Note 4 - Income Taxes

12 Months Ended

Dec. 31, 2013

Notes

Note 4 - Income Taxes

NOTE 4 – INCOME TAXES

The Partnership is not taxed on its income. The partners are taxed in their individual capacities based upon their distributive share of the Partnership's taxable income or loss and are allowed the benefits to be derived from off-setting their distributive share of the tax losses against taxable income from other sources subject to passive loss limitations. The taxable income or loss differs from amounts included in the statements of operations because different methods are used in determining the losses of the Local Limited Partnerships as discussed below.

A reconciliation is as follows:

	Years Ended December 31,
	2013	2012
	(in thousands)
Net income per financial statements	$ (28)		$ 1,156
Gain on sale of interest in Local Limited Partnership	--		--
Loss on sale of Local Limited Partnership property	--		(805)
Partnership’s share of Local Limited Partnership	1,921		1,780
Income per tax return	$ 1,893		$ 2,131
Income per limited partnership interest	$ 1,797		$ 398.74

The following is a reconciliation between the Partnership’s reported amounts and the Federal tax basis of net assets (in thousands):

	December 31, 2013	December 31, 2012
	(in thousands)	(in thousands)
Net assets as reported	$ 769	$ 2,297
(Deduct) add:
Investment in Partnerships	(602)	(2,529)
Deferred offering costs	1,422	1,422
Receivable	2,094	2,094
Other	40	46
Net assets – Federal tax basis	$ 3,723	$ 3,330