NOTE 5 - INCOME TAXES (UNAUDITED)

The Partnership is not subject to income taxes because its income is taxed directly to the General Partner and limited partners. The reconciling items presented in the table below are the only items that create a difference between the tax basis and reported amounts of the Partnership’s assets and liabilities.

A reconciliation of financial statement net income to taxable income for each of the periods is as follows:


	2014		2013		2012
Net income per financial statements	$	677,526	$	658,875	$	634,162
Excess book depreciation		17,328		17,328		17,328

Taxable income	$	694,854	$	676,203	$	651,490

A reconciliation of partnership equity per the financial statements to partners’ equity for tax purposes as of December 31, 2014, is as follows (unaudited):


Partners’ equity per financial statements	$	2,042,619
Issue costs of limited partnership units capitalized for tax purposes		637,325
Difference in book vs. tax depreciation		79,717
Other		235

Partners’ equity for tax purposes	$	2,759,896