FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

 

BOSTON CAPITAL TAX CREDIT FUND V L.P. -

SERIES 47 THROUGH 49

 

MARCH 31, 2012 AND 2011

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

TABLE OF CONTENTS 

 

	PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F-3
FINANCIAL STATEMENTS
BALANCE SHEETS	F-5
STATEMENTS OF OPERATIONS	F-9
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)	F-13
STATEMENTS OF CASH FLOWS	F-17
NOTES TO FINANCIAL STATEMENTS	F-25

 

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 V L.P.

 

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund V L.P. - Series 47 through Series 49, in total and for each series, as of March 31, 2012 and 2011, 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, 2012. 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, 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.

 

(continued)

 

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund V L.P. - Series 47 through Series 49, in total and for each series as of March 31, 2012 and 2011, and the results of its operations and its cash flows for the total partnership and for each series for each of the years in the two-year period ended March 31, 2012, 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, 2012

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS 

March 31,

 

		Total
		2012				2011
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	36,431,445			$	45,194,905
OTHER ASSETS
Cash and cash equivalents			2,051,958				2,236,091
Notes receivable			230,663				429,038
Deferred acquisition costs, net of accumulated amortization			3,694,361				4,617,692
Other assets			103,748				112,483
		$	42,512,175			$	52,590,209
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	843			$	843
Accounts payable - affiliates			3,470,297				2,582,469
Capital contributions payable			332,419				511,813
			3,803,559				3,095,125
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 12,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 11,777,706 at March 31, 2012 and 2011 are issued and outstanding to the assignees			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner,  11,777,706 issued and outstanding at March 31, 2012 and 2011			38,873,048				49,632,550
General partner			(164,432	)			(137,466	)
			38,708,616				49,495,084
		$	42,512,175			$	52,590,209

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED 

March 31,

 

		Series 47
		2012				2011
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	8,629,599			$	10,949,197
OTHER ASSETS
Cash and cash equivalents			366,067				397,096
Notes receivable			-				-
Deferred acquisition costs, net of accumulated amortization			1,668,277				2,001,933
Other assets			-				-
		$	10,663,943			$	13,348,226
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	385			$	385
Accounts payable - affiliates			1,530,089				1,166,745
Capital contributions payable			91,654				91,654
			1,622,128				1,258,784
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 12,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,478,334 at March 31, 2012 and 2011 are issued and outstanding to the assignees			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,478,334 issued and outstanding at March 31, 2012 and 2011			9,095,919				12,135,927
General partner			(54,104	)			(46,485	)
			9,041,815				12,089,442
		$	10,663,943			$	13,348,226

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED 

March 31,

 

		Series 48
		2012				2011
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	6,625,699			$	8,346,895
OTHER ASSETS
Cash and cash equivalents			348,763				435,509
Notes receivable			-				168,628
Deferred acquisition costs, net of accumulated amortization			694,768				833,720
Other assets			-				-
		$	7,669,230			$	9,784,752
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	115			$	115
Accounts payable - affiliates			980,280				816,900
Capital contributions payable			10,001				178,629
			990,396				995,644
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 12,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,299,372 at March 31, 2012 and 2011 are issued and outstanding to the assignees			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,299,372 issued and outstanding at March 31, 2012 and 2011			6,712,899				8,817,897
General partner			(34,065	)			(28,789	)
			6,678,834				8,789,108
		$	7,669,230			$	9,784,752

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED 

March 31,

 

		Series 49
		2012				2011
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	21,176,147			$	25,898,813
OTHER ASSETS
Cash and cash equivalents			1,337,128				1,403,486
Notes receivable			230,663				260,410
Deferred acquisition costs, net of accumulated amortization			1,331,316				1,782,039
Other assets			103,748				112,483
		$	24,179,002			$	29,457,231
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	343			$	343
Accounts payable - affiliates			959,928				598,824
Capital contributions payable			230,764				241,530
			1,191,035				840,697
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 12,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 6,000,000 at March 31, 2012 and 2011 are issued and outstanding to the assignees			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 6,000,000 issued and outstanding at March 31, 2012 and 2011			23,064,230				28,678,726
General partner			(76,263	)			(62,192	)
			22,987,967				28,616,534
		$	24,179,002			$	29,457,231

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2012 and 2011 

 

		Total
		2012				2011
Income
Interest income		$	14,656			$	54,209
Other income			5,525				-
Total income			20,181				54,209
Share of losses from operating limited partnerships			(1,846,049	)			(3,152,301	)
Expenses and loss
Professional fees			99,186				115,145
Partnership management fee			1,009,786				1,021,891
Amortization			769,616				993,070
General and administrative expenses			82,290				88,883
Impairment loss			6,999,722				6,214,616
			8,960,600				8,433,605
NET LOSS		$	(10,786,468	)		$	(11,531,697	)
Net loss allocated to general partner		$	(26,966	)		$	(28,829	)
Net loss allocated to limited partner		$	(10,759,502	)		$	(11,502,868	)
Net loss per BAC		$	(0.91	)		$	(0.98	)

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 47
		2012				2011
Income
Interest income		$	2,248			$	5,950
Other income			-				-
Total income			2,248				5,950
Share of losses from operating limited partnerships			(350,362	)			(916,045	)
Expenses and loss
Professional fees			30,920				33,403
Partnership management fee			358,409				367,987
Amortization			333,656				337,770
General and administrative expenses			26,132				28,446
Impairment loss			1,950,396				1,583,819
			2,699,513				2,351,425
NET LOSS		$	(3,047,627	)		$	(3,261,520	)
Net loss allocated to general partner		$	(7,619	)		$	(8,154	)
Net loss allocated to limited partner		$	(3,040,008	)		$	(3,253,366	)
Net loss per BAC		$	(0.87	)		$	(0.94	)

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 48
		2012				2011
Income
Interest income		$	2,299			$	7,490
Other income			-				-
Total income			2,299				7,490
Share of losses from operating limited partnerships			(242,780	)			(911,098	)
Expenses and loss
Professional fees			26,824				27,542
Partnership management fee			219,915				208,840
Amortization			138,952				226,325
General and administrative expenses			22,896				24,016
Impairment loss			1,461,206				1,230,871
			1,869,793				1,717,594
NET LOSS		$	(2,110,274	)		$	(2,621,202	)
Net loss allocated to general partner		$	(5,276	)		$	(6,553	)
Net loss allocated to limited partner		$	(2,104,998	)		$	(2,614,649	)
Net loss per BAC		$	(0.92	)		$	(1.14	)

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 49
		2012				2011
Income
Interest income		$	10,109			$	40,769
Other income			5,525				-
Total income			15,634				40,769
Share of losses from operating limited partnerships			(1,252,907	)			(1,325,158	)
Expenses and loss
Professional fees			41,442				54,200
Partnership management fee			431,462				445,064
Amortization			297,008				428,975
General and administrative expenses			33,262				36,421
Impairment loss			3,588,120				3,399,926
			4,391,294				4,364,586
NET LOSS		$	(5,628,567	)		$	(5,648,975	)
Net loss allocated to general partner		$	(14,071	)		$	(14,122	)
Net loss allocated to limited partner		$	(5,614,496	)		$	(5,634,853	)
Net loss per BAC		$	(0.94	)		$	(0.94	)

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

 

Years ended March 31, 2012 and 2011

 

		Limited				General
Total		partner				partner				Total
Partners’ capital (deficit), March 31, 2010		$	61,135,418			$	(108,637	)		$	61,026,781
Net loss			(11,502,868	)			(28,829	)			(11,531,697	)
Partners’ capital (deficit), March 31, 2011		$	49,632,550			$	(137,466	)		$	49,495,084
Net loss			(10,759,502	)			(26,966	)			(10,786,468	)
Partners’ capital (deficit), March 31, 2012		$	38,873,048			$	(164,432	)		$	38,708,616

 

(continued)

 

  

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

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

 

Years ended March 31, 2012 and 2011

 

		Limited				General
Series 47		partner				partner				Total
Partners’ capital (deficit), March 31, 2010		$	15,389,293			$	(38,331	)		$	15,350,962
Net loss			(3,253,366	)			(8,154	)			(3,261,520	)
Partners’ capital (deficit), March 31, 2011		$	12,135,927			$	(46,485	)		$	12,089,442
Net loss			(3,040,008	)			(7,619	)			(3,047,627	)
Partners’ capital (deficit), March 31, 2012		$	9,095,919			$	(54,104	)		$	9,041,815

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

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

 

Years ended March 31, 2012 and 2011

 

		Limited				General
Series 48		partner				partner				Total
Partners’ capital (deficit), March 31, 2010		$	11,432,546			$	(22,236	)		$	11,410,310
Net loss			(2,614,649	)			(6,553	)			(2,621,202	)
Partners’ capital (deficit), March 31, 2011		$	8,817,897			$	(28,789	)		$	8,789,108
Net loss			(2,104,998	)			(5,276	)			(2,110,274	)
Partners’ capital (deficit), March 31, 2012		$	6,712,899			$	(34,065	)		$	6,678,834

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

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

 

Years ended March 31, 2012 and 2011

 

		Limited				General
Series 49		partner				partner				Total
Partners’ capital (deficit), March 31, 2010		$	34,313,579			$	(48,070	)		$	34,265,509
Net loss			(5,634,853	)			(14,122	)			(5,648,975	)
Partners’ capital (deficit), March 31, 2011		$	28,678,726			$	(62,192	)		$	28,616,534
Net loss			(5,614,496	)			(14,071	)			(5,628,567	)
Partners’ capital (deficit), March 31, 2012		$	23,064,230			$	(76,263	)		$	22,987,967

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2012 and 2011 

 

		Total
		2012				2011
Cash flows from operating activities
Net loss		$	(10,786,468	)		$	(11,531,697	)
Adjustments to reconcile net loss to net cash used in operating activities
Share of loss from operating limited partnerships			1,846,049				3,152,301
Impairment loss			6,999,722				6,214,616
Distributions received from operating limited partnerships			71,404				30,600
Amortization			769,616				993,070
Changes in assets and liabilities
Other assets			8,735				(6,245	)
Accounts payable - affiliates			887,828				937,828
Net cash used in operating activities			(203,114	)			(209,527	)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships			(10,766	)			(59,339	)
(Advances) to repayments from operating limited partnerships			29,747				(155,128	)
Net cash provided by (used in) investing activities			18,981				(214,467	)
NET DECREASE IN CASH AND CASH EQUIVALENTS			(184,133	)			(423,994	)
Cash and cash equivalents, beginning			2,236,091				2,660,085
Cash and cash equivalents, end		$	2,051,958			$	2,236,091

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Total
		2012				2011
Supplemental schedule of noncash investing and financing activities:
The fund applied notes receivable and advances to its capital contribution obligation to operating limted partnerships.		$	168,628			$	1,860,931
The fund has increased its investments in operating limited partnerships and increased its capital contribution obligation in operating limited partnerships for low-income tax credits generated.		$	-			$	4,686
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation to operating limited partnerships for low-income tax credits not generated.		$	-			$	115,156

  

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 47
		2012				2011
Cash flows from operating activities
Net loss		$	(3,047,627	)		$	(3,261,520	)
Adjustments to reconcile net loss to net cash used in operating activities
Share of loss from operating limited partnerships			350,362				916,045
Impairment loss			1,950,396				1,583,819
Distributions received from operating limited partnerships			18,840				552
Amortization			333,656				337,770
Changes in assets and liabilities
Other assets			-				-
Accounts payable - affiliates			363,344				388,344
Net cash used in operating activities			(31,029	)			(34,990	)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships			-				(2,475	)
(Advances) to repayments from operating limited partnerships			-				-
Net cash provided by (used in) investing activities			-				(2,475	)
NET DECREASE IN CASH AND CASH EQUIVALENTS			(31,029	)			(37,465	)
Cash and cash equivalents, beginning			397,096				434,561
Cash and cash equivalents, end		$	366,067			$	397,096

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 47
		2012				2011
Supplemental schedule of noncash investing and financing activities:
The fund applied notes receivable and advances to its capital contribution obligation to operating limted partnerships.		$	-			$	199,846
The fund has increased its investments in operating limited partnerships and increased its capital contribution obligation in operating limited partnerships for low-income tax credits generated.		$	-			$	2,343
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation to operating limited partnerships for low-income tax credits not generated.		$	-			$	-

  

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 48
		2012				2011
Cash flows from operating activities
Net loss		$	(2,110,274	)		$	(2,621,202	)
Adjustments to reconcile net loss to net cash used in operating activities
Share of loss from operating limited partnerships			242,780				911,098
Impairment loss			1,461,206				1,230,871
Distributions received from operating limited partnerships			17,210				10,713
Amortization			138,952				226,325
Changes in assets and liabilities
Other assets			-				-
Accounts payable - affiliates			163,380				238,380
Net cash used in operating activities			(86,746	)			(3,815	)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships			-				(2,475	)
(Advances) to repayments from operating limited partnerships			-				(168,628	)
Net cash provided by (used in) investing activities			-				(171,103	)
NET DECREASE IN CASH AND CASH EQUIVALENTS			(86,746	)			(174,918	)
Cash and cash equivalents, beginning			435,509				610,427
Cash and cash equivalents, end		$	348,763			$	435,509

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 48
		2012				2011
Supplemental schedule of noncash investing and financing activities:
The fund applied notes receivable and advances to its capital contribution obligation to operating limted partnerships.		$	168,628			$	199,846
The fund has increased its investments in operating limited partnerships and increased its capital contribution obligation in operating limited partnerships for low-income tax credits generated.		$	-			$	2,343
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation to operating limited partnerships for low-income tax credits not generated.		$	-			$	115,156

  

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 49
		2012				2011
Cash flows from operating activities
Net loss		$	(5,628,567	)		$	(5,648,975	)
Adjustments to reconcile net loss to net cash used in operating activities
Share of loss from operating limited partnerships			1,252,907				1,325,158
Impairment loss			3,588,120				3,399,926
Distributions received from operating limited partnerships			35,354				19,335
Amortization			297,008				428,975
Changes in assets and liabilities
Other assets			8,735				(6,245	)
Accounts payable - affiliates			361,104				311,104
Net cash used in operating activities			(85,339	)			(170,722	)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships			(10,766	)			(54,389	)
(Advances) to repayments from operating limited partnerships			29,747				13,500
Net cash provided by (used in) investing activities			18,981				(40,889	)
NET DECREASE IN CASH AND CASH EQUIVALENTS			(66,358	)			(211,611	)
Cash and cash equivalents, beginning			1,403,486				1,615,097
Cash and cash equivalents, end		$	1,337,128			$	1,403,486

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011 

 

		Series 49
		2012				2011
Supplemental schedule of noncash investing and financing activities:
The fund applied notes receivable and advances to its capital contribution obligation to operating limted partnerships.		$	-			$	1,461,239
The fund has increased its investments in operating limited partnerships and increased its capital contribution obligation in operating limited partnerships for low-income tax credits generated.		$	-			$	-
The fund has decreased its investments in operating limited partnerships and decreased its capital contribution obligation to operating limited partnerships for low-income tax credits not generated.		$	-			$	-

  

See notes to financial statements

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS

 

March 31, 2012 and 2011

 

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Boston Capital Tax Credit Fund V L.P. (the “Fund” or “Partnership”) was formed under the laws of the State of Delaware on October 15, 2003, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which have been organized to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment complexes which qualified 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. The general partner of the Fund is Boston Capital Associates V L.L.C. and the limited partner is BCTC V Assignor Corp. (the “assignor limited partner”).

 

In accordance with the limited partnership agreement, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99.75% to the assignees and .25% to the general partner.

 

A Registration Statement on Form S-11 and the related prospectus, (the "Prospectus") were filed with the Securities and Exchange Commission and became effective January 2, 2004 in connection with a public offering ("Offering") in one or more series of a minimum of 250,000 BACs and a maximum of 7,000,000 BACs at $10 per BAC. On August 10, 2004 an amendment to Form S-11, which registered an additional 8,500,000 BACs for sale to the public in one or more series became effective. As of December 31, 2005, subscriptions had been received and accepted by the Fund for 11,777,706 BAC's representing capital contributions of $117,777,060.

 

The BAC’s issued and outstanding in each series at March 31, 2012 and 2011 are as follows:

 

			2012				2011
Series 47				3,478,334				3,478,334
Series 48				2,299,372				2,299,372
Series 49				6,000,000				6,000,000
				11,777,706				11,777,706

  

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Investments in Operating Limited Partnerships

 

The Fund accounts for its investments in operating limited partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each operating limited partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes the individual operating limited partnership’s losses only to the extent that the Fund’s share of losses from the operating limited partnerships does not exceed the carrying amount of its investment and its advances to operating limited partnerships. Unrecognized losses are suspended and offset against future individual operating limited partnership income.

 

The Fund 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. The Fund also evaluates its intangibles for impairment in connection with its investments in operating limited partnerships. Impairment losses have been recognized for the years ended March 31, 2012 and March 31, 2011, of $6,999,722 and $6,214,616, respectively.

 

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 Fund records tax credit adjusters as a reduction in investments in operating limited partnerships and capital contributions payable.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

The operating limited partnerships maintain their financial statements based on a calendar year and the Fund 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 Fund 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 Fund when received.

 

In accordance with the accounting guidance for the consolidation of variable interest entities, the Fund 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 Fund determines whether an entity is a VIE and whether it is the primary beneficiary at the date of initial involvement with the entity. The Fund 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 Fund has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance and whether the Fund also has the obligation to absorb losses of or receive benefits from the VIE that could be potentially significant to the VIE. If the Fund determines that it is the primary beneficiary of the VIE, the VIE is consolidated within the partnership’s financial statements.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Based on this guidance, the operating limited partnerships in which the Fund invests meet the definition of a VIE. However, management does not consolidate the Fund’s interests in these VIEs under this guidance, as it is not considered to be the primary beneficiary. The Fund 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 Fund’s balance in investment in operating limited partnerships, advances to operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Fund’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.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Deferred Acquisition Costs

 

Acquisition costs were amortized on the straight-line method over 27.5 years. As of March 31, 2012, an impairment loss of $153,715 for Series 49 was recorded. As of March 31, 2011, an impairment loss of $515,429 and $791,820 for Series 48 and Series 49, respectively, was recorded. As of March 31, 2012, the lives of the remaining acquisition costs were reassessed and determined to be 5 years for all Series.

 

Accumulated amortization as of March 31, 2012 and 2011 is as follows:

 

			2012				2011
Series 47			$	1,245,954			$	912,298
Series 48				738,387				599,435
Series 49				1,598,717				1,301,709
			$	3,583,058			$	2,813,442

 

The amortization of deferred acquisition costs for each of the ensuing 5 years through March 31, 2017 is estimated to be $738,872 per year.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Capitalized Expenses

 

Costs incurred in connection with borrowing funds to make capital contributions to operating limited partnerships and certain other costs are capitalized and included in investments in operating limited partnerships. Such costs are being amortized on the straight-line method over 27.5 years. As of March 31, 2011, an impairment loss of $86,385 and $31,129 for Series 47 and Series 48, respectively, was recorded to bring the capitalized expense to zero for Series 47 and Series 48

 

Accumulated amortization for capitalized expenses as of March 31, 2012 and 2011 are as follows: 

 

			2012				2011
Series 47			$	-			$	25,689
Series 48				-				9,134
Series 49				-				-
			$	-			$	34,823

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Income Taxes

 

The Fund 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 Fund’s federal tax status as a pass-through entity is based on its legal status as a Fund. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund 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 Fund has no other tax positions, which must be considered for disclosure.

 

Cash and Cash Equivalents

 

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

 

Fiscal Year

 

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

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Net Loss per Beneficial Assignee Certificate

 

Net loss per beneficial assignee partnership unit is calculated based upon the weighted average number of units outstanding during the year. The weighted average number of units in Series 47, 48 and 49 at March 31, 2012 and 2011 are as follows:

 

		2012				2011
Series 47			3,478,334				3,478,334
Series 48			2,299,372				2,299,372
Series 49			6,000,000				6,000,000
			11,777,706				11,777,706

 

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.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Recent Accounting Pronouncements

 

In June 2009, the the Financial Accounting Standards Board (FASB) issued an amendment to the accounting and disclosure requirements for the consolidation of VIEs. The amended guidance modifies the consolidation model to one based on control and economics, and replaces the current 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 is 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 Fund’s financial statements.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During the years ended March 31, 2012 and 2011, the Fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc. (BCP), Boston Capital Services, Inc. (BCS), Boston Capital Holdings Limited Partnership (BCHLP) and Boston Capital Asset Management Limited Partnership (BCAM), as follows:

 

The Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnership in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various asset management and reporting fees paid by the Operating Partnerships. The fund management fees net of reporting fees incurred and the reporting fees paid by the Operating Partnerships for the years ended March 31, 2012 and 2011, are as follows:

 

		2012
		Gross Fund Management Fee				Asset Management & Reporting Fee				Fund Management Fee net of Asset Management & Reporting Fee
Series 47		$	388,344			$	29,935			$	358,409
Series 48			238,380				18,465				219,915
Series 49			511,104				79,642				431,462
		$	1,137,828			$	128,042			$	1,009,786

 

		2011
		Gross Fund Management Fee				Asset Management & Reporting Fee				Fund Management Fee net of Asset Management & Reporting Fee
Series 47		$	388,344			$	20,357			$	367,987
Series 48			238,380				29,540				208,840
Series 49			511,104				66,040				445,064
		$	1,137,828			$	115,937			$	1,021,891

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE B - RELATED PARTY TRANSACTIONS - continued

 

All fund management fees 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. As of March 31, 2012 and 2011, total fund management fees accrued were $3,470,297 and $2,582,469, respectively.

 

The fund management fees paid by the Fund for the years ended March 31, 2012 and 2011 are as follows:

 

		2012				2011
Series 47		$	25,000			$	-
Series 48			75,000				-
Series 49			150,000				200,000
		$	250,000			$	200,000

 

General and administrative expenses and professional fees incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership for each series for the years ended March 31, 2012 and 2011, charged to each series’ operations are as follows:

 

		2012				2011
Series 47		$	20,239			$	23,030
Series 48			18,601				20,510
Series 49			23,457				27,117
		$	62,297			$	70,657

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

 

At March 31, 2012 and 2011, the Fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes. The number of operating limited partnerships in which the Fund has limited partnership interests at March 31, 2012 and 2011 by series are as follows:

 

		2012				2011
Series 47			15				15
Series 48			11				11
Series 49			24				24
			50				50

 

Under the terms of the Fund’s investment in each operating limited partnership, the Fund 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 and/or operations. At March 31, 2012 and 2011, contributions are payable to operating limited partnerships as follows:

 

		2012				2011
Series 47		$	91,654			$	91,654
Series 48			10,001				178,629
Series 49			230,764				241,530
		$	332,419			$	511,813

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The fund’s investments in operating limited partnerships at March 31, 2012 is summarized as follows:

 

		Total				Series 47				Series 48				Series 49
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	88,232,675			$	25,829,698			$	17,111,380			$	45,291,597
Cumulative distributions from operating limited partnerships			(242,984	)			(36,275	)			(85,663	)			(121,046	)
Cumulative impairment loss in investments in operating limited partnerships			(19,633,177	)			(6,099,586	)			(2,567,590	)			(10,966,001	)
Cumulative losses from operating limited partnerships			(31,925,069	)			(11,064,238	)			(7,832,428	)			(13,028,403	)
Investments in operating limited partnerships per balance sheets			36,431,445				8,629,599				6,625,699				21,176,147

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Total				Series 47				Series 48				Series 49
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2012 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2011 (see note A).			(655,098	)			(91,653	)			(178,628	)			(384,817	)
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).			(8,746,941	)			(800,432	)			(263,057	)			(7,683,452	)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			333,626				-				-				333,626
Cumulative impairment loss in investments in operating limited partnerships			19,633,177				6,099,586				2,567,590				10,966,001
Other			4,754				(5,759	)			2,420				8,093
Equity per operating limited partnerships’ combined financial statements		$	47,000,963			$	13,831,341			$	8,754,024			$	24,415,598

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

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

 

		Total				Series 47				Series 48				Series 49
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	88,232,675			$	25,829,698			$	17,111,380			$	45,291,597
Cumulative distributions from operating limited partnerships			(171,580	)			(17,435	)			(68,453	)			(85,692	)
Cumulative impairment loss in investments in operating limited partnerships			(12,787,170	)			(4,149,190	)			(1,106,384	)			(7,531,596	)
Cumulative losses from operating limited partnerships			(30,079,020	)			(10,713,876	)			(7,589,648	)			(11,775,496	)
Investments in operating limited partnerships per balance sheets			45,194,905				10,949,197				8,346,895				25,898,813

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Total				Series 47				Series 48				Series 49
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2011 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A).			(665,864	)			(91,653	)			(178,628	)			(395,583	)
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).			(7,921,693	)			(249,351	)			(51,330	)			(7,621,012	)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			333,626				-				-				333,626
Cumulative impairment loss in investments in operating limited partnerships			12,787,170				4,149,190				1,106,384				7,531,596
Other			5,633				(5,657	)			2,441				8,849
Equity per operating limited partnerships’ combined financial statements		$	49,733,777			$	14,751,726			$	9,225,762			$	25,756,289

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 47, 48 and 49 hold an interest as of December 31, 2011 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 47				Series 48				Series 49
ASSETS
Buildings and improvements, net of accumulated depreciation		$	246,480,158			$	83,289,382			$	59,063,634			$	104,127,142
Land			22,528,233				8,589,687				6,709,244				7,229,302
Other assets			23,053,924				8,239,979				5,448,962				9,364,983
		$	292,062,315			$	100,119,048			$	71,221,840			$	120,721,427
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable		$	192,130,464			$	68,373,641			$	49,008,261			$	74,748,562
Accounts payable and accrued expenses			2,940,104				1,231,546				712,925				995,633
Other liabilities			32,205,394				9,838,390				7,215,583				15,151,421
			227,275,962				79,443,577				56,936,769				90,895,616
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund V L.P.			47,000,963				13,831,341				8,754,024				24,415,598
Other partners			17,785,390				6,844,130				5,531,047				5,410,213
			64,786,353				20,675,471				14,285,071				29,825,811
		$	292,062,315			$	100,119,048			$	71,221,840			$	120,721,427

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 47, 48 and 49 hold an interest as of December 31, 2010 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 47				Series 48				Series 49
ASSETS
Buildings and improvements, net of accumulated depreciation		$	257,744,656			$	87,045,310			$	61,870,702			$	108,828,644
Land			22,576,589				8,589,687				6,709,244				7,277,658
Other assets			22,531,584				8,162,397				5,221,399				9,147,788
		$	302,852,829			$	103,797,394			$	73,801,345			$	125,254,090
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable		$	195,399,491			$	69,493,831			$	49,679,903			$	76,225,757
Accounts payable and accrued expenses			3,645,373				1,367,804				629,998				1,647,571
Other liabilities			35,692,514				11,106,248				8,498,605				16,087,661
			234,737,378				81,967,883				58,808,506				93,960,989
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund V L.P.			49,733,777				14,751,726				9,225,762				25,756,289
Other partners			18,381,674				7,077,785				5,767,077				5,536,812
			68,115,451				21,829,511				14,992,839				31,293,101
		$	302,852,829			$	103,797,394			$	73,801,345			$	125,254,090

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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, 2011 in which Series 47 through Series 49 had an interest as of December 31, 2011 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

		Total				Series 47				Series 48				Series 49
Revenue
Rent		$	33,221,675			$	12,022,011			$	8,049,555			$	13,150,109
Interest and other			1,235,811				483,125				330,945				421,741
			34,457,486				12,505,136				8,380,500				13,571,850
Expenses
Interest			5,521,080				1,736,678				1,077,921				2,706,481
Depreciation and amortization			11,204,983				3,731,135				2,706,700				4,767,148
Taxes and insurance			3,954,517				1,592,297				966,551				1,395,669
Repairs and maintenance			4,258,853				1,657,626				1,034,278				1,566,949
Operating expenses			12,052,181				4,422,472				2,768,580				4,861,129
Impairment			-				-				-				-
Other expenses			1,115,805				491,399				478,737				145,669
			38,107,419				13,631,607				9,032,767				15,443,045
NET LOSS		$	(3,649,933	)		$	(1,126,471	)		$	(652,267	)		$	(1,871,195	)
Net loss allocated to Boston Capital Tax Credit Fund V L.P. *		$	(2,712,711	)		$	(901,443	)		$	(454,507	)		$	(1,356,761	)
Net loss allocated to other partners		$	(937,222	)		$	(225,028	)		$	(197,760	)		$	(514,434	)

 

* Amount includes $551,081, $211,727 and $103,854 for Series 47, Series 48 and Series 49, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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 47 through Series 49 had an interest as of December 31, 2010 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

		Total				Series 47				Series 48				Series 49
Revenue
Rent		$	31,519,954			$	11,630,669			$	7,728,078			$	12,161,207
Interest and other			1,221,648				399,684				292,826				529,138
			32,741,602				12,030,353				8,020,904				12,690,345
Expenses
Interest			5,009,397				1,808,847				1,111,209				2,089,341
Depreciation and amortization			11,078,105				3,736,907				2,749,409				4,591,789
Taxes and insurance			3,987,855				1,597,929				984,859				1,405,067
Repairs and maintenance			4,734,858				1,873,745				1,342,662				1,518,451
Operating expenses			11,686,940				4,237,317				2,841,165				4,608,458
Impairment			6,728,437				-				-				6,728,437
Other expenses			2,596,626				527,862				504,775				1,563,989
			45,822,218				13,782,607				9,534,079				22,505,532
NET LOSS		$	(13,080,616	)		$	(1,752,254	)		$	(1,513,175	)		$	(9,815,187	)
Net loss allocated to Boston Capital Tax Credit Fund V L.P.		$	(10,552,123	)		$	(1,165,396	)		$	(962,428	)		$	(8,424,299	)
Net loss allocated to other partners		$	(2,528,493	)		$	(586,858	)		$	(550,747	)		$	(1,390,888	)

 

* Amount includes $249,351, $51,330 and $7,099,141 for Series 47, Series 48 and Series 49, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE D - NOTES RECEIVABLE

 

Notes receivable at March 31, 2012 and 2011 consist of advance installments of $230,663 and $429,038 , respectively, of capital contributions to operating limited partnerships. The notes are comprised of noninterest bearing and interest bearing notes with rates ranging from prime to prime + 1.00%. Prime was 3.25% as of March 31, 2012 and 2011. These notes are secured by future installments of capital contributions or paid upon demand. The notes at March 31, 2012 and 2011 by series are as follows:

 

		2012				2011
Series 47		$	-			$	-
Series 48			-				168,628
Series 49			230,663				260,410
		$	230,663			$	429,038

 

 

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

 

For income tax purposes, the fund reports using a December 31 year-end. The fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2012 is reconciled as follows:

 

		Total				Series 47				Series 48				Series 49
Net income (loss) for financial reporting purposes		$	(10,786,468	)		$	(3,047,627	)		$	(2,110,274	)		$	(5,628,567	)
Accrued partnership management fee not deducted for income tax purposes			887,828				363,344				163,380				361,104
Other			688,432				34,553				27,003				626,876
Excess of tax depreciation over book depreciation on operating limited partnership assets			(1,182,633	)			(295,101	)			(395,534	)			(491,998	)
Impairment loss not recognized for tax purposes			6,999,722				1,950,396				1,461,206				3,588,120
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting			(866,662	)			(551,081	)			(211,727	)			(103,854	)
Operating limited partnership impairment loss not recognized for tax purposes			-				-				-				-
Difference due to fiscal year for book purposes and calendar year for tax purposes			406,270				216,810				85,322				104,138
Income (loss) for tax return purposes, December 31, 2011		$	(3,853,511	)		$	(1,328,706	)		$	(980,624	)		$	(1,544,181	)

 

 

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

 

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

 

		Total				Series 47				Series 48				Series 49
Net income (loss) for financial reporting purposes		$	(11,531,697	)		$	(3,261,520	)		$	(2,621,202	)		$	(5,648,975	)
Accrued partnership management fee not deducted (deducted) for income tax purposes			937,828				388,344				238,380				311,104
Other			169,557				38,923				37,771				92,863
Excess of tax depreciation over book depreciation on operating limited partnership assets			(1,996,364	)			(980,178	)			(485,547	)			(530,639	)
Impairment loss not recognized for tax purposes			6,214,616				1,583,819				1,230,871				3,399,926
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting			(7,399,822	)			(249,351	)			(51,330	)			(7,099,141	)
Operating limited partnership impairment loss not recognized for tax purposes			6,728,437				-				-				6,728,437
Difference due to fiscal year for book purposes and calendar year for tax purposes			655,144				245,385				149,852				259,907
Income (loss) for tax return purposes, December 31, 2010		$	(6,222,301	)		$	(2,234,578	)		$	(1,501,205	)		$	(2,486,518	)

 

 

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

 

The differences between the investments in operating limited partnerships for tax purposes and financial statement purposes at March 31, 2012 are as follows:

 

		Total				Series 47				Series 48				Series 49
Investments in operating limited partnerships - tax return December 31, 2011		$	44,981,252			$	10,663,501			$	6,391,941			$	27,925,810
Impairment loss in investment in operating limited partnerships			(19,633,177	)			(6,099,586	)			(2,567,590	)			(10,966,001	)
Operating limited partnership losses not recognized for financial reporting purposes under the equity method			(8,746,941	)			(800,432	)			(263,057	)			(7,683,452	)
Operating limited partnership impairment loss not recognized for tax purposes			-				-				-				-
Other			19,830,311				4,866,116				3,064,405				11,899,790
Investments in operating limited partnerships - as reported		$	36,431,445			$	8,629,599			$	6,625,699			$	21,176,147

 

 

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

 

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

 

		Total				Series 47				Series 48				Series 49
Investments in operating limited partnerships - tax return December 31, 2010		$	48,380,727			$	11,845,643			$	7,348,812			$	29,186,272
Impairment loss in investment in operating limited partnerships			(12,787,170	)			(4,149,190	)			(1,106,384	)			(7,531,596	)
Operating limited partnership losses not recognized for financial reporting purposes under the equity method			(7,921,693	)			(249,351	)			(51,330	)			(7,621,012	)
Operating limited partnership impairment loss not recognized for tax purposes			6,728,437				-				-				6,728,437
Other			10,794,604				3,502,095				2,155,797				5,136,712
Investments in operating limited partnerships - as reported		$	45,194,905			$	10,949,197			$	8,346,895			$	25,898,813

 

 

NOTE F- CASH EQUIVALENTS

 

Cash equivalents of $2,050,590 and $2,235,801 as of March 31, 2012 and 2011, respectively, include money market accounts with interest rates ranging from 0.10% to 0.35% per annum.

 

NOTE G - CONCENTRATION OF CREDIT RISK

 

The Fund 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 Fund has not experienced any losses with respect to it 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, 2012.

 

NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The Fund’s financial instruments relate to other assets, notes receivable, and accounts payable - affiliates. Management has not disclosed the fair value of these financial instruments because determination of such fair value is deemed to be impractical. The other assets, notes receivable, and accounts payable - affiliates are due from or owed to affiliates of the Fund. The unique nature of these financial instruments makes determination of any fair value impractical. See notes B and D for disclosure of the carrying amount and terms of these financial instruments.