Exhibit 13

 

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

 

BOSTON CAPITAL TAX CREDIT FUND II

LIMITED PARTNERSHIP -

SERIES 7, 9 THROUGH 12, AND 14

 

MARCH 31, 2016 AND 2015

 

 

Boston Capital Tax Credit Fund Limited Partnership II

Series 7, 9 through 12, and 14

 

TABLE OF CONTENTS

 

	PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F-3
FINANCIAL STATEMENTS
BALANCE SHEETS	F-4
STATEMENTS OF OPERATIONS	F-11
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)	F-18
STATEMENTS OF CASH FLOWS	F-22
NOTES TO FINANCIAL STATEMENTS	F-29

 

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

 

  

Report of Independent Registered Public Accounting Firm

 

To the Partners

Boston Capital Tax Credit Fund II Limited Partnership

 

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund II Limited Partnership - Series 7, Series 9 through Series 12, and Series 14 (the "Partnership"), in total and for each series, as of March 31, 2016 and 2015, 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, 2016. 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 II Limited Partnership - Series 7, Series 9 through Series 12, and Series 14, in total and for each series, as of March 31, 2016 and 2015, 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, 2016, in conformity with accounting principles generally accepted in the United States of America.

 

/s/ CohnReznick LLP
COHNREZNICK LLP
Bethesda, Maryland
June 23, 2016

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS

 

March 31, 2016 and 2015

 

		Total
		2016				2015
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	976,435			$	1,682,834
Other assets			2,200				2,200
		$	978,635			$	1,685,034
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	35,100			$	12,600
Accounts payable - affiliates			12,201,654				15,075,966
Capital contributions payable			9,241				169,974
			12,245,995				15,258,540
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 18,679,738 issued to the assignees at March 31, 2016 and 2015			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 18,679,738 issued and 18,517,788 and 18,588,788 outstanding at March 31, 2016 and 2015, respectively			(11,061,622	)			(12,058,821	)
General partner			(205,738	)			(1,514,685	)
			(11,267,360	)			(13,573,506	)
		$	978,635			$	1,685,034

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2016 and 2015

 

		Series 7
		2016				2015
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	-			$	-
Other assets			-				-
		$	-			$	-
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			-				-
Capital contributions payable			-				-
			-				-
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 1,036,100 issued  to the assignees at March 31, 2016 and 2015			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 1,036,100 issued and outstanding at March 31, 2016 and 2015			(84,506	)			(84,506	)
General partner			84,506				84,506
			-				-
		$	-			$	-

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2016 and 2015

 

		Series 9
		2016				2015
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	133,859			$	163,039
Other assets			-				-
		$	133,859			$	163,039
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			6,608,868				6,548,768
Capital contributions payable			-				-
			6,608,868				6,548,768
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 4,178,029 issued  to the assignees at March 31, 2016 and 2015			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,178,029 issued and 4,145,929 and 4,156,429 outstanding at March 31, 2016 and 2015, respectively			(6,075,421	)			(5,987,034	)
General partner			(399,588	)			(398,695	)
			(6,475,009	)			(6,385,729	)
		$	133,859			$	163,039

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2016 and 2015

 

		Series 10
		2016				2015
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	-			$	205,732
Other assets			-				-
		$	-			$	205,732
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			-				1,503,758
Capital contributions payable			-				-
			-				1,503,758
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 2,428,925 issued to the assignees at March 31, 2016 and 2015			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,428,925 issued and 2,409,225 and 2,421,225 outstanding at March 31, 2016 and 2015, respectively			(1,090,973	)			(1,090,133	)
General partner			1,090,973				(207,893	)
			-				(1,298,026	)
		$	-			$	205,732

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2016 and 2015

 

		Series 11
		2016				2015
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	178,538			$	211,756
Other assets			-				-
		$	178,538			$	211,756
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			105,896				614,049
Capital contributions payable			-				-
			105,896				614,049
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 2,489,599 issued to the assignees at March 31, 2016 and 2015			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,489,599 issued and 2,484,999 and 2,486,499 outstanding at March 31, 2016 and 2015, respectively			286,601				(183,585	)
General partner			(213,959	)			(218,708	)
			72,642				(402,293	)
		$	178,538			$	211,756

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2016 and 2015

 

		Series 12
		2016				2015
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	174,597			$	160,021
Other assets			-				-
		$	174,597			$	160,021
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			2,808,955				3,149,077
Capital contributions payable			9,241				9,241
			2,818,196				3,158,318
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 2,972,795 issued to the assignees at March 31, 2016 and 2015			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,972,795 issued and 2,933,895 and 2,947,595 outstanding at March 31, 2016 and 2015, respectively			(2,366,033	)			(2,717,184	)
General partner			(277,566	)			(281,113	)
			(2,643,599	)			(2,998,297	)
		$	174,597			$	160,021

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2016 and 2015

 

		Series 14
		2016				2015
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	489,441			$	942,286
Other assets			2,200				2,200
		$	491,641			$	944,486
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	35,100			$	12,600
Accounts payable - affiliates			2,677,935				3,260,314
Capital contributions payable			-				160,733
			2,713,035				3,433,647
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,574,290 issued to the assignees at March 31, 2016 and 2015			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,574,290 issued and 5,507,640 and 5,540,940 outstanding at March 31, 2016 and 2015, respectively			(1,731,290	)			(1,996,379	)
General partner			(490,104	)			(492,782	)
			(2,221,394	)			(2,489,161	)
		$	491,641			$	944,486

 

See notes to financial statements

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2016 and 2015

 

		Total
		2016				2015
Income
Interest income		$	1,374			$	1,462
Miscellaneous income			181,204				2,482,805
			182,578				2,484,267
Share of income from operating limited partnerships			1,318,677				2,120,803
Expenses
Professional fees			122,538				144,389
Partnership management fee			254,087				223,649
General and administrative expenses			117,358				88,261
			493,983				456,299
NET INCOME (LOSS)		$	1,007,272			$	4,148,771
Net income (loss) allocated to general partner		$	10,073			$	41,488
Net income (loss) allocated to assignees		$	997,199			$	4,107,283
Net income (loss) per BAC		$	0.05			$	0.22

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2016 and 2015

  

		Series 7
		2016				2015
Income
Interest income		$	-			$	-
Miscellaneous income			-				-
Total income			-				-
Share of income from operating limited partnerships			-				-
Expenses
Professional fees			-				-
Partnership management fee			-				-
General and administrative expenses			-				-
			-				-
NET INCOME (LOSS)		$	-			$	-
Net income (loss) allocated to general partner		$	-			$	-
Net income (loss) allocated to assignees		$	-			$	-
Net income (loss) per BAC		$	-			$	-

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 9
		2016				2015
Income
Interest income		$	142			$	137
Miscellaneous income			1				1
Total income			143				138
Share of income from operating limited partnerships			1,593				78,000
Expenses
Professional fees			20,247				23,299
Partnership management fee			50,908				67,236
General and administrative expenses			19,861				17,425
			91,016				107,960
NET INCOME (LOSS)		$	(89,280	)		$	(29,822	)
Net income (loss) allocated to general partner		$	(893	)		$	(298	)
Net income (loss) allocated to assignees		$	(88,387	)		$	(29,524	)
Net income (loss) per BAC		$	(0.02	)		$	(0.01	)

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 10
		2016				2015
Income
Interest income		$	138			$	191
Miscellaneous income			-				13,190
Total income			138				13,381
Share of income from operating limited partnerships			72,293				420,731
Expenses
Professional fees			18,291				26,105
Partnership management fee			20,807				48,856
General and administrative expenses			34,181				14,464
			73,279				89,425
NET INCOME (LOSS)		$	(848	)		$	344,687
Net income (loss) allocated to general partner		$	(8	)		$	3,447
Net income (loss) allocated to assignees		$	(840	)		$	341,240
Net income (loss) per BAC		$	(0.00	)		$	0.14

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 11
		2016				2015
Income
Interest income		$	399			$	379
Miscellaneous income			291				16,113
Total income			690				16,492
Share of income from operating limited partnerships			575,209				548,878
Expenses
Professional fees			25,160				24,268
Partnership management fee			59,841				18,960
General and administrative expenses			15,963				13,810
			100,964				57,038
NET INCOME (LOSS)		$	474,935			$	508,332
Net income (loss) allocated to general partner		$	4,749			$	5,083
Net income (loss) allocated to assignees		$	470,186			$	503,249
Net income (loss) per BAC		$	0.19			$	0.20

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 12
		2016				2015
Income
Interest income		$	232			$	286
Miscellaneous income			51,312				3,802
Total income			51,544				4,088
Share of income from operating limited partnerships			385,233				69,513
Expenses
Professional fees			23,119				32,112
Partnership management fee			40,372				35,664
General and administrative expenses			18,588				16,172
			82,079				83,948
NET INCOME (LOSS)		$	354,698			$	(10,347	)
Net income (loss) allocated to general partner		$	3,547			$	(103	)
Net income (loss) allocated to assignees		$	351,151			$	(10,244	)
Net income (loss) per BAC		$	0.12			$	(0.00	)

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 14
		2016				2015
Income
Interest income		$	463			$	469
Miscellaneous income			129,600				2,449,699
Total income			130,063				2,450,168
Share of income from operating limited partnerships			284,349				1,003,681
Expenses
Professional fees			35,721				38,605
Partnership management fee			82,159				52,933
General and administrative expenses			28,765				26,390
			146,645				117,928
NET INCOME (LOSS)		$	267,767			$	3,335,921
Net income (loss) allocated to general partner		$	2,678			$	33,359
Net income (loss) allocated to assignees		$	265,089			$	3,302,562
Net income (loss) per BAC		$	0.05			$	0.60

 

See notes to financial statements

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

 

Years ended March 31, 2016 and 2015

 

Total		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2014		$	(16,166,104	)		$	(1,556,173	)		$	(17,722,277	)
Net income (loss)			4,107,283				41,488				4,148,771
Partners’ capital (deficit), March 31, 2015			(12,058,821	)			(1,514,685	)			(13,573,506	)
Net income (loss)			997,199				10,073				1,007,272
Contributions			-				1,298,874				1,298,874
Partners’ capital (deficit), March 31, 2016		$	(11,061,622	)		$	(205,738	)		$	(11,267,360	)

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

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

 

Years ended March 31, 2016 and 2015

 

Series 7		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2014		$	(84,506	)		$	84,506			$	-
Net income (loss)			-				-				-
Partners’ capital (deficit), March 31, 2015			(84,506	)			84,506				-
Net income (loss)			-				-				-
Contributions			-				-				-
Partners’ capital (deficit), March 31, 2016		$	(84,506	)		$	84,506			$	-

 

Series 9		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2014		$	(5,957,510	)		$	(398,397	)		$	(6,355,907	)
Net income (loss)			(29,524	)			(298	)			(29,822	)
Partners’ capital (deficit), March 31, 2015			(5,987,034	)			(398,695	)			(6,385,729	)
Net income (loss)			(88,387	)			(893	)			(89,280	)
Contributions			-				-				-
Partners’ capital (deficit), March 31, 2016		$	(6,075,421	)		$	(399,588	)		$	(6,475,009	)

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

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

 

Years ended March 31, 2016 and 2015

 

Series 10		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2014		$	(1,431,373	)		$	(211,340	)		$	(1,642,713	)
Net income (loss)			341,240				3,447				344,687
Partners’ capital (deficit), March 31, 2015			(1,090,133	)			(207,893	)			(1,298,026	)
Net income (loss)			(840	)			(8	)			(848	)
Contributions			-				1,298,874				1,298,874
Partners’ capital (deficit), March 31, 2016		$	(1,090,973	)		$	1,090,973			$	-

  

Series 11		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2014		$	(686,834	)		$	(223,791	)		$	(910,625	)
Net income (loss)			503,249				5,083				508,332
Partners’ capital (deficit), March 31, 2015			(183,585	)			(218,708	)			(402,293	)
Net income (loss)			470,186				4,749				474,935
Contributions			-				-				-
Partners’ capital (deficit), March 31, 2016		$	286,601			$	(213,959	)		$	72,642

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

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

 

Years ended March 31, 2016 and 2015

 

Series 12		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2014		$	(2,706,940	)		$	(281,010	)		$	(2,987,950	)
Net income (loss)			(10,244	)			(103	)			(10,347	)
Partners’ capital (deficit), March 31, 2015			(2,717,184	)			(281,113	)			(2,998,297	)
Net income (loss)			351,151				3,547				354,698
Contributions			-				-				-
Partners’ capital (deficit), March 31, 2016		$	(2,366,033	)		$	(277,566	)		$	(2,643,599	)

 

Series 14		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2014		$	(5,298,941	)		$	(526,141	)		$	(5,825,082	)
Net income (loss)			3,302,562				33,359				3,335,921
Partners’ capital (deficit), March 31, 2015			(1,996,379	)			(492,782	)			(2,489,161	)
Net income (loss)			265,089				2,678				267,767
Contributions			-				-				-
Partners’ capital (deficit), March 31, 2016		$	(1,731,290	)		$	(490,104	)		$	(2,221,394	)

 

See notes to financial statements

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2016 and 2015

 

		Total
		2016				2015
Cash flows from operating activities
Net income (loss)		$	1,007,272			$	4,148,771
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships			(1,318,677	)			(2,120,803	)
Changes in assets and liabilities
Accounts payable and accrued expenses			22,500				5,000
Accounts payable - affiliates			(1,575,438	)			(3,566,927	)
Other assets			-				-
Net cash used in operating activities			(1,864,343	)			(1,533,959	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			1,157,944				2,120,803
Net cash provided by investing activities			1,157,944				2,120,803
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(706,399	)			586,844
Cash and cash equivalents, beginning			1,682,834				1,095,990
Cash and cash equivalents, end		$	976,435			$	1,682,834
Significant noncash investing and financing activities:
The general partner's equity balance was increased  and accounts payable-affiliates were reduced as a  result of forgiveness of debt with an affiliate of the general partner.		$	1,298,874			$	-

 

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2016 and 2015

  

		Series 7
		2016				2015
Cash flows from operating activities
Net income (loss)		$	-			$	-
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships			-				-
Changes in assets and liabilities
Accounts payable and accrued expenses			-				-
Accounts payable - affiliates			-				-
Other assets			-				-
Net cash used in operating activities			-				-
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			-				-
Net cash provided by investing activities			-				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			-				-
Cash and cash equivalents, beginning			-				-
Cash and cash equivalents, end		$	-			$	-
Significant noncash investing and financing activities:
The general partner's equity balance was increased  and accounts payable-affiliates were reduced as a  result of forgiveness of debt with an affiliate of the general partner.		$	-			$	-

 

(continued)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 9
		2016				2015
Cash flows from operating activities
Net income (loss)		$	(89,280	)		$	(29,822	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships			(1,593	)			(78,000	)
Changes in assets and liabilities
Accounts payable and accrued expenses			-				-
Accounts payable - affiliates			60,100				72,387
Other assets			-				-
Net cash used in operating activities			(30,773	)			(35,435	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			1,593				78,000
Net cash provided by investing activities			1,593				78,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(29,180	)			42,565
Cash and cash equivalents, beginning			163,039				120,474
Cash and cash equivalents, end		$	133,859			$	163,039
Significant noncash investing and financing activities:
The general partner's equity balance was increased  and accounts payable-affiliates were reduced as a  result of forgiveness of debt with an affiliate of the  general partner.		$	-			$	-

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 10
		2016				2015
Cash flows from operating activities
Net income (loss)		$	(848	)		$	344,687
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships			(72,293	)			(420,731	)
Changes in assets and liabilities
Accounts payable and accrued expenses			-				-
Accounts payable - affiliates			(204,884	)			(285,273	)
Other assets			-				-
Net cash used in operating activities			(278,025	)			(361,317	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			72,293				420,731
Net cash provided by investing activities			72,293				420,731
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(205,732	)			59,414
Cash and cash equivalents, beginning			205,732				146,318
Cash and cash equivalents, end		$	-			$	205,732
Significant noncash investing and financing activities:
The general partner's equity balance was increased  and accounts payable-affiliates were reduced as a  result of forgiveness of debt with an affiliate of the  general partner.		$	1,298,874			$	-

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 11
		2016				2015
Cash flows from operating activities
Net income (loss)		$	474,935			$	508,332
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships			(575,209	)			(548,878	)
Changes in assets and liabilities
Accounts payable and accrued expenses			-				-
Accounts payable - affiliates			(508,153	)			(452,593	)
Other assets			-				-
Net cash used in operating activities			(608,427	)			(493,139	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			575,209				548,878
Net cash provided by investing activities			575,209				548,878
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(33,218	)			55,739
Cash and cash equivalents, beginning			211,756				156,017
Cash and cash equivalents, end		$	178,538			$	211,756
Significant noncash investing and financing activities:
The general partner's equity balance was increased  and accounts payable-affiliates were reduced as a  result of forgiveness of debt with an affiliate of the  general partner.		$	-			$	-

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 12
		2016				2015
Cash flows from operating activities
Net income (loss)		$	354,698			$	(10,347	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships			(385,233	)			(69,513	)
Changes in assets and liabilities
Accounts payable and accrued expenses			-				-
Accounts payable - affiliates			(340,122	)			(126,844	)
Other assets			-				-
Net cash used in operating activities			(370,657	)			(206,704	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			385,233				69,513
Net cash provided by investing activities			385,233				69,513
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			14,576				(137,191	)
Cash and cash equivalents, beginning			160,021				297,212
Cash and cash equivalents, end		$	174,597			$	160,021
Significant noncash investing and financing activities:
The general partner's equity balance was increased  and accounts payable-affiliates were reduced as a  result of forgiveness of debt with an affiliate of the  general partner.		$	-			$	-

 

(continued)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2016 and 2015

 

		Series 14
		2016				2015
Cash flows from operating activities
Net income (loss)		$	267,767			$	3,335,921
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships			(284,349	)			(1,003,681	)
Changes in assets and liabilities
Accounts payable and accrued expenses			22,500				5,000
Accounts payable - affiliates			(582,379	)			(2,774,604	)
Other assets			-				-
Net cash used in operating activities			(576,461	)			(437,364	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			123,616				1,003,681
Net cash provided by investing activities			123,616				1,003,681
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(452,845	)			566,317
Cash and cash equivalents, beginning			942,286				375,969
Cash and cash equivalents, end		$	489,441			$	942,286
Significant noncash investing and financing activities:
The general partner's equity balance was increased  and accounts payable-affiliates were reduced as a  result of forgiveness of debt with an affiliate of the  general partner.		$	-			$	-

 

See notes to financial statements

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS

 

March 31, 2016 and 2015

 

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING

 

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

 

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

 

The BACs issued and outstanding in each series as of March 31, 2016 and 2015 are as follows:

 

		Issued								Outstanding
		2016				2015				2016				2015
Series   7			1,036,100				1,036,100				1,036,100				1,036,100
Series   9			4,178,029				4,178,029				4,145,929				4,156,429
Series 10			2,428,925				2,428,925				2,409,225				2,421,225
Series 11			2,489,599				2,489,599				2,484,999				2,486,499
Series 12			2,972,795				2,972,795				2,933,895				2,947,595
Series 14			5,574,290				5,574,290				5,507,640				5,540,940
TOTAL			18,679,738				18,679,738				18,517,788				18,588,788

 

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

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

Investments in Operating Limited Partnerships

 

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

 

		2016				2015
Series   7		$	-			$	-
Series   9			13,983				13,983
Series 10			-				5,443
Series 11			9,120				72,890
Series 12			349				70,546
Series 14			2,638				3,395
		$	26,090			$	166,257

 

The Partnership reviews its investment in operating limited partnerships for impairment whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the sum of the total amount of the remaining tax credits and the estimated residual value of the investment. The Partnership also evaluates its intangibles for impairment in connection with its investments in operating limited partnerships. During the years ended March 31, 2016 and 2015, the Partnership did not record an impairment loss.

 

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

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

Investments in Operating Limited Partnerships (Continued)

 

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

 

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

 

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

 

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

 

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

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

Investments in Operating Limited Partnerships (Continued)

 

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

 

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 Partnership has determined that there is no material impact to its financial statements as a result of this guidance.

 

Cash Equivalents

 

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

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

Income Taxes

 

The Partnership has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns.  The Partnership’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure. Income tax returns filed by the Partnership 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 2012 remain open.

 

Fiscal Year

 

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

 

Net Income (Loss) per Beneficial Assignee Certificate

 

Net income (loss) per beneficial assignee certificate is calculated based upon the weighted average number of units outstanding. The weighted average number of units outstanding in each series at March 31, 2016 and 2015 are as follows:

 

		2016				2015
Series  7			1,036,100				1,036,100
Series  9			4,153,804				4,162,096
Series 10			2,418,225				2,421,225
Series 11			2,486,124				2,486,499
Series 12			2,944,170				2,960,395
Series 14			5,532,615				5,550,973
TOTAL			18,571,038				18,617,288

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

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.

 

Plan of Liquidation and Dissolution

 

On July 1, 2010, BAC Holders approved a Plan of Liquidation and Dissolution for the Partnership, (the “Plan”). Pursuant to the Plan, the general partner may, without further action by the BAC Holders, sell the remaining assets held by the Partnership. It was anticipated that the sale of all the apartment complexes would be completed sometime in 2012. However, because of numerous uncertainties, the liquidation may take longer than expected, and the final liquidating distribution may occur months after all of the apartment complexes have been sold. Because the liquidation of the Partnership was not imminent, as of March 31, 2016, the financial statements are presented assuming the Partnership will continue as a going concern.

 

Miscellaneous Income

 

Miscellaneous income primarily consists of $2,427,668 of insurance proceeds received due to a fire at an operating limited partnership in 2015

 

  

Boston Capital Tax Credit Fund II Limited Partnership 

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During the years ended March 31, 2016 and 2015, the Partnership entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:

 

Boston Capital Asset Management Limited Partnership is entitled to an annual partnership management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level. The partnership management fees net of reporting fees incurred and the reporting fees paid by the Operating Partnerships for the years ended March 31, 2016 and 2015, are as follows:

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

		2016
		Gross Partnership Management Fee				Asset Management and Reporting Fee				Partnership Management Fee net of Asset Management and Reporting Fee
Series 7		$	-			$	-			$	-
Series 9			60,100				9,192				50,908
Series 10			32,412				11,605				20,807
Series 11			67,056				7,215				59,841
Series 12			45,111				4,739				40,372
Series 14			104,749				22,590				82,159
		$	309,428			$	55,341			$	254,087

 

		2015
		Gross Partnership Management Fee				Asset Management and Reporting Fee				Partnership Management Fee net of Asset Management and Reporting Fee
Series 7		$	-			$	-			$	-
Series 9			72,387				5,151				67,236
Series 10			59,458				10,602				48,856
Series 11			96,095				77,135				18,960
Series 12			64,200				28,536				35,664
Series 14			149,217				96,284				52,933
		$	441,357			$	217,708			$	223,649

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

The partnership management fees paid by the Partnership for the years ended March 31, 2016 and 2015 are as follows:

 

		2016				2015
Series 7		$	-			$	-
Series   9			-				-
Series 10			237,296				344,731
Series 11			575,209				548,688
Series 12			385,233				191,044
Series 14			687,128				2,923,821
TOTAL		$	1,884,866			$	4,008,284

 

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, 2016 and 2015, total partnership management fees accrued were $12,048,466 and $14,922,778, respectively. During the fiscal year ended March 31, 2016 the accrued balance of $1,298,874 in Series 10 has been forgiven. The general partner has recorded this amount as a capital contribution.

 

An affiliate of the general partner of the Partnership advanced funds to pay some operating expenses of the Partnership, and to make advances and/or loans to operating limited partnerships. These advances are included in accounts payable-affiliates. The total advances from the affiliate of the general partner to the operating limited partnerships as of March 31, 2016 and 2015 are as follows:

 

		2016				2015
Series   7		$	-			$	-
Series   9			-				-
Series 10			-				-
Series 11			-				-
Series 12			153,188				153,188
Series 14			-				-
TOTAL		$	153,188			$	153,188

 

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

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership (BCAMLP) during the years ended March 31, 2016 and 2015 charged to each series’ operations are as follows:

 

		2016				2015
Series   7		$	-			$	-
Series   9			13,073				11,197
Series 10			9,220				9,798
Series 11			11,486				9,840
Series 12			12,484				10,634
Series 14			17,627				16,184
TOTAL		$	63,890			$	57,653

 

Accounts payable - affiliates at March 31, 2016 and 2015 represents general and administrative expenses, partnership management fees, and may include advances which are payable to Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership.

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

 

At March 31, 2016 and 2015, the Partnership has limited partnership interests in operating limited partnerships which own operating apartment complexes. During the year ended March 31, 2016, the Partnership disposed of its operating limited partnership interest in one, seven, one, one, and ten of the operating limited partnerships owned by Series 9, Series 10, Series 11, Series 12 and Series 14, respectively. During the year ended March 31, 2015, the Partnership disposed of its operating limited partnership interest in one, two, five, three, and six of the operating limited partnerships owned by Series 9, Series 10, Series 11, Series 12 and Series 14, respectively. The number of operating limited partnerships in which the Partnership has limited partnership interests at March 31, 2016 and 2015 by series is as follows:

 

		2016				2015
Series   7			-				-
Series   9			8				9
Series 10			-				7
Series 11			9				10
Series 12			9				10
Series 14			13				23
TOTAL			39				59

 

  

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

During the year ended March 31, 2016 the Partnership disposed of twenty of the operating limited partnerships. A summary of the dispositions by Series for March 31, 2016 is as follows:

 

		Operating				Sale of
		Partnership				Underlying				Partnership
		Interest				Operating				Proceeds from				Gain on
		Transferred				Partnership				Disposition*				Disposition
Series   7			-				-			$	-			$	-
Series   9			1				-				1,593				1,593
Series 10			7				-				72,293				72,293
Series 11			-				1				575,209				575,209
Series 12			-				1				385,233				385,233
Series 14			10				-				123,616				284,349
Total			18				2			$	1,157,944			$	1,318,677

 

* Partnership proceeds from disposition do not include $160,733, which was due to write-offs of capital contributions payable as of March 31, 2016, for Series 14

 

During the year ended March 31, 2015 the Partnership disposed of seventeen of the 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   7			-				-			$	-			$	-
Series   9			-				1				78,000				78,000
Series 10			2				-				420,731				420,731
Series 11			4				1				548,878				548,878
Series 12			3				-				69,513				69,513
Series 14			6				-				1,003,681				1,003,681
Total			15				2			$	2,120,803			$	2,120,803

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

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

 

The contributions payable to operating limited partnerships at March 31, 2016 and 2015 by series are as follows:

 

		2016				2015
Series   7		$	-			$	-
Series   9			-				-
Series 10			-				-
Series 11			-				-
Series 12			9,241				9,241
Series 14			-				160,733
TOTAL		$	9,241			$	169,974

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2016 are summarized as follows: 

 

		Total
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	10,135,501
Acquisition costs of operating limited partnerships			1,221,915
Cumulative distributions from operating limited partnerships			(15,231	)
Cumulative impairment loss in investments in operating limited partnerships			(1,213,519	)
Cumulative losses from operating limited partnerships			(10,128,666	)
Investments in operating limited partnerships per balance sheets			-
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2016, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2015 (see note A).			-
The Partnership has recorded acquisition costs at March 31, 2016, which have not been recorded in the net assets of the operating limited partnerships (see note A).			(254,079	)
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).			207,384
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(15,478,802	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			67,354
Cumulative impairment loss in investments in operating limited partnerships			1,213,519
Other			164,247
Equity per operating limited partnerships’ combined financial statements		$	(14,080,377	)

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2016 are summarized as follows:

 

		Series 7				Series 9				Series 10
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	-			$	2,284,434			$	-
Acquisition costs of operating limited partnerships			-				331,967				-
Cumulative distributions from operating limited partnerships			-				(1,303	)			-
Cumulative impairment loss in investments in operating limited partnerships			-				(151,618	)			-
Cumulative losses from operating limited partnerships			-				(2,463,480	)			-
Investments in operating limited partnerships per balance sheets			-				-				-

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 7				Series 9				Series 10
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2016, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2015 (see note A).			-				-				-
The Partnership has recorded acquisition costs at March 31, 2016, which have not been recorded in the net assets of the operating limited partnerships (see note A).			-				(23,731	)			-
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			-				-				-
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			-				(3,498,254	)			-
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			-				21,064				-
Cumulative impairment loss in investments in operating limited partnerships			-				151,618				-
Other			-				69,505				-
Equity per operating limited partnerships’ combined financial statements		$	-			$	(3,279,798	)		$	-

 

  

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2016 are summarized as follows:

 

		Series 11				Series 12				Series 14
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	2,350,708			$	1,591,175			$	3,909,184
Acquisition costs of operating limited partnerships			203,194				124,652				562,102
Cumulative distributions from operating limited partnerships			(11,730	)			-				(2,198	)
Cumulative impairment loss in investments in operating limited partnerships			(34,628	)			-				(1,027,273	)
Cumulative losses from operating limited partnerships			(2,507,544	)			(1,715,827	)			(3,441,815	)
Investments in operating limited partnerships per balance sheets			-				-				-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 11				Series 12				Series 14
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2016, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2015 (see note A).			-				-				-
The Partnership has recorded acquisition costs at March 31, 2016, which have not been recorded in the net assets of the operating limited partnerships (see note A).			(6,867	)			(13,270	)			(210,211	)
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).			-				62,808				144,576
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(3,676,316	)			(3,182,099	)			(5,122,133	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			12,611				24,086				9,593
Cumulative impairment loss in investments in operating limited partnerships			34,628				-				1,027,273
Other			118,475				2,380				(26,113	)
Equity per operating limited partnerships’ combined financial statements		$	(3,517,469	)		$	(3,106,095	)		$	(4,177,015	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

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

 

		Total
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	15,228,689
Acquisition costs of operating limited partnerships			1,938,349
Cumulative distributions from operating limited partnerships			(15,231	)
Cumulative impairment loss in investments in operating limited partnerships			(1,350,529	)
Cumulative losses from operating limited partnerships			(15,801,278	)
Investments in operating limited partnerships per balance sheets			-
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2015, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2014 (see note A).			(139,775	)
The Partnership 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).			(259,784	)
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).			311,421
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(20,593,550	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			220,470
Cumulative impairment loss in investments in operating limited partnerships			1,350,529
Other			294,918
Equity per operating limited partnerships’ combined financial statements		$	(18,815,771	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

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

 

		Series 7				Series 9				Series 10
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	-			$	2,568,434			$	1,822,910
Acquisition costs of operating limited partnerships			-				383,062				99,287
Cumulative distributions from operating limited partnerships			-				(1,303	)			-
Cumulative impairment loss in investments in operating limited partnerships			-				(151,618	)			(80,832	)
Cumulative losses from operating limited partnerships			-				(2,798,575	)			(1,841,365	)
Investments in operating limited partnerships per balance sheets			-				-				-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 7				Series 9				Series 10
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2015, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2014 (see note A).			-				-				-
The Partnership 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).			-				(23,731	)			-
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			-				-				-
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			-				(3,615,838	)			(2,630,032	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			-				21,064				17,930
Cumulative impairment loss in investments in operating limited partnerships			-				151,618				80,832
Other			-				86,866				80,221
Equity per operating limited partnerships’ combined financial statements		$	-			$	(3,380,021	)		$	(2,451,049	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

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

 

		Series 11				Series 12				Series 14
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	3,449,960			$	2,299,666			$	5,087,719
Acquisition costs of operating limited partnerships			422,343				255,055				778,602
Cumulative distributions from operating limited partnerships			(11,730	)			-				(2,198	)
Cumulative impairment loss in investments in operating limited partnerships			(34,628	)			-				(1,083,451	)
Cumulative losses from operating limited partnerships			(3,825,945	)			(2,554,721	)			(4,780,672	)
Investments in operating limited partnerships per balance sheets			-				-				-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 11				Series 12				Series 14
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2015, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2014 (see note A).			-				-				(139,775	)
The Partnership 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).			(6,867	)			(13,270	)			(215,916	)
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).			-				115,443				195,978
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(4,489,063	)			(3,748,794	)			(6,109,823	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			97,634				69,183				14,659
Cumulative impairment loss in investments in operating limited partnerships			34,628				-				1,083,451
Other			185,978				571				(58,718	)
Equity per operating limited partnerships’ combined financial statements		$	(4,177,690	)		$	(3,576,867	)		$	(5,230,144	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2015 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 7				Series 9				Series 10
ASSETS
Buildings and improvements, net of accumulated depreciation		$	15,417,507			$	-			$	3,797,027			$	-
Land			2,233,501				-				489,543				-
Other assets			5,714,977				-				1,361,315				-
		$	23,365,985			$	-			$	5,647,885			$	-
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	35,762,133			$	-			$	8,811,553			$	-
Accounts payable and accrued expenses			674,710				-				169,638				-
Other liabilities			2,410,449				-				1,015,830				-
			38,847,292				-				9,997,021				-
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(14,080,377	)			-				(3,279,798	)			-
Other partners			(1,400,930	)			-				(1,069,338	)			-
			(15,481,307	)			-				(4,349,136	)			-
		$	23,365,985			$	-			$	5,647,885			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2015 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 

		Series 11				Series 12				Series 14
ASSETS
Buildings and improvements, net of accumulated depreciation		$	3,700,379			$	2,598,582			$	5,321,519
Land			627,299				383,703				732,956
Other assets			1,920,179				835,067				1,598,416
		$	6,247,857			$	3,817,352			$	7,652,891
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	9,368,777			$	6,217,054			$	11,364,749
Accounts payable and accrued expenses			80,458				212,976				211,638
Other liabilities			375,730				461,743				557,146
			9,824,965				6,891,773				12,133,533
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(3,517,469	)			(3,106,095	)			(4,177,015	)
Other partners			(59,639	)			31,674				(303,627	)
			(3,577,108	)			(3,074,421	)			(4,480,642	)
		$	6,247,857			$	3,817,352			$	7,652,891

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2014 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 7				Series 9				Series 10
ASSETS
Buildings and improvements, net of accumulated depreciation		$	25,061,656			$	-			$	4,880,247			$	3,615,536
Land			3,946,472				-				584,543				520,600
Other assets			9,018,956				-				1,608,438				1,092,354
		$	38,027,084			$	-			$	7,073,228			$	5,228,490
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	54,449,327			$	-			$	10,308,002			$	7,382,957
Accounts payable and accrued expenses			859,815				-				208,717				50,323
Other liabilities			3,594,946				-				1,010,611				214,628
			58,904,088				-				11,527,330				7,647,908
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(18,815,771	)			-				(3,380,021	)			(2,451,049	)
Other partners			(2,061,233	)			-				(1,074,081	)			31,631
			(20,877,004	)			-				(4,454,102	)			(2,419,418	)
		$	38,027,084			$	-			$	7,073,228			$	5,228,490

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2014 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 

		Series 11				Series 12				Series 14
ASSETS
Buildings and improvements, net of accumulated depreciation		$	4,789,805			$	3,545,019			$	8,231,049
Land			902,299				658,703				1,280,327
Other assets			2,351,427				1,318,581				2,648,156
		$	8,043,531			$	5,522,303			$	12,159,532
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	11,714,221			$	8,561,820			$	16,482,327
Accounts payable and accrued expenses			140,312				217,123				243,340
Other liabilities			785,504				854,304				729,899
			12,640,037				9,633,247				17,455,566
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(4,177,690	)			(3,576,867	)			(5,230,144	)
Other partners			(418,816	)			(534,077	)			(65,890	)
			(4,596,506	)			(4,110,944	)			(5,296,034	)
		$	8,043,531			$	5,522,303			$	12,159,532

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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, 2015 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2015 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2015

 

		Total				Series 7				Series 9				Series 10
Revenue
Rental		$	6,899,588			$	-			$	1,598,055			$	-
Interest and other			94,458				-				35,331				-
			6,994,046				-				1,633,386				-
Expenses
Interest			586,582				-				150,150				-
Depreciation and amortization			1,653,769				-				394,963				-
Taxes and insurance			831,714				-				210,120				-
Repairs and maintenance			2,033,582				-				478,409				-
Operating expenses			2,725,903				-				548,689				-
Other expenses			119,208				-				36,993				-
			7,950,758				-				1,819,324				-
NET INCOME (LOSS)		$	(956,712	)		$	-			$	(185,938	)		$	-
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*		$	(955,583	)		$	-			$	(176,998	)		$	-
Net income (loss) allocated to other partners		$	(1,129	)		$	-			$	(8,940	)		$	-

 

*

Amounts include $0, $176,998, $0, $218,800, $155,676 and $404,109 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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, 2015 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2015 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

 

Year ended December 31, 2015

 

		Series 11				Series 12				Series 14
Revenue
Rental		$	1,934,014			$	1,143,534			$	2,223,985
Interest and other			21,906				10,940				26,281
			1,955,920				1,154,474				2,250,266
Expenses
Interest			164,737				87,659				184,036
Depreciation and amortization			436,354				262,514				559,938
Taxes and insurance			251,966				109,196				260,432
Repairs and maintenance			470,632				362,835				721,706
Operating expenses			795,177				499,439				882,598
Other expenses			20,389				33,754				28,072
			2,139,255				1,355,397				2,636,782
NET INCOME (LOSS)		$	(183,335	)		$	(200,923	)		$	(386,516	)
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*		$	(218,800	)		$	(155,676	)		$	(404,109	)
Net income (loss) allocated to other partners		$	35,465			$	(45,247	)		$	17,593

 

*

Amounts include $0, $176,998, $0, $218,800, $155,676 and $404,109 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2014 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2014

 

		Total				Series 7				Series 9				Series 10
Revenue
Rental		$	10,991,466			$	-			$	1,785,676			$	1,247,397
Interest and other			192,277				-				34,716				58,946
			11,183,743				-				1,820,392				1,306,343
Expenses
Interest			1,261,533				-				183,715				135,754
Depreciation and amortization			2,570,330				-				451,567				299,409
Taxes and insurance			1,473,141				-				243,136				213,138
Repairs and maintenance			2,715,059				-				439,257				288,903
Operating expenses			3,964,853				-				599,676				446,909
Other expenses			266,580				-				44,394				31,039
			12,251,496				-				1,961,745				1,415,152
NET INCOME (LOSS)		$	(1,067,753	)		$	-			$	(141,353	)		$	(108,809	)
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*		$	(1,061,168	)		$	-			$	(121,230	)		$	(112,480	)
Net income (loss) allocated to other partners		$	(6,585	)		$	-			$	(20,123	)		$	3,671

 

*

Amounts include $0, $121,230, $112,480, $243,525, $128,085 and $455,848 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2014 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

 

Year ended December 31, 2014

 

		Series 11				Series 12				Series 14
Revenue
Rental		$	2,568,615			$	1,821,202			$	3,568,576
Interest and other			28,801				19,558				50,256
			2,597,416				1,840,760				3,618,832
Expenses
Interest			345,347				267,908				328,809
Depreciation and amortization			605,225				427,501				786,628
Taxes and insurance			367,627				228,491				420,749
Repairs and maintenance			616,388				401,814				968,697
Operating expenses			923,086				620,764				1,374,418
Other expenses			26,446				37,782				126,919
			2,884,119				1,984,260				4,006,220
NET INCOME (LOSS)		$	(286,703	)		$	(143,500	)		$	(387,388	)
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*		$	(243,525	)		$	(128,085	)		$	(455,848	)
Net income (loss) allocated to other partners		$	(43,178	)		$	(15,415	)		$	68,460

 

*

Amounts include $0, $121,230, $112,480, $243,525, $128,085 and $455,848 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2016 is reconciled as follows:

 

		Total				Series 7				Series 9				Series 10
Net income (loss) for financial reporting purposes, March 31, 2016		$	1,007,272			$	-			$	(89,280	)		$	(848	)
Operating limited partnership rents received in advance			209				-				-				-
Accrued partnership management fees not recognized (recognized) for tax purposes			(1,575,438	)			-				60,100				(204,884	)
Other			4,188,126				-				701,152				-
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(955,583	)			-				(176,998	)			-
Excess of tax depreciation over book depreciation on operating limited partnership assets			(254,111	)			-				(98,612	)			-
Difference due to fiscal year for book purposes and calendar year for tax purposes			1,159,884				-				(2,579	)			3,346,443
Income (loss) for tax return purposes, December 31, 2015		$	3,570,359			$	-			$	393,783			$	3,140,711

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2016 is reconciled as follows:

 

		Series 11				Series 12				Series 14
Net income (loss) for financial reporting purposes, March 31, 2016		$	474,935			$	354,698			$	267,767
Operating limited partnership rents received in advance			-				209				-
Accrued partnership management fees not recognized (recognized) for tax purposes			(508,153	)			(340,122	)			(582,379	)
Other			1,376,652				665,037				1,445,285
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(218,800	)			(155,676	)			(404,109	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(46,650	)			(56,883	)			(51,966	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(1,007,795	)			(459,811	)			(716,374	)
Income (loss) for tax return purposes, December 31, 2015		$	70,189			$	7,452			$	(41,776	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2015 is reconciled as follows:

 

		Total				Series 7				Series 9				Series 10
Net income (loss) for financial reporting purposes, March 31, 2015		$	4,148,771			$	-			$	(29,822	)		$	344,687
Operating limited partnership rents received in advance			-				-				-				-
Accrued partnership management fees not recognized (recognized) for tax purposes			(3,566,927	)			-				72,387				(285,273	)
Other			8,642,826				-				820,101				585,933
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(1,061,168	)			-				(121,230	)			(112,480	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(442,211	)			-				(77,208	)			(86,727	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(3,351,614	)			-				(73,560	)			(72,124	)
Income (loss) for tax return purposes, December 31, 2014		$	4,369,677			$	-			$	590,668			$	374,016

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2015 is reconciled as follows:

 

		Series 11				Series 12				Series 14
Net income (loss) for financial reporting purposes, March 31, 2015		$	508,332			$	(10,347	)		$	3,335,921
Operating limited partnership rents received in advance			-				-				-
Accrued partnership management fees not recognized (recognized) for tax purposes			(452,593	)			(126,844	)			(2,774,604	)
Other			1,590,290				985,561				4,660,941
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(243,525	)			(128,085	)			(455,848	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(54,059	)			(58,987	)			(165,230	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(119,598	)			(44,521	)			(3,041,811	)
Income (loss) for tax return purposes, December 31, 2014		$	1,228,847			$	616,777			$	1,559,369

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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, 2016 are as follows:

 

		Total				Series 7				Series 9				Series 10
Investments in operating limited partnerships - tax return December 31, 2015		$	(22,146,284	)		$	-			$	(4,704,375	)		$	-
Add back losses not recognized under the equity method			15,478,802				-				3,498,254				-
Impairment loss in investments in operating limited partnerships			(1,213,519	)			-				(151,618	)			-
Less share of loss - three months ended March 31, 2016			(207,384	)			-				-				-
Other			8,088,385				-				1,357,739				-
Investments in operating limited partnerships - as reported, March 31, 2016		$	-			$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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, 2016 are as follows:

 

		Series 11				Series 12				Series 14
Investments in operating limited partnerships - tax return December 31, 2015		$	(5,612,896	)		$	(4,268,732	)		$	(7,560,281	)
Add back losses not recognized under the equity method			3,676,316				3,182,099				5,122,133
Impairment loss in investments in operating limited partnerships			(34,628	)			-				(1,027,273	)
Less share of loss - three months ended March 31, 2016			-				(62,808	)			(144,576	)
Other			1,971,208				1,149,441				3,609,997
Investments in operating limited partnerships - as reported, March 31, 2016		$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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:

 

		Total				Series 7				Series 9				Series 10
Investments in operating limited partnerships - tax return December 31, 2014		$	(26,329,293	)		$	-			$	(5,128,323	)		$	(3,369,595	)
Add back losses not recognized under the equity method			20,593,550				-				3,615,838				2,630,032
Impairment loss in investments in operating limited partnerships			(1,350,529	)			-				(151,618	)			(80,832	)
Less share of loss - three months ended March 31, 2015			(311,421	)			-				-				-
Other			7,397,693				-				1,664,103				820,395
Investments in operating limited partnerships - as reported, March 31, 2015		$	-			$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

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 11				Series 12				Series 14
Investments in operating limited partnerships - tax return December 31, 2014		$	(5,823,920	)		$	(4,406,383	)		$	(7,601,072	)
Add back losses not recognized under the equity method			4,489,063				3,748,794				6,109,823
Impairment loss in investments in operating limited partnerships			(34,628	)			-				(1,083,451	)
Less share of loss - three months ended March 31, 2015			-				(115,443	)			(195,978	)
Other			1,369,485				773,032				2,770,678
Investments in operating limited partnerships - as reported, March 31, 2015		$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2016 and 2015

 

NOTE E - CONCENTRATION OF CREDIT RISK

 

The Partnership maintains its cash and cash equivalent balances in several accounts in various financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits by each institution. At times, the balances may exceed these insurance limits; however, the Partnership has not experienced any losses with respect to its balances in excess of FDIC insurance. Management believes that no significant concentration of credit risk with respect to these cash and cash equivalent balances exists as of March 31, 2016.

 

NOTE F - FAIR VALUE OF FINANCIAL INSTRUMENTS

 

As of March 31, 2016, the Partnership’s financial instruments relate to accounts payable - affiliates. Management has not disclosed the fair value of the financial instruments because determination of such fair value is deemed to be impractical. The accounts payable - affiliates are owed to affiliates of the Partnership. The unique nature of these financial instruments makes determination of any fair value impractical. See note B for disclosure of the carrying amount and terms of these financial instruments.