Note C - Income Taxes

12 Months Ended

Dec. 31, 2012

Notes

Note C - Income Taxes

Note C - Income Taxes

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

The following is a reconciliation of reported net income (loss) and Federal taxable income (loss) for the years ended December 31, 2012 and 2011 (in thousands, except per unit data):

	2012	2011
Net income (loss) as reported	$ 24,709	$ (6,492)
Add (deduct):
Depreciation differences	2,529	3,561
Gain (loss) on disposal of property	1,484	--
Unearned income	(29)	(24)
Other	(80)	84
Federal taxable income (loss)	$ 28,613	$ (2,871)
Federal taxable income (loss) per limited partnership unit	$ 179.00	$ (28.36)

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

	2012	2011
Net liabilities as reported	$ (15,649)	$ (30,106)
Land and buildings	2,913	4,142
Accumulated depreciation	(2,360)	(7,602)
Deferred sales commission	7,947	7,947
Syndication and distribution costs	4,451	4,451
Other	304	413
Net liabilities - Federal tax basis	$  (2,394)	$ (20,755)