Note 5 - Partnership Income Taxes

3 Months Ended

Mar. 31, 2013

Notes

Note 5 - Partnership Income Taxes

Note 5 – Partnership Income Taxes

The Partnership was subject to a New Jersey tax based upon the number of resident and non-resident limited partners and apportionment of income related to the Partnership’s investment in certain Local Partnerships. For the three months ended March 31, 2012 the expense related to this tax is reflected in tax expense in the accompanying statements of operations.  During the year ended December 31, 2012, the Partnership paid approximately $66,000 as a required deposit for estimated 2012 New Jersey taxes, which was based on half of the previous year’s taxes. However, the Partnership’s estimate of the actual tax due for 2012 was approximately $12,000.  The remaining balance paid of approximately $54,000 is reflected as an other asset on the accompanying balance sheet at March 31, 2013 and December 31, 2012. Approximately $4,000  was recognized as expense during the three months ended March 31, 2012. As a result of the sale of Countryside during 2012, the Partnership is no longer subject to pay New Jersey taxes.