Reconciliation of Partnership's Financial Statement

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Reconciliation of the Partnership's financial statement net income to taxable income

RECONCILIATION OF THE PARTNERSHIP'S FINANCIAL STATEMENT

NET INCOME TO TAXABLE INCOME

For federal income tax purposes, the Partnership reports on a basis whereby:  (i) certain expenses are amortized rather than expensed when incurred; (ii) certain costs are amortized over a shorter period for tax purposes, as permitted by the Internal Revenue Code and underlying regulations and (iii) certain costs are amortized over a longer period for tax purposes.  The Partnership records its share of losses from its investments in limited partnerships for federal income tax purposes as reported on the Local Partnerships' federal income tax returns (see Note 2.f.), including losses in excess of related investment amounts.  These returns are subject to examination and, therefore, possible adjustment by the IRS.

A reconciliation of the Partnership's financial statement net income to taxable income follows.

	For the years ended December 31,
	2012		2011
Financial statement net income	$	7,944,252	$	1,561,677
Adjustments:
Difference between financial statement
net income and taxable income related
to the Partnership's equity in the
Local Partnerships' income or losses	136,888		(501,310		)
Costs amortized over a shorter period
for income tax purposes	3,284		3,284
Difference between taxable interest
expense and financial statement
interest expense	481,354		99,399
Differences between financial statement
gain and tax gain from
the sale or transfer of properties	2,690,617		8,914,488
Taxable income	$	11,256,395	$	10,077,538