DBSI Update

We have received numerous questions regarding recent correspondence sent from DBSI in the form of a K-1 that went out for year-end 2011. It was mailed to everyone in the DBSI Liquidating Trust and was sent at a point where most people had already filed their returns. These K-1’s included items of income and expense that were intended to be included on your tax return for 2011. You will need to discuss the treatment of this K-1 with your tax adviser as this would likely result in an amended tax return.

Let me take a minute and explain how this liquidation is structured. Under the Plan of Liquidation there were two separate trusts set up and are described as follows:

1. DBSI Liquidating Trust – for the benefit of the Creditors (i.e. investors) who were involved in the tenant in common operations and investments in the technology companies.

2. DBSI Real Estate Liquidating Trust – for the benefit of the creditors (i.e. investors) of the Note/Fund entities. This trust holds all the real estate and is in the process of liquidating these assets and distributing the proceeds to the creditors/beneficiaries.

It is my understanding that each Trust is planning on making a distribution either later this year or early next year. At this point the amount has not been determined. If you have moved recently, if you haven’t received any correspondence from the Trustee, or if you are unsure of which Trust you are in you may contact our office to see if your information needs to be updated in the system. If you want to visit the website of the DBSI liquidating trustee click here. This website lists a phone number that you can call for information from DBSI. We will try to keep everyone updated as things progress in this liquidation that is anticipated to last four more years. We will be providing general updates as things come up for DBSI and other related matters.

Discuss: “DBSI Update”

  1. December 17, 2012 at 8:23 pm #

    Thanks Ryan!

    Posted by Greg Taylor
  2. April 24, 2013 at 5:38 pm #

    When will we receive the k-1 to file our 2013 taxes??????????????????

    Posted by Cindy lundquist
    • April 24, 2013 at 6:01 pm #

      I meant 2012

      Posted by Cindy lundquist
    • Ryan Minert
      April 24, 2013 at 6:43 pm #

      I assume you are referring to the K-1 that is sent out by the Trustee? This is actually a grantor letter that is sent out for your share of the Trust’s activity. A notice was sent a few weeks ago from the Trustee that gave notice that this would be coming later this year. This letter is actually posted on their website http://www.dbsi.com/Documents/BLG.pdf. It was explained that they don’t control the accounting for some of the companies that roll up to the Trust and therefore they have to wait for all the information before they can send this out. I would assume it would come out in September or October this year. You should consult your tax adviser on whether you should wait to file your return or not. I know many of the investors have chosen to ignore this letter, but everyone needs to make their own decision on this issue.

      This doesn’t apply to the K-1′s that go out on the Land TIC investments. Those K-1′s went out months ago.

      Posted by Ryan Minert

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