BOSTON CAPITAL TAX CREDIT FUND III L P - FORM 10-K - EX-13 - EXHIBIT 13

Attached files

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EX-31.B - EXHIBIT 31.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v413060_ex31b.htm
EX-31.A - EXHIBIT 31.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v413060_ex31a.htm
EX-32.B - EXHIBIT 32.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v413060_ex32b.htm
EX-32.A - EXHIBIT 32.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v413060_ex32a.htm
10-K - 10-K - BOSTON CAPITAL TAX CREDIT FUND III L P	v413060_10k.htm

Exhibit 13

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BOSTON CAPITAL TAX CREDIT FUND III

LIMITED PARTNERSHIP -

SERIES 15 THROUGH SERIES 19

MARCH 31, 2015 AND 2014

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

TABLE OF CONTENTS

	PAGE

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F-3

FINANCIAL STATEMENTS

BALANCE SHEETS	F-4

STATEMENTS OF OPERATIONS	F-10

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)	F-16

STATEMENTS OF CASH FLOWS	F-22

NOTES TO FINANCIAL STATEMENTS	F-28

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 III Limited Partnership

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III Limited Partnership - Series 15 through Series 19 (the “Partnership”), in total and for each series, as of March 31, 2015 and 2014, and the related statements of operations, partners’ capital (deficit) and cash flows for the total Partnership and for each series for each of the years in the two-year period ended March 31, 2015. The Partnership’s management is responsible for these financial statements. 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 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 audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III Limited Partnership - Series 15 through Series 19, in total and for each series, as of March 31, 2015 and 2014, 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, 2015, in conformity with accounting principles generally accepted in the United States of America.

/s/ CohnReznick LLP

COHNREZNICK LLP

Bethesda, Maryland

June 25, 2015

F-3

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS

March 31, 2015 and 2014

	Total

	2015			2014
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	2,523,234		$	2,294,311
Other assets		357,489			2,200

	$	2,880,723		$	2,296,511

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	28,234		$	23,234
Accounts payable - affiliates		16,781,463			18,789,507
Capital contributions payable		76,455			85,274

		16,886,152			18,898,015

PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 21,996,102 issued to the assignees at March 31, 2015 and 2014		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,936,787 and 21,981,089 outstanding at March 31, 2015 and 2014, respectively		(12,054,726	)		(14,624,840	)
General partner		(1,950,703	)		(1,976,664	)

		(14,005,429	)		(16,601,504	)

	$	2,880,723		$	2,296,511

(continued)

F-4

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS – CONTINUED

March 31, 2015 and 2014

	Series 15

	2015			2014
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	414,859		$	161,422
Other assets		-			-

	$	414,859		$	161,422

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	6,246		$	1,246
Accounts payable - affiliates		3,695,825			4,038,349
Capital contributions payable		-			-

		3,702,071			4,039,595

PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,870,500 issued to the assignees at March 31, 2015 and 2014		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued 3,858,400 and 3,865,900 outstanding at March 31, 2015 and 2014, respectively		(2,932,151	)		(3,517,202	)
General partner		(355,061	)		(360,971	)

		(3,287,212	)		(3,878,173	)

	$	414,859		$	161,422

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2015 and 2014

	Series 16

	2015			2014
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	221,108		$	176,922
Other assets		-			-

	$	221,108		$	176,922

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	4,488		$	4,488
Accounts payable - affiliates		8,036,400			7,995,499
Capital contributions payable		50,008			50,008

		8,090,896			8,049,995

PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,429,402 issued to the assignees at March 31, 2015 and 2014		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,411,800 and 5,423,102 outstanding at March 31, 2015 and 2014, respectively		(7,324,482	)		(7,327,734	)
General partner		(545,306	)		(545,339	)

		(7,869,788	)		(7,873,073	)

	$	221,108		$	176,922

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2015 and 2014

	Series 17

	2015			2014
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	197,779		$	799,176
Other assets		2,200			2,200

	$	199,979		$	801,376

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	10,000		$	10,000
Accounts payable - affiliates		685,587			2,208,860
Capital contributions payable		7,893			16,712

		703,480			2,235,572

PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,000,000 issued to the assignees at March 31, 2015 and 2014		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued 4,980,687 and 4,995,887 outstanding at March 31, 2015 and 2014, respectively		(81,517	)		(1,002,905	)
General partner		(421,984	)		(431,291	)

		(503,501	)		(1,434,196	)

	$	199,979		$	801,376

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2015 and 2014

	Series 18

	2015			2014
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	306,518		$	355,319
Other assets		355,289			-

	$	661,807		$	355,319

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	-
Accounts payable - affiliates		4,363,651			4,546,799
Capital contributions payable		18,554			18,554

		4,382,205			4,565,353

PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,616,200 issued to the assignees at March 31, 2015 and 2014		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued 3,616,200 and 3,612,200 outstanding at March 31, 2015 and 2014, respectively		(3,372,966	)		(3,857,706	)
General partner		(347,432	)		(352,328	)

		(3,720,398	)		(4,210,034	)

	$	661,807		$	355,319

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2015 and 2014

	Series 19

	2015			2014
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	1,382,970		$	801,472
Other assets		-			-

	$	1,382,970		$	801,472

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	7,500		$	7,500
Accounts payable - affiliates		-			-
Capital contributions payable		-			-

		7,500			7,500

PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 4,080,000 issued to the assignees at March 31, 2015 and 2014		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued 4,073,700 and 4,080,000 outstanding at March 31, 2015 and 2014, respectively		1,656,390			1,080,707
General partner		(280,920	)		(286,735	)

		1,375,470			793,972

	$	1,382,970		$	801,472

See notes to financial statements

F-9

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS

Years ended March 31, 2015 and 2014

	Total

	2015		2014
Income
Interest income	$	4,073	$	10,441
Other income		35,525		131,602

Total income		39,598		142,043


Share of income from operating limited partnerships		3,170,953		6,548,180

Expenses
Professional fees		148,554		182,269
Partnership management fee		360,887		566,582
General and administrative expenses		105,035		126,168

		614,476		875,019

NET INCOME (LOSS)	$	2,596,075	$	5,815,204

Net income (loss) allocated to general partner	$	25,961	$	58,152

Net income (loss) allocated to limited partners	$	2,570,114	$	5,757,052

Net income (loss) per BAC	$	0.12	$	0.26

(continued)

F-10

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 15

	2015		2014
Income
Interest income	$	601	$	379
Other income		321		2,505

Total income		922		2,884


Share of income from operating limited partnerships		700,342		20,746

Expenses
Professional fees		29,830		34,632
Partnership management fee		60,456		81,966
General and administrative expenses		20,017		24,302

		110,303		140,900

NET INCOME (LOSS)	$	590,961	$	(117,270	)

Net income (loss) allocated to general partner	$	5,910	$	(1,173	)

Net income (loss) allocated to limited partners	$	585,051	$	(116,097	)

Net income (loss) per BAC	$	0.15	$	(0.03	)

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 16

	2015		2014
Income
Interest income	$	503	$	575
Other income		861		10,452

Total income		1,364		11,027


Share of income from operating limited partnerships		254,999		791,031

Expenses
Professional fees		35,237		49,958
Partnership management fee		192,900		213,462
General and administrative expenses		24,941		30,067

		253,078		293,487

NET INCOME (LOSS)	$	3,285	$	508,571

Net income (loss) allocated to general partner	$	33	$	5,086

Net income (loss) allocated to limited partners	$	3,252	$	503,485

Net income (loss) per BAC	$	0.00	$	0.09

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 17

	2015		2014
Income
Interest income	$	789	$	2,399
Other income		4,080		36,098

Total income		4,869		38,497


Share of income from operating limited partnerships		1,138,960		5,708,385

Expenses
Professional fees		34,927		30,477
Partnership management fee		156,575		131,355
General and administrative expenses		21,632		26,811

		213,134		188,643

NET INCOME (LOSS)	$	930,695	$	5,558,239

Net income (loss) allocated to general partner	$	9,307	$	55,582

Net income (loss) allocated to limited partners	$	921,388	$	5,502,657

Net income (loss) per BAC	$	0.18	$	1.10

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 18

	2015		2014
Income
Interest income	$	418	$	309
Other income		30,180		82,433

Total income		30,598		82,742


Share of income from operating limited partnerships		571,930		28,018

Expenses
Professional fees		27,332		27,175
Partnership management fee		67,583		83,347
General and administrative expenses		17,977		21,632

		112,892		132,154

NET INCOME (LOSS)	$	489,636	$	(21,394	)

Net income (loss) allocated to general partner	$	4,896	$	(214	)

Net income (loss) allocated to limited partners	$	484,740	$	(21,180	)

Net income (loss) per BAC	$	0.13	$	(0.01	)

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 19

	2015			2014
Income
Interest income	$	1,762		$	6,779
Other income		83			114

Total income		1,845			6,893


Share of income from operating limited partnerships		504,722			-

Expenses
Professional fees		21,228			40,027
Partnership management fee		(116,627	)		56,452
General and administrative expenses		20,468			23,356

		(74,931	)		119,835

NET INCOME (LOSS)	$	581,498		$	(112,942	)

Net income (loss) allocated to general partner	$	5,815		$	(1,129	)

Net income (loss) allocated to limited partners	$	575,683		$	(111,813	)

Net income (loss) per BAC	$	0.14		$	(0.03	)

See notes to financial statements

F-15

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

Years ended March 31, 2015 and 2014

	Limited			General
Total	partners			partner			Total

Partners’ capital (deficit), March 31, 2013	$	(15,919,011	)	$	(2,034,816	)	$	(17,953,827	)

Distributions to partners		(4,462,881	)		-			(4,462,881	)

Net income (loss)		5,757,052			58,152			5,815,204

Partners’ capital (deficit), March 31, 2014		(14,624,840	)		(1,976,664	)		(16,601,504	)

Net income (loss)		2,570,114			25,961			2,596,075

Partners’ capital (deficit), March 31, 2015	$	(12,054,726	)	$	(1,950,703	)	$	(14,005,429	)

(continued)

F-16

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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

Years ended March 31, 2015 and 2014

	Limited			General
Series 15	partners			partner			Total

Partners’ capital (deficit), March 31, 2013	$	(3,401,105	)	$	(359,798	)	$	(3,760,903	)

Distributions to partners		-			-			-

Net income (loss)		(116,097	)		(1,173	)		(117,270	)

Partners’ capital (deficit), March 31, 2014		(3,517,202	)		(360,971	)		(3,878,173	)

Net income (loss)		585,051			5,910			590,961

Partners’ capital (deficit), March 31, 2015	$	(2,932,151	)	$	(355,061	)	$	(3,287,212	)

(continued)

F-17

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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

Years ended March 31, 2015 and 2014

	Limited			General
Series 16	partners			partner			Total

Partners’ capital (deficit), March 31, 2013	$	(7,831,219	)	$	(550,425	)	$	(8,381,644	)

Distributions to partners		-			-			-

Net income (loss)		503,485			5,086			508,571

Partners’ capital (deficit), March 31, 2014		(7,327,734	)		(545,339	)		(7,873,073	)

Net income (loss)		3,252			33			3,285

Partners’ capital (deficit), March 31, 2015	$	(7,324,482	)	$	(545,306	)	$	(7,869,788	)

(continued)

F-18

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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

Years ended March 31, 2015 and 2014

	Limited			General
Series 17	partners			partner			Total

Partners’ capital (deficit), March 31, 2013	$	(6,122,681	)	$	(486,873	)	$	(6,609,554	)

Distributions to partners		(382,881	)		-			(382,881	)

Net income (loss)		5,502,657			55,582			5,558,239

Partners’ capital (deficit), March 31, 2014		(1,002,905	)		(431,291	)		(1,434,196	)

Net income (loss)		921,388			9,307			930,695

Partners’ capital (deficit), March 31, 2015	$	(81,517	)	$	(421,984	)	$	(503,501	)

(continued)

F-19

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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

Years ended March 31, 2015 and 2014

	Limited			General
Series 18	partners			partner			Total

Partners’ capital (deficit), March 31, 2013	$	(3,836,526	)	$	(352,114	)	$	(4,188,640	)

Distributions to partners		-			-			-

Net income (loss)		(21,180	)		(214	)		(21,394	)

Partners’ capital (deficit), March 31, 2014		(3,857,706	)		(352,328	)		(4,210,034	)

Net income (loss)		484,740			4,896			489,636

Partners’ capital (deficit), March 31, 2015	$	(3,372,966	)	$	(347,432	)	$	(3,720,398	)

(continued)

F-20

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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

Years ended March 31, 2015 and 2014

	Limited			General
Series 19	partners			partner			Total

Partners’ capital (deficit), March 31, 2013	$	5,272,520		$	(285,606	)	$	4,986,914

Distributions to partners		(4,080,000	)		-			(4,080,000	)

Net income (loss)		(111,813	)		(1,129	)		(112,942	)

Partners’ capital (deficit), March 31, 2014		1,080,707			(286,735	)		793,972

Net income (loss)		575,683			5,815			581,498

Partners’ capital (deficit), March 31, 2015	$	1,656,390		$	(280,920	)	$	1,375,470

See notes to financial statements

F-21

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS

Years ended March 31, 2015 and 2014

	Total

	2015			2014
Cash flows from operating activities
Net income (loss)	$	2,596,075		$	5,815,204
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(3,170,953	)		(6,548,180	)
Changes in assets and liabilities
Other assets		(50,000	)		2,200
Accounts payable and accrued expenses		5,000			(9,012	)
Accounts payable - affiliates		(2,008,044	)		(5,043,215	)

Net cash provided by (used in) operating activities		(2,627,922	)		(5,783,003	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		2,856,845			6,607,094

Net cash provided by investing activities		2,856,845			6,607,094

Cash flows from financing activities Distributions to partners		-			(4,462,881	)

Net cash used in financing activities		-			(4,462,881	)

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS		228,923			(3,638,790	)

Cash and cash equivalents, beginning		2,294,311			5,933,101

Cash and cash equivalents, end	$	2,523,234		$	2,294,311

(continued)

F-22

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 15

	2015			2014
Cash flows from operating activities
Net income (loss)	$	590,961		$	(117,270	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(700,342	)		(20,746	)
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		5,000			-
Accounts payable - affiliates		(342,524	)		94,556

Net cash provided by (used in) operating activities		(446,905	)		(43,460	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		700,342			20,746

Net cash provided by investing activities		700,342			20,746

Cash flows from financing activities Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS		253,437			(22,714	)

Cash and cash equivalents, beginning		161,422			184,136

Cash and cash equivalents, end	$	414,859		$	161,422

(continued)

F-23

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 16

	2015			2014
Cash flows from operating activities
Net income (loss)	$	3,285		$	508,571
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(254,999	)		(791,031	)
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		-			(512	)
Accounts payable - affiliates		40,901			(660,687	)

Net cash provided by (used in) operating activities		(210,813	)		(943,659	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		254,999			856,031

Net cash provided by investing activities		254,999			856,031

Cash flows from financing activities Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS		44,186			(87,628	)

Cash and cash equivalents, beginning		176,922			264,550

Cash and cash equivalents, end	$	221,108		$	176,922

(continued)

F-24

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 17

	2015			2014
Cash flows from operating activities
Net income (loss)	$	930,695		$	5,558,239
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(1,138,960	)		(5,708,385	)
Changes in assets and liabilities
Other assets		-			2,200
Accounts payable and accrued expenses		-			(8,500	)
Accounts payable - affiliates		(1,523,273	)		(4,622,115	)

Net cash provided by (used in) operating activities		(1,731,538	)		(4,778,561	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		1,130,141			5,702,299

Net cash provided by investing activities		1,130,141			5,702,299

Cash flows from financing activities Distributions to partners		-			(382,881	)

Net cash used in financing activities		-			(382,881	)

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS		(601,397	)		540,857

Cash and cash equivalents, beginning		799,176			258,319

Cash and cash equivalents, end	$	197,779		$	799,176

(continued)

F-25

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 18

	2015			2014
Cash flows from operating activities
Net income (loss)	$	489,636		$	(21,394	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(571,930	)		(28,018	)
Changes in assets and liabilities
Other assets		(50,000	)		-
Accounts payable and accrued expenses		-			-
Accounts payable - affiliates		(183,148	)		145,031

Net cash provided by (used in) operating activities		(315,442	)		95,619

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		266,641			28,018

Net cash provided by investing activities		266,641			28,018

Cash flows from financing activities Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS		(48,801	)		123,637

Cash and cash equivalents, beginning		355,319			231,682

Cash and cash equivalents, end	$	306,518		$	355,319

(continued)

F-26

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2015 and 2014

	Series 19

	2015			2014
Cash flows from operating activities
Net income (loss)	$	581,498		$	(112,942	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(504,722	)		-
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		-			-
Accounts payable - affiliates		-			-

Net cash provided by (used in) operating activities		76,776			(112,942	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		504,722			-

Net cash provided by investing activities		504,722			-

Cash flows from financing activities Distributions to partners		-			(4,080,000	)

Net cash used in financing activities		-			(4,080,000	)

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS		581,498			(4,192,942	)

Cash and cash equivalents, beginning		801,472			4,994,414

Cash and cash equivalents, end	$	1,382,970		$	801,472

See notes to financial statements

F-27

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS

March 31, 2015 and 2014

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Boston Capital Tax Credit Fund III L.P. (the “Partnership” or “Fund”) was formed under the laws of the State of Delaware on September 19, 1991, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which were 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. Certain of the apartment complexes also qualified for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure and are subject to the provisions of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the fund is Boston Capital Associates III L.P. and the limited partner is BCTC III Assignor Corp. (the “assignor limited partner”).

Pursuant to the Securities Act of 1933, the fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective January 24, 1992, which covered the offering (the “Public Offering”) of the Fund’s beneficial assignee certificates (“BACs”) representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner. The Fund originally registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series. An additional 2,000,000 BACs at $10 per BAC were registered for sale to the public in one or more series on September 4, 1994. BACs sold in bulk were offered to investors at a reduced cost per BAC.

F-28

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

The BACs issued and outstanding in each series as of March 31, 2015 and 2014 are as follows:

	Issued				Outstanding
	2015		2014		2015		2014
Series 15		3,870,500		3,870,500		3,858,400		3,865,900
Series 16		5,429,402		5,429,402		5,411,800		5,423,102
Series 17		5,000,000		5,000,000		4,980,687		4,995,887
Series 18		3,616,200		3,616,200		3,612,200		3,616,200
Series 19		4,080,000		4,080,000		4,073,700		4,080,000
		21,996,102		21,996,102		21,936,787		21,981,089

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

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 of 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.

F-29

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

Investments in Operating Limited Partnerships (Continued)

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

	2015		2014
Series 15	$	35,843	$	36,759
Series 16		246		1,204
Series 17		11,292		12,292
Series 18		40,468		40,536
Series 19		25,120		25,120
	$	112,969	$	115,911

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. During the years ended March 31, 2015 and 2014, the Fund did not record an impairment loss.

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

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 income and losses from the operating limited partnerships on a calendar year basis which is not materially different from income and losses generated if the operating limited partnerships utilized a March 31 year-end.

F-30

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

Investments in Operating Limited Partnerships (Continued)

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.

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

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.

F-31

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

Investments in Operating Limited Partnerships (Continued)

Based on this guidance, the operating limited partnerships in which the 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.

Recent Accounting Pronouncement

In February, 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This will improve certain areas of consolidation guidance for reporting organizations that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. ASU 2015-02 simplified and improves GAAP by: eliminating the presumption that a general partner should consolidate a limited partnership, eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model), and clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. ASU 2015-02 will be effective for periods beginning after December 15, 2015. The Fund is currently evaluating the potential impact of the adoption of this guidance on its financial statements.

F-32

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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 Funds’s federal tax status as a pass-through entity is based on its legal status as a partnership. 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 2011 remain open.

Cash Equivalents

Cash equivalents include money market accounts having original maturities at their acquisition dates of three months or less.

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.

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.

Net Income (Loss) per Beneficial Assignee Certificate

Net loss per beneficial assignee certificate unit is calculated based upon the weighted average number of units outstanding during the year or period. The weighted average number of units in each series at March 31, 2015 and 2014 are as follows:

	2015		2014
Series 15		3,864,025		3,866,567
Series 16		5,420,277		5,424,435
Series 17		4,992,087		4,997,629
Series 18		3,615,200		3,616,200
Series 19		4,078,425		4,080,000
		21,970,014		21,984,831

F-33

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2015 and 2014, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:

Boston Capital Asset Management Limited Partnership is entitled to an annual fund management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level. The partnership management fees net of reporting fees incurred and the reporting fees paid by the Operating Partnerships for the years ended March 31, 2015 and 2014, are as follows:

F-34

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

	2015
	Gross Partnership Management Fee		Asset Management and Reporting Fee		Partnership Management Fee net of Asset Management and Reporting Fee
Series 15	$	100,089	$	39,633	$	60,456
Series 16		213,899		20,999		192,900
Series 17		177,082		20,507		156,575
Series 18		158,493		90,910		67,583
Series 19		52,123		168,750		(116,627	)
	$	701,686	$	340,799	$	360,887

	2014
	Gross Partnership Management Fee		Asset Management and Reporting Fee		Partnership Management Fee net of Asset Management and Reporting Fee
Series 15	$	135,318	$	53,352	$	81,966
Series 16		237,993		24,531		213,462
Series 17		233,204		101,849		131,355
Series 18		173,049		89,702		83,347
Series 19		67,842		11,390		56,452
	$	847,406	$	280,824	$	566,582

The partnership management fees paid for the years ended March 31, 2015 and 2014 are as follows:

	2015		2014
Series 15	$	442,613	$	40,762
Series 16		172,998		898,680
Series 17		1,700,355		4,855,319
Series 18		341,641		28,018
Series 19		52,123		67,842
	$	2,709,730	$	5,890,621

F-35

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

All partnership 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, 2015 and 2014, total partnership management fees accrued were $16,146,101 and $18,154,145, respectively.

An affiliate of the general partner of the Partnership advanced funds to pay some operating expenses of the Partnership, and to make advances and/or loans to Operating Partnerships. These advances are included in accounts payable-affiliates. During the years ended March 31, 2015 and 2014 there were no advances. The total advances from the affiliate of the general partner to the Operating Partnerships as of March 31, 2015 and 2014 are as follows:

	2015		2014
Series 15	$	-	$	-
Series 16		-		-
Series 17		635,362		635,362
Series 18		-		-
Series 19		-		-
	$	635,362	$	635,362

All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in Operating Partnerships.

General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership (BCAMLP) during the years ended March 31, 2015 and 2014 charged to each series’ operations are as follows:

		2015		2014
Series 15	$	12,839	$	15,399
Series 16		15,146		17,856
Series 17		13,178		15,785
Series 18		11,767		14,028
Series 19		12,937		13,719
	$	65,867	$	76,787

F-36

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

Accounts payable - affiliates at March 31, 2015 and 2014 represents fund management fees and operating limited partnership advances which are payable to Boston Capital Asset Management Limited Partnership.

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At March 31, 2015 and 2014, 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, 2015 and 2014 by series are as follows:

	2015		2014
Series 15		18		24
Series 16		21		28
Series 17		13		17
Series 18		12		18
Series 19		6		8
		70		95

F-37

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

During the year ended March 31, 2015 the Fund disposed of twenty-five operating limited partnerships.

A summary of the dispositions by Series for March 31, 2015 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain on
	Transferred		Partnership		Disposition *		Disposition
Series 15		3		3	$	700,342	$	700,342
Series 16		6		1		254,999		254,999
Series 17		3		1		1,130,141		1,138,960
Series 18		5		1		266,641		571,930
Series 19		1		1		504,722		504,722
Total		18		7	$	2,856,845	$	3,170,953

* Fund proceeds from disposition does not include $305,289 recorded as a receivable as of March 31, 2015 for Series 18 and Fund proceeds from disposition does not include the amount of $8,819 due to a writeoff of capital contribution payable of $8,819 for Series 17.

During the year ended March 31, 2014 the Fund disposed of fourteen operating limited partnerships of which one operating limited partnership was included in both Series 18 and 19, and the Fund received additional proceeds from one operating limited partnership disposed of in the prior year. The Fund also had a partial disposition of one operating limited partnership in Series 17.

A summary of the dispositions by Series for March 31, 2014 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain on
	Transferred		Partnership		Disposition *		Disposition
Series 15		1		-	$	20,746	$	20,746
Series 16		2		1		856,031		791,031
Series 17		7		1		5,702,299		5,708,385
Series 18		2		-		28,018		28,018
Series 19		1		-		-		-
Total		13		2	$	6,607,094	$	6,548,180

* Fund proceeds from disposition includes $65,000 recorded as a receivable as of March 31, 2013 for Series 16 and Fund proceeds from disposition does not include the following amount which was due to a writeoff of capital contribution payable of $6,086 for Series 17.

F-38

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

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.

The contributions payable to operating limited partnerships at March 31, 2015 and 2014 by series are as follows:

	2015		2014
Series 15	$	-	$	-
Series 16		50,008		50,008
Series 17		7,893		16,712
Series 18		18,554		18,554
Series 19		-		-
	$	76,455	$	85,274

F-39

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2015 are summarized as follows:

	Total			Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	29,156,965		$	5,627,740		$	8,577,657

Acquisition costs of operating limited partnerships		4,002,609			816,855			1,097,497

Syndication costs from operating limited partnerships		(36,455	)		-			-

Cumulative distributions from operating limited partnerships		(66,361	)		(4,207	)		(12,055	)

Cumulative impairment loss in investment in operating limited partnerships		(4,659,927	)		(747,267	)		(1,326,748	)

Cumulative losses from operating limited partnerships		(28,396,831	)		(5,693,121	)		(8,336,351	)

Investments in operating limited partnerships per balance sheets		-			-			-

The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2015 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2014 (see note A)		(188,624	)		(14,246	)		(93,920	)

The Fund has recorded acquisition costs at March 31, 2015 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(447,290	)		(92,484	)		(120,021	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		562,650			76,193			-

F-40

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Total			Series 15			Series 16

Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(27,893,359	)		(6,350,536	)		(8,177,820	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		166,223			76,600			71,626

Cumulative impairment loss in investment in operating limited partnerships		4,659,927			747,267			1,326,748

Other		77,770			(48,571	)		370,412

Equity per operating limited partnerships’ combined financial statements	$	(23,062,703	)	$	(5,605,777	)	$	(6,622,975	)

F-41

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2015 are summarized as follows:

	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	7,335,263		$	5,630,054		$	1,986,251

Acquisition costs of operating limited partnerships		1,052,732			777,180			258,345

Syndication costs from operating limited partnerships		-			(36,455	)		-

Cumulative distributions from operating limited partnerships		(18,967	)		(27,368	)		(3,764	)

Cumulative impairment loss in investment in operating limited partnerships		(1,311,848	)		(963,351	)		(310,713	)

Cumulative losses from operating limited partnerships		(7,057,180	)		(5,380,060	)		(1,930,119	)

Investments in operating limited partnerships per balance sheets		-			-			-

The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2015 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2014 (see note A)		(55,606	)		(5,588	)		(19,264	)

The Fund has recorded acquisition costs at March 31, 2015 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(207,388	)		-			(27,397	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		230,032			237,589			18,836

F-42

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 17			Series 18			Series 19

Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(5,187,226	)		(5,062,616	)		(3,115,161	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		6,706			11,291			-

Cumulative impairment loss in investment in operating limited partnerships		1,311,848			963,351			310,713

Other		(13,657	)		(180,536	)		(49,878	)

Equity per operating limited partnerships’ combined financial statements	$	(3,915,291	)	$	(4,036,509	)	$	(2,882,151	)

F-43

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2014 are summarized as follows:

	Total			Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		40,059,536		$	7,416,274		$	9,989,000

Acquisition costs of operating limited partnerships		5,485,105			1,051,848			1,307,682

Syndication costs from operating limited partnerships		(36,455	)		-			-

Cumulative distributions from operating limited partnerships		(109,387	)		(4,207	)		(18,795	)

Cumulative impairment loss in investment in operating limited partnerships		(7,980,878	)		(767,819	)		(1,489,694	)

Cumulative losses from operating limited partnerships		(37,417,921	)		(7,696,096	)		(9,788,193	)

Investments in operating limited partnerships per balance sheets		-			-			-

The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2014 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2013 (see note A)		(251,774	)		(14,246	)		(93,920	)

The Fund has recorded acquisition costs at March 31, 2014 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(731,033	)		(180,526	)		(121,307	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		661,736			99,993			-

F-44

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Total			Series 15			Series 16

Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(32,676,601	)		(7,704,240	)		(9,746,456	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		293,057			86,996			116,307

Cumulative impairment loss in investment in operating limited partnerships		7,980,878			767,819			1,489,694

Other		147,238			(31,217	)		410,145

Equity per operating limited partnerships’ combined financial statements	$	(24,576,499	)	$	(6,975,421	)	$	(7,945,537	)

F-45

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2014 are summarized as follows:

	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	9,084,913		$	9,231,164		$	4,338,185

Acquisition costs of operating limited partnerships		1,336,534			1,189,539			599,502

Syndication costs from operating limited partnerships		-			(36,455	)		-

Cumulative distributions from operating limited partnerships		(28,354	)		(54,267	)		(3,764	)

Cumulative impairment loss in investment in operating limited partnerships		(1,566,308	)		(2,656,687	)		(1,500,370	)

Cumulative losses from operating limited partnerships		(8,826,785	)		(7,673,294	)		(3,433,553	)

Investments in operating limited partnerships per balance sheets		-			-			-

The Fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2014 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2013 (see note A)		(118,756	)		(5,588	)		(19,264	)

The Fund has recorded acquisition costs at March 31, 2014 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(401,803	)		-			(27,397	)

Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		268,254			274,653			18,836

F-46

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 17			Series 18			Series 19

Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)		(5,255,229	)		(6,299,282	)		(3,671,394	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		14,065			75,689			-

Cumulative impairment loss in investment in operating limited partnerships		1,566,308			2,656,687			1,500,370

Other		(24,227	)		(159,245	)		(48,218	)

Equity per operating limited partnerships’ combined financial statements	$	(3,951,388	)	$	(3,457,086	)	$	(2,247,067	)

F-47

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2014 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS

Buildings and improvements, net of accumulated depreciation	$	41,025,674		$	7,779,483		$	13,895,144

Land		5,475,606			963,395			1,333,368

Other assets		12,750,906			2,894,330			5,422,745

	$	59,252,186		$	11,637,208		$	20,651,257

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	72,860,731		$	16,319,288		$	23,069,729

Accounts payable and accrued expenses		5,382,780			243,807			3,644,733

Other liabilities		4,530,328			541,611			847,450

		82,773,839			17,104,706			27,561,912
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(23,062,703	)		(5,605,777	)		(6,622,975	)
Other partners		(458,950	)		138,279			(287,680	)

		(23,521,653	)		(5,467,498	)		(6,910,655	)

	$	59,252,186		$	11,637,208		$	20,651,257

F-48

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2014 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS

Buildings and improvements, net of accumulated depreciation	$	11,002,475		$	6,257,820		$	2,090,752

Land		2,052,397			856,966			269,480

Other assets		2,489,058			1,442,202			502,571

	$	15,543,930		$	8,556,988		$	2,862,803

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	16,764,622		$	11,706,500		$	5,000,592

Accounts payable and accrued expenses		935,022			329,300			229,918

Other liabilities		1,886,305			722,824			532,138

		19,585,949			12,758,624			5,762,648
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(3,915,291	)		(4,036,509	)		(2,882,151	)
Other partners		(126,728	)		(165,127	)		(17,694	)

		(4,042,019	)		(4,201,636	)		(2,899,845	)

	$	15,543,930		$	8,556,988		$	2,862,803

F-49

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2013 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS

Buildings and improvements, net of accumulated depreciation	$	65,474,798		$	10,638,155		$	18,164,345

Land		7,435,734			1,244,835			1,633,868

Other assets		17,011,149			4,234,106			6,061,968

	$	89,921,681		$	16,117,096		$	25,860,181

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	103,294,917		$	23,388,703		$	29,504,432

Accounts payable and accrued expenses		5,749,586			298,698			3,485,962

Other liabilities		7,435,396			749,927			955,168

		116,479,899			24,437,328			33,945,562
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(24,576,499	)		(6,975,421	)		(7,945,537	)
Other partners		(1,981,719	)		(1,344,811	)		(139,844	)

		(26,558,218	)		(8,320,232	)		(8,085,381	)

	$	89,921,681		$	16,117,096		$	25,860,181

F-50

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2013 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS

Buildings and improvements, net of accumulated depreciation	$	15,755,284		$	12,716,393		$	8,200,621

Land		2,357,349			1,534,202			665,480

Other assets		3,349,330			2,550,077			815,668

	$	21,461,963		$	16,800,672		$	9,681,769

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	22,159,355		$	18,890,770		$	9,351,657

Accounts payable and accrued expenses		860,339			838,492			266,095

Other liabilities		2,602,669			1,205,148			1,922,484

		25,622,363			20,934,410			11,540,236
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(3,951,388	)		(3,457,086	)		(2,247,067	)
Other partners		(209,012	)		(676,652	)		388,600

		(4,160,400	)		(4,133,738	)		(1,858,467	)

	$	21,461,963		$	16,800,672		$	9,681,769

F-51

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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, 2014 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	14,928,411		$	3,236,824		$	4,453,722
Interest and other		378,493			70,081			66,205

		15,306,904			3,306,905			4,519,927
Expenses
Interest		2,001,607			424,781			587,071
Depreciation and amortization		3,739,098			784,299			1,161,729
Taxes and insurance		1,841,555			392,391			531,323
Repairs and maintenance		3,632,790			807,087			1,151,844
Operating expenses		6,096,797			1,343,541			1,832,667
Other expenses		107,854			18,152			20,780

		17,419,701			3,770,251			5,285,414

NET LOSS	$	(2,112,797	)	$	(463,346	)	$	(765,487	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(2,114,273	)	$	(455,102	)	$	(711,685	)

Net Income (Loss) allocated to other partners	$	1,476		$	(8,244	)	$	(53,802	)

Amounts include $455,102, $711,685, $435,970, $400,659, and $110,857 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-52

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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, 2014 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	4,320,929		$	2,164,875		$	752,061
Interest and other		144,520			54,383			43,304

		4,465,449			2,219,258			795,365
Expenses
Interest		579,549			322,689			87,517
Depreciation and amortization		1,075,845			553,955			163,270
Taxes and insurance		518,585			292,006			107,250
Repairs and maintenance		951,107			524,124			198,628
Operating expenses		1,691,718			881,301			347,570
Other expenses		23,204			42,606			3,112

		4,840,008			2,616,681			907,347

NET LOSS	$	(374,559	)	$	(397,423	)	$	(111,982	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(435,970	)	$	(400,659	)	$	(110,857	)

Net Income (Loss) allocated to other partners	$	61,411		$	3,236		$	(1,125	)

F-53

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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, 2013 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	20,863,472		$	4,278,259		$	5,462,897
Interest and other		458,789			116,389			87,319

		21,322,261			4,394,648			5,550,216
Expenses
Interest		3,093,964			598,638			654,367
Depreciation and amortization		5,395,172			1,190,569			1,493,411
Taxes and insurance		2,716,801			554,343			704,902
Repairs and maintenance		4,538,378			997,909			1,345,782
Operating expenses		8,210,997			1,676,626			2,146,319
Other expenses		137,692			26,584			24,886

		24,093,004			5,044,669			6,369,667

NET LOSS	$	(2,770,743	)	$	(650,021	)	$	(819,451	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(2,735,602	)	$	(593,055	)	$	(836,199	)

Net Income (Loss) allocated to other partners	$	(35,141	)	$	(56,966	)	$	16,748

Amounts include $593,055, $836,199, $505,941, $574,802, and $225,605 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-54

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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, 2013 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	5,547,549		$	3,698,061		$	1,876,706
Interest and other		131,681			104,511			18,889

		5,679,230			3,802,572			1,895,595
Expenses
Interest		821,457			599,900			419,602
Depreciation and amortization		1,329,878			935,544			445,770
Taxes and insurance		667,253			574,910			215,393
Repairs and maintenance		1,157,847			780,541			256,299
Operating expenses		2,067,937			1,451,099			869,016
Other expenses		27,704			53,906			4,612

		6,072,076			4,395,900			2,210,692

NET LOSS	$	(392,846	)	$	(593,328	)	$	(315,097	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(505,941	)	$	(574,802	)	$	(225,605	)

Net Income (Loss) allocated to other partners	$	113,095		$	(18,526	)	$	(89,492	)

F-55

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME 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, 2015 is reconciled as follows:

	Total			Series 15			Series 16

Net income (loss) for financial reporting purposes	$	2,596,075		$	590,961		$	3,285

Operating limited partnership rents received in advance		3,009			(2,059	)		6,415

Accrued fund management fees not deducted (deducted) for tax purposes		(2,008,044	)		(342,524	)		40,901

Other		11,474,758			2,850,771			3,046,665

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(2,114,273	)		(455,102	)		(711,685	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(550,248	)		(105,127	)		(162,954	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(6,305,813	)		(669,830	)		(95,460	)

Income (loss) for tax return purposes, year ended December 31, 2014	$	3,095,464		$	1,867,090		$	2,127,167

F-56

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

	Series 17			Series 18			Series 19

Net income (loss) for financial reporting purposes	$	930,695		$	489,636		$	581,498

Operating limited partnership rents received in advance		(1,157	)		(74	)		(116	)

Accrued fund management fees not deducted (deducted) for tax purposes		(1,523,273	)		(183,148	)		-

Other		2,487,075			2,460,881			629,366

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(435,970	)		(400,659	)		(110,857	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(81,697	)		(81,919	)		(118,551	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(4,669,536	)		(342,148	)		(528,839	)

Income (loss) for tax return purposes, year ended December 31, 2014	$	(3,293,863	)	$	1,942,569		$	452,501

F-57

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

	Total			Series 15			Series 16

Net income (loss) for financial reporting purposes	$	5,815,204		$	(117,270	)	$	508,571

Operating limited partnership rents received in advance		56,810			4,384			(651	)

Accrued fund management fees not deducted (deducted) for tax purposes		(5,043,215	)		94,556			(660,687	)

Other		10,744,835			525,300			910,445

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(2,735,602	)		(593,055	)		(836,199	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(608,158	)		(107,871	)		(125,290	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(4,286,063	)		(64,737	)		(807,893	)

Income (loss) for tax return purposes, year ended December 31, 2013	$	3,943,811		$	(258,693	)	$	(1,011,704	)

F-58

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

	Series 17			Series 18			Series 19

Net income (loss) for financial reporting purposes	$	5,558,239		$	(21,394	)	$	(112,942	)

Operating limited partnership rents received in advance		38,260			14,572			245

Accrued fund management fees not deducted (deducted) for tax purposes		(4,622,115	)		145,031			-

Other		7,186,693			1,990,281			132,116

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(505,941	)		(574,802	)		(225,605	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(91,310	)		(152,633	)		(131,054	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(2,492,432	)		(907,135	)		(13,866	)

Income (loss) for tax return purposes, year ended December 31, 2013	$	5,071,394		$	493,920		$	(351,106	)

F-59

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2015, are as follows:

	Total			Series 15			Series 16

Investments in operating limited partnerships - tax return December 31, 2014	$	(28,773,464	)	$	(6,939,252	)	$	(10,360,889	)

Estimated share of loss for the three months ended March 31, 2015		(562,650	)		(76,193	)		-

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		27,893,359			6,350,536			8,177,820

Impairment loss in investment in operating limited partnerships		(4,659,927	)		(747,267	)		(1,326,748	)

Historic tax credits		5,325,806			-			1,844,836

Other		776,876			1,412,176			1,664,981

Investments in operating limited partnerships - as reported	$	-		$	-		$	-

F-60

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2015, are as follows:

	Series 17			Series 18			Series 19

Investments in operating limited partnerships - tax return December 31, 2014	$	(4,434,830	)	$	(4,780,042	)	$	(2,258,451	)

Estimated share of loss for the three months ended March 31, 2015		(230,032	)		(237,589	)		(18,836	)

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		5,187,226			5,062,616			3,115,161

Impairment loss in investment in operating limited partnerships		(1,311,848	)		(963,351	)		(310,713	)

Historic tax credits		1,100,310			2,062,333			318,327

Other		(310,826	)		(1,143,967	)		(845,488	)

Investments in operating limited partnerships - as reported	$	-		$	-		$	-

F-61

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2014, are as follows:

	Total			Series 15			Series 16

Investments in operating limited partnerships - tax return December 31, 2013	$	(36,250,730	)	$	(8,528,309	)	$	(12,305,968	)

Estimated share of loss for the three months ended March 31, 2014		(661,736	)		(99,993	)		-

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		32,676,601			7,704,240			9,746,456

Impairment loss in investment in operating limited partnerships		(7,980,878	)		(767,819	)		(1,489,694	)

Historic tax credits		5,325,806			-			1,844,836

Other		6,890,937			1,691,881			2,204,370
Investments in operating limited partnerships - as reported	$	-		$	-		$	-

F-62

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

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

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2014, are as follows:

	Series 17			Series 18			Series 19

Investments in operating limited partnerships - tax return December 31, 2013	$	(6,703,522	)	$	(6,559,360	)	$	(2,153,571	)

Estimated share of loss for the three months ended March 31, 2014		(268,254	)		(274,653	)		(18,836	)

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		5,255,229			6,299,282			3,671,394

Impairment loss in investment in operating limited partnerships		(1,566,308	)		(2,656,687	)		(1,500,370	)

Historic tax credits		1,100,310			2,062,333			318,327

Other		2,182,545			1,129,085			(316,944	)

Investments in operating limited partnerships - as reported	$	-		$	-		$	-

F-63

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2015 and 2014

NOTE E - 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, 2015.

NOTE F - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Funds’s financial instruments relate to other assets 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 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 note B for disclosure of the carrying amount and terms of these financial instruments.

NOTE G - SUBSEQUENT EVENTS

Subsequent to March 31, 2015, the Fund has entered into agreements to either sell or transfer its interests in two operating limited partnerships, all of which closed by June 2015. The sales price and other terms for the disposition of the operating limited partnerships has been determined. The proceeds received for the operating limited partnerships were $4,402,258 The gain on the dispositions of these operating limited partnerships was $4,308,769 and was recognized in the first quarter of the fiscal year ended 2016.

F-64

BOSTON CAPITAL TAX CREDIT FUND III L P - FORM 10-K - EX-13 - EXHIBIT 13 - June 25, 2015

Attached files

BOSTON CAPITAL TAX CREDIT FUND III L P Reports