FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

 

BOSTON CAPITAL TAX CREDIT FUND V L.P. -

SERIES 47 THROUGH 49

 

MARCH 31, 2013 AND 2012

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

TABLE OF CONTENTS

 

	PAGE
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS	F-2
FINANCIAL STATEMENTS
BALANCE SHEETS	F-4
STATEMENTS OF OPERATIONS	F-8
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)	F-12
STATEMENTS OF CASH FLOWS	F-16
NOTES TO FINANCIAL STATEMENTS	F-20

 

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 Limited Partnership

 

We have audited the accompanying balance sheet of Boston Capital Tax Credit Fund V Limited Partnership - Series 47 through Series 49 (the Partnership), in total and for each series, as of March 31, 2013, and the related statements of operations, partners’ capital (deficit) and cash flow for the total Partnership and for each series for the year ended March 31, 2013. The Partnership’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audit.

 

We conducted our audit 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 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 also 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 audit of the financial statements provides 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 V L. P. - Series 47 through Series 49, in total and for each series, as of March 31, 2013, and the results of its operations and cash flows for the total Partnership and for each series for the year ended March 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

 

/s/CohnReznick LLP
COHNREZNICK LLP
Bethesda, Maryland
June 27, 2013

 

(continued)

  

 

 

 

 

 

 

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 the related statements of operations, changes in partners’ capital (deficit) and cash flows for the total partnership and for each of the series for the year 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 audit 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 audit provides 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 V L.P. - Series 47 through Series 49, in total and for each series as of March 31, 2012, and the results of its operations and its cash flows for the total partnership and for each series for year 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

  

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS

March 31,

 

		Total
		2013				2012
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	27,607,726			$	36,431,445
OTHER ASSETS
Cash and cash equivalents			1,060,658				2,051,958
Notes receivable			-				230,663
Deferred acquisition costs, net of accumulated amortization			2,746,392				3,694,361
Other assets			106,411				103,748
		$	31,521,187			$	42,512,175
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	843			$	843
Accounts payable - affiliates			3,833,125				3,470,297
Capital contributions payable			101				332,419
			3,834,069				3,803,559
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 15,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 11,777,706 at March 31, 2013 and 2012 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, 2013 and 2012			27,879,103				38,873,048
General partner			(191,985	)			(164,432	)
			27,687,118				38,708,616
		$	31,521,187			$	42,512,175

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED

March 31, 

 

		Series 47
		2013				2012
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	6,296,006			$	8,629,599
OTHER ASSETS
Cash and cash equivalents			116,970				366,067
Notes receivable			-				-
Deferred acquisition costs, net of accumulated amortization			1,334,621				1,668,277
Other assets			-				-
		$	7,747,597			$	10,663,943
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	385			$	385
Accounts payable - affiliates			1,843,433				1,530,089
Capital contributions payable			-				91,654
			1,843,818				1,622,128
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 15,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,478,334 at March 31, 2013 and 2012 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, 2013 and 2012			5,965,728				9,095,919
General partner			(61,949	)			(54,104	)
			5,903,779				9,041,815
		$	7,747,597			$	10,663,943

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED

March 31,

 

		Series 48
		2013				2012
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	4,833,619			$	6,625,699
OTHER ASSETS
Cash and cash equivalents			194,790				348,763
Notes receivable			-				-
Deferred acquisition costs, net of accumulated amortization			555,816				694,768
Other assets			-				-
		$	5,584,225			$	7,669,230
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	115			$	115
Accounts payable - affiliates			1,068,660				980,280
Capital contributions payable			-				10,001
			1,068,775				990,396
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 15,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 2,299,372 at March 31, 2013 and 2012 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, 2013 and 2012			4,554,923				6,712,899
General partner			(39,473	)			(34,065	)
			4,515,450				6,678,834
		$	5,584,225			$	7,669,230

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED

March 31,

 

		Series 49
		2013				2012
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	16,478,101			$	21,176,147
OTHER ASSETS
Cash and cash equivalents			748,898				1,337,128
Notes receivable			-				230,663
Deferred acquisition costs, net of accumulated amortization			855,955				1,331,316
Other assets			106,411				103,748
		$	18,189,365			$	24,179,002
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	343			$	343
Accounts payable - affiliates			921,032				959,928
Capital contributions payable			101				230,764
			921,476				1,191,035
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 15,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 6,000,000 at March 31, 2013 and 2012 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, 2013 and 2012			17,358,452				23,064,230
General partner			(90,563	)			(76,263	)
			17,267,889				22,987,967
		$	18,189,365			$	24,179,002

 

See notes to financial statements

 

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2013 and 2012

 

		Total
		2013				2012
Income
Interest income		$	3,754			$	14,656
Other income			-				5,525
Total income			3,754				20,181
Share of losses from operating limited partnerships			(1,860,831	)			(1,846,049	)
Expenses and loss
Professional fees			182,921				99,186
Partnership management fee			1,034,407				1,009,786
Amortization			738,872				769,616
General and administrative expenses			76,318				82,290
Impairment loss			7,131,903				6,999,722
			9,164,421				8,960,600
NET LOSS		$	(11,021,498	)		$	(10,786,468	)
Net loss allocated to general partner		$	(27,553	)		$	(26,966	)
Net loss allocated to limited partner		$	(10,993,945	)		$	(10,759,502	)
Net loss per BAC		$	(0.93	)		$	(0.91	)

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

		Series 47
		2013				2012
Income
Interest income		$	414			$	2,248
Other income			-				-
Total income			414				2,248
Share of losses from operating limited partnerships			(204,867	)			(350,362	)
Expenses and loss
Professional fees			113,846				30,920
Partnership management fee			362,252				358,409
Amortization			333,656				333,656
General and administrative expenses			23,923				26,132
Impairment loss			2,099,906				1,950,396
			2,933,583				2,699,513
NET LOSS		$	(3,138,036	)		$	(3,047,627	)
Net loss allocated to general partner		$	(7,845	)		$	(7,619	)
Net loss allocated to limited partner		$	(3,130,191	)		$	(3,040,008	)
Net loss per BAC		$	(0.90	)		$	(0.87	)

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2013 and 2012

 

		Series 48
		2013				2012
Income
Interest income		$	490			$	2,299
Other income			-				-
Total income			490				2,299
Share of losses from operating limited partnerships			(315,041	)			(242,780	)
Expenses and loss
Professional fees			28,059				26,824
Partnership management fee			211,432				219,915
Amortization			138,952				138,952
General and administrative expenses			20,182				22,896
Impairment loss			1,450,208				1,461,206
			1,848,833				1,869,793
NET LOSS		$	(2,163,384	)		$	(2,110,274	)
Net loss allocated to general partner		$	(5,408	)		$	(5,276	)
Net loss allocated to limited partner		$	(2,157,976	)		$	(2,104,998	)
Net loss per BAC		$	(0.94	)		$	(0.92	)

 

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, 2013 and 2012

 

		Series 49
		2013				2012
Income
Interest income		$	2,850			$	10,109
Other income			-				5,525
Total income			2,850				15,634
Share of losses from operating limited partnerships			(1,340,923	)			(1,252,907	)
Expenses and loss
Professional fees			41,016				41,442
Partnership management fee			460,723				431,462
Amortization			266,264				297,008
General and administrative expenses			32,213				33,262
Impairment loss			3,581,789				3,588,120
			4,382,005				4,391,294
NET LOSS		$	(5,720,078	)		$	(5,628,567	)
Net loss allocated to general partner		$	(14,300	)		$	(14,071	)
Net loss allocated to limited partner		$	(5,705,778	)		$	(5,614,496	)
Net loss per BAC		$	(0.95	)		$	(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, 2013 and 2012

 

		Limited				General
Total		partner				partner				Total
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
Net loss			(10,993,945	)			(27,553	)			(11,021,498	)
Partners’ capital (deficit), March 31, 2013		$	27,879,103			$	(191,985	)		$	27,687,118

 

(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, 2013 and 2012

 

		Limited				General
Series 47		partner				partner				Total
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
Net loss			(3,130,191	)			(7,845	)			(3,138,036	)
Partners’ capital (deficit), March 31, 2013		$	5,965,728			$	(61,949	)		$	5,903,779

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

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

 

Year ended March 31, 2006 and 2005

 

		Limited				General
Series 48		partner				partner				Total
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
Net loss			(2,157,976	)			(5,408	)			(2,163,384	)
Partners’ capital (deficit), March 31, 2013		$	4,554,923			$	(39,473	)		$	4,515,450

 

(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, 2013 and 2012

 

		Limited				General
Series 49		partner				partner				Total
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
Net loss			(5,705,778	)			(14,300	)			(5,720,078	)
Partners’ capital (deficit), March 31, 2013		$	17,358,452			$	(90,563	)		$	17,267,889

 

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, 2013 and 2012

 

		Total
		2013				2012
Cash flows from operating activities
Net loss		$	(11,021,498	)		$	(10,786,468	)
Adjustments to reconcile net loss to net cash used in operating activities
Share of loss from operating limited partnerships			1,860,831				1,846,049
Impairment loss			7,131,903				6,999,722
Distributions received from operating limited partnerships			100,082				71,404
Amortization			738,872				769,616
Changes in assets and liabilities
Other assets			(62,663	)			8,735
Accounts payable - affiliates			362,828				887,828
Net cash used in operating activities			(889,645	)			(203,114	)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships			(101,655	)			(10,766	)
Repayments from operating limited partnerships			-				29,747
Net cash provided by (used in) investing activities			(101,655	)			18,981
NET DECREASE IN CASH AND CASH EQUIVALENTS			(991,300	)			(184,133	)
Cash and cash equivalents, beginning			2,051,958				2,236,091
Cash and cash equivalents, end		$	1,060,658			$	2,051,958
Supplemental schedule of noncash investing and financing activities:
The fund applied notes receivable and advances to its capital contribution obligation to operating limted partnerships.		$	230,663			$	168,628

 

(continued)

 

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2013 and 2012

 

		Series 47
		2013				2012
Cash flows from operating activities
Net loss		$	(3,138,036	)		$	(3,047,627	)
Adjustments to reconcile net loss to net cash
used in operating activities
Share of loss from operating limited partnerships			204,867				350,362
Impairment loss			2,099,906				1,950,396
Distributions received from operating limited partnerships			28,820				18,840
Amortization			333,656				333,656
Changes in assets and liabilities
Other assets			-				-
Accounts payable - affiliates			313,344				363,344
Net cash used in operating activities			(157,443	)			(31,029	)
Cash flows from investing activities
Capital contributions paid to operating limited
partnerships			(91,654	)			-
Repayments from operating limited
partnerships			-				-
Net cash provided by (used in) investing activities			(91,654	)			-
NET DECREASE IN CASH AND
CASH EQUIVALENTS			(249,097	)			(31,029	)
Cash and cash equivalents, beginning			366,067				397,096
Cash and cash equivalents, end		$	116,970			$	366,067
Supplemental schedule of noncash investing and
financing activities:
The fund applied notes receivable and advances
to its capital contribution obligation to operating limted
partnerships.		$	-			$	-

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2013 and 2012

 

		Series 48
		2013				2012
Cash flows from operating activities
Net loss		$	(2,163,384	)		$	(2,110,274	)
Adjustments to reconcile net loss to net cash
used in operating activities
Share of loss from operating limited partnerships			315,041				242,780
Impairment loss			1,450,208				1,461,206
Distributions received from operating limited partnerships			26,831				17,210
Amortization			138,952				138,952
Changes in assets and liabilities
Other assets			-				-
Accounts payable - affiliates			88,380				163,380
Net cash used in operating activities			(143,972	)			(86,746	)
Cash flows from investing activities
Capital contributions paid to operating limited
partnerships			(10,001	)			-
Repayments from operating limited
partnerships			-				-
Net cash provided by (used in) investing activities			(10,001	)			-
NET DECREASE IN CASH AND
CASH EQUIVALENTS			(153,973	)			(86,746	)
Cash and cash equivalents, beginning			348,763				435,509
Cash and cash equivalents, end		$	194,790			$	348,763
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

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2013 and 2012

  

		Series 49
		2013				2012
Cash flows from operating activities
Net loss		$	(5,720,078	)		$	(5,628,567	)
Adjustments to reconcile net loss to net cash
used in operating activities
Share of loss from operating limited partnerships			1,340,923				1,252,907
Impairment loss			3,581,789				3,588,120
Distributions received from operating limited partnerships			44,431				35,354
Amortization			266,264				297,008
Changes in assets and liabilities
Other assets			(62,663	)			8,735
Accounts payable - affiliates			(38,896	)			361,104
Net cash used in operating activities			(588,230	)			(85,339	)
Cash flows from investing activities
Capital contributions paid to operating limited
partnerships			-				(10,766	)
Repayments from operating limited
partnerships			-				29,747
Net cash provided by (used in) investing activities			-				18,981
NET DECREASE IN CASH AND
CASH EQUIVALENTS			(588,230	)			(66,358	)
Cash and cash equivalents, beginning			1,337,128				1,403,486
Cash and cash equivalents, end		$	748,898			$	1,337,128
Supplemental schedule of noncash investing and
financing activities:
The fund applied notes receivable and advances
to its capital contribution obligation to operating limted
partnerships.		$	230,663			$	-

 

(continued)

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS

 

March 31, 2013 and 2012

 

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, 2013 and 2012 are as follows:

 

		2013				2012
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, 2013 and 2012

 

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.

 

After the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the partnership’s share of losses and, accordingly, a valuation allowance is recorded against the receivables. Accordingly, the Fund recorded a valuation allowance of $60,000 and $0 as of March 31, 2013 and 2012, respectively.

 

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 sum of the total amount of the remaining tax credits and the estimated residual value of the 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, 2013 and March 31, 2012, of $7,131,903 and $6,999,722, 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, 2013 and 2012

 

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, 2013 and 2012

 

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, 2013 and 2012

 

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. An impairment loss has been recognized for the years ended March 31, 2013 and 2012 of $209,097 and $153,715, respectively, for Series 49. As of March 31, 2013, the lives of the remaining acquisition costs were reassessed and determined to be 4 years for all Series.

 

Accumulated amortization as of March 31, 2013 and 2012 is as follows:

 

		2013				2012
Series 47		$	1,579,610			$	1,245,954
Series 48			277,904				138,952
Series 49			-				-
		$	1,857,514			$	1,384,906

 

The amortization of deferred acquisition costs for each of the ensuing 4 years through March 31, 2017 are estimated to be $686,597, $686,597, $686,597 and $686,601 per year, for 2014, 2015, 2016 and 2017, respectively.

  

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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. Income tax returns filed by the Fund are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2009 remain open.

 

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, 2013 and 2012

 

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, 2013 and 2012 are as follows:

 

		2013				2012
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, 2013 and 2012

 

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

 

Recent Accounting Pronouncements

 

In May 2011, the Financial Accounting Standards Board ("FASB") issued an update to existing guidance related to fair value measurements on how to measure fair value and what disclosures to provide about fair value measurements. For fair value measurements categorized as level 3, a reporting entity should disclose quantitative information of the unobservable inputs and assumptions, a description of the valuation processes and narrative description of the sensitivity of the fair value to changes in unobservable inputs. This update is effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not materially affect the Fund's condensed financial statements.

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During the years ended March 31, 2013 and 2012, 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, 2013 and 2012, are as follows:

 

		2013
		Gross Fund  Management Fee				Asset Management and Reporting Fee				Fund Management Fee net of Asset Management and Reporting Fee
Series 47		$	388,344			$	26,092			$	362,252
Series 48			238,380				26,948				211,432
Series 49			511,104				50,381				460,723
		$	1,137,828			$	103,421			$	1,034,407

 

		2012
		Gross Fund Management Fee				Asset Management and Reporting Fee				Fund Management Fee net of Asset Management and 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

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013 and 2012, total fund management fees accrued were $3,833,125 and $3,470,297, respectively.

 

The fund management fees paid by the Fund for the years ended March 31, 2013 and 2012 are as follows:

 

		2013				2012
Series 47		$	75,000			$	25,000
Series 48			150,000				75,000
Series 49			550,000				150,000
		$	775,000			$	250,000

 

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, 2013 and 2012, charged to each series’ operations are as follows:

 

		2013				2012
Series 47		$	19,387			$	20,239
Series 48			17,041				18,601
Series 49			24,484				23,457
		$	60,912			$	62,297

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

 

At March 31, 2013 and 2012, 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, 2013 and 2012 by series are as follows:

 

		2013				2012
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, 2013 and 2012, contributions are payable to operating limited partnerships as follows:

 

		2013				2012
Series 47		$	-			$	91,654
Series 48			-				10,001
Series 49			101				230,764
		$	101			$	332,419

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The fund’s investments in operating limited partnerships at March 31, 2013 are 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			(343,066	)			(65,095	)			(112,494	)			(165,477	)
Cumulative impairment loss in investments in operating limited partnerships			(26,555,983	)			(8,199,492	)			(4,017,798	)			(14,338,693	)
Cumulative losses from operating limited partnerships			(33,725,900	)			(11,269,105	)			(8,147,469	)			(14,309,326	)
Investments in operating limited partnerships per balance sheets			27,607,726				6,296,006				4,833,619				16,478,101

 

  

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2012 (see note A).			(476,470	)			(91,653	)			-				(384,817	)
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).			(9,827,745	)			(1,386,345	)			(411,422	)			(8,029,978	)
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			26,555,983				8,199,492				4,017,798				14,338,693
Other			35,351				8,353				10,976				16,022
Equity per operating limited partnerships’ combined financial statements		$	44,228,471			$	13,025,853			$	8,450,971			$	22,751,647

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The fund’s investments in operating limited partnerships at March 31, 2012 are 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, 2013 and 2012

 

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, 2013 and 2012

 

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, 2012 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 47				Series 48				Series 49
ASSETS
Buildings and improvements, net of accumulated depreciation		$	236,359,506			$	80,008,907			$	56,666,067			$	99,684,532
Land			22,528,233				8,589,687				6,709,244				7,229,302
Other assets			22,177,729				7,920,941				5,168,569				9,088,219
		$	281,065,468			$	96,519,535			$	68,543,880			$	116,002,053
LIABILITIES AND PARTNERS’ CAPITAL
Mortgages and construction loans payable		$	189,227,285			$	67,133,028			$	48,419,561			$	73,674,696
Accounts payable and accrued expenses			2,802,350				1,216,111				494,647				1,091,592
Other liabilities			27,613,778				8,372,414				5,844,975				13,396,389
			219,643,413				76,721,553				54,759,183				88,162,677
PARTNERS’ CAPITAL
Boston Capital Tax Credit Fund V L.P.			44,228,471				13,025,853				8,450,971				22,751,647
Other partners			17,193,584				6,772,129				5,333,726				5,087,729
			61,422,055				19,797,982				13,784,697				27,839,376
		$	281,065,468			$	96,519,535			$	68,543,880			$	116,002,053

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2013 and 2012

 

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, 2013 and 2012

 

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, 2012 in which Series 47 through Series 49 had an interest as of December 31, 2012 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

		Total				Series 47				Series 48				Series 49
Revenue
Rent		$	33,600,232			$	12,363,094			$	8,227,767			$	13,009,371
Interest and other			1,138,753				444,225				310,398				384,130
			34,738,985				12,807,319				8,538,165				13,393,501
Expenses
Interest			5,372,996				1,718,764				1,060,749				2,593,483
Depreciation and amortization			10,837,045				3,556,422				2,577,491				4,703,132
Taxes and insurance			4,149,177				1,729,980				1,019,605				1,399,592
Repairs and maintenance			4,442,027				1,665,789				1,203,468				1,572,770
Operating expenses			12,601,121				4,569,552				2,870,912				5,160,657
Other expenses			1,120,153				555,342				464,776				100,035
			38,522,519				13,795,849				9,197,001				15,529,669
NET LOSS		$	(3,783,534	)		$	(988,530	)		$	(658,836	)		$	(2,136,168	)
Net loss allocated to Boston Capital Tax Credit Fund V L.P. *		$	(2,881,635	)		$	(790,780	)		$	(463,406	)		$	(1,627,449	)
Net loss allocated to other partners		$	(901,899	)		$	(197,750	)		$	(195,430	)		$	(508,719	)

 

* Amount includes $585,913, $148,365 and $346,526 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, 2013 and 2012

 

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
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, 2013 and 2012

 

NOTE D - NOTES RECEIVABLE

 

Notes receivable at March 31, 2013 and 2012 consist of advance installments of $0 and $230,663 , 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, 2013 and 2012. These notes are secured by future installments of capital contributions or paid upon demand. The notes at March 31, 2013 and 2012 by series are as follows:

 

		2013				2012
Series 47		$	-			$	-
Series 48			-				-
Series 49			-				230,663
		$	-			$	230,663

  

 

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, 2013 is reconciled as follows:

 

		Total				Series 47				Series 48				Series 49
Net loss for financial reporting purposes		$	(11,021,498	)		$	(3,138,036	)		$	(2,163,384	)		$	(5,720,078	)
Accrued partnership management fee not deducted for income tax purposes			362,828				313,344				88,380				(38,896	)
Other			111,635				123,304				31,173				(42,842	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(871,671	)			(121,801	)			1,924				(751,794	)
Impairment loss not recognized for tax purposes			7,131,903				2,099,906				1,450,208				3,581,789
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting			(1,080,804	)			(585,913	)			(148,365	)			(346,526	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			485,317				247,161				67,629				170,527
Loss for tax return purposes, December 31, 2012		$	(4,882,290	)		$	(1,062,035	)		$	(672,435	)		$	(3,147,820	)

 

 

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, 2012 is reconciled as follows:

 

		Total				Series 47				Series 48				Series 49
Net loss for financial reporting purposes		$	(10,786,468	)		$	(3,047,627	)		$	(2,110,274	)		$	(5,628,567	)
Accrued partnership management fee not deducted (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	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			406,270				216,810				85,322				104,138
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)

 

The differences between the investments in operating limited partnerships for tax purposes and financial statement purposes at March 31, 2013 are as follows:

          

		Total				Series 47				Series 48				Series 49
Investments in operating limited partnerships - tax return December 31, 2012		$	41,256,913			$	9,852,737			$	5,941,619			$	25,462,557
Impairment loss in investment in operating limited partnerships			(26,555,983	)			(8,199,492	)			(4,017,798	)			(14,338,693	)
Operating limited partnership losses not recognized for financial reporting purposes under the equity method			(9,827,745	)			(1,386,345	)			(411,422	)			(8,029,978	)
Other			22,734,541				6,029,106				3,321,220				13,384,215
Investments in operating limited partnerships - as reported		$	27,607,726			$	6,296,006			$	4,833,619			$	16,478,101

 

  

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	)
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 F- CASH EQUIVALENTS

 

Cash equivalents of $1,054,790 and $2,050,590 as of March 31, 2013 and 2012, 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, 2013.

 

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.