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Updated over 10 years ago,
Asking Sellers for copies of tax documents?
So I was just read some unrelated posts and this reply had me thinking:
@Andy O. - particularly for a unique situation like this, try and get a full 3 years worth of Sch. E's and depreciation schedules (form 4562, I think) from the seller (or the equivalent forms if it's a partnership or corporate return). You can look at the annual rent revenue and divide it by the gross potential rent, to get an idea of what kind of economic occupancy the seller has attained for the past few years. Of course, those tax schedules are also great for validating expenses and capital improvements that have been made.
I have asked for anything like this on the few purchases that I have made. Do any of you ask for these types of records?