Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Tax Disclosure [Text Block]

Note E - Income Taxes

The Partnership is classified as a partnership for Federal income purposes. Accordingly, no provision for Federal income taxes is made in the consolidated financial statements of the Partnership. Taxable income or loss of the Partnership is reported in the income tax returns of its partners.

The Partnership adopted the liquidation basis of accounting effective December 31, 2011.

The following is a reconciliation of reported net income (loss) and Federal taxable income (in thousands except per unit data):

	2011	2010
Net income (loss) as reported	$4,535	$ (140)
(Deduct) add:
Unearned revenue	(15)	2
Depreciation differences	407	303
Miscellaneous	(25)	(13)
Gain on sale of property	741	--
Federal taxable income	$5,643	$  152
Federal taxable income per limited
partnership unit	$40.08	$ 1.09

The following is a reconciliation between the Partnership's reported amounts and Federal tax basis of net assets and liabilities (in thousands):

	2011	2010
Net assets (liabilities) as reported	$ 5,883	$(1,962)
Land and buildings	--	(9,770)
Accumulated depreciation	--	8,736
Partner receivable	(3,375)	--
Syndication and distribution costs	8,258	8,258
Other	197	53
Net assets - Federal tax basis	$10,963	$ 5,315

While the Partnership is not subject to Federal income tax, it is subject to tax related to its Texas activities. During the year ended December 31, 2011, the Partnership recognized current tax expense of approximately $55,000, of which approximately $40,000 is reflected as a reduction of gain from sale of discontinued operations as a result of the sale of Woods of Inverness Apartments and approximately $15,000 is reflected in operating expenses. The corresponding liability is included in taxes payable at December 31, 2011.