SECTION 704(c) BUILT-IN GAIN: ANNUAL RECORD CHECKLIST

Investor / taxpayer: ____________________
Operating partnership legal name: ____________________
Tax year: ____________________
Preparer: ____________________

CONTRIBUTION-DATE ANCHOR
- Contributed property description: ____________________
- Contribution date: ____________________
- Fair market value used in the contribution record: ____________________
- Adjusted tax basis at contribution: ____________________
- Initial built-in gain or loss shown by the partnership: ____________________
- Valuation / closing document location: ____________________
- Item M statement location: ____________________

ANNUAL K-1 PACKAGE
- K-1 package version and received date: ____________________
- Item N beginning net unrecognized Section 704(c) gain or loss: ____________________
- Item N ending net unrecognized Section 704(c) gain or loss: ____________________
- Partnership explanation for the change: ____________________
- Box 20 code AA amount and statement location: ____________________
- Related K-1 line items identified by the partnership: ____________________
- State schedules and supplemental statements received: ____________________

EVENT LOG
- Property sale or partial disposition notice: ____________________
- Property transfer or substituted-basis transaction notice: ____________________
- Distribution of contributed property to another partner: ____________________
- Distribution of other property to the contributing partner: ____________________
- OP-unit transfer, redemption or conversion event: ____________________
- Corrected or replacement K-1 package: ____________________

OPEN QUESTIONS
- Does Item N include contributed property, reverse Section 704(c), or both? ____________________
- Which allocation method applies to each property? ____________________
- What explains the annual Item N movement? ____________________
- Which current-year amounts were determined under Section 704(c)? ____________________
- Does any event require a separate Section 704(c), 737, basis, character or liability analysis? ____________________
- Preparer conclusion / follow-up date: ____________________

This educational organizer is not a tax calculation, return position or prediction of a sale, distribution, allocation, gain, tax-protection payment or tax result. Use the complete partnership records, instructions for the actual tax year and the investor's facts.