2013 Unrelated Business Income Tax - NACUBO Concurrent Session: Alternative Investments Working Session February 21, 2012

Transcription

1 2013 Unrelated Business Tax NACUBO Concurrent Session: Alternative Investments Working Session February 21, 2012

2 Speaker Introductions Geralyn Hurd, CPA National Tax Exempt Practice Leader Crowe Horwath LLP 70 West Madison St., Suite 700 Chicago, IL Nicole Bencik, CPA, MST Tax Exempt Partner Crowe Horwath LLP 70 West Madison St., Suite 700 Chicago, IL

3 Objectives Introduction Federal Unrelated Business State Unrelated Business International Filing Considerations Tough Stuff Conclusion

4 Alternative Investments Reporting Issues in a Nutshell

5 Alternative Investments 7 Step Process 1. Identify the Institution s Alternative Investments Types 2. Aggregate Data / Review K1s and/or Footnote Disclosures 3. Analyze Federal Unrelated Business 4. Analyze State Unrelated Business / State Allocation and Apportionment 5. Determine International Disclosures (i.e. Forms 926, 8865, 5471, 8621, etc.) 6. Inquiries with Investment Managers 7. Prepare Form 990T and applicable required state returns and federal informational disclosures

6 UBTI Schedule K1 Categories Deductions Credits Preference Items Other

7 Form 990T Aggregate all Flowthrough Activity UBI Taxable Eligible Credits Preference Items Combine with: Other UBIT income Deductions Credits Preference items Payments Carryforwards: Net operating loss Charitable contributions Capital losses

8 State Unrelated Business Taxable Number of states that tax unrelated business income 39 Number of states with UBTI minimum threshold 8 Number of states with distinct Form 990T 13 Number of states with nonfiling penalties 19 Number of states with reportable transaction disclosures 12

9 State Allocation or Apportionment? Allocation information Federal UBTI = $4,501,376 Total State UBTI = ($1,208,541) Apportionment information

10 Analyzing State Filing Responsibilities

11 International Reporting Considerations Form 926 (Foreign corporations) 12Month Rolling Transfers Form 5471 (Controlled foreign corporations) Form 8621 (Passive foreign investment company) Potential new filing requirements for 2012 Form 8858 (Foreign disregarded entity) Form 8865 (Foreign partnership) Form 8886 (Reportable transactions )

12 Oil and Gas Partnership Investments IRC Sec 59(e)(2) Cost Intangible Drilling Cost Option: Writeoff or Capitalize??? AMT Consequences Recapture Issues

13 Oil and Gas Partnership Investments Box 20, Other Information Allowable deduction : Cost depletion or percentage depletion AMT Issue Recapture Requirement Maintenance of Outside Records

14 State Tax Withholding More than 30 states require withholding by Partnerships and LLCs NO, TOO LITTLE or TOO MUCH Withholding?!?! Issues: MultiTiered Partnerships Cost/Benefit of Multiple State Filing Withholding based upon Total StateSourced Taxable vs. UBTI

15 Life Cycle of Alternative Investments When the analysis should begin Year 1 Initial Capital Call Years 24 UBI Loss Year 7 SALE of Partnership Interest Between Years 45 Investment Turns Years 57 UBI When the analysis actually begins

16 Sale of a Partnership Interest Tax Treatment Categories Capital gain (exempt) Ordinary Sec. 751 Assets Gain on debtfinanced property Sec. 751 Assets Hot Assets Gain/Loss attributable to certain: Unrealized receivables Certain depreciation recapture Inventory items of the partnership Sec. 751 Assets does not qualify for: Ordinary income characterization does not qualify for portfolio income exclusion from UBTI treatment.

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19 NACUBO UNIVERSITY Total Investment Analysis Federal Unrelated Business (Form 990T Reporting) Investment(s): CROWE ENERGY PARTNERS FUND IV LP Diversified Fund Limited MADISON ENERGY PARTNERS FUND, LP Madison Street Fund, L.P. Line Item 1 Form 990T, Part I, Line 1 Balance of gross receipts or sales and less returns and allowances 0 Value 2 Form 990T, Part I, Line 2 Cost of goods sold 0 3 Form 990T, Part I, Line 4a Capital gain net income 0 4 Form 990T, Part I, Line 4b Net gain 0 5 Form 990T, Part I, Line 4c Capital loss deduction for trusts 0 6 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name CROWE ENERGY PARTNERS FUND IV LP 774,178 MADISON ENERGY PARTNERS FUND, LP 174,242 Madison Street Fund, L.P. 24,983 Total 973,403 7 Form 990T, Part I, Line 6 Rent income 0 8 Form 990T, Part I, Line 7 Unrelated debtfinanced income 0 9 Form 990T, Part I, Line 8 Interest, annuities, royalties, and rents from controlled organization 0 10 Form 990T, Part I, Line 9 Investment income of a section 501(c)(7), (9), or (17) organization 0 11 Form 990T, Part I, Line 10 Exploited exempt activity income 0 12 Form 990T, Part I, Line 11 Advertising income 0 13 Form 990T, Part I, Line 12 Other income 0 14 Form 990T, Part I, Line 18 Interest 0 15 Form 990T, Part I, Line 19 Taxes and licenses 0 16 Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) Investment Name CROWE ENERGY PARTNERS FUND IV LP (631) MADISON ENERGY PARTNERS FUND, LP (141) Total (772) 17 Form 990T, Part I, Line 21 Depreciation 0 18 Form 990T, Part I, Line 23 Depletion 0 19 Form 990T, Part I, Line 28 Other deductions Investment Name CROWE ENERGY PARTNERS FUND IV LP (182,581) MADISON ENERGY PARTNERS FUND, LP (58,795) Madison Street Fund, L.P. (4,983) Total (246,359) 20 Form 990T, Part IV, Line 40a Foreign tax credit 0 21 Form 990T, Part IV, Line 40b Other Credits 0 22 Form 990T, Part IV, Line 40c General business credit 0 23 Form 990T, Part IV, Line 44b Estimated Payments 0 24 Form 990T, Part IV, Line 44d Foreign organizations: Tax paid or withheld at source 0 25 Form 990T, Part IV, Line 44e Backup withholding 0 26 Form 990T, Part IV, Line 44g Other credits and payments 0 1/17/2013 1:27:31 PM 1 NACUBO UNIVERSITY

20 Line Item Value 27 Schedule D, Part I, Line 1 Shortterm gain or (loss) Investment Name MADISON ENERGY PARTNERS FUND, LP 43 Total Schedule D, Part II, Line 6 Longterm gain or (loss) Investment Name CROWE ENERGY PARTNERS FUND IV LP 3,952,074 Total 3,952, Schedule D, Part I, Line 1 Shortterm gain or (loss) 40% & Schedule D, Part II, Line 6 Longterm gain or (loss) 60% 0 30 Form 990T, Part V, Line 3 Tax exempt interest income 0 31 Form 4797, Part II, Line 2, Column g, Gain or (loss) Investment Name CROWE ENERGY PARTNERS FUND IV LP 135,615 MADISON ENERGY PARTNERS FUND, LP 61,589 Total 197, Unspecified Investment Name CROWE ENERGY PARTNERS FUND IV LP (3,166) Total (3,166) 33 Not Reportable on Form 990T 0 1/17/2013 1:27:31 PM 2 NACUBO UNIVERSITY

21 NACUBO UNIVERSITY State Unrelated Business State Filed in PY NOL C/F UBI Withholding Taxes UBIT (1) Min UBI Threshold (2) Failure to File Penalties Apply (3) Disclosure of Reportable Transactions Required (4) Org to file State Return Details California 10,000 36,781 0 $1,000 gross receipts Investment Name UBI Withholding MADISON ENERGY PARTNERS FUND, LP 35,781 0 Madison Street Fund, L.P. 1,000 0 Total: 36,781 0 Illinois 0 0 Investment Name UBI Withholding MADISON ENERGY PARTNERS FUND, LP (1,500) 0 Madison Street Fund, L.P. 1,500 0 Total: 0 0 New York 6,087 0 Investment Name UBI Withholding MADISON ENERGY PARTNERS FUND, LP 5,087 0 Madison Street Fund, L.P. 1,000 0 Total: 6,087 0 Total: 42,868 0 (1) Unrelated business income is taxed in this state. (2) A return is required if the organization reaches the UBIT $$ threshold. (3) Failure to file penalities may apply to this state. (4) Disclosures (reportable transactions or international activities) may be required state attachments. Penalties may apply. 1/17/2013 1:27:31 PM 3 NACUBO UNIVERSITY

22 NACUBO UNIVERSITY Additional Disclosures Form Total forms Details Form Investment Name Diversified Fund Limited 1 MADISON ENERGY PARTNERS FUND, LP 1 Madison Street Fund, L.P. 4 Form Form Investment Name Madison Street Fund, L.P. 2 Form Form /17/2013 1:27:31 PM 4 NACUBO UNIVERSITY

23 NACUBO UNIVERSITY Schedule F Reporting Central America and the Caribbean 9,994,314 Investment Name Diversified Fund Limited 8,956,497 Madison Street Fund, L.P. 1,037,817 East Asia and the Pacific 0 Europe (Including Iceland and Greenland) 0 Middle East and North Africa 0 North America (Canada & Mexico only) 0 Russia and the Newly Independent States 0 South America 0 South Asia 0 Sub Saharan Africa 0 1/17/2013 1:27:31 PM 5 NACUBO UNIVERSITY

24 NACUBO UNIVERSITY Transferee Summary Transferee Name, Type, EIN Form 926 Form 5471 Form 8865 Details, Foreign Corporation, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. Various Diversified Fund Limited, Foreign Corporation, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Diversified Fund Limited Diversified Fund Limited 5/5/ ,500,000 Example, Foreign Corporation, Investment Name Transfer Date Ownership % Before Transfer MADISON ENERGY PARTNERS FUND, LP Ownership % After Transfer Transfer 2/5/ ,000 Madison OCM Luxembourg OPPS, Foreign Partnership, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. 6/30/ ,000 MADISON OCM LUXEMBOURG OPPS, Foreign Partnership, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. VARIOUS ,170 Madison Street Fund, Foreign Partnership, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. various ,869 MADISON STREET FUND III, Foreign Partnership, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. Various ,777 MADISON STREET FUND OPPS VIII (CAYMAN) 2 CTB LTD, Foreign Corporation, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. VARIOUS ,849 MADISON STREET FUND OPPS VIII (CAYMAN), 1 LTD, Foreign Corporation, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. VARIOUS ,706 OCM INDUSTRIAL, L.P. LTD, Foreign Corporation, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. VARIOUS ,037 OCM MADISON NETHERLANDS GLOBAL U.A., Foreign Partnership, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. VARIOUS ,607 OPPS LTW LTD, Foreign Corporation, Investment Name Transfer Date Ownership % Before Transfer Ownership % After Transfer Transfer Madison Street Fund, L.P. VARIOUS ,649 1/17/2013 1:27:31 PM 6 NACUBO UNIVERSITY

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26 Investment(s): NACUBO UNIVERSITY K1 /Expense Summary CROWE ENERGY PARTNERS FUND IV LP Diversified Fund Limited MADISON ENERGY PARTNERS FUND, LP Madison Street Fund, L.P. K1 Summary K1 Taxable Form 990T Line Item (if applicable) 1 Ordinary business income 697, ,974 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 617, ,015 MADISON ENERGY PARTNERS FUND, LP 80,378 78,959 Total 697, ,974 2 Net rental real estate income (loss) 0 0 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations 3 Other net rental income (loss) 149, ,428 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 149, ,418 MADISON ENERGY PARTNERS FUND, LP Total 149, ,428 4 Guaranteed payments 0 0 Unspecified 5 Interest 143,825 35,577 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 100,824 7,743 MADISON ENERGY PARTNERS FUND, LP 11,199 2,851 Madison Street Fund, L.P. 31,802 24,983 Total 143,825 35,577 6a Ordinary dividends 99,473 2 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 85,504 0 MADISON ENERGY PARTNERS FUND, LP Madison Street Fund, L.P. 13,863 0 Total 99, b Qualified dividends Unspecified Investment Name K1 Taxable MADISON ENERGY PARTNERS FUND, LP Total Royalties Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 9 2 MADISON ENERGY PARTNERS FUND, LP /17/2013 1:26:20 PM 1 NACUBO UNIVERSITY

27 K1 Summary K1 Taxable Form 990T Line Item (if applicable) Investment Name K1 Taxable Total Net shortterm capital gain (loss) (7,826) 43 Schedule D, Part I, Line 1 Shortterm gain or (loss) Investment Name K1 Taxable MADISON ENERGY PARTNERS FUND, LP Madison Street Fund, L.P. (7,968) 0 Total (7,826) 43 9a Net longterm capital gain (loss) 4,859,716 3,952,074 Schedule D, Part II, Line 6 Longterm gain or (loss) Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 4,856,918 3,952,074 MADISON ENERGY PARTNERS FUND, LP 2,606 0 Madison Street Fund, L.P Total 4,859,716 3,952,074 9b Collectibles (28%) 0 0 Unspecified 9c Unrecaptured section 1250 gain 0 0 Unspecified 10 Net section 1231 gain (loss) 71, ,204 Form 4797, Part II, Line 2, Column g, Gain or (loss) Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 8, ,615 MADISON ENERGY PARTNERS FUND, LP 62,695 61,589 Total 71, , Other income(loss) A. Other portfolio income (loss) (16,895) 0 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP (22,422) 0 MADISON ENERGY PARTNERS FUND, LP 5,125 0 Madison Street Fund, L.P Total (16,895) 0 B. Involuntary conversions 0 0 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations C. Sec contracts and straddles (9,763) 0 Schedule D, Part I, Line 1 Shortterm gain or (loss) 40% & Schedule D, Part II, Line 6 Longterm gain or (loss) 60% Investment Name K1 Taxable Madison Street Fund, L.P. (9,763) 0 Total (9,763) 0 D. Mining exploration costs recapture 0 0 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations E. Cancellation of debt Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable MADISON ENERGY PARTNERS FUND, LP Total /17/2013 1:26:20 PM 2 NACUBO UNIVERSITY

28 K1 Summary K1 Taxable Form 990T Line Item (if applicable) F. Other income (loss) 713,432 91,863 Form 990T, Part I, Line 5 (loss) from partnerships and S corporations Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 6,122 0 CROWE ENERGY PARTNERS FUND IV LP 3,190 0 CROWE ENERGY PARTNERS FUND IV LP 9,609 0 CROWE ENERGY PARTNERS FUND IV LP 597,749 0 MADISON ENERGY PARTNERS FUND, LP 93,515 91,863 Madison Street Fund, L.P. 3,247 0 Total 713,432 91, Section 179 deduction 0 0 Unspecified 13 Other deductions A. Cash contributions (50%) 1, Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 1, MADISON ENERGY PARTNERS FUND, LP Total 1, B. Cash contributions (30%) 0 0 Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) C. Noncash contributions (50%) 0 0 Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) D. Noncash contributions (30%) 0 0 Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) E. Capital gain property to a 50% organization (30%) 0 0 Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) F. Capital gain property (20%) 0 0 Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) G. Contributions (100%) 0 0 Form 990T, Part I, Line 20 Charitable contributions (subject to limitations) H. Investment interest expense 72,931 0 Form 990T, Part I, Line 28 Other deductions Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 63,033 0 MADISON ENERGY PARTNERS FUND, LP 9,898 0 Total 72,931 0 I. Deductions royalty income 6 0 Form 990T, Part I, Line 28 Other deductions Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 1 0 MADISON ENERGY PARTNERS FUND, LP 5 0 Total 6 0 J. Section 59(e)(2) expenditures 217, ,411 Form 990T, Part I, Line 28 Other deductions Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 182, ,581 MADISON ENERGY PARTNERS FUND, LP 34,438 33,830 Total 217, ,411 1/17/2013 1:26:20 PM 3 NACUBO UNIVERSITY

29 K1 Summary K1 Taxable Form 990T Line Item (if applicable) K. Deductions portfolio (2% floor) 301,000 4,983 Form 990T, Part I, Line 28 Other deductions Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 229,572 0 MADISON ENERGY PARTNERS FUND, LP 41,939 0 Madison Street Fund, L.P. 29,489 4,983 Total 301,000 4,983 L. Deductions portfolio (other) Form 990T, Part I, Line 28 Other deductions Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP Madison Street Fund, L.P Total M. s paid for medical insurance 0 0 Unspecified N. Educational assistance benefits 0 0 Unspecified O. Dependent care benefits 0 0 Unspecified P. Preproductive period expenses 0 0 Unspecified Q. Commercial revitalization deduction from rental real estate activities 0 0 Unspecified R. Pensions and IRAs 0 0 Unspecified S. Reforestation expense deduction 0 0 Unspecified T. Domestic production activities information 0 0 Unspecified U. Qualified production activities income 0 0 Unspecified V. Employer s Form W2 wages Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP Total W. Other deductions 25,413 24,965 Form 990T, Part I, Line 28 Other deductions Investment Name K1 Taxable MADISON ENERGY PARTNERS FUND, LP 25,413 24,965 Total 25,413 24, Self Employment earnings A. Net earnings (loss) from selfemployment 0 0 Unspecified B. Gross farming or fishing income 0 0 Unspecified C. Gross nonfarm income 0 0 Unspecified 15 Credits A. Lowincome housing credit (section 42(j)(5)) from pre2008 buildings 0 0 Unspecified B. Lowincome housing credit (other) 0 0 Unspecified 1/17/2013 1:26:20 PM 4 NACUBO UNIVERSITY

30 K1 Summary K1 Taxable from pre2008 buildings Form 990T Line Item (if applicable) C. Lowincome housing credit (section 42(j)(5)) from post2007 buildings D. Lowincome housing credit (other) from post2007 buildings E. Qualified rehabilitation expenditures (rental real estate) 0 0 Unspecified 0 0 Unspecified 0 0 Unspecified F. Other rental real estate credits 0 0 Unspecified G. Other rental credits 0 0 Unspecified H. Undistributed capital gains credit 0 0 Unspecified I. Alcohol and cellulosic biofuel fuels credit 0 0 Unspecified J. Work opportunity credit 0 0 Unspecified K. Disabled access credit 0 0 Unspecified L. Empowerment zone and renewal community employment credit M. Credit for increasing research activities N. Credit for employer social security and Medicare taxes 0 0 Unspecified 0 0 Unspecified 0 0 Unspecified O. Backup withholding 0 0 Form 990T, Part IV, Line 44e Backup withholding P. Other credits 3,176 3,166 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 3,166 3,166 MADISON ENERGY PARTNERS FUND, LP 10 0 Total 3,176 3, Foreign transactions A. Name of country or U.S. possession 0 0 Unspecified B. Gross income from all sources 13,391,059 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 6,522,629 0 CROWE ENERGY PARTNERS FUND IV LP 6,522,629 0 MADISON ENERGY PARTNERS FUND, LP 345,801 0 Total 13,391,059 0 C. Gross income sourced at partner level 66,285 0 Unspecified Investment Name K1 Taxable MADISON ENERGY PARTNERS FUND, LP 66,285 0 Total 66,285 0 D. Passive category 22,416 0 Unspecified 1/17/2013 1:26:20 PM 5 NACUBO UNIVERSITY

31 K1 Summary K1 Taxable Form 990T Line Item (if applicable) Investment Name K1 Taxable Madison Street Fund, L.P. 22,416 0 Total 22,416 0 E. General category 27,140 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 10,914 0 CROWE ENERGY PARTNERS FUND IV LP 16,226 0 Total 27,140 0 F. Other 0 0 Unspecified G. Interest expense 27,307 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 7,002 0 CROWE ENERGY PARTNERS FUND IV LP 10,407 0 MADISON ENERGY PARTNERS FUND, LP 9,898 0 Total 27,307 0 H. Other 0 0 Unspecified I. Passive category 10,967 0 Unspecified Investment Name K1 Taxable Madison Street Fund, L.P. 10,967 0 Total 10,967 0 J. General category 19,860 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 7,137 0 CROWE ENERGY PARTNERS FUND IV LP 12,723 0 Total 19,860 0 K. Other 0 0 Unspecified L. Total foreign taxes paid 0 0 Form 990T, Part IV, Line 40a Foreign tax credit M. Total foreign taxes accrued 0 0 Form 990T, Part IV, Line 40a Foreign tax credit N. Reduction in taxes available for credit 0 0 Unspecified O. Foreign trading gross receipts 0 0 Unspecified P. Extraterritorial income exclusion 0 0 Unspecified Q. Other foreign transactions 0 0 Unspecified 17 Alternative minimum tax (AMT) items A. Post1986 depreciation adjustment (20,202) 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP (17,098) 0 1/17/2013 1:26:20 PM 6 NACUBO UNIVERSITY

32 K1 Summary K1 Taxable Form 990T Line Item (if applicable) Investment Name K1 Taxable MADISON ENERGY PARTNERS FUND, LP (3,104) 0 Total (20,202) 0 B. Adjusted gain or loss (134,841) 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP (140,033) 0 MADISON ENERGY PARTNERS FUND, LP 5,192 0 Total (134,841) 0 C. Depletion (other than oil and gas) 4,754 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 4,093 0 MADISON ENERGY PARTNERS FUND, LP Total 4,754 0 D. Oil, gas, and geothermal gross income 284,119 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 231,819 0 MADISON ENERGY PARTNERS FUND, LP 52,300 0 Total 284,119 0 E. Oil, gas, and geothermal deductions 327,990 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 267,290 0 MADISON ENERGY PARTNERS FUND, LP 60,700 0 Total 327,990 0 F. Other AMT items Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP MADISON ENERGY PARTNERS FUND, LP 8 0 Total Taxexempt income and nondeductible expenses A. Taxexempt interest income 0 0 Form 990T, Part V, Line 3 Tax exempt interest income B. Other taxexempt income 0 0 Unspecified C. Nondeductible expenses 2,175 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 1,256 0 MADISON ENERGY PARTNERS FUND, LP Total 2, Distributions A. Cash and marketable securities 7,288,155 0 Unspecified 1/17/2013 1:26:20 PM 7 NACUBO UNIVERSITY

33 K1 Summary K1 Taxable Form 990T Line Item (if applicable) Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP 7,272,838 0 MADISON ENERGY PARTNERS FUND, LP 2 0 Madison Street Fund, L.P. 15,315 0 Total 7,288,155 0 B. Distribution subject to section Unspecified C. Other property 0 0 Unspecified 20 Other information A. Investment income (249,034) 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP (186,337) 0 MADISON ENERGY PARTNERS FUND, LP (16,630) 0 Madison Street Fund, L.P. (46,067) 0 Total (249,034) 0 B. Investment expenses (301,377) 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP (229,934) 0 MADISON ENERGY PARTNERS FUND, LP (41,944) 0 Madison Street Fund, L.P. (29,499) 0 Total (301,377) 0 C. Fuel tax credit information (52) 0 Unspecified Investment Name K1 Taxable MADISON ENERGY PARTNERS FUND, LP (52) 0 Total (52) 0 D. Qualified rehabilitation expenditures (other than rental real estate) 0 0 Unspecified E. Basis of energy property 0 0 Unspecified F. Recapture of lowincome housing credit (section 42(j)(5)) G. Recapture of lowincome housing credit (other) 0 0 Unspecified 0 0 Unspecified H. Recapture of investment credit 0 0 Unspecified I. Recapture of other credits 0 0 Unspecified J. Lookback interest completed longterm contracts K. Lookback interest income forecast method L. Dispositions of property with section 179 deductions 0 0 Unspecified 0 0 Unspecified 0 0 Unspecified M. Recapture of section 179 deduction 0 0 Unspecified 1/17/2013 1:26:20 PM 8 NACUBO UNIVERSITY

34 K1 Summary K1 Taxable N. Interest expense for corporate partners Form 990T Line Item (if applicable) (19,925) 0 Unspecified Investment Name K1 Taxable CROWE ENERGY PARTNERS FUND IV LP (19,381) 0 MADISON ENERGY PARTNERS FUND, LP (544) 0 Total (19,925) 0 O. Section 453(l)(3) information 0 0 Unspecified P. Section 453A(c) information 0 0 Unspecified Q. Section 1260(b) information 0 0 Unspecified R. Interest allocable to production expenditures 0 0 Unspecified S. CCF nonqualified withdrawals 0 0 Unspecified T. Depletion information oil and gas 0 0 Unspecified U. Amortization of reforestation costs 0 0 Unspecified V. Unrelated business taxable income (20,000) 0 Unspecified Investment Name K1 Taxable Madison Street Fund, L.P. (20,000) 0 Total (20,000) 0 W. Precontribution gain (loss) 0 0 Unspecified X. Section 108(i) information 0 0 Unspecified Y. Other information 0 0 Unspecified 1/17/2013 1:26:20 PM 9 NACUBO UNIVERSITY

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36 Schedule K1 (Form 1065) 2011 Department of the Treasury Internal Revenue Service For calendar year 2011, or tax year beginning, 2011 ending, 20 Partner s Share of, Deductions, Credits, etc. See back of form and separate instructions. A B Part I Information About the Partnership Partnership s employer identification number Partnership s name, address, city, state, and ZIP code Part III Final K1 Amended K OMB No Partner s Share of Current Year, Deductions, Credits, and Other Items 1 Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 15 Credits 16 Foreign transactions 6b Qualified dividends C IRS Center where partnership filed return D Check if this is a publicly traded partnership (PTP) Part II Information About the Partner E Partner s identifying number 7 Royalties 8 Net shortterm capital gain (loss) 9a Net longterm capital gain (loss) 9b Collectibles (28%) gain (loss) 17 Alternative minimum tax (AMT) items F Partner s name, address, city, state, and ZIP code 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 18 Taxexempt income and nondeductible expenses 11 Other income (loss) G General partner or LLC membermanager Limited partner or other LLC member H Domestic partner Foreign partner I J What type of entity is this partner? Partner s share of profit, loss, and capital (see instructions): Beginning Ending Profit % % Loss % % Capital % % 12 Section 179 deduction 13 Other deductions 19 Distributions 20 Other information K Partner s share of liabilities at year end: Nonrecourse $ Qualified nonrecourse financing. $ Recourse $ 14 Selfemployment earnings (loss) L M Partner s capital account analysis: Beginning capital account... $ Capital contributed during the year $ Current year increase (decrease). $ Withdrawals & distributions.. $ ( ) Ending capital account.... $ Tax basis GAAP Section 704(b) book Other (explain) Did the partner contribute property with a builtin gain or loss? Yes No If Yes, attach statement (see instructions) *See attached statement for additional information. For IRS Use Only For Paperwork Reduction Act Notice, see Instructions for Form Cat. No R Schedule K1 (Form 1065) 2011

37 Schedule K1 (Form 1065) 2011 Page 2 This list identifies the codes used on Schedule K1 for all partners and provides summarized reporting information for partners who file Form For detailed reporting and filing information, see the separate Partner s Instructions for Schedule K1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is Code } Report on passive or nonpassive and enter on your return as follows. J Work opportunity credit Report on K Disabled access credit Passive loss See the Partner s Instructions L Empowerment zone and Passive income Schedule E, line 28, column (g) renewal community Nonpassive loss Schedule E, line 28, column (h) employment credit See the Partner s Instructions Nonpassive income Schedule E, line 28, column (j) M Credit for increasing research 2. Net rental real estate income (loss) See the Partner s Instructions activities 3. Other net rental income (loss) N Credit for employer social Net income Schedule E, line 28, column (g) security and Medicare taxes Net loss See the Partner s Instructions O Backup withholding Form 1040, line Guaranteed payments Schedule E, line 28, column (j) 5. Interest income Form 1040, line 8a 6a. Ordinary dividends Form 1040, line 9a 6b. Qualified dividends Form 1040, line 9b 7. Royalties Schedule E, line 3b 8. Net shortterm capital gain (loss) Schedule D, line 5 9a. Net longterm capital gain (loss) Schedule D, line 12 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule D instructions) 9c. Unrecaptured section 1250 gain See the Partner s Instructions 10. Net section 1231 gain (loss) See the Partner s Instructions 11. Other income (loss) Code A Other portfolio income (loss) See the Partner s Instructions B Involuntary conversions See the Partner s Instructions C Sec contracts & straddles Form 6781, line 1 D Mining exploration costs recapture See Pub. 535 E Cancellation of debt Form 1040, line 21 or Form 982 F Other income (loss) See the Partner s Instructions 12. Section 179 deduction See the Partner s Instructions 13. Other deductions A Cash contributions (50%) B Cash contributions (30%) } C Noncash contributions (50%) D Noncash contributions (30%) See the Partner s E Capital gain property to a 50% Instructions organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense Form 4952, line 1 I Deductions royalty income Schedule E, line 19 J Section 59(e)(2) expenditures See the Partner s Instructions K Deductions portfolio (2% floor) Schedule A, line 23 L Deductions portfolio (other) Schedule A, line 28 M s paid for medical insurance Schedule A, line 1 or Form 1040, line 29 N Educational assistance benefits See the Partner s Instructions O Dependent care benefits Form 2441, line 12 P Preproductive period expenses See the Partner s Instructions Q Commercial revitalization deduction See Form 8582 instructions from rental real estate activities R Pensions and IRAs See the Partner s Instructions S Reforestation expense deduction See the Partner s Instructions T Domestic production activities See Form 8903 instructions information U Qualified production activities income Form 8903, line 7b V Employer s Form W2 wages Form 8903, line 17 W Other deductions See the Partner s Instructions 14. Selfemployment earnings (loss) Note. If you have a section 179 deduction or any partnerlevel deductions, see the Partner s Instructions before completing Schedule SE. A Net earnings (loss) from Schedule SE, Section A or B selfemployment B Gross farming or fishing income See the Partner s Instructions C Gross nonfarm income See the Partner s Instructions 15. Credits } A Lowincome housing credit (section 42(j)(5)) from pre2008 buildings B Lowincome housing credit (other) from pre2008 buildings C Lowincome housing credit (section 42(j)(5)) from post2007 buildings See the Partner s Instructions D Lowincome housing credit (other) from post2007 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits G Other rental credits H Undistributed capital gains credit Form 1040, line 71; check box a I Alcohol and cellulosic biofuel fuels credit See the Partner's Instructions P Other credits See the Partner s Instructions 16. Foreign transactions A Name of country or U.S. } possession B Gross income from all sources Form 1116, Part I C Gross income sourced at partner level Foreign gross income sourced at partnership level D Passive category E General category } Form 1116, Part I F Other Deductions allocated and apportioned at partner level G Interest expense Form 1116, Part I H Other Form 1116, Part I Deductions allocated and apportioned at partnership level to foreign source income I Passive category J General category } Form 1116, Part I K Other Other information L Total foreign taxes paid Form 1116, Part II M Total foreign taxes accrued Form 1116, Part II N Reduction in taxes available for credit Form 1116, line 12 O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions 17. Alternative minimum tax (AMT) items A Post1986 depreciation adjustment B Adjusted gain or loss C Depletion (other than oil & gas) D Oil, gas, & geothermal gross income See the Partner s Instructions F Other AMT items } See the Partner s Instructions and the Instructions for E Oil, gas, & geothermal deductions Form Taxexempt income and nondeductible expenses A Taxexempt interest income Form 1040, line 8b B Other taxexempt income See the Partner s Instructions C Nondeductible expenses See the Partner s Instructions 19. Distributions A Cash and marketable securities B Distribution subject to section 737 C Other property } See the Partner s Instructions 20. Other information A Investment income Form 4952, line 4a B Investment expenses Form 4952, line 5 C Fuel tax credit information Form 4136 D Qualified rehabilitation expenditures See the Partner s Instructions (other than rental real estate) E Basis of energy property See the Partner s Instructions F Recapture of lowincome housing Form 8611, line 8 credit (section 42(j)(5)) G Recapture of lowincome housing credit (other) Form 8611, line 8 H Recapture of investment credit See Form 4255 I Recapture of other credits See the Partner s Instructions J Lookback interest completed See Form 8697 longterm contracts K Lookback interest income forecast See Form 8866 method L Dispositions of property with section 179 deductions M Recapture of section 179 deduction N Interest expense for corporate partners O Section 453(l)(3) information P Section 453A(c) information Q Section 1260(b) information R Interest allocable to production expenditures S CCF nonqualified withdrawals T Depletion information oil and gas U Amortization of reforestation costs V Unrelated business taxable income W Precontribution gain (loss) X Section 108(i) information Y Other information }See the Partner s Instructions

38

39 CROWE ENERGY PARTNERS FUND IV LP SCHEDULE K1 OTHER DEDUCTIONS, BOX 13 CODE DESCRIPTION AMOUNT I * DEDUCTIONS ROYALTY INCOME 1. J SECTION 59(E)(2) EXPENDITURES 182,581. K * DEDUCTIONS PORTFOLIO (2% FLOOR) STMT L * DEDUCTIONS PORTFOLIO (OTHER) 361. T * DOMESTIC PRODUCTION ACTIVITIES INFO STMT V EMPLOYER S W2 WAGES 444. W * OTHER DEDUCTIONS STMT * SEE ATTACHED STATEMENT FOR ADDITIONAL INFORMATION. SCHEDULE K1 OTHER DEDUCTIONS, BOX 16 CODE DESCRIPTION COUNTRY AMOUNT A NAME OF COUNTRY OR U.S. POSSESSION OC B GROSS INCOME FROM ALL SOURCES OC 6,522,629. E FOREIGN GROSS INC. SOURCED AT PARTNERSHIP OC 10,914. LEVELGENERAL CATEGORY G DEDS. ALLOCATED/APPORTIONED AT PARTNER LEVEL OC 7,002. INTEREST EXPENSE J DEDS. ALLOCATED/APPORTIONED PARTNERSHIP LEVE GENERAL CATEGORY OC 7,137. A NAME OF COUNTRY OR U.S. POSSESSION OC B GROSS INCOME FROM ALL SOURCES OC 6,522,629. E FOREIGN GROSS INC. SOURCES AT PARTNERSHIP LEVELGENERAL CATEGORY OC 16,226. G DEDS. ALLOCATED/APPORTIONED AT PARTNER LEVEL INTEREST EXPENSE OC 10,407. J DEDS. ALLOCATED/APPORTIONED PARTNERSHIP LEVEL OC GENERAL CATEGORY 12,723. SCHEDULE K1 ALTERNATIVE MINIMUM TAX (AMT) ITEMS, BOX 17 CODE DESCRIPTION AMOUNT C DEPLETION (OTHER THAN OIL & GAS) 4,093. D OIL, GAL & GEOTHERMAL GROSS INCOME 231,819. E OIL, GAL & GEOTHERMAL DEDUCTIONS 267,290. F * OTHER AMT ITEMS 536. * SEE ATTACHED STATEMENT FOR ADDITIONAL INFORMATION LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

40 CROWE ENERGY PARTNERS FUND IV LP SCHEDULE K1 OTHER PORTFOLIO INCOME, BOX 11, CODE A DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT SECTION 988 / FORWARD CONTRACTS 22,422 TOTAL TO SCHEDULE K1, BOX 11, CODE A 22,422 SCHEDULE K1 OTHER INCOME, BOX 11, CODE F DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT ORD INCOMEPUBLICALLY TRADED PARTNERSHIP (BUCKEYE) ENTER ON APPLICABLE LINE OF YOUR RETURN 6,122. ORDINARY GAIN ON SALE OF BUCKEYE (PTP) 3,190. ORDINARY INC ATTRIBUTALBE TO 751(A) PROPERTY ENTER ON APPLICABLE LINE OF YOUR RETURN 9,609. ST NONPORTFOLIO CAPITAL GAIN TERRAGEN ENTER ON APPLICABLE LINE OF YOUR RETURN 597,749. TOTAL TO SCHEDULE K1, BOX 11, CODE F 616,670. SCHEDULE K1 ROYALTY DEDUCTIONS, BOX 13, CODE I DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT ROYALTY DEDUCTIONS FROM ACTIVITIES SEE IRS SCH. K1 INSTURCTIONS 1. TOTAL TO SCHEDULE K1, BOX 13, CODE I 1. SCHEDULE K1 PORTFOLIO DEDUCTIONS SUBJECT TO THE 2% FLOOR BOX 13, CODE K DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT AUDIT AND TA XSERVICE FEES 3,810. CONSULTING FEES 14,760. DEFERRED FINANCE COSTS 21,534. LEGAL FEES 18,685. MANAGEMENT FEES 127,310. OTHER DEDUCTIONS 43,473. TOTAL TO SCHEDULE K1 BOX 13, CODE K 229, LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

41 CROWE ENERGY PARTNERS FUND IV LP SCHEDULE K1 OTHER PORTFOLIO DEDUCTIONS, BOX 13, CODE L DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT ORGANIZATIONAL EXPENSES TOTAL TO SCHEDULE K1, BOX 13, CODE L SCHEDULE K1 DOMESTIC PRODUCTION ACTIVITY INFORMATION BOX 13, CODE T DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT DOMESTIC PRODUCTION GROSS RECEIPTS SEE FORM 8903 INSTRUCTIONS 4,007,238. NONDOMESTIC PRODUCTION GROSS SEE FORM 8903 INSTRUCTIONS RECEIPTS 1,594,022 DIRECTLY ALLOCATED COST OF GOODS SEE FORM 8903 INSTRUCTIONS SOLD 1,905,489. DIRECTLY ALLOCABLE EXPENSES SEE FORM 8903 INSTRUCTIONS 1,918,182 DIRECTLY ALLOCATED OTHER EXPENSES TO NONDPGR SEE FORM 8903 INSTRUCTIONS. 0. APPORTIONABLE OTHER EXPENSES SEE FORM 8903 INSTRUCTIONS 817,130. INTEREST EXPENSES SEE FORM 8903 INSTRUCTIONS 492,125. FORM W2 WAGES SEE FORM 8903 INSTRUCTIONS 26,700. ASSETS ALLOCABLE TO QPA SEE FORM 8903 INSTRUCTIONS 6,862,870. TOTAL COST OF GOODS SOLD SEE FORM 8903 INSTRUCTIONS 1,915,972. ASSETS ALLOCABLE TO NONQPA SEE FORM 8903 INSTRUCTIONS 10,010,758. DOMESTIC PRODUCTION GROSS RECEIPTS SEE FORM 8903 INSTRUCTIONS OIL RELATED 43,742. NONDOMESTIC PRODUCTION GROSS SEE FORM 8903 INSTRUCTIONS RECEIPTS OIL RELATED 882. DIRECTLY ALLOCAED COST OF GOODS SEE FORM 8903 INSTRUCTIONS SOLD OIL RELATED 20,232. DIRECTLY ALLOCABLE EXPENSES OIL SEE FORM 8903 INSTRUCTIONS RELATED 29,188. APPORTIONALBE OTHER EXPENSES SEE FORM 8903 INSTRUCTIONS OIL RELATED 2,147. TOTAL COST OF GOODS SOLD OIL SEE FORM 8903 INSTRUCTIONS RELATED 9, LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

42 CROWE ENERGY PARTNERS FUND IV LP SCHEDULE K1 OTHER DEDUCTIONS, BOX 13, CODE W DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT ADJ TO GAIN/LOSS ON SALE FOR PREV SEC 743(B) ENTER ON APPLICABLE LINE OF YOUR RETURN 14,631. GUARANTEED PYMT MGMT INCENTIVE GROUP ENTER ON APPLICABLE LINE OF YOUR RETURN 163. OTHER DUDECTIONS ENTER ON APPLICABLE LINE OF YOUR RETURN 123,713. SEC 743 (B) DEPREC STEPUP PASS THRU TO BUSBAR ENTER ON APPLICABLE LINE OF YOUR RETURN 46. SEC 754 DEPREC STEPUP PASSTHRU ENTER ON APPLICABLE LINE OF YOUR TO BUSBAR RETURN 571. SECTION 743(B) AMORTIZATION ENTER ON APPLICABLE LINE OF YOUR RETURN 4,742. SECTION 743(B) DEPRECIATION ENTER ON APPLICABLE LINE OF YOUR RETURN 16,743. SECTION 754 BASIS ADJUSTMENT ENTER ON APPLICABLE LINE OF YOUR RETURN 89,821. TOTAL TO SCHEDULE K1, BOX 13, CODE W 250,430. SCHEDULE K1 OTHER CREDITS, BOX 15, CODE P DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT RENEWABLE ELECTRICITY AND REFINED ENTER ON FORM 8835, LINE 9 COAL PRODUCTION CREDIT 3,166. TOTAL TO SCHEDULE K1, BOX 15, CODE P 3,166. SCHEDULE K1 ALTERNATIVE MINIMUM TAX, ADJUSTED GAIN OR LOSS, BOX 17, CODE B DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT LONGTERM CAPITAL GAIN ORLOSS SEE FORM 6251 INSTRUCTIONS 686. SECTION 1231 GAIN OR LOSS SEE FORM 6251 INSTRUCTIONS 4. ORGINARY GAIN OR LOSS SEE FORM 6251 INSTRUCTIONS 139,343. TOTAL TO SCHEDULE K1, BOX 17, CODE B 140, LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

43 CROWE ENERGY PARTNERS FUND IV LP SCHEDULE K1 OTHER ALTERNATIVE MINIMUM TAX (AMT) ITEMS, BOX 17, CODE F DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT OTHER TAX PREFERENCE ITEMS FROM SEE IRS SCH. K1 INSTRUCTIONS ACTIVITIES 536. TOTAL TO SCHEDULE K1, BOX 17, CODE F 536. SCHEDULE K1 NONDEDUCTIBLE EXPENSES, BOX 18, CODE C DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT NONDEDUCTIBLE EXPENSES SEE IRS SCH. K1 INSTRUCTIONS PASSTHROUGH 1,256. TOTAL TO SCHEDULE K1, BOX 18, CODE C 1,256. SCHEDULE K1 INTEREST EXPENSE FOR CORPORATE PARTNERS, BOX 20, CODE N DESCRIPTION PARTNER FILING INSTRUCTIONS AMOUNT INTEREST EXPENSE FOR CORPORATE SEE IRS SCH. K1 INSTRUCTIONS PARTNERS PASSTHROUGH 19,381. TOTAL TO SCHEDULE K1, BOX 20, CODE N 19,381. SCHEDULE K1 CURRENT YEAR INCREASES (DECREASES) DESCRIPTION AMOUNT TOTALS ORDINARY INCOME (LOSS) 617,015. INCOME (LOSS) FROM OTHER RENTAL ACTIVITIES 149,418. INTEREST INCOME 100,824. DIVIDEND INCOME 85,504. ROYALTY INCOME 9. LONGTERM CAPITAL GAIN (LOSS) 4,856,918. SECTION 1231 GAIN (LOSS) 8,461. OTHER PORTFOLIO INCOME 22,422. OTHER INCOME (LOSS) 616,670. SCHEDULE K1 INCOME SUBTOTAL 6,412, LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

44 CROWE ENERGY PARTNERS FUND IV LP CHARITABLE CONTRIBUTIONS 1,156. INTEREST EXPENSE ON INVESTMENT DEBTS 63,033. PORTFOLIO DEDUCTIONS 229,934. OTHER DEDUCTIONS 433,011. SCHEDULE K1 DEDUCTIONS SUBTOTAL 727,134. NET INCOME (LOSS) PER SCHEDULE K1 5,685,263. DEPRECIATION ON RETURN AND NOT ON BOOKS 44,101. GAIN/LOSS ON RETURN AND NOT ON BOOKS 404,161. NONDEDUCTIBLE EXPENSES 1,256. CONSULTING FEES 3,323. DOMESTIC PARTNERSHIP 209,528. FINES AND PENALTIES 39. INCOME (LOSS) FROM AL GULF COAST TERMINALS 1,094, ,148. INCOME (LOSS) FROM ARCLIGHT SUNPEAK HOLDINGS, LLC INCOME (LOSS) FROM BGH GP HOLDINGS (PTP) 2,317. INCOME (LOSS) FROM BGH GP HOLDINGS, LLC 23,750. INCOME (LOSS) FROM BLACK POINT PETROLEUM LLC 94,840. INCOME (LOSS) FROM BRONCO MIDSTREAM HOLDINGS LLC 152,815. INCOME (LOSS) FROM BUCKEYE PARTNERS, LP 4,969. INCOME (LOSS) FROM CHARGER OIL & GAS, LLC 6,467. INCOME (LOSS) FROM EMI POWER SYSTEMS, LLC 1. INCOME (LOSS) FROM GOMEZ HUB PIPELINE 110,397. PARTNERS,LP (SINGLE MEMBER INCOME (LOSS) FROM GREAT POINT POWER, LLC 203,942. (SINGLE MEMBER LLC) INCOME (LOSS) FROM MARKWEST PIONEER, LLC 3,459. INCOME (LOSS) FROM MILFORD HOLDINGS, LLC 30,306. INCOME (LOSS) FROM PLYMOUTH PETROLEUM, LLC 64,169. INCOME (LOSS) FROM RENUPOWER HOLDINGS, LLC 8,683. INCOME (LOSS) FROM TERRAGEN POWER HOLDINGS LLC 284,901. INCOME (LOSS) FROM VICTORIA FINCO LLC 93,599. INCOME (LOSS) FROM WATERSIDE POWER, LLC (SIMGLE 9,984. MEMBER LLC) INTEREST EXPENSE 1,198. INTEREST INCOME 24,826. LEGAL FEES 1,581. ORGANIZATIONAL EXPENSES 361. RENTAL EXPENSES FROM LIBERTY BELL POWER, LLC 886. U.S. DIVIDENDS 84,734. UNREALIZED GAIN / LOSS ON INVESTMENTS 2,052,105. UNRECOGNIZED LOSS FROM THE SALE OF PARTNERSHIP 39,161. INT IN LIGHTYEAR OTHER INCREASES OR DECREASES SUBTOTAL 3,637,885. TOTAL TO SCHEDULE K1, ITEM L 2,047, LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

45 CROWE ENERGY PARTNERS FUND IV LP SCHEDULE K1 FOOTNOTES LINE 17F OTHER AMT ITEMS: OTHER TAX PREF ITEM FROM CHARGER OIL & GAS LLC IS EXCESS IDC LINE 19A DISTRIBUTION AMOUNTS MAY INCLUDE DEEMED DISTRIBUTIONS FOR TAX PAYMENTS SCHEDULE K1, BOX, and CODE J, SECTION 59(E)(2) PARTNER'S PERCENTAGE OF AMOUNTS ON FORM K1 LINE 13J, SECTION 59(E)(2) EXPENDITURES, BY SOURCE. CHARGER OIL & GAS, LLC.32% BLACK POINT PETROLEUM, LLC 53.69% TERRAGEN POWER HOLDINGS, LLC 18.24% PLYMOUTH PETROLEUM, LLC 27.75% PLEASE CONSULT YOUR TAX ADVISOR SCHEDULE KI, BOX 13, CODE T: THE PARTNERSHIP HAS COMPUTED YOUR SHARE OF THE APPLICABLE ITEMS FOR IRC SECTION 199 IN ACCORDANCE WITH THE APPLICABLE REGULATIONS. THESE ITEMS DO NOT INCLUDE YOUR SHARE OF DEPLETION AND IDC ATTRIBUTABLE TO YOUR QUALIFIED WORKING INTEREST. THESE AMOUNTS SHOULD BE DETERMINED AT THE PARTNER LEVEL. PLEASE CONTACT THE PARTNERSHIP IF YOU NEED MORE INFORMATION OTHER INFORMATON : DEPLETION BLACK POINT PETROLEUM, LLC TENTATIVE ALLOWABLE DEPLETION 180. COST DEPLETION 24. DEPLETION IN EXCESS OF BASIS 118. EXCESS INTANGIBLE DRILLING COSTS 91,870. PLYMOUTH PETROLEUM, LLC TENTATIVE ALLOWABLE DEPLETION 86. COST DEPLETION 86. DEPLETION IN EXCESS OF BASIS 0. EXCESS INTANGIBLE DRILLING COSTS 48, LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

46 TENATIVE ALLOWABLE DEPLETION HAS BEEN CALCULATED ON YOUR BEHALF IN ACCORDANCE WITH THE SIMULATED PERCENTAGE DEPLETION METHOD UNDER TREAS. REG. SEC (B)(2)(IV)(K)(2). IN ADDITION, THE COMPUTATION HAS ASSUMED NO DEPLETABLE QUANTITY LIMITATIONS UNDER SEC. 613(C). THE PARTNERSHIP HAS NOT ASSUMED ESTIMATED TOTAL RECOVERABLE RESERVES IN ACCORDANCE WITH REV. PROC REFER TO THE ATTACHED DETAILED SCHEDULE REGARDING YOUR DEPLETION CALCULATION ON A BY PROPERTY BASIS. PLEASE CONSULT THE PARTNERSHIP IF YOU REQUIRE ADDITIONAL INFORMATION LHA For Paperwork Reduction Act Notice, see Instructions for Form Schedule K1 (Form 1065) 2011

47

48 Crowe Energy Partners IV, LP December 31, 2011 EIN: Depletion Schedule Attachment to Sch. K1 #1 Charger Oil & Gas LLC Partner #1 Schedule K1, Box 20, code T Oil & Gas Information Oil and Gas description Siler #1 Siler #2 Siler #3 Form Page 1 Page 1 Page 1 Unit Well/Lease # Date acquired Overhead allocation method Direct Expense (incl depr/idc) Direct Expense (incl depr/idc) Direct Expense (incl depr/idc) Production type Primary Primary Primary Number of months in production Dry hole status Part I Production/Royalty Gross income or royalties received $ 176,988 $ 63,689 $ 36,826 Less: Royalties paid Lease bonus income Other income including depletion recapture Net production/royalty income 176,988 63,689 36,826 Part II Well Before Depletion Intangible drilling costs 3,053 65, Productions/severance taxes 11,390 1, Dry hole costs Lease operating expenses 17,707 68,496 17,557 Direct depreciation 24,927 78,557 34,567 Section 179 expense Other expenses 20,089 6,574 4,855 Allocated overhead expenses 90, ,989 68,141 Total expenses 168, , ,989 Well income before depletion 8,925 (415,167) (89,163) Part III Cost Depletion Leasehold cost 303,990 49,116 19,635 Accumulated depletion 92,556 7,104 1,715 Adjusted basis 211,434 42,012 17,920 Beginning reserves 353, , ,002 Current production 44,517 18,157 10,650 Cost depletion deduction 26,594 2, Part IV Percentage Depletion Gross production/royalty income 176,988 63,689 36,826 Depletion rate % % % Gross percentage depletion 26,549 9,554 5,524 Tentative percentage depletion 8,925 Part V Tentative Depletion Deduction $ 26,594 $ 2,56 $ 638 INSTRUCTIONS: This information relates to oil and gas depletion from underlying funds. To find your appropriate amount please multiply each number by your ownership percentage in Crowe Energy Partners Fund IV, LP. IDC amounts must be adjusted if you make a section 59(E) election with respect to some or all of the IDC amounts shown. Please consult your tax advisor.

49 CROWE ENERGY PARTNERS FUND IV, L.P. DECEMBER 31, 2011 EIN: PARTNER FOOTNOTES ASSOCIATED WITH SCHEDULE K1, LINE 20 V TOTAL FEDERAL UBTI % BOX 1 ORDINARY INCOME % BOX 2 NET RENTAL REAL ESTATE INCOME % BOX 3 OTHER NET RENTAL INCOME % BOX 5 INTEREST INCOME 7.68% BOX 6(a) ORDINARY DIVIDEND INCOME 0.00% Box 7 ROYALTIES 23.00% BOX 8 NET SHORTTERM CAPITAL GAIN(LOSS) 0.00% BOX 9(a) NET LONGTERM CAPITAL GAINS 81.37% BOX NET GAIN /LOSS % BOX 11(f) OTHER INCOME 0.00% BOX 12 SECTION 179 DEDUCTION 0.00% BOX 13(A) CASH CONTRIBUTIONS (50%) 54.62% BOX 13(B) CASH CONTRIBUTIONS (30%) 0.00% BOX 13(H) INTEREST EXPENSE 0.00% BOX 13(KL) DEDUCTIONS PORTFOLIO: TOTAL 0.00% BOX 13(J) SECTION 59 (e)(2) EXPENDITURES % BOX 13(W) OTHER DEDUCTIONS 70.79% BOX 15(P) OTHER CREDITS % BOX 16(L) FOREIGN TAXES 0.00% Instructions: Crowe Energy Partners Fund IV, L.P.'s principal business activity is investing in independent power projects. To calculate your individual share of UBTI for Federal tax purposes, please multiply the corresponding line item on your Federal Schedule K1 by the noted UBTI percentage above. To calculate your statesourced UBTI: To the extent that such line items appear on your state schedules, please multiply the corresponding line item on your State K1 or State K1 Equivalent Schedule by the UBTI percentage noted above.

50 CROWE ENERGY PARTNERS IV, L.P. DECEMBER 31, 2011 EIN: STATE APPORTIONMENT SCHEDULE GrossReceipts STATE Total AL 647 CA 252,177,854 CO 1,308,011 CT 13,307,919 DE 5,999 FL 13,506 HI 58,792,004 IL 286,317 IN 447,781 IA 4,743 KY 305 KS LA 24,502 ME 1,320 MD 737 MA 40,580 MI 136,381 MN 78,747 MO 9,154 NV 19,395,019 NJ 1,085,712 NY 694,854 NC 2,819 OH 109,621 OK 6,905,174 PA 31,610,323 SC 7,007 TN 1,737,200 TX 331,087,864 VA 1,353 WV 9,585 WI 3,259 WY 2,533,099 FOREIGN 25,973,708 Tangible Property Total Beg End Cost Accum Dep Beg NBV Cost Accum Depr EndNBV AvgNBV 2, ,829 1, ,152,151 67,425,493 54,726, ,313, ,595, ,718, ,722,592 43,006 30,711 12,295 4,214,994 3,456, , ,448 30,853,134 1,776,958 29,076,176 31,709,467 2,915,711 28,793,756 28,934,966 35,228 6,911 28,317 19,333 2,716 16,617 22, ,859 53, , ,081 48, , , ,666 32, , ,722 27, , ,491 35, ,586 17,293 1, , ,434 19,434 11, ,354 15,394 20, ,581 10,291 8,017 2,383 5,633 6,271 1,988 4,283 4, ,545 23, , ,451 19, , ,855 3,893 2,812 1, , ,451 64,958 33,020 29,780 3,356 26,424 43,375 3,061 40,314 33, ,840, ,219,690 21,621,057 35,033,006 18,586,147 16,446,859 19,033, ,444 33, , ,353 27, , , , , , ,695 33, , , ,623 66, , ,951 55, , ,033 78,070,646 4,650,134 73,420,512 78,305,241 7,775,308 70,529,933 71,975, ,923,252 76,177, ,745, ,476,899 21,739, ,737, ,741,594 5, ,725 2,862 94,002 8,169 85,834 13,730, ,459 12,900,318 6,493, ,354,257 38,057, ,296, ,803,879 37,898, ,905, ,101,283 11, ,887 5,443 17,824 1,112 16,712 13,463 1,010 12,453 14,582 61,143 42,690 18,453 6,038,717 4,791,960 1,246, ,605 73,884,743 4,197,997 69,686,746 77,847,357 7,901,457 69,945,900 69,816,323 Land Total Beg End Avg 9,200,846 9,200,531 9,200, ,400 7,818 11,609 14,942 10,024 12, ,072 12,431 16,751 2,039 1,208 1,623 5,414 4,241 4,827 7,792 5,019 6,405 6,955 4,224 5,590 98,778 98,778 98,778 8,625 14,299 11,462 29,054, ,590 14,689,965 5,083 3,003 4, ,898 50,949 Payroll T otal 725,626 1,090 10,090,906 7,795 Rent Rent x 8 72,590, ,723, , ,124 1,144 9, , , ,986,713 55,893, ,757 1,217 9, ,619 21, ,540 3,572 28, , ,173 2,001, ,662 Interest T o t a l 6,359, , ,942 8, , ,667 12, ,062 22, ,292, Inventory T ot al Beg 688,558 End 537,162 13, ,793,103 1,345,475, ,998,807 1,046,477,188 1,017,567, ,029, ,538, ,507,925 38,441,747 9,789,408 24,115,577 10,825,417 79,858, ,864,452 8,358, , ,846 The above information represents amounts for the entire partnership. To obtain your partner share, please multiply by your partnership interest.