TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES

12 Months Ended

Dec. 31, 2023

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 (the “PMA”) executed in 1993 and renewed for an additional two-year term as of January 1, 2023, the General Partner receives a Base Fee for managing the Partnership equal to four percent of gross receipts, subject to an initial annual minimum amount of $159,000. 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 Expense reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2021, Management has elected to roll back the last five years of CPI increases to their 2016 level and suspend any future CPI adjustments. Therefore, as of March 1, 2021, the minimum annual Base Fee paid by the Partnership was decreased to $272,316 and the maximum annual Expenses reimbursement remained at $23,256.

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

DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023 AND 2022

Amounts paid and/or accrued to the General Partner and its affiliates for the years ended December 31, 2023 and 2022, are as follows:

	Incurred for the Year ended December 31, 2023		Incurred for the Year ended December 31, 2022
General Partner
Management fees (including non-contractual assumption of independent financial services)	$	272,316	$	272,316
Overhead allowance		23,256		23,256
Sales commissions		267,899		34,822
Reimbursement for out-of-pocket expenses		2,500		2,500
Distributions declared		56,882		9,560
Amounts paid and/or accrued to General Partner	$	622,853	$	342,454

At December 31, 2023 and 2022, $29,048 and $2,090, respectively, were the distributions payable to the General Partner.