Investing in real estate is a key part of any investor's financial planning. Investments in real estate through limited partnership or limited liability company investment entities may provide many tax related benefits including:

• Potential for property appreciation over time.
  • Favorable long-term capital gain tax rates upon sale.
  • Possible tax-deferred distributions from excess mortgage refinancing proceeds.
• Distributions that may be partially tax sheltered resulting in increased after-tax returns.
• Tax deferral of gain on sale when proceeds are re-invested in other real property under 1031 like-kind exchange rules.
• Investment tax credits on qualifying expenditures for properties that undergo extensive improvements.
• Estate tax savings attributable to minority interest valuation discounts based on IRS acceptance of lack of marketability of non-publicly traded limited partner interests in real estate investments. Your tax adviser should be consulted before proceeding.

Not all Wien & Malkin investments provide tax advantage benefits.

Wien & Malkin's Strategic Capital investment program, which is structured as senior equity and/or debt at premium returns, does not provide the same tax attributes as our traditional real estate investments. Additionally, the tax benefit characteristics described above do not apply to investments in Wien & Malkin's Long/Short Funds, which provide ongoing alternative investment opportunities in liquid real estate and real estate related securities.

NOTE: A Private Placement Memorandum is the sole means for offering any Wien & Malkin sponsored investment to qualified and accredited investors registered with Wien & Malkin Securities Corp.

Diversifying your portfolio with investments in real estate can provide enhanced returns and more stability to overall portfolio performance.

However, all investments, including those in real estate, have risks. Therefore, a comprehensive evaluation and detailed review of all investment documents, including the private placement memorandum, should be undertaken before deciding whether to make such investment. Each investor should review his or her tax situation to determine if a contemplated investment is appropriate. Finally, because tax laws are subject to change, your accountant or tax adviser should be consulted before proceeding in any investment.

Calendar year federal individual income tax returns are due by April 15 of the following year.

The IRS recognizes that tax filing has become more complicated and offers an automatic 6-month filing extension to October 15 on IRS Form 4868 for taxpayers who have not received all their tax information to file by April 15. See Filing Extensions below.

Our goal is to provide our investors with accurate and timely Schedule K-1 tax information. Unfortunately, delays do occur as a result of changes in and complexity of the tax rules and, in some cases, from delay in our receipt of all required information to complete a tax return.

We now provide estimates of Schedule K-1 completion dates for many Wien & Malkin investment entities. Please log-in at INVESTOR SERVICES to view Schedule K-1 Issue Dates.

If you would like a copy of your Schedule K-1 sent to your accountant, please give us early notice by Clicking Here to provide your accountant's information.

Taxpayers who file an extension are not penalized provided their tax payments are timely made and total at least as much as the tax liability for the prior year. Taxpayers filing an extension for a joint return with an adjusted gross income greater than $150,000 must pay at least 110% of the prior year's tax liability to avoid penalties.

Taxpayers who do not have all of their Schedule K-1's or other tax information should go on extension by filing IRS Form 4868 and NOT file their personal income tax returns. The filing of a tax return with incomplete information may require the filing of an amended return and the possible incurrence of additional accounting fees.

For additional information, federal tax forms and form instructions see the Internal Revenue Service web site.

Investors should consult their accountant or tax adviser for estimated state income tax return filing requirements as each state has different rules. See Filing Tax Returns in Other States below regarding states requiring partnerships to make estimated tax payments on behalf of their non-resident partners.

States generally subject rental income derived from real property in their state to its income tax. Therefore, you should review filing requirements and estimated income tax payment rules for states in which you have a real estate investment.

Some states, such as New York and Connecticut, require partnerships to make estimated income tax payments on behalf of partners who are non-residents. The amount paid on behalf of such partners is indicated in a footnote to the Schedule K-1 and such payment should be taken by that partner as a credit on his or her applicable non-resident state income tax return.

New York exempts partnerships from making such estimated tax payments for its non-resident partners if the partnership receives a completed Form IT-2658-E from the non-resident partner. By signing the form, the non-resident partner agrees to comply with New York state's personal income tax return filing and payment requirements. Connecticut does not currently provide a similar exemption.