Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes

NOTE 7 – 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 Partnerships assets and liabilities.

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

	2012			2011			2010
Net income per financial statements	$	823,191		$	1,334,008		$	852,029
Excess (tax) book depreciation		(95	)		(289	)		28,170
Excess book gain		—			(76,061	)		—
Taxable income	$	823,096		$	1,257,658		$	880,199

A reconciliation of partnership equity per the financial statements to partners’ equity for tax purposes as of December 31, 2012, is as follows (unaudited):

Partners’ equity per financial statements	$	3,827,600
Issue costs of limited partnership units capitalized for tax purposes		1,741,677
Difference in book vs. tax depreciation		506,118
Other		84
Partners’ equity for tax purposes	$	6,075,479