sec document

EX-99.1 3 ex991to8k_09172002.htm sec document

MGI PROPERTIES LIQUIDATING TRUST

September 17, 2002

RE: FINAL LIQUIDATING DISTRIBUTION OF $.455 PER UNIT AND
2002 FEDERAL INCOME TAX INFORMATION

To the Unit Holders of Beneficial Interests in MGI Properties Liquidating Trust:

We are pleased to inform you that MGI Properties Liquidating Trust (the "Trust")
recently completed the sale of its sole remaining property receiving net
proceeds of approximately $2,867,000. Accordingly, on August 28, 2002, the
Trustees declared a final liquidating distribution of $.455 per Unit, payable
September 17, 2002.

THE TRUST WILL TERMINATE EFFECTIVE SEPTEMBER 17, 2002.

The final liquidating distribution of $.455 per Unit is enclosed herewith. Cash
liquidating distributions inclusive of the $.455 per Unit will total $29.915
since the commencement of the liquidation of MGI Properties. The Trust will be
terminated following the distribution.

The $.455 per Unit distributed herewith is not a taxable distribution and will
not be reported on Form 1099 for 2002. This distribution together with an
earlier (2001) $.45 per Unit distribution represents a portion of the cash
realization of the $1.0232 per Unit non-cash distribution reported as the final
liquidating distribution from MGI Properties.

Please note that cash distributions from the Trust of $.905 are approximately
$.115 per Unit lower than the non-cash distribution reported on your 2000 Form
1099. This shortfall represents liquidating expenses and the loss incurred on
the disposition of the final property held by the Trust. These expenses and loss
are reflected in the annual income tax information provided by the Trust
including the final 2002 Federal tax information that accompanies this Notice.

The enclosed final 2002 Federal tax information relates to your ownership of
Unit(s) in the Trust. Please retain this information since it will be the only
one mailed to you about your 2002 taxes. Since the Trust is treated as a grantor
trust for income tax purposes, you are required to report an allocable portion
of all items of Trust income, gain, loss, deduction and credit (Tax Items) on
your Federal income return.

If you have questions following this final liquidating distribution, please
write to: P.O. Box 1186, Boston, MA 02103. While the Trust will no longer retain
office space, one or more of the Trust's former officers will be available to
review correspondence periodically.

It has been a great honor for all of us to represent our investors.

Sincerely,

W. Pearce Coues
Chairman of the Board of Trustees

MGI Properties Liquidating Trust Federal I.D. #04-3532592

FINAL
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2002 FEDERAL INCOME TAX INFORMATION
-----------------------------------

The Schedule on the reverse side provides information relating to the amount and
character of the Tax Items for the Trust's tax year ending September 17, 2002 to
be used in preparing your 2002 income tax returns. Please note that the
information supplied on the Schedule is on a per Unit basis and your income tax
returns must reflect your share of the Tax Items for all of your Units. The Tax
Items reflect, in the aggregate, a loss of $.1253 per Unit. If, by way of
example, you hold 1,000 Units, your Tax Items, in the aggregate, would reflect a
loss of $125.30.

You can use the Schedule to calculate your share of the Tax Items by multiplying
the Amount per Unit of each Tax Item by the Number of Units you held and
entering the product as the Taxable Amount. The number of Units you received
upon liquidation is equal to the number of shares you held in MGI Properties. If
you are an individual, you should report your share of the Tax Items on Form
1040 in the manner indicated on the Schedule. Because 2002 tax forms are not yet
available, the Form 1040 Schedule line references could change from those
indicated on the Schedule, which are based on 2001 tax forms.

This is the only information you will receive about your 2002 taxes. Please
retain this form.

If you acquired your Units other than upon the liquidation of MGI Properties
(e.g., you inherited your Units), the income tax consequences of your ownership
of Units may differ from those described in this letter.

All Unit holders are urged to consult their own tax advisors concerning the tax
consequences and the reporting of the Tax Items.

Units held in street name, please communicate with your bank or broker.

Registered Unit holders please communicate with EquiServe (800) 730-6001

P.O. Box 1186, Boston, Massachusetts 02103

SCHEDULE

TAX ITEM: AMOUNT NO. OF TAXABLE
PER UNIT UNITS AMOUNT FORM 1040

1. Interest Income:
a) U.S. Gov't Obligations 0.000000 x =
b) All Other 0.005337 x =
c) Total Interest Income (1a+1b) 0.005337 x = Line 1, Schedule B

2. Rental Income:1
a) Income
1. Rents Received 0.037028 x = Line 3, Schedule E

b) Expenses
1. Cleaning and Maintenance 0.002202 x = Line 7, Schedule E
2. Insurance 0.002298 x = Line 9, Schedule E
3. Management Fees 0.001774 x = Line 11, Schedule E
4. Mortgage Interest 0.007143 x = Line 12, Schedule E
5. Repairs 0.000492 x = Line 14, Schedule E
6. Taxes 0.003195 x = Line 16, Schedule E
7. Utilities 0.001631 x = Line 17, Schedule E
8. General and Administrative 0.013091 x = Line 18, Schedule E

c) Depreciation Expense 0.003186 x = Line 20, Schedule E

3. Net section 1231 gain(loss)2 -0.044918 x = Line 2, Form 4797

4. Trust Expenses .087688 Line 22, Schedule A

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1 Part I, Question 1 of Schedule E (Form 1040) should be completed as follows if
this is the only information you are reporting on Schedule E:

A. Shopping Center
Fowler Avenue and 56th Street
Temple Terrace, Florida

Part I, Question 2 of Schedule E (Form 1040) should be completed
by answering No for "A".

2 Part 1(a), Line 2 of Form 4797 "Depreciation of Property" can be shown as
"Share of section 1231 loss - MGI Properties Liquidating Trust."