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<SEC-DOCUMENT>0000950134-04-008383.txt : 20040604
<SEC-HEADER>0000950134-04-008383.hdr.sgml : 20040604
<ACCEPTANCE-DATETIME>20040604163329
ACCESSION NUMBER:		0000950134-04-008383
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040531
ITEM INFORMATION:		Changes in registrant's certifying accountant
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040604

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INCOME OPPORTUNITY REALTY INVESTORS INC /TX/
		CENTRAL INDEX KEY:			0000949961
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				752615944
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14784
		FILM NUMBER:		04850184

	BUSINESS ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		4685224200

	MAIL ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d15965e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>e8vk</TITLE>
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<P align="center" style="font-size: 14pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT</B>

<P align="center" style="font-size: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>


<P align="center" style="font-size: 10pt">Date of Report (Date of earliest event reported) May&nbsp;31, 2004


<P align="center" style="font-size: 24pt"><B>Income Opportunity Realty Investors, Inc.</B>

<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center"></DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
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    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top">Nevada
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1-14784
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">75-2615944</TD>
</TR>

<TR style="font-size: 1px">
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction<BR>
of Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">1755 Wittington Place, Suite&nbsp;340, Dallas, Texas 75234


<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center"></DIV>

<DIV align="center" style="font-size: 10pt">(Address of principal executive offices) (Zip Code)</DIV>


<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code 214-750-5800



<P align="center" style="font-size: 10pt">1800 Valley View Lane, Suite&nbsp;300, Dallas, Texas 75234

<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center"></DIV>

<DIV align="center" style="font-size: 10pt">(Former name or former address, if changed since last report)</DIV>


<P>
<HR size="1" noshade color="#000000" style="margin-top: -2px">
<HR size="4" noshade color="#000000" style="margin-top: -10px">






<P align="center" style="font-size: 10pt">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<!-- link2 "Item&nbsp;4. Changes in Registrant&#146;s Certifying Accountant" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;4. Changes in Registrant&#146;s Certifying Accountant</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective June&nbsp;1, 2004, the Audit Committee of the Board of Directors of
Income Opportunity Realty Investors, Inc. (&#147;IOT&#148; or the &#147;Registrant&#148;) engaged
the Plano, Texas firm of Swalm &#038; Associates, P.C. as the new independent
accountant to audit IOT&#146;s financial statements. During the Registrant&#146;s two
most recent fiscal years and any subsequent interim period, IOT did not consult
with Swalm &#038; Associates, P.C. or any of its members about the application of
accounting principles to any specified transaction or any other matter. During
the Registrant&#146;s most recent fiscal year ended December&nbsp;31, 2003 and the
subsequent interim period, Edward S. Swalm of Swalm &#038; Associates, P.C. served
as the outside concurring reviewer for Farmer, Fuqua &#038; Huff, P.C. in connection
with Farmer, Fuqua &#038; Huff, P.C.&#146;s audit of IOT&#146;s financial statements for the
fiscal year ended December&nbsp;31, 2003 and review of IOT&#146;s financial statements
for the first quarter ended March&nbsp;31, 2004. The decision to change accountants
was approved by the Audit Committee of the Board of Directors of IOT consisting
of Messrs.&nbsp;David Allard, Robert Jakuszewski and Peter Larsen.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The engagement effective June&nbsp;1, 2004 of Swalm &#038; Associates, P.C. as a new
independent accountant for IOT necessarily results in the termination or
dismissal of the principal accountant which audited IOT&#146;s financial statements
for the fiscal year ended December&nbsp;31, 2003, Farmer, Fuqua &#038; Huff, P.C.
Farmer, Fuqua &#038; Huff, P.C. advised the IOT Board of Directors on May&nbsp;31, 2004,
that by virtue of other assignments for such firm with affiliates of IOT
(American Realty Investors, Inc. &#091;&#147;ARI&#148;&#093; and Transcontinental Realty Investors,
Inc. &#091;&#147;TCI&#148;&#093; which owns 24% of the outstanding securities of IOT) perhaps
another firm should handle the audit of IOT&#146;s financial statements for the
fiscal year ending December&nbsp;31, 2004. Farmer, Fuqua &#038; Huff, P.C. was engaged
effective July&nbsp;1, 2003 as the independent accountant for IOT, which in turn
resulted in the termination or dismissal of the principal accountant which had
audited IOT&#146;s financial statements during the previous two fiscal years ended
December&nbsp;31, 2001 and 2002, BDO Seidman, LLP. BDO Seidman, LLP had made a fee
proposal estimate to IOT for 2003 which was greater than the fee proposal of
Farmer, Fuqua &#038; Huff, P.C. for the same work.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the Registrant&#146;s two most recent fiscal years and the subsequent
interim period, through June&nbsp;1, 2004, there were no disagreements between the
Registrant and Farmer, Fuqua &#038; Huff, P.C. or prior thereto with BDO Seidman,
LLP concerning any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure which disagreements, if not
resolved to Farmer, Fuqua &#038; Huff, P.C.&#146;s (or BDO Seidman, LLP&#146;s) satisfaction
would have caused either of them to make a reference to the subject matter of
the disagreements in connection with their reports; there were no reportable
events as described in Item&nbsp;304(a)(1)(v) of Regulation&nbsp;S-K.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Farmer, Fuqua &#038; Huff, P.C.&#146;s report dated March&nbsp;12, 2004 on IOT&#146;s
financial statements for the year ended December&nbsp;31, 2003 did not contain any
adverse opinion or disclaimer of opinion, nor was the report qualified or
modified as to uncertainty, audit scope or accounting principles.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IOT provided Farmer, Fuqua &#038; Huff, P.C. with a copy of the foregoing
disclosures and requested from Farmer, Fuqua &#038; Huff, P.C. a letter addressed to
the Commission stating whether Farmer, Fuqua &#038; Huff, P.C. agrees with the
statements made by IOT in response to Item 304(a) of


<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">Regulation&nbsp;S-K, and if not, stating the respects in which it does not
agree. Farmer, Fuqua &#038; Huff, P.C.&#146;s letter is attached as an exhibit to this
report as Exhibit&nbsp;16.1.

<!-- link2 "Item&nbsp;5. Other Events and Regulation&nbsp;FD Disclosure" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;5. Other Events and Regulation&nbsp;FD Disclosure</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective May&nbsp;31, 2004, Ronald E. Kimbrough resigned as an officer of the
Registrant and its affiliates. Prior to his resignation, Ronald E. Kimbrough
had been acting principal executive officer (since February&nbsp;2002) and Executive
Vice President and Chief Financial Officer (since January&nbsp;2002) until May&nbsp;31,
2004.

<!-- link2 "Item&nbsp;7. Financial Statements and Exhibits" -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;7. Financial Statements and Exhibits</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Exhibits. The following documents are filed as exhibits to this report:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
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<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Designation</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description of Exhibit</B><HR size="1" noshade></TD>
</TR>

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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">16.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter dated June&nbsp;3, 2004 addressed to the Securities
and Exchange Commission from Farmer, Fuqua &#038; Huff, P.C.</TD>
</TR>

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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf of the
undersigned hereunto duly authorized.

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">Date: June 4, 2004&nbsp;</TD>
    <TD colspan="3">INCOME OPPORTUNITY REALTY<BR>
INVESTORS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">/s/ Louis J. Corna
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">Louis J. Corna, Executive Vice President,&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">General Counsel, Tax Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">4
</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-16.1
<SEQUENCE>2
<FILENAME>d15965exv16w1.htm
<DESCRIPTION>LETTER TO THE SECURITIES AND EXCHANGE COMMISSION
<TEXT>
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<P align="right" style="font-size: 10pt"><B>EXHIBIT 16.1</B>



<P align="left" style="font-size: 10pt">June&nbsp;3, 2004


<P align="left" style="font-size: 10pt">Securities and Exchange Commission<BR>
450 5th Street N.W.<BR>
Washington, D.C. 20549


<P align="left" style="font-size: 10pt">Gentlemen:

<P align="left" style="font-size: 10pt">We have been furnished with a copy of the response to Item&nbsp;4 of Form 8-K for
the event that occurred on June&nbsp;1, 2004, to be filed by our former client,
Income Opportunity Realty Investors, Inc. We agree with the statements made in
response to that Item insofar as they relate to our Firm.


<P align="left" style="font-size: 10pt">Very truly yours,


<P align="left" style="font-size: 10pt">/s/ Farmer, Fuqua &#038; Huff, P.C.


<P align="left" style="font-size: 10pt">Farmer, Fuqua &#038; Huff, P.C.



<P align="center" style="font-size: 10pt">5
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