INVESTMENTS IN OPERATING PARTNERSHIPS

6 Months Ended

Sep. 30, 2019

INVESTMENTS IN OPERATING PARTNERSHIPS

INVESTMENTS IN OPERATING PARTNERSHIPS

NOTE D – INVESTMENTS IN OPERATING PARTNERSHIPS

At September 30, 2019 and 2018, the Fund had limited partnership interests in 20 and 35 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at September 30, 2019 and 2018 is as follows:

	2019	2018
Series 15	—	8
Series 16	8	12
Series 17	2	4
Series 18	10	10
Series 19	—	1
	20	35

Under the terms of the Fund’s investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships. These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations. The contributions payable at September 30, 2019 and 2018 are as follows:

	2019		2018
Series 15	$	—	$	—
Series 16		—		—
Series 17		—		7,893
Series 18		18,554		18,554
Series 19		—		—
	$	18,554	$	26,447

During the six months ended September 30, 2019 the Fund disposed of three Operating Partnerships. A summary of the dispositions by Series for September 30, 2019 is as follows:

	Operating	Sale of
	Partnership	Underlying	Fund Proceeds
	Interest	Operating	from		Gain on
	Transferred	Partnership	Disposition		Disposition
Series 15	—	—	$	—	$	—
Series 16	3	—		47,500		47,500
Series 17	—	—		—		—
Series 18	—	—		—		—
Series 19	—	—		—		—
Total	3	—	$	47,500	$	47,500

During the six months ended September 30, 2018 the Fund disposed of four Operating Partnerships. A summary of the dispositions by Series for September 30, 2018 is as follows:

	Operating	Sale of
	Partnership	Underlying	Fund Proceeds
	Interest	Operating	from		Gain on
	Transferred	Partnership	Disposition		Disposition
Series 15	1	—	$	12,500	$	12,500
Series 16	—	—		—		—
Series 17	—	—		—		—
Series 18	1	—		815,520		815,520
Series 19	2	—		13,000		13,000
Total	4	—	$	841,020	$	841,020

The gain described above is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from Operating Partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Fund’s investment in the Operating Partnership. As a result, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the condensed financial statements.

The Fund’s fiscal year ends March 31st of each year, while all the Operating Partnerships’ fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnerships quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the six months ended June 30, 2019.

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS

Six Months Ended June 30,

(Unaudited)

	2019		2018
Revenues
Rental	$	2,019,266	$	3,039,627
Interest and other		31,102		60,035
		2,050,368		3,099,662
Expenses
Interest		281,723		347,505
Depreciation and amortization		485,006		742,101
Operating expenses		1,634,700		2,477,569
		2,401,429		3,567,175
NET LOSS	$	(351,061)	$	(467,513)
Net loss allocation to Boston Capital Tax Credit Fund III L.P.	$	(347,549)	$	(462,837)
Net loss allocated to other Partners	$	(3,512)	$	(4,676)

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS

Six Months Ended June 30,

(Unaudited)

Series 15

	2019		2018
Revenues
Rental	$	—	$	502,625
Interest and other		—		10,626
		—		513,251
Expenses
Interest		—		36,618
Depreciation and amortization		—		122,439
Operating expenses		—		424,667
		—		583,724
NET LOSS	$	—	$	(70,473)
Net loss allocation to Boston Capital Tax Credit Fund III L.P.	$	—	$	(69,768)
Net loss allocated to other Partners	$	—	$	(705)

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS

Six Months Ended June 30,

(Unaudited)

Series 16

	2019		2018
Revenues
Rental	$	922,631	$	1,062,557
Interest and other		9,347		12,948
		931,978		1,075,505
Expenses
Interest		101,770		119,051
Depreciation and amortization		206,056		250,911
Operating expenses		680,663		813,932
		988,489		1,183,894
NET LOSS	$	(56,511)	$	(108,389)
Net loss allocation to Boston Capital Tax Credit Fund III L.P.	$	(55,946)	$	(107,305)
Net loss allocated to other Partners	$	(565)	$	(1,084)

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS

Six Months Ended June 30,

(Unaudited)

Series 17

	2019		2018
Revenues
Rental	$	421,068	$	579,160
Interest and other		7,653		11,751
		428,721		590,911
Expenses
Interest		63,503		53,055
Depreciation and amortization		119,488		171,868
Operating expenses		366,393		423,392
		549,384		648,315
NET LOSS	$	(120,663)	$	(57,404)
Net loss allocation to Boston Capital Tax Credit Fund III L.P.	$	(119,455)	$	(56,829)
Net loss allocated to other Partners	$	(1,208)	$	(575)

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS

Six Months Ended June 30,

(Unaudited)

Series 18

	2019		2018
Revenues
Rental	$	675,567	$	805,458
Interest and other		14,102		16,959
		689,669		822,417
Expenses
Interest		116,450		132,168
Depreciation and amortization		159,462		191,985
Operating expenses		587,644		715,697
		863,556		1,039,850
NET LOSS	$	(173,887)	$	(217,433)
Net loss allocation to Boston Capital Tax Credit Fund III L.P	$	(172,148)	$	(215,259)
Net loss allocated to other Partners	$	(1,739)	$	(2,174)

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS

Six Months Ended June 30,

(Unaudited))

Series 19

	2019		2018
Revenues
Rental	$	—	$	89,827
Interest and other		—		7,751
		—		97,578
Expenses
Interest		—		6,613
Depreciation and amortization		—		4,898
Operating expenses		—		99,881
		—		111,392
NET LOSS	$	—	$	(13,814)
Net loss allocation to Boston Capital Tax Credit Fund III L.P.	$	—	$	(13,676)
Net loss allocated to other Partners	$	—	$	(138)

The Fund accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Fund adjusts its investment cost for its share of each Operating Partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.