Property and Equipment

12 Months Ended

Mar. 31, 2017

NOTE 4 – Property and Equipment

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


					Estimated
	March 31,				Useful Lives
	2017		2016		(Years)

Land	$	396,383	$	449,082		-
Building and improvements		1,836,587		7,046,127	27.5	-	40
Furniture and fixtures		102,331		632,751	3	-	10
		2,335,301		8,127,960

Less: Accumulated depreciation		(2,284,168)		(7,946,808)

	$	51,133	$	181,152

Depreciation expense for the discontinued property and equipment for the years ended March 31, 2017 and 2016 amounted to $4,205 and $29,062, respectively. During the year ended March 31, 2017, there was a decrease in accumulated depreciation on dispositions in the amount of $5,666,845.

Impairments

During the years ended March 31, 2017 and 2016, the Partnership performed a fair value analysis on all of its property 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). As of December 31, 2012, all Local Partnerships had completed their Credit Periods and Compliance Periods. 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 did not record any loss on impairment of assets or a reduction to estimated value for the year ended March 31, 2017. Impairments have been estimated using Level 3 inputs.

During the year ended March 31, 2017, the Partnership has not recorded any loss on impairment of assets. Through March 31, 2017, the Partnership has recorded approximately $35,686,000 as an aggregate loss on impairment of property.