7. Taxable Income

12 Months Ended

Mar. 30, 2017

Notes

7. Taxable Income

7.       Taxable Income

A reconciliation of the financial statement net income (loss) of the Trust for the years ended March 30, 2017 and 2016 to the tax return income for the years ended December 31, 2016 and 2015 is as follows:

	2017	2016
Financial statement net income (loss) for the years ended March 30, 2017 and 2016	$     1,227,862	$       (541,227)
Add (less) net transactions occurring between
January 1, 2015 and March 30, 2015	--	(46,752)
January 1, 2016 and March 30, 2016	(306,378)	306,378
January 1, 2017 and March 30, 2017	21,683	--
Adjusted financial statement net income (loss) for the years ended December 31, 2016 and 2015	943,167	(281,601)
Management Fees deductible for tax purposes when paid	63,326	123,537
Equity in loss of investment in local partnerships	(110,243)	(224,196)
Gain (loss) on sale of limited partner interests/local partnership properties	(147,589)	1,014,482
Other income from local partnerships	--	(13,562)
Other differences	124	--
Tax return income for the years ended December 31, 2016 and 2015	$        748,785	$        618,660

The differences between investment in local partnerships for financial reporting and tax purposes as of December 31, 2016 and 2015 are as follows:

	2016	2015
Investment in local partnerships - financial reporting	$                    --	$                    --
Investment in local partnerships - tax	(747,378)	(215,752)
	$           747,378	$           215,752

Payable to manager and affiliates in the accompanying balance sheets represents accrued Management Fees, which are not deductible for tax purposes until paid pursuant to IRC Section 267.