City Investing Company Liquidating Trust Fed. I.D. #13-6859211 January 27, 2004
 

2003 U.S. FEDERAL INCOME TAX INFORMATION

This letter provides information relating to the amount and character of the income, gain, loss, deductions and basis adjustment ("Tax Items") of the City Investing Company Liquidating Trust ("Trust") for 2003. You should use this information in preparing your 2003 U.S. Federal income tax return.

If you (i) acquired Trust Units ("Units") upon liquidation of City Investing Company, (ii) reported long-term capital gain or loss upon the liquidation, and (iii) did not dispose of any Units in 2003, you can calculate on the Schedule your share of the Trust Tax Items by multiplying the Amount per Unit [Column IA] of each Tax Item by the Number of Units you held [Column IB] and entering the product under the Taxable Amount [Column IC].

If you (i) disposed of Units in 2003, or (ii) acquired your Units other than upon the liquidation of City Investing Company, or (iii) did not report long-term capital gain or loss upon the liquidation, you will probably have different income tax consequences that cannot readily be calculated by the Trust. For administrative convenience, you may calculate your share of the Trust Tax Items by (i) multiplying the Amount per Unit [Column A] of each Tax Item by the Number of Units you held [Column B] on the first day of each month applicable to your holding period, (ii) entering the product under the Taxable Amount [Column C] and (iii) entering the sum of the amounts in Columns IIC through XIIIC, if any, in Column XIV.

Individual taxpayers may report on Form 1040 the amounts of Tax Items computed for Federal income tax purposes as follows:
    
Tax Item 1c.Interest Income--line 1, Schedule B
Tax Item 2.Dividend Income--line 5, Schedule B
Tax Item 3.Net Long-Term Capital Gain/(Loss)--line 12, Schedule D, Column (f)
Tax Item 4.Gain on Sale of Real Estate -- With Installment Sale Method
 4a.   Payments Received During Year -- line 21, Form 6252
 4b.   Installment sale income -- Qualified 5-Year Gain -- line 24, Form 6252
Tax Item 5.Miscellaneous Income--line 21
Tax Item 6.Trust Expenses--line 22, Schedule A, (if you itemize deductions)
Tax Item 7.Adjustment to Basis--With Installment Sale Method--for information purposes
Tax Item 8.Adjustment to Basis--Without Installment Sale Method--for information purposes

THIS LETTER IS NOT INTENDED TO PROVIDE INCOME TAX ADVICE RELATING TO THE ACQUISITION, HOLDING AND DISPOSITION OF UNITS. YOU ARE STRONGLY ENCOURAGED TO DISCUSS THE INCOME TAX CONSEQUENCES OF ACQUIRING, HOLDING AND DISPOSING OF UNITS WITH YOUR TAX ADVISOR.

For all information about unit holdings:

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

Registered unit holders, please communicate with Mellon Investor Services, transfer agent for City Investing Company Liquidating Trust, at:

 
    telephone:           1-800-851-9677
    write to:            Mellon Investor Services, P.O. Box 3315, South Hackensack, NJ 07606
    web site:            http://www.melloninvestor.com

For current financial and tax information (10-K, 8-K, and 10-Q), please go to the Trust's web site: 

                         http://www.cnvlz.com

For all information other than unit holdings, please communicate with us at:

    write to:            CITY INVESTING COMPANY LIQUIDATING TRUST

                         853 Broadway, Suite 1607, New York, NY 10003-4703

    telephone:           212-473-1918    fax: 212-473-3927    e-mail: shr@cnvlz.com

City Investing Company Liquidating Trust units trade on the Nasdaq Stock Market and appear daily in the list entitled Small Capitalization Issues under the symbol of CITYINVLQ or CNVLZ.

 

-A-

 

 
  I
 
  Total if held from
  January 1 through
  December 31
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount #
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.032820 x   =  
  b) All Other 0.004535 x   =  
  c) Total Interest Income (1a+1b) 0.037355 x   =  
 
2. Dividend Income: 0.000022 x   =  
 
3. Net Long-Term Capital Gain/(Loss): (0.008307) x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.018897 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.004705 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.010067 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) 0.023708 x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) 0.019003 x   =  

 

  II
 
   
   
  January
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000000 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.000000 x   =  
 
2. Dividend Income: 0.000003 x   =  
 
3. Net Long-Term Capital Gain/(Loss): 0.000000 x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000482 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) (0.000479) x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) (0.000479) x   =  

 

  III
 
   
   
  February
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000000 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.000000 x   =  
 
2. Dividend Income: 0.000002 x   =  
 
3. Net Long-Term Capital Gain/(Loss): 0.000000 x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.001090 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) (0.001088) x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) (0.001088) x   =  

 

  IV
 
   
   
  March
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.010412 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.010412 x   =  
 
2. Dividend Income: 0.000001 x   =  
 
3. Net Long-Term Capital Gain/(Loss): (0.000055) x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.001643 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) 0.008715 x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) 0.008715 x   =  

 

  V
 
   
   
  April
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000000 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.000000 x   =  
 
2. Dividend Income: 0.000001 x   =  
 
3. Net Long-Term Capital Gain/(Loss): 0.000000 x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000621 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) (0.000620) x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) (0.000620) x   =  

 

  VI
 
   
   
  May
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000000 x   =  
  b) All Other 0.004535 x   =  
  c) Total Interest Income (1a+1b) 0.004535 x   =  
 
2. Dividend Income: 0.000001 x   =  
 
3. Net Long-Term Capital Gain/(Loss): 0.000000 x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.018897 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.004705 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000579 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) 0.008662 x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) 0.003957 x   =  

 

  VII
 
   
   
  June
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.008845 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.008845 x   =  
 
2. Dividend Income: 0.000002 x   =  
 
3. Net Long-Term Capital Gain/(Loss): (0.002102) x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000678 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) 0.006067 x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) 0.006067 x   =  

 

  VIII
 
   
   
  July
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000000 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.000000 x   =  
 
2. Dividend Income: 0.000001 x   =  
 
3. Net Long-Term Capital Gain/(Loss): 0.000000 x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000435 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) (0.000434) x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) (0.000434) x   =  

 

  IX
 
   
   
  August
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000000 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.000000 x   =  
 
2. Dividend Income: 0.000001 x   =  
 
3. Net Long-Term Capital Gain/(Loss): 0.000000 x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000513 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) (0.000512) x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) (0.000512) x   =  

 

  X
 
   
   
  September
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.006774 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.006774 x   =  
 
2. Dividend Income: 0.000000 x   =  
 
3. Net Long-Term Capital Gain/(Loss): (0.001001) x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000252 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) 0.005521 x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) 0.005521 x   =  

 

  XI
 
   
   
  October
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000000 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.000000 x   =  
 
2. Dividend Income: 0.000006 x   =  
 
3. Net Long-Term Capital Gain/(Loss): (0.000060) x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.002744 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) (0.002798) x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) (0.002798) x   =  

 

  XII
 
   
   
  November
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.000529 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.000529 x   =  
 
2. Dividend Income: 0.000003 x   =  
 
3. Net Long-Term Capital Gain/(Loss): (0.002734) x   =  
 
4. Gain on Sale of Real Estate - With Installment Sale Method          
  a) Payments Received During Year 0.000000 x   =  
  b) Installment Sale Income   [Qualified 5-Year Gain] 0.000000 x   =  
 
5. Miscellaneous Income: 0.000000 x   =  
 
6. Trust Expenses: 0.000508 x   =  
 
7. Adjustment to Basis - With Installment Sale Method          
  Tax Items (1c+2+3+4b+5-6) (0.002710) x   =  
 
8. Adjustment to Basis - Without Installment Sale Method          
  Tax Items (1c+2+3+5-6) (0.002710) x   =  

 

  XIII
 
   
   
  December
 
  A x B = C
 
  Amount        
  per     No. of     Taxable  
  Unit x Units = Amount o
TAX ITEM: *  
1. Interest Income:          
  a) U.S. Gov't Obligations 0.006260 x   =  
  b) All Other 0.000000 x   =  
  c) Total Interest Income (1a+1b) 0.006260 x   =  
 
2. Dividend Income: 0.000001 x   =  
 
3. Net Long-Term Capital Gain/(Loss): (0.002355) x