESIDENCE B _ .................................................... _............ _ ........ ........................................ ..................... ..........._ ....... C .................................... _.......................... _ ............ ....................................... ....................... _................. D ............................................. _............. _ ................ ........................................ ......................................... Pro e rties Rental Real Estate Income A B C D 2 Gross rents 2 199 260 ,,. .._ _._ .._.. Rental Real Estate Expenses 3 Advertising : 3 2 711 4 ............... ............ Auto and travel 4 5 ., .. ,,,, Cleaning and maintenance 5 6 Commissions 6 7 Insurance 7 7 790 6 Legal and other professional fees 6 10 837 9 ..,, Interest 9 66 768 10 .............................. Repairs 10 32 532 11 ............................... Taxes 11 9 668 12 Utilities 12 10 437 13 ................................ Wages and salaries 13 14 Depreciation (:aee instructions) 14 30 57 9 15 .... Other (list) - ....................... . SEE STATEMENT 6 15 4 001 ........................................ 15 Total expenses for each property. Add lines 3 through 15 16 17 S 32 3 17 lncome or (Loss) from each properly. Subtract line 16 from line 2 17 23 937 1$a Total gross rents. Add gross rents from line 2, columns A through H 18a 199 2 60 b Total expenses. Add total expenses from line 16, columns A through H 18b 17 5 32 3 19 Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real estate activiti es 19 20a Net incmme (loss] from rental teal estate aUivities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from Schedule K-1) 20a b Identify below the partnerships, estates, or trusts from which net income (foss) is shown on line 20a. Attach a schedule if more space is needed: '~%`~~ (1) Name (2) Employer identi fication number <,~>'^: _;;~;>~:; ~'~y. ~,,,....<;y r::.>. : 2 1 Net rental estate income (loss). Combine lines 18a through 20a. Enter the result here and on: 21 2 3 9 3 7 • Form 1065 or 11205: Schedule K, line 2, or ~ z2::: ~(:'s;%33;#a~€ut«<tf;>`,:.g;<;i;,, ~` • Form 1055-B: Part 1 line 4 a. ~ ~ . i a ... For Paperwork Reduction Act Notice, see back of form. Forth 8825 <12-20101 ora 5125 SCHEDULE B-1 Information on Partners Owning .,t)°/> or (Form 1065) OMB No. 1545-0099 (Rev. December 2011) More of the Partnership Department of the Treasury - Attach to Form 1065. See lnstructlons on back. Inlemal Revenue Service Name of partnership Employer Itlenlificatlon number (ElN) UE~ ENS COURT 23-2421823 FarE'1 :; 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 corporaBon, partnership (including any entiry'~:reated as a partnership), trust, taz-exempt organization, or any foreign government that owns, directly or indirectly, an interest of 50°/a or more in the profit, loss, or capital of the partnership (see instrucions). (i) Name of Entity (ii) Employer IdenGOwrion Number (if anY) (v) Maximum liv) Percentage Owned (iii) Type of Entiy Country of Organization in Profl, Loss, or Capital i[t,~11` 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 M Indiv'Wual or Estate Qi) Idenliylrg Number (H any) (iii) CounVy of Citizenship (see ins°uctions) (iv) Maximum Percentage Owned in Profit, Loss, or Capital KATHRYN E. HATTER 181-42-8628 UNITED STATES 50.000000 LARRY L. HATTER 168-36-6974 UNITED STATES 50.000000 THE ESTATE OF KATHRYN E. HATTER 36-7587675 UNITED STATES 50.000000 For Paperwork Reduction Act Notice, see the Instructions for Form '1065. Schedule a-7 (Form 1065( (Rev. 12-10t1) DAA 5125 Farm 4562 ~epenment of the Treasury Intamal Revenue Service Name(s) shown on return Depreciation and Amortizatio,. (Including Information on Listed Property) Idantlfying number 2011 Business or activity to which this form relates CONDOS Pa~t.E€'; Election To Expense Certain Property Under Section 179 1 Maximum amount (see instructions) - ...................................................:................................. 2 Total cost of section 179 property placed in service (see instructions) ................................................... 3 Threshold cost of section 179 property before reduction in limitation (see instructions) .................................. 4 Reduction in limitation. Subtract Ilne 3 from line 2. If zero or less, enter -0- ............................................. q (al uescnpuon m prapeny I (b) Cosl (business use only) (c) Elected mst [ ' " -~ -- `~ ~ ~' 7 Listed property. Enter the amount from line 29 i 7 ............................................... 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 2010 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 Note: Do not use Part II or Part III belpw for listed property. Instead, use Part V. €lx~T#14%> Special Depreciation Allowance and Other Depreciation tDo not include Ilsted ro art . See instructions 14 Special depreciation allowance fdr.qualified property (other than listed property) placed in service during the tax year (see instructibns) ..................................................................................... 14 15 Property subject to section 168(fiJ(1) election ............................................................................. 15 Seaton A 17 MACRS deductions for assets placed in service in tax years beginning before 2011 ..... .... . .. . ... 17 3 ~ ~'j 9 18 H you are electing vo group arty assets plecatl in service during the tax ear into orw or more e a I e sat a I-~I ~ ~ ~"^5'~"~'="' Y 9 n 2 s eeounts chedch ~ I! <ei;:..~:::6::><:r.:z:a•~<:::y..<,,.;;-:::.;^-- N..~„::';i^>~iuejX:~ is j:<^: Section B-+ASSefs Placed in Service During 2011 Tax Year Usina the Genrrar nr.nronhN,.n s„~re... (b) Month end year (c) Basis for depredation Id)Remvery (a) Classifwtion of pmpeny placetl In (business/lnvestmenl use a Comenlion O 10 McNod (g) DapraGalion detludion service onl -see insWCtions Period 19a 3-year grope b 5-year propert <»~(>~»s :;~sl^i„i%" ~~`~' ~~`' ~ c 7-Year Dropert ` "'`" d 10 '~~',t.~: - ear ro er e 15-year Prope ??g>~;c~;iws~ :i%%:,::! f 20-year propert ~`-'~~`~`~~' _ g 25-yearpropel 25 rs. S/L h Residential rental 27.5 rs. MM S/L property 27.5 rs. MM S/L i Nonresidential real 39 rs. MM S/L property MM S/L _ aec[IOn G-FASaetS YlaCeg In Service UUrtng 2011 Tax Year USIng the Alternative nnnreelarlnn sv~re... 20a Class life ~~;?'~s~~si%~u<.:`:"+>'."~ _ __ b 12-year ;;ifi,~c~ ~'3n' ] 12 vrs. S/L .' c,. _.40.xear _ 4n vie noon S/L __ _ 21 Listed property. Enter amount from line 28 ............................................................................... 22 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 Scorporations-see instrudionsT ... ... ....... 23 For assets shown above and pldced in service during the current year, enter the I I 7 For Paperwork Reduction Act Notice, see separate Instructions. roan 4562 (2of f ) DPA 5125 QUEENS COURT 23-2421823 Farm 4562 (201 t) Pege 2 Note: For any or rate or deducting lease expense, complete only 24a, Section A-Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) ve •i.. ou nav Goa su Hare ou e evicen r ~• ~-- ~--~~- ~~_ -~~ ~~~~~~ ~~~ i i a ` ' b ° I) ll tl i•1 10 - Igl Ih) PI Type of property Date placetl ausinessl investment use Cost or other basis assts for de recialion P Remve rY Metriotl/ De racialion P ElecteG Section 179 (list vehicles first) {n. service percentage Iwsin Imanl 1 r panotl Corrvernien deduction COSI only) use 25 Special depreciation a the tax veer and used llowance for qualified listed property place more than 50°/a in a qualified business use d in service during (see instructions) ... ............. ....... 25 `^~~`~^~`(~ ~~~~~?`~>'' %:x ~'%:'~:~~:::;:.,:,,: ~~:,: 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, 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°/a owner," or related person. If you provided vehicles t f' th C S cf C t 'f t n ce fo to com letin this section for those vehicles o your employees, first answer a ues ions m e ion o see I ou mee a ex I n (a) (b) Ic) (d) (a) (f) .0 Total business/investment miles driven during VehiGel Vehicle2 Vehitle3 Vehicle4 Vehicles Vehicle6 the year (do not include commuting miles) Si Total commuting mites driven during the year 32 Total other personal (noncommwting) miles driven 33 Total miles driven during the year. Add lines 30 through 32 ........................................ 34 Was the vehicle available for personal use Yas No Yes No Yes No Yes No Yes No Yes No during off-duty hours? ............................... 35 Was the vehicle used primarily toy a more than 5% owner or related person? 36 Is another vehicle available for ersonal use? .. Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5°/a owners or related perspns (see instrudions). 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes No your empbyess7 ........................... _ .............. _ _ .............. _ ................................ _ ....... _ .... _ ......... . 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1 % or more owners ............................. 39 Do you treat all use of vehicles by employees as personal use? ......................................................................... 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? ................................................................................. 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) ............................... Note: {f your answer to 37 38 39 40 or 41 is "Yes " do not complete Section B for the covered vehicles. (b) (c) IdI Amortezation Iq 1•) Dale am°rt'vation Amortizable amount Code setlion period or Amohizalion rw tMS year Deasiption of wsis begins perrsnWge 43 Amodization of costs that began before your 2011 tax year .. ...................... ..................................... pqA Form 4562 (2011) 5125 Form 4797 Department of Ne Treasury Internal Revenue Service Name(s) shovm on return Sales of Business Property (Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2)) Identirying number 2011 1 Enter She gross proceeds from sales or exchanges reported to you fof 2011 on Fonn(s) 1099-B or 1099-5 (or substitute statement) that you are including on line 2, 10, or 20 (see instructions) ... ,.. , , , „ _ 1 ~1~?t[~; Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than C,aSUaltV Or Theft-Most Property Held Mnre Than 1 Vaar Icaa inctriirfinncl la) Desuiption (b) Date acquiretl (c) Date sold Idl Gross (e) Depreciation allosetl or (f) Cost or other basis plus lgl Geln or loss ( ) 2 or property (mo., tlay, yc) (mo., day, yr.) sales pace alloxable since , improvements end Subtract (f) from the ac uisition ex ense of Sale sum of (tl) and (el 3 Gain, if any, from Form 4684, line 39 ............................................................. g ....................... 4 Section 1231 gain from installment sales from Form 6252, line 26 or 37 q 5 Section 1231 gain or (loss) from like-kind exchanges from Form 8824 ............................ . . 6 .. .. ................ 6 Gain, if any, from line 32, from Mher than casualty or theft ................................ 6 1 5 7 6 8 4 8 .............................. 7 Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: 7 1 5 7 6 a 4 8 Partnerships (except electing 3arge partnerships) and S corporations. Report the gain or (loss) follovring the 4gr;;::,:gl.st_sr>_e instructions for Form 1065, Schedule K, line 10, or Form 1120S Schedule K line 9. Ski ~ p Ilnes 8, 9, i t, and 12 below. %~%'€:irr)''?' . ~`:'!~s?'' • ';ii`? Individuals, artners, S cor oration shareholders and all o P P thers. If line 7 is zero or a loss enter the amount from m~: .,;,;_;; s. n:n>kn.:::in:a %~:~:`~~Y~'%~'`:~1:g%~a:;sx:,..,::, , tin e 7 on line 11 below and skip Oines 8 and 9. If line 7 is a ain and ou did not have an i 9 Y y pr or year section 1231 <"">"SdNS??~' '^=€~x ~ ~~ra..:::.:~:.,,t,:.. losses, or they were recaptured in an earlier year, enter the gain from line 7 as a Ion -term ca ital ain on the 9 P 9 •:,., : ~ ~'":'<a_%^x~::< :>`s ~~a>:N <~F Schedule D filed with our return and ski Y p hoes 8, 9, 11 and 12 below. ~~ . ,.~y.:: ,..:.... M M`~~`^`:'~?~'xx:':°?!s~-?!`r:<st~'~<f<::'>~ ; : , 8 Nonrecaptured net section 1231 losses from prior years (see instructions) ............................................. ~,~ ~g ~~ ~~ :.,.,,,....,,_.,;;, ;;,;, .ttt. ~::arc:o~:=„ ~~ . 9 Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero enter the gain from line 7 on line 12 below If line , . 9 is more than zero, enter the almount from line 8 on line t2 below and enter the gain from line 9 as a long-term capital oain on the Schedule D Ailed with your return (see instructions) ............. 9 ':::~::ca!7:i34ri:?: vruurary •aauls gnu wsses Isee Ir15IfUCTIOn51 11 Loss, if any, from line 7 .........._ .............................................................. _....................... 11 ) ( 12 Gain, if any, from line 7 or amount from line 8, if applicable _.: ~ .......................................................... 12 13 Gain, if any, from line 3l ,...,. ........................................................................................ 13 14 Net gain or (loss) from Form 46'84, lines 31 and 38a ................_ ................................................... 14 15 Ordinary gain from installment sales from Form 6252, line 25 or 36 ............. ....................................... 15 16 Ordinary gain or (loss) from like-kind exchanges from Form 8824 .. _.. ,,..,. 16 17 Combine lines 10 through 16 .,... _... 17 18 For all except individual returns, enter the amount from line 17 on the a ro riate tin pp p e of your return and skip lines a z?«>>t<t)»I%'zo"'€~~'~"1~"s'c~ • .. r.% ,.:t::z;>: and b below. For individual returns con lets lines , P a and b below: >:~i:=: ~::;°~:;r;~t: ~~:. c<z:'a ax £ G `~<`!n a If the loss on I!ine 11 includes a loss from Form 4684 tin e 35 column (b)(ii) enter that part of the loss here Enter the n , ,;.::::«.;:..::.. .< %~~r'~,~"<....:~~ant.>:a~.e> "'"'~'~`'~~~~ ~ ~ ~ , , . x'1 ~ ~ ~~ :%?f''!aisrt'~`: 6`` a<~° ~k:`:::wiu:i"ti`' part of the loss from income-producing property on Schedule A (Porto 1040), line 28 and the art of the loss from . ~~ =~un~~'~°~%a <~r:<'!'> , p operty used as an employee bn Schedule A Form 1040 lin 23 Id ti f f "F ( ) " : <>' `?<?» e . en as rom , y orm 4797, line 18a. See :. .. ::..::..~.:..:: ~::.,.:.:;., , ....:....:........ :..........`~::~;~:.:: instructions ......._ ...................................._................................................................ 18a _ b Redetermine the oain or (loss) on line 17 exdudino the loss if env on line 18a Enter here and on Form 1040 line 14 18b For Paperwork Reduction Act Notice, see separate instructions. Form 4797 (2ott) Da, 5125 PF 1 OF 1 Form 4797 (2011) QUEENS COURT 23-2s. X823 Paae2 !ipar#[t~' Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255 (see instructions) 19 (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: Ibl Date arquiretl (mo., tlay, yr.) (c) Dare som (mo., Oay, yr.) A SALE OF QUEEN AVENUE VARIOUS 11/30/11 r6 c D These columns relate to the ro ertiesonlinesl9Athrou h19D.- Pro e A Pro a F3 ~.~Pro e C Pro e D 20 Gross sales price (Note: See line 1 before completing.) 20 1 8 7 5 0 ~ O 21 Cost or other basis plus expense of sale ....................... 21 1 17 1 5 8 8 22 Depreciation (or depletion) allowed or allowable ............... 22 8 7 3 4 3 6 23 Adjusted basis. Subtract line 22 from line 21 ................... 23 2 98 152 24 Total ain. Subtract line 23 from line 20 ........................ 24 1 57 6 8 4 8 25 If section 1245 property: a Depreciation allowed or allowable from line 22 ................. 25a b Enter the smaller of line 24 or 2 a ............................. 25b 26 If section 1250 pro~,perty: ° s°aigtrt Ilne depreuarion was useo, enter -0- on line 26f1. except for a corporation sublect ro section 291. a Additional depreciation after 1975 (see instructions) ........... 26a b Applicable pertentage multiplied by the smaller of line 24 or line 26a (see instructions) ................................ 26b c Subtract line 2ria from line 24. Ifresidential rental property or line 24 is not more than line 26a, skip lines 26d and 26e 26c d Additional depreciation after 1969 and before 1976 ............ 26d e Enter the smaller of line 26c or 26d 26e f Section 291 amount (corporations only) ........................ 26f _ g Add lines 26b, 26e and 26f .................................... 26 ~ 27 If section 1252 property: Skip this section if you did not dispose of farmland or if this form is being completed for a partnership (other than an electing large partnership). a Soil, water, and land clearing expenses ........................ 7a b Line 27a multiplied by applicable percentage (see instructions) 27b c Enter the smaller of line 24 or 27b ............................. 27c 26 If section 1254 property: a Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration costs, and depletion (see instructions) .................................................... 6a b Enter the smaller of line 24 or 28a ............................. 28b 29 If section 1255 property: a Applicable percentage of payments excluded from income under section 126 (see instructions) 29a b Enter the smaller of line 24 or 29a see instructions .. 29b D 30 Total gains for all properties. Add property columns A through D, line 24 31 Add property columns A through D, lines 25b, 260, 27c, 28b, and 29b. Enter here and on line 13 ................................................................................................. 32 Subtract line :S1 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from Recapture Amounts Under Sections 179 and 280F(b-(2) When Business Use (a) Section 179 33 Section 179 expense deduction or depreciation allowable in prior years ..................... 34 Recomputed depreciation (see~instructions) D0.4 321 1,576,84E to 50% or Less (b) Section 280F(b)(2) Form 4797 (20~ r ) Yesir Ending: December 31, 2011 23-2421823 LARRY L HATTER & KATHRYN E HATTER POST OFFICE BOX 1218 MECHANICSBURG, PA 17055 Election to Adjust the Basis of Partnership Property Under IRC section 754 and Regulation 1.754-1, the partnership elects to adjust the basis of the partnership property under IRC section 734(b) and 743(b). This election is made with respect to a d stribution of property to a partner or a transfer of an interest in the partnF:rship in the current tax year. /s/ STATEMENT REGARDING SECTION 743 ADJUSTMENT PURSUANT TO REG. 1.743-1(k)(1)(i) Transferor: Kathryn E. Hatter Name of Transferee: The Estate of Kathryn E. Hatter Transferee EIN: 36-7587675 Computation of Section 743 Adjustment: Fair Market Value of Partnership Interest <3t Date of Death $ 352,324 Liabilities .Assumed at Date of Death 598,845 Total fair Market Value of Partnership Property $ 951,172 Previously Taxed Capital $ (493,644) Partnership Liabilities 598,848 Total Basis in Partnership Property 105,204 Section 743 Adjustment $ 845,968 Assets to Which the Section 743 Adjustment is Allocated: ASSET AMOUNT Land $ 47,452 Building and Improvements 798,516 $ 845,968 NOTIFICATION TO PARTNERSHIP BYTRANSFEREE PARTNER OF TRANSFER OF A PARTNERSHIP INTEREST ON DEATH UNDER REG. 1.743-1(k}(2)(ii) Transferee Name: The Estate of Kathryn E. Hatter Deceased Partner: Kathryn E. Hatter Transferee Address: C/O Samuel L. Andes, Esquire Deceased Partner Address: C(O Samuel L. Andes, Esquire 525 North 12th Street 52.5 North 12th Street Lemoyne, PA 17043 Lemoyne, PA 17043 Transferee EIN: 36-7587675 Deceased Partner SSN: 1fl1-42-5628 Relationship between the deceased garter and transferee: - Estate of Deceased Partner Date of deal:h: 5/13/2011 Date transferee became the owner of the partnership interest: 5/13/;011 FMV of partnership interest at date of death or alternate valuation date: $352,324 How the FMIV was determined: Actual Property Sale on 11/30/11 Under penalties of perjury, l declare that I have examined this statement and to the best of my knowledge and belief, it is true, correct, and complete. Signed: Transferee Partner Date 5125 LARRY L HATTER & KPT`~RYN E HATTER 23-2421823 Federal Statements FYE: 12!31!2.011 Description SEE ATTACH];D STATEMENT Statement 2 -Form 1065 Schedule K, Line 9c - Unrecaptured Section 1250 Gain Description Amount UNRECAP SEC 1250 GAIN $ 873,436 TOTAL $ 873,436 Statement 3 -Form 1065 Schedule L, Line 20 -Other Liabilities Descri tion SECURITY DEPOSITS LOAN FROM PARTNER TOTAL Beginning of Year 19,933 560 $ 20,493 E=nd of Year Statement A -Form 1065, Schedule M-2, Line 4 - Other Increases _ Description TRANSFER OF CAPITAL TOTAL Amount 505,345 $ 505,345 Statement 5 -Form 1065, Schedule M-2, Line 7 -Other Decreases Description Amount TRANSFER OF CAPITAL $ 505,345 TOTAL $ 505,345 Statement 6 -.CONDOS -Form 8825, Line 15 -Other Description Amount OFFICE EXPENSE $ 435 COMPOTER EIXPENSE 177 BANK CHARGIES 1 POSTAGE 86 AMORTIZATION 3,300 TOTAL, $ 9,001 1-6 5125 Schedule K-1 2011 (Form 1065) Department of Iha Treasury For calentlar year 2011, or lax ~ ~ i Internal Revenue Service year beginniip entling 2 Partner's Share of Income, Deductions, ~* Credits, etC. - See back of form and separate Instructions. I 3 Final K-1 ~ an[letl K-1 OMinary business inwme (TOSS) 651111 OMB No. 1545-W99 15 I Cretlits Net rental real estate income (loss) Other nal rental inwma (toss) 16 Foreign Vensaclions o•~~ .}~~ . A V s[`!. ~a`W~.' 4:4~. ':rf' t't .~;~~ 4 Guaranteetl payments A Partnership's employer itlenligwtion number 2 3- 2 4 218 2 3 5 Interest inwme 8 Partnership's name, atltlrass, aty, state, antl 2IP mtle LARRY L HATTER & KATHRYN E HATTER 6a Ortlinary divitlentls QUEENS COURT POST OFFICE BOX 1218 6b nuah6adtli~iaentla MECHANICSBURG PA 17055 7 Royalties C IRS Center where paMership fle0 return OLDEN UT 6 Net short-term capital gain (loss) D ^ Check it this is a ublicl traded an hi PTP p y p nars p ( ) Fad it : lrifortrtatk+ii Ab4wtthe ~~rt ec' 9a Nat long-term capital gain (loss) 77 Alternative minimum tat (AMn items . ... n A 1 717 E Pertna~s itlantitying number 9b Collectibles (2B%)gain (loss) 181-42-8628 F PaMefs name, atltlresc, city, state, antl ZIP wde 9e Unrecaplured section 1250 gain KATHRYN E. HATTER 7o Nat section 1231 gain (lass) to Tax~xempt inwme antl C/0 SAMUEL L. ANDES, ESQUIRE nontletluctibla expenses 525 NORTH 12TH STREET tt other mmme poae) LEMOYNE PA 17043 ~ ^ G General partner w LLC Limited partner w other LLC member-manager member a ^ N Domestic paMer Foreign partner 79 Distributions I What Type of entity is Nis partna/7 INDIVIDUAL a semen t7s tladuction A 8 5 8 2 J Partner's share of proft, loss, antl wpitel (see insvuUions): Beginning Entling 13 Other tletlucticns ProfM1 _ 50.000000 %I 50.000000 % 20 Other information Loss 50.000000% 50.000000% caphal 50.000000 % 50.000000 % K PaMers share of liabilities et year antl: Norxemursa $ ... ...... ..... ........... ......... 74 SeH-employment eamirgs (loss) Qualifetl nonrewurse Mandng g .. ........ ......... Remorse g L PaMefswpitalaccountenalysis: 'See attached statement for additional information. Beginning capdal awount $ - 5 01, 12 4 .. .. ... ... ..... ......... CepXel convibuletl tludng the year g CurteM year increase (tlevease) ........ ....... .. $ 509. 706 ' } f ~ WigWrawels a distributions $( 8.582) ~ '' _._ ................ Entling capital acwunl $ 0 , ~ , O .......................... y N 8 Taz basis ^ GAAP ^ Section ]O4(D) Eook ONer (explain) ~ ~ ~ I 4 ' ' r M Ditl the enter mnvibuta ro rt with a built-' P p Pe Y in gain or IO567 0 ~ ^ Yes ~ No H'Yes," attach statement (see insWtliws) roc r•eparwonc neduchon Act Notice, see InsWCtions for Fortn 1065. Schedule K-1 (Porto 1066) 2011 DAA 5125 LARRY' L HATTER & KAT4RYN E HATTER 23-2421823 Federal Statements FYE: 12/31/2D11 KATHRYN E. HATTER 181-42-8628 Schedule K-1, Line 2 -Net Rental Real Estate Income Loss Description Type _ CONDOS MULTI-FAM RESIDENCE Amount 4,361 5525 O Final K-1 L •`.andatl K-1 Schedule K-1 2011 Pa`i~F;i.(~"-`~a;~~' (Form 7065) `" '`l~~d~?t;'f~tz.~.C.t~fti Department o(tne Treawry For ralentlar year 2011, or tax 1~ Ordinary business in.oma (bss) Internal Revenue Service year beginning aMilq 2 Nat rental real estate Inmme (loss} Partner's Share of Income, Deductions, * 11 969 _ Credits, etC. - See back of form and separate instructions. 3 Other net rental inwme (loss) 651111 OMB Nc. 1545-0099 16 I Credits 16 I Foreign tranaaGions ~~ .~`~~' t~~.:'. ~~~`~ j'{'a'tj(~~ '(s".tjt ~F 4 Ouarantaed payments A Partnership's employer itlantficetion number 2 3- 2 4 218 2 3 6 Interest income uty, state, and ZfP code 8 Partnership's name address , , LARRY L HATTER & KATHRYN E HATTER QUEENS COURT 6a ombarytlmidenee POST OFFICE BOX 1218 MECHANICSBURG PA 17055 6b Ouali(ed dividends 7 Royalties C IRS Center where partnership fletl return OGDEN UT B Net short-term capital gain (TOSS) D ~ Check if Nis is a Wblidy vatlad partnership (PTP) WarttC Jnfcartrta~tran~AbpwtfMe:Partner .:. , , . {._ 9e Net long-term capital gain (loss) 17 A Ntema6ve minimum tax (AMT( items 4 711 E Partnafs itlentifyirg number 168-36-6474 9b Collegibles (26%) gain (loss) B -132 234 F Pannefs name, adtlress, city, state, and ZIP cotle 9c * Unrewpturetl section 1250 gain 936 718 LARRY L. HATTER POST OFFICE BOX 1218 1o ti Net section 1237 gain (loss) 7 8 8 4 2 4 omarmnomapoa:) i$ iax-exempt income eiM nantletludibla ezpenses G U General partner or LLC memberananager H ~ Domestic partner I what type of entity is Nis paMef! IJ Limitetl partner or other LLC member Foreign partner 12 Section 179 tlatludion I 19 I Disbibutions J Partnefs sherfl of prufd, loss, end capital (sea insbvaionsp. E 13 Other tletluctions Beginning nding 000000 %{ 50 50 000000 ~ 20 olner fnformarion Provo . . Loss 50.000000% 50.000000% 000000 50 000000% 50 % . carol . K PaMefs snare of liabilities at year end Nonremurse ....... .. ................ ... $ . ..... 14 $al(9mplOyment earnings (rose) Gualifed nonrecourse financing $ ...... ..... .. ...... Recourse $ L PaMflta captal accoorn areyaia: 'See attached statement for addi tional information. Beginning capital account ......... .. . ..... ...... $ '- S O 1 . O 9 7 Capilat mnlribuled during the year S Curren) year inrreese (tlersease) 8 8 O O r 3 9 3 +~ ~~ ..... . wilhdrewala a tlialnbuuana ..... $ ( 2 9 9. 2 9 6 ) ~ I . ..... ..... . Entling rapilal account ........... . ....... . ..... . . $ O O 1 ` 1 ' 1 e Tax basis ~ GAAP ~ Section 704(b) book ~ 4 ~ Other (explain) 0 ~M Oitl the paMer mnVibule property wiN a builMin gain or loss? Yes ~ No K'Nes," a0ach statement (see inskuGions) For Paperwork RaductlOn Act Notlce, see Ins[mOOOna for Fortn 1666. DAA Schedule K-11FOrm 1066)2011