Note 4 - Income Taxes

12 Months Ended

Dec. 31, 2019

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 offsetting 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 Partnership as discussed below. The taxable income is allocated to the partner groups in accordance with Section 704(b) of the Internal Revenue Code and therefore is not necessarily proportionate to the interest percentage owned.

A reconciliation follows:

	Years Ended December 31
	2019	2018
	(in thousands)
Net income per financial statements	$    (83)	$  (114)
Add (deduct):
Partnership’s share of Local Limited Partnership	31	36
Federal taxable income	$    (52)	$    (78)
Federal taxable income per limited partnership interest	$ (4.00)	$ (6.00)

The following is a reconciliation between the Partnership's reported amounts and Federal tax basis of net assets at December 31, 2019 and 2018:

	2019	2018
	(in thousands)
Net assets as reported	$   139	$   222
Differences in basis of assets and liabilities:
Investment in Local Limited Partnership	(1,271)	(1,302))
Syndication costs	3,565	3,565
Net assets - tax basis	$ 2,433	$ 2,485