Transactions with General Partner and its Affiliates

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Transactions with General Partner and its Affiliates

5. TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES:

Pursuant to the terms of the Permanent Manager Agreement (“PMA”) executed in 1993 and renewed for an additional two-year term as of January 1, 2017, the General Partner receives a base fee (the “Base Fee”) for managing the Partnership equal to four percent of gross receipts, subject initially to a minimum annual Base Fee. The PMA also provides that the Partnership is responsible for reimbursement of the General Partner for office rent and related office overhead (“Expenses”) up to an initial annual maximum of $13,250. Both the Base Fee and Expenses reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2018, the minimum annual Base Fee and the maximum Expenses reimbursement increased by 2.13% from the prior year, which represents the allowable annual Consumer Price Index adjustment per the PMA. Therefore, as of March 1, 2018, the minimum annual Base Fee paid by the Partnership was raised to $276,432 and the maximum annual Expenses reimbursement was increased to $22,308.

For purposes of computing the four percent overall fee paid to the General Partner, gross receipts include amounts recovered in connection with the misappropriation of assets by the former general partners and their affiliates. The fee received by the General Partner from the Partnership on any amounts recovered reduce the four percent minimum fee by that same amount.

Amounts paid and/or accrued to the General Partner and its affiliates for the three-month periods ended March 31, 2018 and 2017 are as follows:

	Incurred for the Three Months Ended March 31, 2018		Incurred for the Three Months Ended March 31, 2017
	(unaudited)		(unaudited)
General Partner
Management fees	$	68,148	$	67,106
Overhead allowance		5,499		5,414
Leasing commissions		-		90,765
Reimbursement for out-of-pocket expenses		2,500		2,500
Cash distribution		-		-
	$	76,147	$	165,785

At March 31, 2018 and December 31, 2017, $0 and $1,238, respectively, was payable to the General Partner.