BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP - FORM 10-K - EX-13

Attached files

file	filename
EX-31.B - EX-31.B - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP	v226992_ex31b.htm
EX-31.A - EX-31.A - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP	v226992_ex31a.htm
EX-32.B - EX-32.B - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP	v226992_ex32b.htm
EX-32.A - EX-32.A - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP	v226992_ex32a.htm
10-K - 10-K - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP	v226992_10k.htm

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND II

LIMITED PARTNERSHIP -

SERIES 7, 9 THROUGH 12, AND 14

MARCH 31, 2011 AND 2010

Boston Capital Tax Credit Fund Limited Partnership II

Series 7, 9 through 12, and 14

TABLE OF CONTENTS

		PAGE

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		F-3

FINANCIAL STATEMENTS

BALANCE SHEETS		F-4

STATEMENTS OF OPERATIONS		F-11

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)		F-18

STATEMENTS OF CASH FLOWS		F-22

NOTES TO FINANCIAL STATEMENTS		F-29

Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes thereto.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners

Boston Capital Tax Credit Fund II Limited Partnership

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund II Limited Partnership - Series 7, Series 9 through 12, and Series 14, in total and for each series, as of March 31, 2011 and 2010, and the related statements of operations, changes in partners’ capital (deficit) and cash flows for the total partnership and for each of the series for each of the years in the two-year period ended March 31, 2011. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund II L.P. - Series 7, Series 9 through 12, and Series 14, in total and for each series, as of March 31, 2011 and 2010, and the results of its operations and its cash flows for the total partnership and for each of the series for each of the years in the two-year period ended March 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/Reznick Group, P.C.

REZNICK GROUP, P.C.

Bethesda, Maryland

June 29, 2011

F-3

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

BALANCE SHEETS

March 31, 2011 and 2010

	Total
	2011			2010
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	1,618,141		$	1,418,207
Other		3,300			5,100

	$	1,621,441		$	1,423,307

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	37,600		$	136,100
Accounts payable - affiliates		21,219,377			21,764,225
Capital contributions payable		169,974			169,974

		21,426,951			22,070,299
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 18,679,738 issued and 18,678,038 outstanding to the assignees at March 31, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 18,679,738 issued and 18,678,038 outstanding at March 31, 2011 and 2010		(18,226,519	)		(19,059,586	)
General partner		(1,578,991	)		(1,587,406	)

		(19,805,510	)		(20,646,992	)

	$	1,621,441		$	1,423,307

(continued)

F-4

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 7
	2011			2010
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	-		$	-
Other		-			-

	$	-		$	-

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	-
Accounts payable - affiliates		-			-
Capital contributions payable		-			-

		-			-
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 1,036,100 issued and outstanding to the assignees at March 31, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 1,036,100 issued and outstanding at March 31, 2011 and 2010		(84,506	)		(84,506	)
General partner		84,506			84,506

		-			-

	$	-		$	-

(continued)

F-5

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 9
	2011			2010
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	71,556		$	115,148
Other		-			-

	$	71,556		$	115,148

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	-
Accounts payable - affiliates		6,591,231			6,386,247
Capital contributions payable		-			-

		6,591,231			6,386,247
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 4,178,029 issued and 4,177,329 outstanding to the assignees at March 31, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,178,029 issued and 4,177,329 outstanding at March 31, 2011 and 2010		(6,119,640	)		(5,873,550	)
General partner		(400,035	)		(397,549	)

		(6,519,675	)		(6,271,099	)

	$	71,556		$	115,148

(continued)

F-6

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 10
	2011			2010
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	270,086		$	186,720
Other		-			-

	$	270,086		$	186,720

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	30,000
Accounts payable - affiliates		2,260,615			2,163,727
Capital contributions payable		-			-

		2,260,615			2,193,727
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,428,925 issued and 2,427,925 outstanding to the assignees at March 31, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,428,925 issued and 2,427,925 outstanding at March 31, 2011 and 2010		(1,775,711	)		(1,792,024	)
General partner		(214,818	)		(214,983	)

		(1,990,529	)		(2,007,007	)

	$	270,086		$	186,720

(continued)

F-7

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 11
	2011			2010
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	465,155		$	603,898
Other		-			-

	$	465,155		$	603,898

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	46,000
Accounts payable - affiliates		1,180,122			2,436,423
Capital contributions payable		-			-

		1,180,122			2,482,423
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,489,599 issued and outstanding to the assignees at March 31, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,489,599 issued and outstanding at March 31, 2011 and 2010		(493,133	)		(1,645,055	)
General partner		(221,834	)		(233,470	)

		(714,967	)		(1,878,525	)

	$	465,155		$	603,898

(continued)

F-8

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 12
	2011			2010
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	479,986		$	120,857
Other		-			-

	$	479,986		$	120,857

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	37,500		$	7,500
Accounts payable - affiliates		4,054,166			3,915,374
Capital contributions payable		9,241			9,241

		4,100,907			3,932,115
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,972,795 issued and outstanding to the assignees at March 31, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,972,795 issued and outstanding at March 31, 2011 and 2010		(3,333,581	)		(3,522,015	)
General partner		(287,340	)		(289,243	)

		(3,620,921	)		(3,811,258	)

	$	479,986		$	120,857

(continued)

F-9

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 14
	2011			2010
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	331,358		$	391,584
Other		3,300			5,100

	$	334,658		$	396,684

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	100		$	52,600
Accounts payable - affiliates		7,133,243			6,862,454
Capital contributions payable		160,733			160,733

		7,294,076			7,075,787
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 5,574,290 issued and outstanding to the assignees at March 31, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,574,290 issued and outstanding at March 31, 2011 and 2010		(6,419,948	)		(6,142,436	)
General partner		(539,470	)		(536,667	)

		(6,959,418	)		(6,679,103	)

	$	334,658		$	396,684

See notes to financial statements

F-10

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF OPERATIONS

Years ended March 31, 2011 and 2010

	Total
	2011		2010
Income
Interest income	$	12,736	$	5,501
Miscellaneous income		246,685		136,238

		259,421		141,739

Share of income from operating limited partnerships		1,641,881		3,286,871

Expenses
Professional fees		207,080		196,428
Partnership management fee		670,896		793,585
General and administrative expenses		107,296		148,835

		985,272		1,138,848

NET INCOME (LOSS)	$	916,030	$	2,289,762

Net income (loss) allocated to general partner	$	9,160	$	22,898

Net income (loss) allocated to assignees	$	906,870	$	2,266,864

Net income (loss) per BAC	$	0.05	$	0.12

(continued)

F-11

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 7
	2011		2010
Income
Interest income	$	-	$	110
Miscellaneous income		-		-

Total income		-		110

Share of income from operating limited partnerships		-		-

Expenses
Professional fees		-		9,964
Partnership management fee		-		-
General and administrative expenses		-		8,061

		-		18,025

NET INCOME (LOSS)	$	-	$	(17,915	)

Net income (loss) allocated to general partner	$	-	$	(179	)

Net income (loss) allocated to assignees	$	-	$	(17,736	)

Net income (loss) per BAC	$	-	$	(0.02	)

(continued)

F-12

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 9
	2011			2010
Income
Interest income	$	656		$	595
Miscellaneous income		1,367			2,418

Total income		2,023			3,013

Share of income from operating limited partnerships		-			21,750

Expenses
Professional fees		37,641			35,038
Partnership management fee		191,164			200,169
General and administrative expenses		21,794			27,243

		250,599			262,450

NET INCOME (LOSS)	$	(248,576	)	$	(237,687	)

Net income (loss) allocated to general partner	$	(2,486	)	$	(2,377	)

Net income (loss) allocated to assignees	$	(246,090	)	$	(235,310	)

Net income (loss) per BAC	$	(0.06	)	$	(0.06	)

(continued)

F-13

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 10
	2011		2010
Income
Interest income	$	786	$	817
Miscellaneous income		185,384		77,595

Total income		186,170		78,412

Share of income from operating limited partnerships		6,276		857,039

Expenses
Professional fees		30,531		27,097
Partnership management fee		54,430		78,404
General and administrative expenses		16,459		21,352

		101,420		126,853

NET INCOME (LOSS)	$	91,026	$	808,598

Net income (loss) allocated to general partner	$	910	$	8,086

Net income (loss) allocated to assignees	$	90,116	$	800,512

Net income (loss) per BAC	$	0.04	$	0.33

(continued)

F-14

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 11
	2011		2010
Income
Interest income	$	7,163	$	1,131
Miscellaneous income		12,387		10,536

Total income		19,550		11,667

Share of income from operating limited partnerships		1,217,636		878,930

Expenses
Professional fees		32,177		30,403
Partnership management fee		25,831		140,155
General and administrative expenses		15,620		20,157

		73,628		190,715

NET INCOME (LOSS)	$	1,163,558	$	699,882

Net income (loss) allocated to general partner	$	11,636	$	6,999

Net income (loss) allocated to assignees	$	1,151,922	$	692,883

Net income (loss) per BAC	$	0.46	$	0.28

(continued)

F-15

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 12
	2011		2010
Income
Interest income	$	1,568	$	534
Miscellaneous income		11,950		15,329

Total income		13,518		15,863

Share of income from operating limited partnerships		344,107		-

Expenses
Professional fees		47,086		34,384
Partnership management fee		100,781		130,245
General and administrative expenses		19,421		25,368

		167,288		189,997

NET INCOME (LOSS)	$	190,337	$	(174,134	)

Net income (loss) allocated to general partner	$	1,903	$	(1,741	)

Net income (loss) allocated to assignees	$	188,434	$	(172,393	)

Net income (loss) per BAC	$	0.06	$	(0.06	)

(continued)

F-16

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 14
	2011			2010
Income
Interest income	$	2,563		$	2,314
Miscellaneous income		35,597			30,360

Total income		38,160			32,674

Share of income from operating limited partnerships		73,862			1,529,152

Expenses
Professional fees		59,645			59,542
Partnership management fee		298,690			244,612
General and administrative expenses		34,002			46,654

		392,337			350,808

NET INCOME (LOSS)	$	(280,315	)	$	1,211,018

Net income (loss) allocated to general partner	$	(2,803	)	$	12,110

Net income (loss) allocated to assignees	$	(277,512	)	$	1,198,908

Net income (loss) per BAC	$	(0.05	)	$	0.22

See notes to financial statements

F-17

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

Years ended March 31, 2011 and 2010

Total	Assignees			General partner			Total

Partners’ capital (deficit), March 31, 2009		(21,326,450	)		(1,784,144	)		(23,110,594	)

Net income (loss)		2,266,864			22,898			2,289,762

Contributions		-			173,840			173,840

Partners’ capital (deficit), March 31, 2010		(19,059,586	)		(1,587,406	)		(20,646,992	)

Net income (loss)		906,870			9,160			916,030

Distributions		(73,803	)		(745	)		(74,548	)

Partners’ capital (deficit), March 31, 2011	$	(18,226,519	)	$	(1,578,991	)	$	(19,805,510	)

(continued)

F-18

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2011 and 2010

Series 7	Assignees			General partner			Total

Partners’ capital (deficit), March 31, 2009		(66,770	)		(89,155	)		(155,925	)

Net income (loss)		(17,736	)		(179	)		(17,915	)

Contributions		-			173,840			173,840

Partners’ capital (deficit), March 31, 2010		(84,506	)		84,506			-

Net income (loss)		-			-			-

Distributions		-			-			-

Partners’ capital (deficit), March 31, 2011	$	(84,506	)	$	84,506		$	-

Series 9	Assignees			General partner			Total

Partners’ capital (deficit), March 31, 2009		(5,638,240	)		(395,172	)		(6,033,412	)

Net income (loss)		(235,310	)		(2,377	)		(237,687	)

Contributions		-			-			-

Partners’ capital (deficit), March 31, 2010		(5,873,550	)		(397,549	)		(6,271,099	)

Net income (loss)		(246,090	)		(2,486	)		(248,576	)

Distributions		-			-			-

Partners’ capital (deficit), March 31, 2011	$	(6,119,640	)	$	(400,035	)	$	(6,519,675	)

(continued)

F-19

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2011 and 2010

Series 10	Assignees			General partner			Total

Partners’ capital (deficit), March 31, 2009		(2,592,536	)		(223,069	)		(2,815,605	)

Net income (loss)		800,512			8,086			808,598

Contributions		-			-			-

Partners’ capital (deficit), March 31, 2010		(1,792,024	)		(214,983	)		(2,007,007	)

Net income (loss)		90,116			910			91,026

Distributions		(73,803	)		(745	)		(74,548	)

Partners’ capital (deficit), March 31, 2011	$	(1,775,711	)	$	(214,818	)	$	(1,990,529	)

Series 11	Assignees			General partner			Total

Partners’ capital (deficit), March 31, 2009		(2,337,938	)		(240,469	)		(2,578,407	)

Net income (loss)		692,883			6,999			699,882

Contributions		-			-			-

Partners’ capital (deficit), March 31, 2010		(1,645,055	)		(233,470	)		(1,878,525	)

Net income (loss)		1,151,922			11,636			1,163,558

Distributions		-			-			-

Partners’ capital (deficit), March 31, 2011	$	(493,133	)	$	(221,834	)	$	(714,967	)

(continued)

F-20

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2011 and 2010

Series 12	Assignees			General partner			Total

Partners’ capital (deficit), March 31, 2009		(3,349,622	)		(287,502	)		(3,637,124	)

Net income (loss)		(172,393	)		(1,741	)		(174,134	)

Contributions		-			-			-

Partners’ capital (deficit), March 31, 2010		(3,522,015	)		(289,243	)		(3,811,258	)

Net income (loss)		188,434			1,903			190,337

Distributions		-			-			-

Partners’ capital (deficit), March 31, 2011	$	(3,333,581	)	$	(287,340	)	$	(3,620,921	)

Series 14	Assignees			General partner			Total

Partners’ capital (deficit), March 31, 2009		(7,341,344	)		(548,777	)		(7,890,121	)

Net income (loss)		1,198,908			12,110			1,211,018

Contributions		-			-			-

Partners’ capital (deficit), March 31, 2010		(6,142,436	)		(536,667	)		(6,679,103	)

Net income (loss)		(277,512	)		(2,803	)		(280,315	)

Distributions		-			-			-

Partners’ capital (deficit), March 31, 2011	$	(6,419,948	)	$	(539,470	)	$	(6,959,418	)

See notes to financial statements

F-21

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CASH FLOWS

Years ended March 31, 2011 and 2010

	Total
	2011			2010
Cash flows from operating activities
Net income (loss)	$	916,030		$	2,289,762
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(1,641,881	)		(3,286,871	)
Changes in assets and liabilities
Accounts payable and accrued expenses		(98,500	)		128,590
Accounts payable - affiliates		(544,848	)		(2,224,006	)
Other assets		1,800			(5,100	)

Net cash provided by (used in) operating activities		(1,367,399	)		(3,097,625	)

Cash flows from investing activities
Capital contributions paid to operating limited partnerships		-			(23	)
Proceeds from disposition of operating limited partnerships		1,641,881			3,286,871

Net cash provided by (used in) investing activities		1,641,881			3,286,848

Cash flows from financing activities
Distributions paid to assignees		(74,548	)		-

Net cash provided by (used in) financing activities		(74,548	)		-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		199,934			189,223

Cash and cash equivalents, beginning		1,418,207			1,228,984

Cash and cash equivalents, end	$	1,618,141		$	1,418,207

Supplemental schedule of noncash investing and financing activities:
The Partnership has applied accounts payable as a general partner capital contribution.	$	-		$	173,840

	$	-		$	-

(continued)

F-22

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 7
	2011		2010
Cash flows from operating activities
Net income (loss)	$	-	$	(17,915	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		-		-
Changes in assets and liabilities
Accounts payable and accrued expenses		-		-
Accounts payable - affiliates		-		(41,453	)
Other assets		-		-

Net cash provided by (used in) operating activities		-		(59,368	)

Cash flows from investing activities
Capital contributions paid to operating limited partnerships		-		-
Proceeds from disposition of operating limited partnerships		-		-

Net cash provided by (used in) investing activities		-		-

Cash flows from financing activities
Distributions paid to assignees		-		-

Net cash provided by (used in) financing activities		-		-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		-		(59,368	)

Cash and cash equivalents, beginning		-		59,368

Cash and cash equivalents, end	$	-	$	-

Supplemental schedule of noncash investing and financing activities:
The Partnership has applied accounts payable as a general partner capital contribution.	$	-	$	173,840

(continued)

F-23

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 9
	2011			2010
Cash flows from operating activities
Net income (loss)	$	(248,576	)	$	(237,687	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		-			(21,750	)
Changes in assets and liabilities
Accounts payable and accrued expenses		-			-
Accounts payable - affiliates		204,984			140,641
Other assets		-			-

Net cash provided by (used in) operating activities		(43,592	)		(118,796	)

Cash flows from investing activities
Capital contributions paid to operating limited partnerships		-			-
Proceeds from disposition of operating limited partnerships		-			21,750

Net cash provided by (used in) investing activities		-			21,750

Cash flows from financing activities
Distributions paid to assignees		-			-

Net cash provided by (used in) financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(43,592	)		(97,046	)

Cash and cash equivalents, beginning		115,148			212,194

Cash and cash equivalents, end	$	71,556		$	115,148

Supplemental schedule of noncash investing and financing activities:
The Partnership has applied accounts payable as a general partner capital contribution.	$	-		$	-

(continued)

F-24

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 10
	2011			2010
Cash flows from operating activities
Net income (loss)	$	91,026		$	808,598
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(6,276	)		(857,039	)
Changes in assets and liabilities
Accounts payable and accrued expenses		(30,000	)		30,000
Accounts payable - affiliates		96,888			(772,514	)
Other assets		-			-

Net cash provided by (used in) operating activities		151,638			(790,955	)

Cash flows from investing activities
Capital contributions paid to operating limited partnerships		-			-
Proceeds from disposition of operating limited partnerships		6,276			857,039

Net cash provided by (used in) investing activities		6,276			857,039

Cash flows from financing activities
Distributions paid to assignees		(74,548	)		-

Net cash provided by (used in) financing activities		(74,548	)		-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		83,366			66,084

Cash and cash equivalents, beginning		186,720			120,636

Cash and cash equivalents, end	$	270,086		$	186,720

Supplemental schedule of noncash investing and financing activities:
The Partnership has applied accounts payable as a general partner capital contribution.	$	-		$	-

(continued)

F-25

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 11
	2011			2010
Cash flows from operating activities
Net income (loss)	$	1,163,558		$	699,882
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(1,217,636	)		(878,930	)
Changes in assets and liabilities
Accounts payable and accrued expenses		(46,000	)		45,990
Accounts payable - affiliates		(1,256,301	)		(388,340	)
Other assets		-			-

Net cash provided by (used in) operating activities		(1,356,379	)		(521,398	)

Cash flows from investing activities
Capital contributions paid to operating limited partnerships		-			-
Proceeds from disposition of operating limited partnerships		1,217,636			878,930

Net cash provided by (used in) investing activities		1,217,636			878,930

Cash flows from financing activities
Distributions paid to assignees		-			-

Net cash provided by (used in) financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(138,743	)		357,532

Cash and cash equivalents, beginning		603,898			246,366

Cash and cash equivalents, end	$	465,155		$	603,898

Supplemental schedule of noncash investing and financing activities:
The Partnership has applied accounts payable as a general partner capital contribution.	$	-		$	-

(continued)

F-26

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 12
	2011			2010
Cash flows from operating activities
Net income (loss)	$	190,337		$	(174,134	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(344,107	)		-
Changes in assets and liabilities
Accounts payable and accrued expenses		30,000			-
Accounts payable - affiliates		138,792			150,168
Other assets		-			-

Net cash provided by (used in) operating activities		15,022			(23,966	)

Cash flows from investing activities
Capital contributions paid to operating limited partnerships		-			-
Proceeds from disposition of operating limited partnerships		344,107			-

Net cash provided by (used in) investing activities		344,107			-

Cash flows from financing activities
Distributions paid to assignees		-			-

Net cash provided by (used in) financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		359,129			(23,966	)

Cash and cash equivalents, beginning		120,857			144,823

Cash and cash equivalents, end	$	479,986		$	120,857

Supplemental schedule of noncash investing and financing activities:
The Partnership has applied accounts payable as a general partner capital contribution.	$	-		$	-

(continued)

F-27

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 14
	2011			2010
Cash flows from operating activities
Net income (loss)	$	(280,315	)	$	1,211,018
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(73,862	)		(1,529,152	)
Changes in assets and liabilities
Accounts payable and accrued expenses		(52,500	)		52,600
Accounts payable - affiliates		270,789			(1,312,508	)
Other assets		1,800			(5,100	)

Net cash provided by (used in) operating activities		(134,088	)		(1,583,142	)

Cash flows from investing activities
Capital contributions paid to operating limited partnerships		-			(23	)
Proceeds from disposition of operating limited partnerships		73,862			1,529,152

Net cash provided by (used in) investing activities		73,862			1,529,129

Cash flows from financing activities
Distributions paid to assignees		-			-

Net cash provided by (used in) financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(60,226	)		(54,013	)

Cash and cash equivalents, beginning		391,584			445,597

Cash and cash equivalents, end	$	331,358		$	391,584

Supplemental schedule of noncash investing and financing activities:
The Partnership has applied accounts payable as a general partner capital contribution.	$	-		$	-

See notes to financial statements

F-28

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS

March 31, 2011 and 2010

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Boston Capital Tax Credit Fund II Limited Partnership (the “Partnership” or “Fund”) was formed under the laws of the State of Delaware on June 28, 1989, for the purpose of acquiring, holding and disposing of limited partnership interests in operating limited partnerships which were to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes which qualify for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Accordingly, the apartment complexes are restricted as to rent charges and operating methods. Certain of the apartment complexes also qualified for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure and are subject to the provisions of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the Partnership is Boston Capital Associates II Limited Partnership and the limited partner is BCTC Assignor Corp. II (the “assignor limited partner”).

Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective October 25, 1989, which covered the offering (the “Public Offering”) of the Partnership’s beneficial assignee certificates (“BACs”) representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner. The Partnership registered 20,000,000 BACs at $10 per BAC for sale to the public in six series. BACs sold in bulk over $100,000 were offered to investors at a reduced cost per BAC. The Partnership is no longer selling any BACs related to any series. The final closing in Series 14 was January 27, 1992.

The BACs issued in each series at March 31, 2011 and 2010 are as follows:

	2011		2010
Series 7		1,036,100		1,036,100
Series 9		4,178,029		4,178,029
Series 10		2,428,925		2,428,925
Series 11		2,489,599		2,489,599
Series 12		2,972,795		2,972,795
Series 14		5,574,290		5,574,290
		18,679,738		18,679,738

In accordance with the limited partnership agreement, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner.

F-29

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships

After the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the funds’ share of losses and, accordingly a valuation allowance is recorded against the receivables. Accordingly, the Partnership recorded a valuation allowance as follows:

	2011		2010
Series 7	$	-	$	-
Series 9		30,198		30,198
Series 10		5,443		5,443
Series 11		72,890		72,890
Series 12		86,870		86,870
Series 14		16,744		16,744
	$	212,145	$	212,145

The Partnership reviews its investment in operating limited partnerships for impairment whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the investment to the future net undiscounted cash flows expected to be generated by the operating limited partnerships including the low-income housing tax credits and the residual value upon sale or disposition of the equity interest in the operating limited partnerships. If the investment is considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of the investment exceeds the fair value of such investment. During the years ended March 31, 2011 and 2010, the Partnership did not record an impairment loss.

Capital contributions to operating limited partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating limited partnership capital contributions due to reductions in actual tax credits from those originally projected. The Partnership records tax credit adjusters as a reduction in investments in operating limited partnerships and capital contributions payable.

F-30

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

The operating limited partnerships maintain their financial statements based on a calendar year and the Partnership utilizes a March 31 year end. The fund records losses and income from the operating limited partnerships on a calendar year basis which is not materially different from losses and income generated if the operating limited partnerships utilized a March 31 year end.

The Partnership records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount. The operating limited partnerships record capital contributions from the Partnership when received.

The Partnership records certain acquisition costs as an increase in its investments in operating limited partnerships. Certain operating limited partnerships have not recorded the acquisition costs as a capital contribution from the Partnership. These differences are shown as reconciling items in Note C.

In accordance with the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party is required to consolidate the VIE.

The Partnership determines whether an entity is a VIE and whether it is the primary beneficiary at the date of initial involvement with the entity. The Partnership reassesses whether it is the primary beneficiary of a VIE on an ongoing basis based on changes in facts and circumstances. In determining whether it is the primary beneficiary, the partnership considers the purpose and activities of the VIE, including the variability and related risks the VIE incurs and transfers to other entities and their related parties. These factors are considered in determining whether the Partnership has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance and whether the Partnership also has the obligation to absorb losses of or receive benefits from the VIE that could be potentially significant to the VIE. If the Partnership determines that it is the primary beneficiary of the VIE, the VIE is consolidated within the partnership’s financial statements.

F-31

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Based on this guidance, the operating limited partnerships in which the Partnership invests meet the definition of a VIE. However, management does not consolidate the Partnership's interests in these VIEs under this guidance, as it is not considered to be the primary beneficiary. The Partnership currently records the amount of its investment in these operating limited partnerships as an asset on its balance sheets, recognizes its share of the operating limited partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership's balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership's exposure to loss on these operating limited partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the operating general partners and their guarantee against credit recapture.

Cash Equivalents

Cash equivalents include money market accounts having original maturities at date of acquisition of three months or less. The carrying amounts approximate fair value because of the short maturity of these instruments.

Income Taxes

The Partnership has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Partnership’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure.

F-32

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Fiscal Year

For financial reporting purposes the Partnership uses a March 31 year end, whereas for income tax reporting purposes, the Partnership uses a calendar year. The operating limited partnerships use a calendar year for both financial and income tax reporting.

Net Income (Loss) per Beneficial Assignee Certificate

Net income (loss) per beneficial assignee certificate is calculated based upon the weighted average number of units outstanding. The weighted average number of units outstanding in each series at March 31, 2011 and 2010 are as follows:

	2011		2010
Series 7		1,036,100		1,036,100
Series 9		4,177,329		4,178,029
Series 10		2,427,925		2,428,925
Series 11		2,489,599		2,489,599
Series 12		2,972,795		2,972,795
Series 14		5,574,290		5,574,290
TOTAL		18,678,038		18,679,738

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

F-33

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent Accounting Changes

In May 2009, the FASB issued guidance regarding subsequent events, which was subsequently updated in February 2010. This guidance established general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this guidance sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This guidance was effective for financial statements issued for fiscal years and interim periods ending after June 15, 2009, and was therefore adopted by the Partnership for the quarter ended June 30, 2009. The adoption did not have a significant impact on the subsequent events that the Partnership reports, either through recognition or disclosure, in the financial statements. In February 2010, the FASB amended its guidance on subsequent events to remove the requirement to disclose the date through which an entity has evaluated subsequent events, alleviating conflicts with current SEC guidance. This amendment was effective immediately and therefore the Partnership did not include the disclosure in this Form 10-K.

In June 2009, the FASB issued the Accounting Standards Codification (Codification). Effective July 1, 2009, the Codification is the single source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with GAAP. The Codification is intended to reorganize, rather than change, existing GAAP. Accordingly, all references to currently existing GAAP have been removed and have been replaced with plain English explanations of the Fund’s accounting policies. The adoption of the Codification did not have a material impact on the Partnership’s financial position or results of operations.

In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics, and replaced quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment was effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 did not have a material effect on the Partnership’s financial statements.

F-34

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Plan of Liquidation and Dissolution

On July 1, 2010, BAC Holders approved a Plan of Liquidation and Dissolution for the Partnership, (the “Plan”). Pursuant to the Plan, the general partner may, without further action by the BAC Holders, sell the remaining assets held by the Partnership. It was anticipated that the sale of all the apartment complexes would be completed sometime in 2011. However, because of numerous uncertainties, the liquidation may take longer than expected, and the final liquidating distribution may occur months after all of the apartment complexes have been sold. Because the liquidation of the Partnership was not imminent, as of March 31, 2011, the financial statements are presented assuming the Partnership will continue as a going concern.

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2011 and 2010, the Partnership entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:

Boston Capital Asset Management Limited Partnership is entitled to an annual partnership management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level. The fee is payable without interest as sufficient funds become available from sales or refinancing proceeds from operating limited partnerships.

F-35

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

The annual partnership management fee charged to operations during the years ended March 31, 2011 and 2010 are as follows:

	2011		2010
Series 7	$	-	$	-
Series 9		204,984		220,641
Series 10		96,888		107,486
Series 11		131,199		191,121
Series 12		138,792		150,168
Series 14		370,789		450,150
TOTAL	$	942,652	$	1,119,566

The reporting fees paid by the operating limited partnerships to the Partnership for the years ended March 31, 2011 and 2010 are as follows:

	2011		2010
Series 7	$	-	$	-
Series 9		13,820		20,472
Series 10		42,458		29,082
Series 11		105,368		50,966
Series 12		38,011		19,923
Series 14		72,099		205,538
TOTAL	$	271,756	$	325,981

F-36

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

The partnership management fees paid by the Partnership for the years ended March 31, 2011 and 2010 are as follows:

	2011		2010
Series 7	$	-	$	-
Series 9		-		80,000
Series 10		-		880,000
Series 11		1,387,500		480,000
Series 12		-		-
Series 14		100,000		1,590,000
TOTAL	$	1,487,500	$	3,030,000

An affiliate of the general partner of the Partnership advanced funds to pay some operating expenses of the Partnership, and to make advances and/or loans to operating limited partnerships. These advances are included in accounts payable-affiliates. The total advances from the affiliate of the general partner to the operating limited partnerships as of March 31, 2011 and 2010 are as follows:

	2011		2010
Series 7	$	-	$	-
Series 9		-		-
Series 10		-		-
Series 11		-		-
Series 12		153,188		153,188
Series 14		-		-
TOTAL	$	153,188	$	153,188

All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in operating limited partnerships. During the year ended March 31, 2010, $41,453 from Series 7, $99,461 from Series 11, and $172,658 from Series 14 were paid to an affiliate of the general partner. The remaining of $173,840 from Series 7 has been forgiven as of March 31, 2010. The general partner has recorded this amount as a capital contribution.

F-37

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership (BCAMLP) during the years ended March 31, 2011 and 2010 charged to each series’ operations are as follows:

	2011		2010
Series 7	$	-	$	5,075
Series 9		13,615		13,258
Series 10		10,916		10,483
Series 11		10,526		10,550
Series 12		12,816		12,422
Series 14		21,831		23,065
TOTAL	$	69,704	$	74,853

Accounts payable - affiliates at March 31, 2011 and 2010 represents general and administrative expenses, partnership management fees, and may include advances which are payable to Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership.

F-38

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At March 31, 2011 and 2010, the Partnership has limited partnership interests in operating limited partnerships which own operating apartment complexes. During the year ended March 31, 2011, the Partnership disposed of its operating limited partnership interest in one, three, and two of the operating limited partnerships owned by Series 11, Series 12, and Series 14, respectively. During the year ended March 31, 2010, the Partnership disposed of its operating limited partnership interest in two, two, three, and ten of the operating limited partnerships owned by Series 9, Series 10, Series 11, and Series 14, respectively. The number of operating limited partnerships in which the Partnership has limited partnership interests at March 31, 2011 and 2010 by series is as follows:

	2011		2010
Series 7		-		-
Series 9		24		24
Series 10		16		16
Series 11		16		17
Series 12		23		26
Series 14		51		53
TOTAL		130		136

F-39

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

During the year ended March 31, 2011 the Partnership disposed of six of the operating limited partnerships. In addition the Partnership received additional proceeds from three operating limited partnerships disposed of in the prior year. A summary of the dispositions by Series for March 31, 2011 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 7		-		-	$	-	$	-
Series 9		-		-		-		-
Series 10		-		-		6,276		6,276
Series 11		-		1		1,217,636		1,217,636
Series 12		-		3		344,107		344,107
Series 14		-		2		73,862		73,862
Total		-		6	$	1,641,881	$	1,641,881

During the year ended March 31, 2010 the Partnership disposed of seventeen of the operating limited partnerships. A summary of the dispositions by Series for March 31, 2010 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 7		-		-	$	-	$	-
Series 9		1		1		21,750		21,750
Series 10		1		1		857,039		857,039
Series 11		-		3		878,930		878,930
Series 12		-		-		-		-
Series 14		8		2		1,529,152		1,529,152
Total		10		7	$	3,286,871	$	3,286,871

F-40

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

Under the terms of the Partnership’s investments in each operating limited partnership, the Partnership is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction or operations.

The contributions payable to operating limited partnerships at March 31, 2011 and 2010 by series are as follows:

	2011		2010
Series 7	$	-	$	-
Series 9		-		-
Series 10		-		-
Series 11		-		-
Series 12		9,241		9,241
Series 14		160,733		160,733
TOTAL	$	169,974	$	169,974

F-41

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Partnership’s investments in operating limited partnerships at March 31, 2011 are summarized as follows:

	Total
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	40,341,117

Acquisition costs of operating limited partnerships		5,462,155

Cumulative distributions from operating limited partnerships		(286,639	)

Cumulative impairment loss in investments in operating limited partnerships		(3,982,635	)

Cumulative losses from operating limited partnerships		(41,533,998	)

Investments in operating limited partnerships per balance sheets		-

The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2011, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A).		(139,775	)

The Partnership has recorded acquisition costs at March 31, 2011, which have not been recorded in the net assets of the operating limited partnerships (see note A).		(440,012	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).		984,858

Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).		(34,676,928	)

The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).		453,476

Cumulative impairment loss in investments in operating limited partnerships		3,982,635

Other		560,873

Equity per operating limited partnerships’ combined financial statements	$	(29,274,873	)

F-42

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Partnership’s investments in operating limited partnerships at March 31, 2011 are summarized as follows:

	Series 7		Series 9			Series 10

Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	-	$	8,137,530		$	4,038,966

Acquisition costs of operating limited partnerships		-		1,154,369			451,024

Cumulative distributions from operating limited partnerships		-		(28,246	)		(31,287	)

Cumulative impairment loss in investments in operating limited partnerships		-		(369,919	)		(628,541	)

Cumulative losses from operating limited partnerships		-		(8,893,734	)		(3,830,162	)

Investments in operating limited partnerships per balance sheets		-		-			-

F-43

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 7		Series 9			Series 10

The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2011, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A).		-		-			-

The Partnership has recorded acquisition costs at March 31, 2011, which have not been recorded in the net assets of the operating limited partnerships (see note A).		-		(135,615	)		(1,908	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).		-		-			-

Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).		-		(8,343,885	)		(3,243,148	)

The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).		-		43,771			24,277

Cumulative impairment loss in investments in operating limited partnerships		-		369,919			628,541

Other		-		295,448			(33,814	)

Equity per operating limited partnerships’ combined financial statements	$	-	$	(7,770,362	)	$	(2,626,052	)

F-44

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Partnership’s investments in operating limited partnerships at March 31, 2011 are summarized as follows:

	Series 11			Series 12			Series 14

Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	5,468,694		$	5,430,816		$	17,265,111

Acquisition costs of operating limited partnerships		765,909			691,480			2,399,373

Cumulative distributions from operating limited partnerships		(54,407	)		(8,581	)		(164,118	)

Cumulative impairment loss in investments in operating limited partnerships		(282,491	)		(171,947	)		(2,529,737	)

Cumulative losses from operating limited partnerships		(5,897,705	)		(5,941,768	)		(16,970,629	)

Investments in operating limited partnerships per balance sheets		-			-			-

F-45

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 11			Series 12			Series 14

The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2011, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A).		-			-			(139,775	)

The Partnership has recorded acquisition costs at March 31, 2011, which have not been recorded in the net assets of the operating limited partnerships (see note A).		(6,867	)		(33,153	)		(262,469	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).		-			177,104			807,754

Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).		(4,272,778	)		(6,461,505	)		(12,355,612	)

The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).		101,163			168,031			116,234

Cumulative impairment loss in investments in operating limited partnerships		282,491			171,947			2,529,737

Other		409,272			54,320			(164,353	)

Equity per operating limited partnerships’ combined financial statements	$	(3,486,719	)	$	(5,923,256	)	$	(9,468,484	)

F-46

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Partnership’s investments in operating limited partnerships at March 31, 2010 are summarized as follows:

	Total
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	49,078,644

Acquisition costs of operating limited partnerships		6,007,654

Cumulative distributions from operating limited partnerships		(765,362	)

Cumulative impairment loss in investments in operating limited partnerships		(6,150,022	)

Cumulative losses from operating limited partnerships		(48,170,914	)

Investments in operating limited partnerships per balance sheets		-

The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2010, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2009 (see note A).		(139,775	)

The Partnership has recorded acquisition costs at March 31, 2010, which have not been recorded in the net assets of the operating limited partnerships (see note A).		(596,891	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).		996,196

Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).		(33,637,793	)

The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).		550,781

Cumulative impairment loss in investments in operating limited partnerships		6,150,022

Other		830,467

Equity per operating limited partnerships’ combined financial statements	$	(25,846,993	)

F-47

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Partnership’s investments in operating limited partnerships at March 31, 2010 are summarized as follows:

	Series 7		Series 9			Series 10

Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	-	$	8,137,530		$	4,038,966

Acquisition costs of operating limited partnerships		-		1,154,369			451,024

Cumulative distributions from operating limited partnerships		-		(28,246	)		(31,287	)

Cumulative impairment loss in investments in operating limited partnerships		-		(369,919	)		(623,926	)

Cumulative losses from operating limited partnerships		-		(8,893,734	)		(3,834,777	)

Investments in operating limited partnerships per balance sheets		-		-			-

F-48

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 7		Series 9			Series 10

The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2010, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2009 (see note A).		-		-			-

The Partnership has recorded acquisition costs at March 31, 2010, which have not been recorded in the net assets of the operating limited partnerships (see note A).		-		(135,615	)		(1,908	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).		-		-			-

Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).		-		(8,534,370	)		(2,909,879	)

The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).		-		43,771			24,277

Cumulative impairment loss in investments in operating limited partnerships		-		369,919			623,926

Other		-		296,122			146,891

Equity per operating limited partnerships’ combined financial statements	$	-	$	(7,960,173	)	$	(2,116,693	)

F-49

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Partnership’s investments in operating limited partnerships at March 31, 2010 are summarized as follows:

	Series 11			Series 12			Series 14

Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	11,105,178		$	6,938,916		$	18,858,054

Acquisition costs of operating limited partnerships		920,664			822,241			2,659,356

Cumulative distributions from operating limited partnerships		(420,782	)		(39,210	)		(245,837	)

Cumulative impairment loss in investments in operating limited partnerships		(1,682,306	)		(613,495	)		(2,860,376	)

Cumulative losses from operating limited partnerships		(9,922,754	)		(7,108,452	)		(18,411,197	)

Investments in operating limited partnerships per balance sheets		-			-			-

F-50

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 11			Series 12			Series 14

The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2010, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2009 (see note A).		-			-			(139,775	)

The Partnership has recorded acquisition costs at March 31, 2010, which have not been recorded in the net assets of the operating limited partnerships (see note A).		(6,867	)		(61,414	)		(391,087	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).		-			188,442			807,754

Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).		(4,150,927	)		(6,497,307	)		(11,545,310	)

The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).		101,163			170,369			211,201

Cumulative impairment loss in investments in operating limited partnerships		1,682,306			613,495			2,860,376

Other		484,502			57,113			(154,161	)

Equity per operating limited partnerships’ combined financial statements	$	(1,889,823	)	$	(5,529,302	)	$	(8,351,002	)

F-51

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2010 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 7		Series 9			Series 10
ASSETS

Buildings and improvements, net of accumulated depreciation	$	89,290,638		$	-	$	18,929,470		$	10,611,555
Land		9,880,141			-		2,058,491			988,347
Other assets		20,535,968			-		3,782,741			2,388,481

	$	119,706,747		$	-	$	24,770,702		$	13,988,383

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	140,393,760		$	-	$	31,112,909		$	15,414,225
Accounts payable and accrued expenses		2,325,783			-		572,478			127,124
Other liabilities		6,599,273			-		2,075,128			294,760

		149,318,816			-		33,760,515			15,836,109
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership		(29,274,873	)		-		(7,770,362	)		(2,626,052	)
Other partners		(337,196	)		-		(1,219,451	)		778,326

		(29,612,069	)		-		(8,989,813	)		(1,847,726	)

	$	119,706,747		$	-	$	24,770,702		$	13,988,383

F-52

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2010 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 11			Series 12			Series 14
ASSETS

Buildings and improvements, net of accumulated depreciation	$	11,908,900		$	12,575,398		$	35,265,315
Land		1,193,181			1,434,569			4,205,553
Other assets		3,759,788			3,021,464			7,583,494

	$	16,861,869		$	17,031,431		$	47,054,362

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	18,920,725		$	21,820,629		$	53,125,272
Accounts payable and accrued expenses		216,739			212,565			1,196,877
Other liabilities		921,313			1,089,698			2,218,374

		20,058,777			23,122,892			56,540,523
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership		(3,486,719	)		(5,923,256	)		(9,468,484	)
Other partners		289,811			(168,205	)		(17,677	)

		(3,196,908	)		(6,091,461	)		(9,486,161	)

	$	16,861,869		$	17,031,431		$	47,054,362

F-53

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2009 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 7		Series 9			Series 10
ASSETS

Buildings and improvements, net of accumulated depreciation	$	105,829,338		$	-	$	19,761,706		$	11,157,029
Land		11,067,489			-		2,058,491			988,347
Other assets		22,497,417			-		3,537,846			2,733,911

	$	139,394,244		$	-	$	25,358,043		$	14,879,287

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	152,949,308		$	-	$	31,582,972		$	15,633,508
Accounts payable and accrued expenses		3,269,651			-		573,256			172,330
Other liabilities		8,330,416			-		2,288,162			288,120

		164,549,375			-		34,444,390			16,093,958
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership		(25,846,993	)		-		(7,960,173	)		(2,116,693	)
Other partners		691,862			-		(1,126,174	)		902,022

		(25,155,131	)		-		(9,086,347	)		(1,214,671	)

	$	139,394,244		$	-	$	25,358,043		$	14,879,287

F-54

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2009 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 11			Series 12			Series 14
ASSETS

Buildings and improvements, net of accumulated depreciation	$	16,808,306		$	14,449,122		$	43,653,175
Land		1,553,181			1,515,917			4,951,553
Other assets		4,323,980			3,386,026			8,515,654

	$	22,685,467		$	19,351,065		$	57,120,382

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	22,097,754		$	23,048,671		$	60,586,403
Accounts payable and accrued expenses		728,679			356,463			1,438,923
Other liabilities		944,159			1,579,703			3,230,272

		23,770,592			24,984,837			65,255,598
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership		(1,889,823	)		(5,529,302	)		(8,351,002	)
Other partners		804,698			(104,470	)		215,786

		(1,085,125	)		(5,633,772	)		(8,135,216	)

	$	22,685,467		$	19,351,065		$	57,120,382

F-55

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2010 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2010 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

Year ended December 31, 2010

	Total			Series 7		Series 9			Series 10
Revenue
Rental	$	26,136,437		$	-	$	5,173,094		$	2,916,950
Interest and other		1,436,935			-		1,009,145			69,785

		27,573,372			-		6,182,239			2,986,735
Expenses
Interest		4,050,308			-		897,627			381,876
Depreciation and amortization		6,420,237			-		1,370,197			752,322
Taxes and insurance		3,516,072			-		777,083			402,226
Repairs and maintenance		6,322,493			-		1,143,219			744,397
Operating expenses		9,169,519			-		1,790,516			1,026,795
Other expenses		380,198			-		87,577			42,561

		29,858,827			-		6,066,219			3,350,177

NET INCOME (LOSS)	$	(2,285,455	)	$	-	$	116,020		$	(363,442	)

Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*	$	(2,773,816	)	$	-	$	(505,658	)	$	(347,148	)

Net income (loss) allocated to other partners	$	488,361		$	-	$	621,678		$	(16,294	)

*	Amounts include $0, $505,658, $347,148, $289,458, $469,684 and $1,161,868 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-56

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

Year ended December 31, 2010

	Series 11			Series 12			Series 14
Revenue
Rental	$	3,920,744		$	3,960,611		$	10,165,038
Interest and other		70,505			52,935			234,565

		3,991,249			4,013,546			10,399,603
Expenses
Interest		563,108			652,852			1,554,845
Depreciation and amortization		1,023,303			870,000			2,404,415
Taxes and insurance		558,393			486,676			1,291,694
Repairs and maintenance		854,228			1,090,805			2,489,844
Operating expenses		1,328,328			1,366,340			3,657,540
Other expenses		31,354			53,256			165,450

		4,358,714			4,519,929			11,563,788

NET INCOME (LOSS)	$	(367,465	)	$	(506,383	)	$	(1,164,185	)

Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*	$	(289,458	)	$	(469,684	)	$	(1,161,868	)

Net income (loss) allocated to other partners	$	(78,007	)	$	(36,699	)	$	(2,317	)

*	Amounts include $0, $505,658, $347,148, $289,458, $469,684 and $1,161,868 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-57

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2009 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2009 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

Year ended December 31, 2009

	Total			Series 7		Series 9			Series 10
Revenue
Rental	$	29,004,504		$	-	$	5,040,363		$	2,862,301
Interest and other		1,124,092			-		167,813			105,064

		30,128,596			-		5,208,176			2,967,365
Expenses
Interest		4,732,842			-		865,517			389,180
Depreciation and amortization		7,312,075			-		1,355,889			736,644
Taxes and insurance		4,027,090			-		767,203			398,232
Repairs and maintenance		7,254,519			-		1,234,508			788,122
Operating expenses		9,771,846			-		1,802,260			935,276
Other expenses		847,445			-		68,228			121,500

		33,945,817			-		6,093,605			3,368,954

NET INCOME (LOSS)	$	(3,817,221	)	$	-	$	(885,429	)	$	(401,589	)

Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*	$	(3,910,282	)	$	-	$	(889,174	)	$	(358,886	)

Net income (loss) allocated to other partners	$	93,061		$	-	$	3,745		$	(42,703	)

*	Amounts include $0, $889,174, $358,886, $426,925, $726,230 and $1,509,067 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-58

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

Year ended December 31, 2009

	Series 11			Series 12			Series 14
Revenue
Rental	$	5,194,343		$	4,228,207		$	11,679,290
Interest and other		113,084			72,845			665,286

		5,307,427			4,301,052			12,344,576
Expenses
Interest		835,861			709,935			1,932,349
Depreciation and amortization		1,377,548			1,006,148			2,835,846
Taxes and insurance		793,309			526,751			1,541,595
Repairs and maintenance		1,121,245			1,242,939			2,867,705
Operating expenses		1,334,245			1,480,675			4,219,390
Other expenses		304,379			65,236			288,102

		5,766,587			5,031,684			13,684,987

NET INCOME (LOSS)	$	(459,160	)	$	(730,632	)	$	(1,340,411	)

Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*	$	(426,925	)	$	(726,230	)	$	(1,509,067	)

Net income (loss) allocated to other partners	$	(32,235	)	$	(4,402	)	$	168,656

*	Amounts include $0, $889,174, $358,886, $426,925, $726,230 and $1,509,067 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-59

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2011 is reconciled as follows:

	Total			Series 7		Series 9			Series 10
Net income (loss) for financial reporting purposes, March 31, 2011	$	916,030		$	-	$	(248,576	)	$	91,026

Operating limited partnership rents received in advance		(2,154	)		-		112			-

Accrued partnership management fees not recognized for tax purposes		(544,848	)		-		204,984			96,888

Other		2,303,371			-		(622,784	)		304,583

Operating limited partnership loss not allowed for financial reporting under equity method of accounting		(2,773,816	)		-		(505,658	)		(347,148	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,139,108	)		-		(238,339	)		(71,346	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(2,142,641	)		-		(19,983	)		(198,219	)

Income (loss) for tax return purposes, December 31, 2010	$	(3,383,166	)	$	-	$	(1,430,244	)	$	(124,216	)

F-60

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

	Series 11			Series 12			Series 14
Net income (loss) for financial reporting purposes, March 31, 2011	$	1,163,558		$	190,337		$	(280,315	)

Operating limited partnership rents received in advance		-			(122	)		(2,144	)

Accrued partnership management fees not recognized for tax purposes		(1,256,301	)		138,792			270,789

Other		841,960			99,229			1,680,383

Operating limited partnership loss not allowed for financial reporting under equity method of accounting		(289,458	)		(469,684	)		(1,161,868	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(123,956	)		(207,180	)		(498,287	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(852,933	)		(359,097	)		(712,409	)

Income (loss) for tax return purposes, December 31, 2010	$	(517,130	)	$	(607,725	)	$	(703,851	)

F-61

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

	Total			Series 7			Series 9			Series 10
Net income (loss) for financial reporting purposes, March 31, 2010	$	2,289,762		$	(17,915	)	$	(237,687	)	$	808,598

Operating limited partnership rents received in advance		6,812			-			(1,341	)		-

Accrued partnership management fees not recognized for tax purposes		(1,910,434	)		-			140,641			(772,514	)

Other		8,984,847			-			1,742,593			1,395,939

Operating limited partnership loss not allowed for financial reporting under equity method of accounting		(3,910,282	)		-			(889,174	)		(358,886	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,045,342	)		-			(187,758	)		(62,689	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(3,372,903	)		(10,526	)		(41,359	)		(852,418	)

Income (loss) for tax return purposes, December 31, 2009	$	1,042,460		$	(28,441	)	$	525,915		$	158,030

F-62

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

	Series 11			Series 12			Series 14
Net income (loss) for financial reporting purposes, March 31, 2010	$	699,882		$	(174,134	)	$	1,211,018

Operating limited partnership rents received in advance		-			(167	)		8,320

Accrued partnership management fees not recognized for tax purposes		(288,879	)		150,168			(1,139,850	)

Other		577,640			570,114			4,698,561

Operating limited partnership loss not allowed for financial reporting under equity method of accounting		(426,925	)		(726,230	)		(1,509,067	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(89,454	)		(161,194	)		(544,247	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(747,541	)		(133,367	)		(1,587,692	)

Income (loss) for tax return purposes, December 31, 2009	$	(275,277	)	$	(474,810	)	$	1,137,043

F-63

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2011 are as follows:

	Total			Series 7		Series 9			Series 10

Investments in operating limited partnerships - tax return December 31, 2010	$	(48,868,866	)	$	-	$	(12,134,087	)	$	(4,706,026	)

Add back losses not recognized under the equity method		34,676,928			-		8,343,885			3,243,148

Impairment loss in investments in operating limited partnerships		(3,982,635	)		-		(369,919	)		(628,541	)

Less share of loss - three months ended March 31, 2011		(984,858	)		-		-			-

Other		19,159,431			-		4,160,121			2,091,419

Investments in operating limited partnerships - as reported, March 31, 2011	$	-		$	-	$	-		$	-

F-64

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2011 are as follows:

	Series 11			Series 12			Series 14

Investments in operating limited partnerships – tax return December 31, 2010	$	(6,302,349	)	$	(9,131,923	)	$	(16,594,481	)

Add back losses not recognized under the equity method		4,272,778			6,461,505			12,355,612

Impairment loss in investments in operating limited partnerships		(282,491	)		(171,947	)		(2,529,737	)

Less share of loss - three months ended March 31, 2011		-			(177,104	)		(807,754	)

Other		2,312,062			3,019,469			7,576,360

Investments in operating limited partnerships – as reported, March 31, 2011	$	-		$	-		$	-

F-65

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2010 are as follows:

	Total			Series 7		Series 9			Series 10

Investments in operating limited partnerships - tax return December 31, 2009	$	(44,381,228	)	$	-	$	(10,755,201	)	$	(4,592,115	)

Add back losses not recognized under the equity method		33,637,793			-		8,534,370			2,909,879

Impairment loss in investments in operating limited partnerships		(6,150,022	)		-		(369,919	)		(623,926	)

Less share of loss - three months ended March 31, 2010		(996,196	)		-		-			-

Other		17,889,653			-		2,590,750			2,306,162

Investments in operating limited partnerships - as reported, March 31, 2010	$	-		$	-	$	-		$	-

F-66

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D -

RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2010 are as follows:

	Series 11			Series 12			Series 14

Investments in operating limited partnerships – tax return December 31, 2009	$	(4,700,507	)	$	(8,225,059	)	$	(16,108,346	)

Add back losses not recognized under the equity method		4,150,927			6,497,307			11,545,310

Impairment loss in investments in operating limited partnerships		(1,682,306	)		(613,495	)		(2,860,376	)

Less share of loss - three months ended March 31, 2010		-			(188,442	)		(807,754	)

Other		2,231,886			2,529,689			8,231,166

Investments in operating limited partnerships – as reported, March 31, 2010	$	-		$	-		$	-

F-67

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE E - SUBSEQUENT EVENTS

Subsequent to March 31, 2011, the Partnership has entered into agreements to either sell or transfer interests in three operating limited partnerships. The estimated sales price and other terms for the dispositions of the operating limited partnerships have been determined. The estimated proceeds to be received for the operating limited partnerships is $549,317. The estimated gain on sale of the operating limited partnerships is $514,317, which is expected to be recognized in the first quarter of fiscal year 2012.

NOTE F - CONCENTRATION OF CREDIT RISK

The Partnership maintains its cash and cash equivalent balances in several accounts in various financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits by each institution. At times, the balances may exceed these insurance limits; however, the Partnership has not experienced any losses with respect to its balances in excess of FDIC insurance. Management believes that no significant concentration of credit risk with respect to these cash and cash equivalent balances exists as of March 31, 2011.

NOTE G - FAIR VALUE OF FINANCIAL INSTRUMENTS

As of March 31, 2011, the Partnership’s financial instruments relate to accounts payable - affiliates. Management has not disclosed the fair value of the financial instruments because determination of such fair value is deemed to be impractical. The accounts payable - affiliates are owed to affiliates of the Partnership. The unique nature of these financial instruments makes determination of any fair value impractical. See note B for disclosure of the carrying amount and terms of these financial instruments.

F-68

BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP - FORM 10-K - EX-13 - June 29, 2011

Attached files

BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP Reports