Bennett Ridge Mutual Water Co

“Client Note 1 - TAXPAYER'S WATER SYSTEM LOCATED IN SONOMA COUNTY WAS DESTROYED IN THE OCTOBER 2017 TUBBS FIRE, FEMA EVENT: DR 4344. BELOW IS A FULL DISCLOSURE OF THE FACTS RELATED TO THE EVENT AND ANY REIMBURSEMENT PROCEEDS RECEIVED AND REPLACEMENTS ACQUIRED THROUGH DECEMBER 31, 2017This report includes estimates as Taxpayer's records are not fully accessible due to the disaster.Taxpayer hereby elects to replace the property under the provisions of IRC section 1033 (h)(2). Base Period Expires 2019Taxpayer continues the process of seeking proceeds to use toward the recovery from the casualty event noted above. Taxpayer may receive additional funds in subsequent periods. The destruction of property lost was a direct result of the casualty. 1st Year Event is Being ReportedCOMPUTATION OF REALIZED GAIN2017 Insurance - Structure Proceeds: $233,274Cost basis of property involuntarily converted: $ 73,369Adjusted Net Realized Gains: $159,905COSTS OF REPLACEMENT PROPERTY OR REPAIRS2017 Qualified Real & Other Property Repairs & Purchases: $117,087 COMPUTATION OF CURRENT GAIN RECOGNIZEDProceeds Received and required to be Reinvested: $233,274Replacement costs incurred through 2017: $117,087Amount of potential total gain - Proceeds not reinvested: $116,187NO DEFERRED GAIN - REPLACEMENT NOT YET COMPLETED. STATUS = STILL OPENCOST BASIS OF REAL PROPERTY ATFER REINVESTMENTOriginal Cost Basis $73,369Additional cost invested $43,718Less Deferred Gain Absorbed -$43,718REALIZED, DEFFERED GAIN NOT REINVESTED IN QUALIFIED REPLACEMENT PROPERTY $0”

“Office Expenses $11422”

“Depreciation $10381”

“Insurance $2525”

“WATER TESTING $1046”

“LICENSES $794”

“Dues and subscriptions $390”

“TAXES $68”

“FIRE INSURANCE ADVANCE - Beginning $0 FIRE INSURANCE ADVANCE - Ending $116187”