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Property Plant and Equipment

12 Months Ended

Mar. 31, 2014

Property, Plant and Equipment Disclosure [Text Block]

NOTE 4 – Property and Equipment

The components of property and equipment from operations and their estimated useful lives are as follows:

	March 31,				Estimated
					Useful Lives
	2014		2013		(Years)

Land	$	1,564,276	$	1,649,807	-
Building and improvements		15,569,023		21,742,520	27.5-40
Furniture and fixtures		1,042,330		932,847	3-10
		18,175,629		24,325,174

Less: Accumulated depreciation		(16,801,559)		(19,056,585)

	$	1,374,070	$	5,268,589

Depreciation expense for the years ended March 31, 2014 and 2013 amounted to $200,354 and $555,882, respectively.

Depreciation expenses for the discontinued property and equipment for the years ended March 31, 2014 and 2013 amounted to $79,586 and $185,578, respectively. During the year ended March 31, 2014, there was a decrease in accumulated depreciation on dispositions in the amount of $2,534,965.

Impairments

During the years ended March 31, 2014 and 2013, the Partnership performed a fair value analysis on all of its investments. Impairment of assets is a two-step process. First, management estimated amounts recoverable through future operations and sale of the Property on an undiscounted basis. If such estimates were below depreciated cost, Property investments themselves were reduced to estimated fair value (using the fair market value based on comparative sales). Each Local Partnership must continue to comply with its Tax Credit requirements until the end of the Compliance Period in order to avoid recapture of the Tax Credits. Therefore, a 5-year cash flow projection was used, as this period is indicative of the average holding period left on the remaining investments. Based on this analysis, the Partnership deemed the properties of the below Local Partnerships impaired and wrote them down to their estimated fair value, which resulted in $2,406,000 of losses on impairment for the year ended March 31, 2014. Impairments have been estimated using Level 3 inputs.

Impairments from operations recorded for the year ended March 31, 2014 are as follows:



Bakery Village Urban Renewal Associates, L.P	$	1,736,000
GP Kaneohe Limited Partnership		670,000

	$	2,406,000

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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