SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Date of Report: August 4, 2000 LIF (Exact name of registrant as specified in its charter) California 2-94509 94-2969720 (State or other (Commission File No.) (I.R.S. Employer jurisdiction of Identification No.) incorporation) P.O. Box 130, Carbondale, Colorado 81623 (Address of principal executive offices) (970) 963-8007 (Registrant's telephone number, including area code) ITEM 1. CHANGES IN CONTROL OF REGISTRANT Not Applicable ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS On July 21, 2000, the registrant sold one of its real property investment known as 701 Cooper, located in Glenwood Springs, Colorado. The property consisted of 1 commercial building. The buyer, Lemarie & Piot, LLC., is not affiliated with the registrant. The sale price received by the registrant was $499,000 which resulted in a gain of $169,872 and cash proceeds of $148,676. ITEM 3. BANKRUPTCY OR RECEIVERSHIP Not Applicable ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS Not Applicable ITEM 5. OTHER EVENTS Not Applicable ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS Not Applicable ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Financial statements of business acquired Not Applicable (b) Pro Forma Balance Sheet - June 30, 2000 Pro Forma Statements of Operations: Year ended June 30, 2000. Notes to Pro Forma Financial Statements (c) Exhibits Not Applicable ITEM 8. CHANGE IN FISCAL YEAR Not Applicable PRO FORMA FINANCIAL STATEMENTS The following Pro Forma Balance Sheet of the registrant as of June 30, 2000 and the Pro Forma Statement of Operations for the three months ended June 30, 2000, reflects pro forma adjustments to the registrant's historical Financial Statement assuming the property was not owned by LIF during that time as explained in Notes to Pro Forma Financial Statements. The Pro Forma Statement of Operations for the three months ended June 30, 2000 is not necessarily indicative of the actual results that would have occurred had the property sale been consummated at the beginning of the respective periods or of future operations of the registrant. The Pro Formas do not take into consideration the increase in LIF's liquidity or possible uses of those funds. These statements should be read in conjunction with the Notes to Pro Forma Financial Statements. LIF PRO FORMA BALANCE SHEET, JUNE 30, 2000 (Unaudited) (Dollars in thousands)

Pro Forma Adjustments Add (Deduct) ~~March~~June 3130, 2000 (Note A) Pro Forma ASSETS INVESTMENTS IN REAL ESTATE: Rental properties $ ~~2,140~~327 $ (~~1,813~~327) $ ~~327~~0 Accumulated depreciation (~~296~~40) ~~258~~40 ~~(38)~~0 Rental properties - net ~~1,844~~287 ~~(1,555)~~287 ~~289~~0 CASH ~~814~~1,360 0 ~~814~~1,360 OTHER ASSETS Accounts receivable 90 ~~(9)~~0 0 Prepaid expenses and deposits 21 (21) 0 Deferred expenses 132 (112) 20 Notes receivable 0 0 0 Total other assets 243 (223) 20 TOTAL $ 21,~~682~~650 $ (~~1,577~~290) 1,~~105~~360 LIABILITIES AND PARTNERS' EQUITY LIABILITIES: Notes payable $ ~~1,411~~300 $ (~~1,106~~300) $ ~~305~~0 Accounts payable 171 (21) 150 Other liabilities 483 (403) 80 Total liabilities ~~1,476~~304 (~~1,148~~304) ~~328~~0 PARTNERS' EQUITY 1,~~206~~346 ~~(429)~~14 ~~777~~1,360 TOTAL $ 21,~~682~~650 $ (~~1,577~~290) $1,~~105~~360 The accompanying notes are an integral part of the pro forma financial statements.

LIF PRO FORMA STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2000 (Unaudited) (In thousands except per unit amounts)

Pro Forma Adjustments Add (Deduct) ~~March~~June 3130, 2000 (Note B) Pro Forma REVENUE Rental $ 6835 $ ~~(68)~~0 $ 035 Interest 8 0 8 Gain on sale 203 0 203 Total Revenue 76246 ~~(68)~~0 8246 EXPENSE Interest 3025 (238) 717 Operating 1612 (141) 211 Depreciation and amortization 1713 (162) 111 General and administration 4555 ~~(3)~~0 4255 Total expense $ ~~108~~105 $ (5611) $ 5294 NET LOSS/INCOME $ ~~(32)~~141 $ ~~(12)~~11 $~~(44)~~152 NET LOSS PER PARTNERSHIP UNIT $ ~~(2)~~11 $ (1) $ ~~(3)~~12 The accompanying notes are an integral part of the pro forma financial statements.

NOTES TO PRO FORMA FINANCIAL STATEMENTS (Dollars in thousands) A. The Balance Sheet Pro Forma adjustments reflect the sale of the 701 Cooper Building as if the sale occurred on June 30, 2000. A gain of $170 was recognized by the registrant which has been adjusted for activity subsequent to June 30, 2000, and through the date of sale (see Note B). The cost of investments in real estate, accumulated depreciation, prepaid expenses and deposits, deferred costs, notes payable and other liabilities have been adjusted by their respective balances at June 30, 2000. The registrant received cash proceeds of $149 from this sale. B. The Pro Forma Statement of Operations for the year ended June 30, 2000, reflects the loss from continuing operations before reflecting any amounts attributable to the operations of the 701 Cooper Building during 2000. The gain of $170 from the property sale which has not been reflected in the Pro Forma Statement of Operations, was determined as follows:

Sale price $ ~~1,875~~499 Less: selling costs (~~126~~42) Net selling price ~~1,749~~457 Property basis ~~1,813~~327 Accumulated depreciation and amortization (~~267~~40) Net book value ~~1,546~~287 Gain on sale of rental property $ ~~203~~170

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: August 4, 2000 LIF By: /s/ Gary K. Barr Partners 85 Managing General Partner

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