EFTA00604816.pdf

Caution: Forms printed from within Adobe Acrobat products may not meet IRS or state taxing agency specifications. When using Acrobat 5.x products, uncheck the "Shrink oversized pages to paper size" and uncheck the "Expand small pages to paper size" options, in the Adobe "Print" dialog. When using Acrobat 6.x and later products versions, select "None" in the "Page Scaling" selection box in the Adobe "Print" dialog. CLIENT'S COPY EFTA00604816  How Arc You Managing? J.H. COHN LLP 121.2 Avant...It& dInfrirm New York. NY 10036 ACCCOUS“ and Calcuttan% cap 1919 212-297-0400 fax 212-922-0913 totosulkoltniorst THE CORE GROUP MANAGEMENT, LLC ENCLOSED ARE THE ORIGINAL AND ONE COPY OF YOUR 2007 PARTNERSHIP TAX RETURNS, AS FOLLOWS... 2007 U.S. RETURN OF PARTNERSHIP INCOME 2007 NEW YORK RETURN OF PARTNERSHIP INCOME 2007 NEW YORK CITY RETURN OF PARTNERSHIP INCOME EACH ORIGINAL RETURN SHOULD BE DATED, SIGNED AND FILED IN ACCORDANCE WITH THE FILING INSTRUCTIONS. COPIES OF EACH RETURN SHOULD BE RETAINED FOR YOUR FILES. SINCERELY, JOEL BOFF NI \I \ INTERNATIONAL I.N. Cohn LIP is a mambo of Ntaia Inenaateonal a worldwide mooch of independent accourams and consulting Inns. EFTA00604817  2007 TAX RETURN FILING INSTRUCTIONS U.S. PARTNERSHIP RETURN FOR THE YEAR ENDING DECEMBER 33., 2007 Prepared for THE CORE GROUP MANAGEMENT, LLC Prepared by J.H. COHN LLP To be signed and A MEMBER OF THE LLC dated by Amount of tax NOT APPLICABLE Mail tax return DEPARTMENT OF THE TREASURY to INTERNAL REVENUE SERVICE CENTER CINCINNATI, OH 45999-0011 Forms to be ENCLOSED ARE COPIES OF SCHEDULE K-1 TO BE DISTRIBUTED TO THE distributed MEMBERS. to partners Return must be PLEASE SIGN AND MAIL AS SOON AS POSSIBLE. mailed on or before Special Instructions 710147 04-27-07 EFTA00604818 Farm 1065 U.S. Return of Partnership Income ems No. 1545-0089 Department al the Treasury Internal Revenue Service A Principal hearses' eclwnly For calenor yam 2091. w as yew Le:yelling ere?, . 3I0 ondog 2007 D Empbyer identification number Vee Vie HOLDING COMPANY:so. THE CORE GROUP MANAGEMENT, LLC Principal viaduct or savior. other- Number. street and mom or wile no. II a P.O. t...e the inswctiars. E Clete by wive. print 02/10/2003 HOLDING COMPANY; Cry F Total Meet* c Business code number re 0 Check applicable boxes: (1) Initial return (2) Final return (3) LJ Name change (4) LJ Address change (5) LJ Amended return H Check accounting method: (I) C Cash (2) M Accrual (3) 0 Other (specify) leo I Number of Schedules K-1. Attach one for each person who was a partner at any time dui* the tax year leo 9 J Check it Schedule M-3 attached Caution: Include only trade or business income and expenses on lines la through 22 below. See the instructions for more information. 1 a Gross receipts or sales 1a b Less returns and allowances lb 1c 2 Cost of goods sold (Schedule A, line 8) 2 Income 3 Gross profit. Subtract line 2 from line is 3 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach schedule) BEE $TATHMENT 1 4 <7,562,680. 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6 7 Other income (loss) (attach schedule) 7 8 Total Income (loss). Combine lines 3 through 7 8 <7,562,680. I 9 Salaries and wages (other than to partners) (less employment credits) 9 Deductions (see instructions for limitations) 10 Guaranteed payments to partners 10 11 Repairs and maintenance 11 12 Bad debts 12 13 Rent 13 14 Taxes and licenses 14 15 Interest 15 16 a Depreciation Id required, attach Form 4562) UM b Less depreciation reported on Schedule A and elsewhere on return 16b The 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc. 18 19 Employee benefit programs 19 20 Other deductions (attach schedule) 20 21 Total deductions. Add the amounts shown in the tar right column for lines 9 through 20 21 22 Ordinary business Income (loss). Subtract line 21 from line 8 22 <7,562,680. Vi4er Walla or wiry. I dodo,* that thaw examined this reiwn. Including aCC0mPallyMp eCheduleil end StOtowents. and to the beef of my knowledge and belief. It is true correct, and complete. Declaration of preen (cithw than genera partner or bilged babbly company mamba() b based on all blame:Ion of which papaw has any knowledge Sign May the IRS discuss this return Here wall the parer shown below Wee inst.)? rein ot general partner or herded liability company mama "UMW I bale El Yes ni Na Prepare''a Date . h Check d Paid McMahon setl.employed Ill. P Preparers Ffrrn.Song sf ira J . H. COHN LL P EIN Use Only engAdagdtm Phone nO al GOO For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 1065 (2007) 711001 JWA 12-27-07 EFTA00604819 Form 1065 (2007) THE CORE GROUP MANAGEMENT, LLC Page 2 Schedule A Cost of Goods Sold (see the instructions) 1 Inventory at beginning of year 1 2 Purchases less cost of items withdrawn for personal use 2 3 Cost of labor 3 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule) 5 6 Total. Add lines 1 through 5 6 7 Inventory at end of year 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 8 9 a Check all methods used for valuing closing inventory: (I) 0 Cost as described in Regulations section 1.471-3 (II) 0 Lower of cost or market as described in Regulations section 1.471-4 (III) 0 Other (specify method used and attach explanation)Ii. b Check this box if there was a writedown of 'subnormar goods as described in Regulations section 1.471-2(c) c Check this box if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) d Do the rules of section 263A (for properly produced or acquired for resale) apply to the partnership? 0 Yes 0 No e Was there any change in determining quantities, cost, or valuations between opening and closing inventory? Yes 0 No If 'Yes,' attach explanation. Schedule B Other Information 1 What type of entity is filing this return? Check the applicable box: Yes No a 0 Domestic general partnership b0 Domestic limited partnership e M Domestic imited liability company d 0 Domestic limited liability partnership e 0 Foreign partnership f0 Other gr. 2 Are any partners in this partnership also partnerships? X 3 During the partnership's tax year, did the partnership own any interest in another partnership or in any foreign entity that was disregarded as an entity separate from its owner under Regulations sections 301.7701-2 and 301.7701-3? If 'Yes," see instructions for required attachment SEE STATEMENT 2 X 4 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1XBgi) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details X Does this partnership meet all three of the following requirements? a The partnership's total receipts for the tax year were less than $250,000; b The partnership's total assets at the end of the tax year were less than $600,000; and c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return X If 'Yes,' the partnership is not required to compete Schedules L, M-1, and M-2; Item F on page 1of Form 1065; or Item L on Schedule K-1. 6 Does this partnership have any foreign partners? If 'Yes,' the partnership may have to file Forms 8804, 8805 and 8813. See the instructions X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? X 8 Has this partnership filed, or is it required to file, a return under section 6111 to provide information on any reportable transaction? X 9 At any time during calendar year 2007, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bark account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes," enter the name of the foreign country. Is. X 10 During the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If 'Yes,' the partnership may have to file Form 3520. See the instructions X 11 Was there a distribution of property or a transfer (for example, by sale or death) of a partnership interest during the tax year? If 'Yes,' you may elect to adjust the basis of the partnership's assets under section 754 by attaching the statement described under Elections Made By the Partnership in the instructions X 12 Enter the number of Forms 8865. Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return Pl. Designation of Tax Matters Partner (see the instructions) Enter below the general partner designated as the tax matters partner (TMP) for the tax year of this return: Name of Identifying designated 1MP ► JENNIE SAUNDERS number of TMP ► Address of ► designated TMP JWA Form 1065 (2007) Tiloli 1247-07 2 2007.07080 THE CORE GROUP MANAGEMENT, EFTA00604820 Form 1065 (2007) THE CORE GROUP MANAGEMENT, LLC Pane 3 I Schedule K I Partners' Distributive Share Items Total amount 1 Ordinary business income (loss) (page 1, line 22) 1 <7,562,680. 2 Net rental real estate income (loss) (attach Form 8825) 2 3a Other gross rental income (loss) 3a b Expenses from other rental activities (attach statement) I 9b I c Other net rental income (loss). Subtract line 3b from line 3a 3c 4 Guaranteed payments 4 Income (Loss) 5 Interest income SEE STATEMENT 3 5 4,748. 6 Dividends: a Ordinary dividends 6a b Qualified dividends I 6b I 7 Royalties 7 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) 8 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) 9a b Collectbles (28%) gain (loss) 9b c Unrecaptured section 1250 gain (attach statement) I 9c I 10 Net section 1231 gain (loss) (attach Form 4797) 10 11 Other income (loss) (see instructions) Type la. 11 12 Section 179 deduction (attach Form 4562) 12 Deductions 13a CoMnbutions SEE STATEMENT 4 13a 192. b Investment interest expense 13b c Section 59(e)(2) expenditures: (1) Type Illli. (2) Amount Ila• 13c(2 ) rl Other deductions (see instructions) Type Oro 13d 4 fr... 14a Net earnings (loss) from self-employment 14a 0. gi b Gross farming or fishing income 14b Id c Gross nonfarm income 14c 15a Low-income housing credit (section 42(9(5)) 15a b Low-income housing credit (other) 15b c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468) 15c .g t- d Other rental real estate credits (see instructions) Type Oro 15d e Other rental credits (see instructions) Type Ila• 15e f Other credits (see instructions) Type Ilb. 15f 16a Name of country or U.S. possession Illa• b Gross income from all sources 16b % c Gross income sourced at partner level 16c c Foreign gross income sourced at partnership level 0 7* Pert g d auger)! llb• e General category PP. t Other II. 16f 0 C Deductions allocated and apportioned at partner level 0 it g Interest expense llao h Other II. 16h c m Deductions allocated and apportioned at partnership level to foreign source income 11 . ruswa , I.?. i dory r j General category tia. k Other IP. Pk I Total foreign taxes (check one): IP. Paid JI Accrued EI 161 m Reduction in taxes available for credit (attach statement) .. 16m n Other foreign tax information (attach statement) 17a Post-1986 depreciation adjustment 17a 61,291. Minimum Tax (AMT) Items Alternative b Adjusted gain or loss 17b c Depletion (other than oil and gas) 17c d Oil, gas, and geothermal properties - gross income 17d e Oil, gas, and geothermal properties - deductions 17e f Other AMT items (attach statement) SEE...STATEMENT...5 17f <22,209. 18a Tax-exempt interest income 18a Other Information b Other tax-exempt income 18b c Nondeductible expenses SEE STATEMENT 6 18c 42,242. 19a Distributions of cash and marketable securities 19a b Distributions of other property 19b 20a Investment income 20a 4,748. b Investment expenses 20b c Other items and amounts (attach statement) ,, ,, ,,, ,, ,, ,,, ,, ,, ,,, ,, ,, ,,, ,, ,, ,,, ,, ,, JWA Form 1065 (2007) 2n021 12-27-07 3 2007.07080 THE CORE GROUP MANAGEMENT, EFTA00604821  THE CORE GROUP MANAGEMENT, LLC Form 1065 (2007) Page 4 Analysis of Net Income (Loss) I Net income(m) Combine Schedule K. Imes 1 thrcuoh II. From the reSUlt 50Z) raacl the sum of Schedule K Ines 12 Orwell 130 and 161 1 I <7,558,124.> 2 Analysis by (ii) Individual (iii) Individual (v) Exempt (i) Corporate (active) (passive) (iv) Partnership organization (vi) Nominee/Other partner type: a General partners b Limited partners <4912978.> <2645146.> I Schedule LI Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash 2a Trade notes and account receivable b Less allowance for bad debts 3 Inventories 4 U.S. government obligations 5 Tax-exempt securities 6 Other current assets (attach statement) 7 Mortgage and real estate loans 8 Other investments (attach statement) 9a Buildings and other depreciable assets b Less accumulated depreciation 10a Depletable assets b Less accumulated depletion 11 Land (net of any amortization) 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach statement) 14 Total assets Liabilities and Capital 15 Accounts payable 16 monoges. notes. balsa payable1i less than I yaw 17 Other current liabilities (attach statement) 18 All nonrecourse loans 19 Mortroaes. notes. boncIS payableIn I year cf n10fe 20 Other liabilities (attach statement) 21 Partners' capital accounts 22 Total liabilities and capital Schedule M-1I Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: Schedule fv1-3 may be required instead of Schedule M-1 (see insbuctons). 1 Net income (loss) per books 6 Income recorded on books this year not included 2 Income included on Schedule K, lines 1, 2, 3c, on Schedule K, lines 1 through 11 (itemize): 5, 6a, 7, 8, 9a, 10, and 11, not recorded on books a Tax-exempt interest $ this year (itemize): 3 Guaranteed payments (other than health 7 Deductions included on Schedule K, lines 1 insurance) through 13d, and 161, not charged against 4 Expenses recorded on books this year not book income this year (itemize): included on Schedule K, lines 1 through a Depreciation $ 13d, and 161 (itemize): a Depreciation $ b Travel and entertainment $ 8 Add lines 6 and 7 9 Income (loss) (Analysis of Net Income (Loss), 5 Add lines 1 through 4 line 1). Subtract line 8 from line 5 Schedule M-2 Analysis of Partners Capital Accounts I Balance at beginning of year 6 Distributions: a Cash 2 Capital contributed: a Cash b Property b Property 7 Other decreases (itemize): 3 Net income (loss) per books 4 Other increases (itemize): 8 Add lines 6 and 7 5 Add lines 1 through 4 9 enlanZO at end of tear. Subtract line 8 from Me 5 JWA 4 Form 1065 2007) 2007.07080 THE CORE GROUP MANAGEMENT, EFTA00604822  Worksheet for Adjusted Current Earnings Adjustments for Corporate and Partnership Partners Name of partnership EmOnaidmlikaketmftw THE CORE GROUP MANAGEMENT, LLC 1. Additions to AMTI: a. Depreciation recomputed for MIT purposes D. Tax-exempt interest income c. Amortization of organizational expenditures d. Depletion for post-1989 properties e. Intangible drilling costs deducted from MITI f. Total additions to AMTI 2. Deductions: a. Depreciation recomputed for ACE purposes b. Depletion recomputed for ACE purposes c. ACE intangible drilling costs d. Total deductions 3. Other adjustments: a. Basis adjustments from sales or exchanges b. Other adjustments FROM PAS$THROUGH <22,209.> c. Total other adjustments <22,209.> 4. Total adjustments to AMTI for ACE calculation. Combine Ines lf, 2d and 3c <22,209.> 712181 0447417 4.1 2007.07080 THE CORE GROUP MANAGEMENT, EFTA00604823  THE CORE GROUP MANAGEMENT, LLC FORM 1065 INCOME (LOSS) FROM OTHER PARTNERSHIPS, ETC. STATEMENT 1 NAME AND ADDRESS EMPLOYER ID AMOUNT TCC INTERNATIONAL LLC <7,562,680.> TOTAL TO FORM 1065, LINE 4 <7,562,680.> FORM 1065 SCHEDULE B, QUESTION 3 INFORMATION STATEMENT 2 (P)ARTNERSHIP OR (D)ISREGARDED PARTNERSHIP'S NAME EIN COUNTRY ENTITY TCC INTERNATIONAL LLC USA SCHEDULE K INTEREST INCOME STATEMENT 3 DESCRIPTION U.S. BONDS OTHER INTEREST PASSED THROUGH FROM TCC INTERNATIONAL LLC 4,748. TOTAL TO SCHEDULE K, LINE 5 4,748. SCHEDULE K CHARITABLE CONTRIBUTIONS STATEMENT 4 DESCRIPTION TYPE AMOUNT PASSTHROUGH CONTRIBUTIONS FROM - TCC CASH (50%) INTERNATIONAL LLC 192. TOTALS TO SCHEDULE K, LINE 13A 192. 5 STATEMENT(S) 2007.07080 THE CORE GROUP MANAGEMENT, IIIIIIII EFTA00604824  THE CORE GROUP MANAGEMENT, LLC SCHEDULE K OTHER ADJUSTMENTS AND TAX PREFERENCE ITEMS STATEMENT 5 DESCRIPTION AMOUNT ADJUSTED CURRENT EARNINGS FROM THE PARTNERSHIP <22,209.> TOTAL TO SCHEDULE K, LINE 17F <22,209.> SCHEDULE K NONDEDUCTIBLE EXPENSE STATEMENT 6 DESCRIPTION AMOUNT NONDEDUCTIBLE EXPENSE FROM PASSTHROUGH 42,242. TOTAL TO SCHEDULE K, LINE 18C 42,242. 6 STATEMENT S 5 6 2007.07080 THE CORE GROUP MANAGEMENT, EFTA00604825  1 651107 Schedule K-1 (Form 1065) For calendar year 2007. or lax 2007 E1 Final K-1 Q Amended K-1 Pad III Partner's Share of Current Year Income, C'.13 ',D. 1545.3C9 Department of the Treasury year beOnning Deductions, Credits, and Other Items Internal Revenue Service ending 1Ordinary business income (loss) 15 Credls Partner's Share of Income, Deductions, I <3,897,491.> Credits, etc. 2Net rental real estate income (loss) Ili. See separate Instructions. I 18 Foreign transactions 30ther net rental income (loss) Part I Information About the Partnership I A Partnershi ''s em. toyer identification number 4Guaranteed payments I II Partnership's name, address, city, state, and ZIP code 5interest income I 2,447. THE CORE GROUP MANAGEMENT, LLC 6aOrdinary dividends I 17 Alternative min tax (AMT) items 6bOualified dividends A 31,587. C IRS Center where partnership tied return I CINCINNATI, OH 7Royalties I 18 Tax-exempt income and D Q Check if this is a publicly traded partnership (PTP) 8Net short-term capital gain (loss) nondeductible expenses I C* 21,770. 9a Net long-term capital gain (loss) Part II Information About the Partner E Partners identifying number 9bCollectibles (28%) gain (loss) 19 Distrtutions I 9cUnrecaptured sec 1250 gain F Partners name. address, city, state, and ZIP code I 20 Other information 10Net section 1231 gain (loss) A 2,447. JENNIE SAUNDERS 110ther income (loss) G General partner or LLC Limited partner or other LLC member-manager member H FA Domestic partner 0 Foreign partner 12Secfion 179 deduction I What type of entity is this partner? INDIVIDUAL 130ther deductions J Partners share of profit, loss, and capital: A 99. Beginning Ending Profit 51.5358400% 51.5358400% Loss 51.5358400% 51.5358400% 14Seff-employment earnings (loss) Capital 51.5358400% 51.5358400% A 0. K Partners share of liabilities at year end: Nonrecourse $ 'See attached statement for additional information. Qualified nonrecourse financing $ Recourse $ 0. L Partners capital account analysis: >. Beginning capital account $ 8 O 0 Capital contributed during the year $ D Current year inaease (decrease) $ cc Withdrawals & distributions $4 ) ..; Cr. Ending capital account $ Tax basis 0 GAAP 0 Section 704(b) book Other (explain) JWA For Paperwork Reduction Act Notice, see Instructions for Form 1065. Schedule K-1 (Form 1065)2007 711261 1241-07 7 1 2007.07080 THE CORE GROUP MANAGEMENT, EFTA00604826  THE CORE GROUP MANAGEMENT, LLC SCHEDULE K-1 NONDEDUCTIBLE EXPENSES, BOX 18, CODE C DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT NONDEDUCTIBLE EXPENSES - SEE IRS SCH. K-1 INSTRUCTIONS PASSTHROUGH 21,770. TOTAL TO SCHEDULE K-1, BOX 18, CODE C 21,770. SCHEDULE K-1 CURRENT YEAR INCREASES (DECREASES) DESCRIPTION AMOUNT TOTALS ORDINARY INCOME (LOSS) <3,897,491.> INTEREST INCOME 2,447. SCHEDULE K-1 INCOME SUBTOTAL <3,895,044.> CHARITABLE CONTRIBUTIONS <99.> SCHEDULE K-1 DEDUCTIONS SUBTOTAL <99.> NONDEDUCTIBLE EXPENSES <21,770.> OTHER INCREASES OR DECREASES SUBTOTAL <21,770.> TOTAL TO SCHEDULE K-1, ITEM L <3,916,913.> 8 PARTNER NUMBER 1 2007.07080 THE CORE GROUP MANAGEMENT, EFTA00604827 Schedule K-1 (Form 1065) 2007 Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partners Instructions for Schedule K-1 and the instructions for your income tax return. Code Report on 1. Ordinary buckle« income (Ica). You %% list determine whether the K Empowerment vane and renewal Income (ICON ISPaean Cr n0nininive men enter on your return are community employment credit Faro in 3 follows L Grade for increase-% reseerch Report on activities M New Markets Credit } See thePartners instructions Passive loss See the Partner's babbitt% N Grade for employer social security Passive income Schedule E. line 28. column (g) end Medicare taxes bout:reserve bra SOvedule E. line 26. column (h) O Backup withholcing Faro 1040. Ine 64 NonpasSive income Schedule E. line 26. columnI) P Other credits See the Partner's Instructions z. Na rental real estate Income floss) See the Partner's balnictrene It Foreign transactions s. Other net rental income doe% A Name ol country or U.S. Net income Schedule E. line 28. column (g) possession