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

Attached files

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EX-32.B - EXHIBIT 32.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v441480_ex32b.htm
EX-32.A - EXHIBIT 32.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v441480_ex32a.htm
EX-31.B - EXHIBIT 31.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v441480_ex31b.htm
EX-31.A - EXHIBIT 31.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v441480_ex31a.htm
10-K - FORM 10-K - BOSTON CAPITAL TAX CREDIT FUND III L P	v441480_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, 2016 AND 2015

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, 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 III Limited Partnership - Series 15 through Series 19, 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

F-3

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS

March 31, 2016 and 2015

	Total
	2016			2015
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	1,783,433		$	2,523,234
Other assets		-			357,489

	$	1,783,433		$	2,880,723

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	60,728		$	28,234
Accounts payable - affiliates		15,273,764			16,781,463
Capital contributions payable		76,455			76,455

		15,410,947			16,886,152

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, 2016 and 2015		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,902,747 and 21,936,787 outstanding at March 31, 2016 and 2015, respectively		(11,735,510	)		(12,054,726	)
General partner		(1,892,004	)		(1,950,703	)

		(13,627,514	)		(14,005,429	)

	$	1,783,433		$	2,880,723

(continued)

F-4

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2016 and 2015

	Series 15
	2016			2015
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	116,858		$	414,859
Other assets		-			-

	$	116,858		$	414,859

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	12,744		$	6,246
Accounts payable - affiliates		3,004,401			3,695,825
Capital contributions payable		-			-

		3,017,145			3,702,071

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, 2016 and 2015		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued 3,848,900 and 3,858,400 outstanding at March 31, 2016 and 2015, respectively		(2,549,095	)		(2,932,151	)
General partner		(351,192	)		(355,061	)

		(2,900,287	)		(3,287,212	)

	$	116,858		$	414,859

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2016 and 2015

	Series 16
	2016			2015
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	381,450		$	221,108
Other assets		-			-

	$	381,450		$	221,108

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	10,987		$	4,488
Accounts payable - affiliates		8,130,679			8,036,400
Capital contributions payable		50,008			50,008

		8,191,674			8,090,896

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, 2016 and 2015		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,404,500 and 5,411,800 outstanding at March 31, 2016 and 2015, respectively		(7,265,514	)		(7,324,482	)
General partner		(544,710	)		(545,306	)

		(7,810,224	)		(7,869,788	)

	$	381,450		$	221,108

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2016 and 2015

	Series 17
	2016			2015
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	640,398		$	197,779
Other assets		-			2,200

	$	640,398		$	199,979

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	16,499		$	10,000
Accounts payable - affiliates		-			685,587
Capital contributions payable		7,893			7,893

		24,392			703,480

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, 2016 and 2015		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued 4,972,947 and 4,980,687 outstanding at March 31, 2016 and 2015, respectively		982,053			(81,517	)
General partner		(366,047	)		(421,984	)

		616,006			(503,501	)

	$	640,398		$	199,979

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2016 and 2015

	Series 18
	2016			2015
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	353,832		$	306,518
Other assets		-			355,289

	$	353,832		$	661,807

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	6,499		$	-
Accounts payable - affiliates		4,138,684			4,363,651
Capital contributions payable		18,554			18,554

		4,163,737			4,382,205

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, 2016 and 2015		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued 3,605,200 and 3,612,200 outstanding at March 31, 2016 and 2015, respectively		(3,461,578	)		(3,372,966	)
General partner		(348,327	)		(347,432	)

		(3,809,905	)		(3,720,398	)

	$	353,832		$	661,807

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2016 and 2015

	Series 19
	2016			2015
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	290,895		$	1,382,970
Other assets		-			-

	$	290,895		$	1,382,970

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	13,999		$	7,500
Accounts payable - affiliates		-			-
Capital contributions payable		-			-

		13,999			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, 2016 and 2015		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued 4,071,200 and 4,073,700 outstanding at March 31, 2016 and 2015, respectively		558,624			1,656,390
General partner		(281,728	)		(280,920	)

		276,896			1,375,470

	$	290,895		$	1,382,970

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, 2016 and 2015

	Total
	2016		2015
Income
Interest income	$	8,297	$	4,073
Other income		60,748		35,525

Total income		69,045		39,598

Share of income from operating limited partnerships		6,416,089		3,170,953

Expenses
Professional fees		243,551		148,554
Partnership management fee		248,919		360,887
General and administrative expenses		122,754		105,035

		615,224		614,476

NET INCOME (LOSS)	$	5,869,910	$	2,596,075

Net income (loss) allocated to general partner	$	58,699	$	25,961

Net income (loss) allocated to limited partners	$	5,811,211	$	2,570,114

Net income (loss) per BAC	$	0.27	$	0.12

(continued)

F-10

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2016 and 2015

	Series 15
	2016			2015
Income
Interest income	$	831		$	601
Other income		321			321

Total income		1,152			922

Share of income from operating limited partnerships		465,691			700,342

Expenses
Professional fees		91,209			29,830
Partnership management fee		(34,839	)		60,456
General and administrative expenses		23,548			20,017

		79,918			110,303

NET INCOME (LOSS)	$	386,925		$	590,961

Net income (loss) allocated to general partner	$	3,869		$	5,910

Net income (loss) allocated to limited partners	$	383,056		$	585,051

Net income (loss) per BAC	$	0.10		$	0.15

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2016 and 2015

	Series 16
	2016		2015
Income
Interest income	$	648	$	503
Other income		401		861

Total income		1,049		1,364

Share of income from operating limited partnerships		243,000		254,999

Expenses
Professional fees		44,634		35,237
Partnership management fee		110,286		192,900
General and administrative expenses		29,565		24,941

		184,485		253,078

NET INCOME (LOSS)	$	59,564	$	3,285

Net income (loss) allocated to general partner	$	596	$	33

Net income (loss) allocated to limited partners	$	58,968	$	3,252

Net income (loss) per BAC	$	0.01	$	0.00

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2016 and 2015

	Series 17
	2016		2015
Income
Interest income	$	4,537	$	789
Other income		20,320		4,080

Total income		24,857		4,869

Share of income from operating limited partnerships		5,692,104		1,138,960

Expenses
Professional fees		35,996		34,927
Partnership management fee		61,150		156,575
General and administrative expenses		26,113		21,632

		123,259		213,134

NET INCOME (LOSS)	$	5,593,702	$	930,695

Net income (loss) allocated to general partner	$	55,937	$	9,307

Net income (loss) allocated to limited partners	$	5,537,765	$	921,388

Net income (loss) per BAC	$	1.11	$	0.18

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2016 and 2015

	Series 18
	2016			2015
Income
Interest income	$	484		$	418
Other income		39,558			30,180

Total income		40,042			30,598

Share of income from operating limited partnerships		15,294			571,930

Expenses
Professional fees		43,022			27,332
Partnership management fee		80,498			67,583
General and administrative expenses		21,323			17,977

		144,843			112,892

NET INCOME (LOSS)	$	(89,507	)	$	489,636

Net income (loss) allocated to general partner	$	(895	)	$	4,896

Net income (loss) allocated to limited partners	$	(88,612	)	$	484,740

Net income (loss) per BAC	$	(0.02	)	$	0.13

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2016 and 2015

	Series 19
	2016			2015
Income
Interest income	$	1,797		$	1,762
Other income		148			83

Total income		1,945			1,845

Share of income from operating limited partnerships		-			504,722

Expenses
Professional fees		28,690			21,228
Partnership management fee		31,824			(116,627	)
General and administrative expenses		22,205			20,468

		82,719			(74,931	)

NET INCOME (LOSS)	$	(80,774	)	$	581,498

Net income (loss) allocated to general partner	$	(808	)	$	5,815

Net income (loss) allocated to limited partners	$	(79,966	)	$	575,683

Net income (loss) per BAC	$	(0.02	)	$	0.14

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, 2016 and 2015

	Limited			General
Total	partners			partner			Total

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	)

Distributions to partners		(5,491,995	)		-			(5,491,995	)

Net income (loss)		5,811,211			58,699			5,869,910

Partners’ capital (deficit), March 31, 2016	$	(11,735,510	)	$	(1,892,004	)	$	(13,627,514	)

(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, 2016 and 2015

	Limited			General
Series 15	partners			partner			Total

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	)

Distributions to partners		-			-			-

Net income (loss)		383,056			3,869			386,925

Partners’ capital (deficit), March 31, 2016	$	(2,549,095	)	$	(351,192	)	$	(2,900,287	)

(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, 2016 and 2015

	Limited			General
Series 16	partners			partner			Total

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	)

Distributions to partners		-			-			-

Net income (loss)		58,968			596			59,564

Partners’ capital (deficit), March 31, 2016	$	(7,265,514	)	$	(544,710	)	$	(7,810,224	)

(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, 2016 and 2015

	Limited			General
Series 17	partners			partner			Total

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	)

Distributions to partners		(4,474,195	)		-			(4,474,195	)

Net income (loss)		5,537,765			55,937			5,593,702

Partners’ capital (deficit), March 31, 2016	$	982,053		$	(366,047	)	$	616,006

(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, 2016 and 2015

	Limited			General
Series 18	partners			partner			Total

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	)

Distributions to partners		-			-			-

Net income (loss)		(88,612	)		(895	)		(89,507	)

Partners’ capital (deficit), March 31, 2016	$	(3,461,578	)	$	(348,327	)	$	(3,809,905	)

(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, 2016 and 2015

	Limited			General
Series 19	partners			partner			Total

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

Distributions to partners		(1,017,800	)		-			(1,017,800	)

Net income (loss)		(79,966	)		(808	)		(80,774	)

Partners’ capital (deficit), March 31, 2016	$	558,624		$	(281,728	)	$	276,896

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, 2016 and 2015

	Total
	2016			2015
Cash flows from operating activities
Net income (loss)	$	5,869,910		$	2,596,075
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(6,416,089	)		(3,170,953	)
Changes in assets and liabilities
Other assets		52,200			(50,000	)
Accounts payable and accrued expenses		32,494			5,000
Accounts payable - affiliates		(1,507,699	)		(2,008,044	)

Net cash provided by (used in) operating activities		(1,969,184	)		(2,627,922	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		6,721,378			2,856,845

Net cash provided by investing activities		6,721,378			2,856,845

Cash flows from financing activities
Distributions to partners		(5,491,995	)		-

Net cash used in financing activities		(5,491,995	)		-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(739,801	)		228,923

Cash and cash equivalents, beginning		2,523,234			2,294,311

Cash and cash equivalents, end	$	1,783,433		$	2,523,234

(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, 2016 and 2015

	Series 15
	2016			2015
Cash flows from operating activities
Net income (loss)	$	386,925		$	590,961
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(465,691	)		(700,342	)
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		6,498			5,000
Accounts payable - affiliates		(691,424	)		(342,524	)

Net cash provided by (used in) operating activities		(763,692	)		(446,905	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		465,691			700,342

Net cash provided by investing activities		465,691			700,342

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(298,001	)		253,437

Cash and cash equivalents, beginning		414,859			161,422

Cash and cash equivalents, end	$	116,858		$	414,859

(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, 2016 and 2015

	Series 16
	2016			2015
Cash flows from operating activities
Net income (loss)	$	59,564		$	3,285
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(243,000	)		(254,999	)
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		6,499			-
Accounts payable - affiliates		94,279			40,901

Net cash provided by (used in) operating activities		(82,658	)		(210,813	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		243,000			254,999

Net cash provided by investing activities		243,000			254,999

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		160,342			44,186

Cash and cash equivalents, beginning		221,108			176,922

Cash and cash equivalents, end	$	381,450		$	221,108

(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, 2016 and 2015

	Series 17
	2016			2015
Cash flows from operating activities
Net income (loss)	$	5,593,702		$	930,695
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(5,692,104	)		(1,138,960	)
Changes in assets and liabilities
Other assets		2,200			-
Accounts payable and accrued expenses		6,499			-
Accounts payable - affiliates		(685,587	)		(1,523,273	)

Net cash provided by (used in) operating activities		(775,290	)		(1,731,538	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		5,692,104			1,130,141

Net cash provided by investing activities		5,692,104			1,130,141

Cash flows from financing activities
Distributions to partners		(4,474,195	)		-

Net cash used in financing activities		(4,474,195	)		-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		442,619			(601,397	)

Cash and cash equivalents, beginning		197,779			799,176

Cash and cash equivalents, end	$	640,398		$	197,779

(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, 2016 and 2015

	Series 18
	2016			2015
Cash flows from operating activities
Net income (loss)	$	(89,507	)	$	489,636
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(15,294	)		(571,930	)
Changes in assets and liabilities
Other assets		50,000			(50,000	)
Accounts payable and accrued expenses		6,499			-
Accounts payable - affiliates		(224,967	)		(183,148	)

Net cash provided by (used in) operating activities		(273,269	)		(315,442	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		320,583			266,641

Net cash provided by investing activities		320,583			266,641

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		47,314			(48,801	)

Cash and cash equivalents, beginning		306,518			355,319

Cash and cash equivalents, end	$	353,832		$	306,518

(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, 2016 and 2015

	Series 19
	2016			2015
Cash flows from operating activities
Net income (loss)	$	(80,774	)	$	581,498
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		6,499			-
Accounts payable - affiliates		-			-

Net cash provided by (used in) operating activities		(74,275	)		76,776

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		(1,017,800	)		-

Net cash used in financing activities		(1,017,800	)		-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(1,092,075	)		581,498

Cash and cash equivalents, beginning		1,382,970			801,472

Cash and cash equivalents, end	$	290,895		$	1,382,970

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, 2016 and 2015

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, 2016 and 2015

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

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 15		3,870,500		3,870,500		3,848,900		3,858,400
Series 16		5,429,402		5,429,402		5,404,500		5,411,800
Series 17		5,000,000		5,000,000		4,972,947		4,980,687
Series 18		3,616,200		3,616,200		3,605,200		3,612,200
Series 19		4,080,000		4,080,000		4,071,200		4,073,700
		21,996,102		21,996,102		21,902,747		21,936,787

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, 2016 and 2015

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:

	2016		2015
Series 15	$	12,394	$	35,843
Series 16		246		246
Series 17		-		11,292
Series 18		24,343		40,468
Series 19		25,120		25,120
	$	62,103	$	112,969

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, 2016 and 2015, 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, 2016 and 2015

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

F-32

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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 2012 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, 2016 and 2015 are as follows:

	2016		2015
Series 15		3,856,025		3,864,025
Series 16		5,409,975		5,420,277
Series 17		4,978,752		4,992,087
Series 18		3,610,450		3,615,200
Series 19		4,073,075		4,078,425
		21,928,277		21,970,014

F-33

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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

Plan of Liquidation and Dissolution

On June 1, 2016, 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. We expect to complete the sale of the apartment complexes approximately three to five years after the BAC holders approval of the Plan, which was June 1, 2016. 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.

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2016 and 2015, 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, 2016 and 2015, 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, 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 15	$	52,742	$	87,581	$	(34,839	)
Series 16		176,280		65,994		110,286
Series 17		106,247		45,097		61,150
Series 18		95,616		15,118		80,498
Series 19		35,172		3,348		31,824
	$	466,057	$	217,138	$	248,919

	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

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

	2016		2015
Series 15	$	744,166	$	442,613
Series 16		82,001		172,998
Series 17		156,472		1,700,355
Series 18		320,583		341,641
Series 19		35,172		52,123
	$	1,338,394	$	2,709,730

F-35

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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, 2016 and 2015, total partnership management fees accrued were $15,273,764 and $16,146,101, 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, 2016 and 2015 there were no advances, and $635,362 was repaid to an affiliate of the general partner of the Fund during the year ended March 31, 2016. The total advances from the affiliate of the general partner to the Operating Partnerships as of March 31, 2016 and 2015 are as follows:

	2016		2015
Series 15	$	-	$	-
Series 16		-		-
Series 17		-		635,362
Series 18		-		-
Series 19		-		-
	$	-	$	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, 2016 and 2015 charged to each series’ operations are as follows:

	2016		2015
Series 15	$	16,250	$	12,839
Series 16		18,952		15,146
Series 17		16,959		13,178
Series 18		20,942		11,767
Series 19		15,253		12,937
	$	88,356	$	65,867

F-36

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

Accounts payable - affiliates at March 31, 2016 and 2015 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, 2016 and 2015, 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, 2016 and 2015 by series are as follows:

	2016		2015
Series 15		14		18
Series 16		20		21
Series 17		9		13
Series 18		12		12
Series 19		6		6
		61		70

F-37

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

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 Fund disposed of nine operating limited partnerships and the Fund received additional proceeds from one operating limited partnership disposed of in the prior year.

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 15		3		1	$	465,691	$	465,691
Series 16		1		-		243,000		243,000
Series 17		3		1		5,692,104		5,692,104
Series 18		-		-		320,583		15,294
Series 19		-		-		-		-
Total		7		2	$	6,721,378	$	6,416,089

* Fund proceeds from disposition include $305,289 which was receivable as of March 31,

2015 for Series 18.

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.

F-38

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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, 2016 and 2015 by series are as follows:

	2016		2015
Series 15	$	-	$	-
Series 16		50,008		50,008
Series 17		7,893		7,893
Series 18		18,554		18,554
Series 19		-		-
	$	76,455	$	76,455

F-39

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2016 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	$	23,352,308		$	3,950,299		$	8,042,810

Acquisition costs of operating limited partnerships		3,125,005			564,428			1,016,280

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

Cumulative distributions from operating limited partnerships		(62,998	)		(3,252	)		(12,055	)

Cumulative impairment loss in investment in operating limited partnerships		(3,397,130	)		(189,424	)		(1,326,748	)

Cumulative losses from operating limited partnerships		(22,980,730	)		(4,322,051	)		(7,720,287	)

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, 2016 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2015 (see note A)		(188,624	)		(14,246	)		(93,920	)

The Fund 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)		(407,477	)		(52,671	)		(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)		437,128			48,582			-

F-40

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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)		(27,468,772	)		(5,078,894	)		(9,143,256	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		142,774			53,151			71,626

Cumulative impairment loss in investment in operating limited partnerships		3,397,130			189,424			1,326,748

Other		(57,517	)		(77,698	)		289,887

Equity per operating limited partnerships’ combined financial statements	$	(24,145,358	)	$	(4,932,352	)	$	(7,668,936	)

F-41

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2016 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	$	3,742,894		$	5,630,054		$	1,986,251

Acquisition costs of operating limited partnerships		508,772			777,180			258,345

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

Cumulative distributions from operating limited partnerships		(16,559	)		(27,368	)		(3,764	)

Cumulative impairment loss in investment in operating limited partnerships		(606,894	)		(963,351	)		(310,713	)

Cumulative losses from operating limited partnerships		(3,628,213	)		(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, 2016 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2015 (see note A)		(55,606	)		(5,588	)		(19,264	)

The Fund 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)		(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)		132,121			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, 2016 and 2015

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)		(4,426,234	)		(5,555,949	)		(3,264,439	)

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		606,894			963,351			310,713

Other		(14,211	)		(203,969	)		(51,526	)

Equity per operating limited partnerships’ combined financial statements	$	(3,957,718	)	$	(4,553,275	)	$	(3,033,077	)

F-43

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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-44

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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-45

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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-46

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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-47

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 at December 31, 2015 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS

Buildings and improvements, net of accumulated depreciation	$	29,568,305		$	4,806,190		$	11,930,712

Land		3,903,489			684,856			1,288,687

Other assets		10,795,084			2,285,357			5,278,428

	$	44,266,878		$	7,776,403		$	18,497,827

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	60,384,689		$	12,126,820		$	21,602,240

Accounts payable and accrued expenses		5,192,518			206,977			3,687,571

Other liabilities		2,831,188			246,198			713,482

		68,408,395			12,579,995			26,003,293
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(24,145,358	)		(4,932,352	)		(7,668,936	)
Other partners		3,841			128,760			163,470

		(24,141,517	)		(4,803,592	)		(7,505,466	)

	$	44,266,878		$	7,776,403		$	18,497,827

F-48

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 at December 31, 2015 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS

Buildings and improvements, net of accumulated depreciation	$	5,080,072		$	5,800,183		$	1,951,148

Land		803,500			856,966			269,480

Other assets		1,471,554			1,226,998			532,747

	$	7,355,126		$	7,884,147		$	2,753,375

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	10,083,602		$	11,609,745		$	4,962,282

Accounts payable and accrued expenses		671,726			399,968			226,276

Other liabilities		613,348			637,481			620,679

		11,368,676			12,647,194			5,809,237
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(3,957,718	)		(4,553,275	)		(3,033,077	)
Other partners		(55,832	)		(209,772	)		(22,785	)

		(4,013,550	)		(4,763,047	)		(3,055,862	)

	$	7,355,126		$	7,884,147		$	2,753,375

F-49

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 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-50

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 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-51

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	11,658,113		$	2,327,630		$	4,340,062
Interest and other		235,310			53,301			74,305

		11,893,423			2,380,931			4,414,367
Expenses
Interest		1,563,789			313,200			639,443
Depreciation and amortization		3,046,486			567,614			1,100,806
Taxes and insurance		1,438,962			271,110			506,221
Repairs and maintenance		2,987,124			589,873			1,153,404
Operating expenses		4,895,146			1,018,576			1,715,871
Other expenses		481,170			13,440			409,866

		14,412,677			2,773,813			5,525,611

NET LOSS	$	(2,519,254	)	$	(392,882	)	$	(1,111,244	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(2,484,936	)	$	(400,421	)	$	(1,077,035	)

Net Income (Loss) allocated to other partners	$	(34,318	)	$	7,539		$	(34,209	)

Amounts include $400,421, $1,077,035, $347,353, $510,849, and $149,278 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, 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 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	2,108,018		$	2,138,321		$	744,082
Interest and other		31,733			52,578			23,393

		2,139,751			2,190,899			767,475
Expenses
Interest		214,868			311,058			85,220
Depreciation and amortization		657,895			554,454			165,717
Taxes and insurance		250,360			308,858			102,413
Repairs and maintenance		449,230			594,393			200,224
Operating expenses		911,272			885,941			363,486
Other expenses		12,000			44,664			1,200

		2,495,625			2,699,368			918,260

NET LOSS	$	(355,874	)	$	(508,469	)	$	(150,785	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(347,353	)	$	(510,849	)	$	(149,278	)

Net Income (Loss) allocated to other partners	$	(8,521	)	$	2,380		$	(1,507	)

F-53

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 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-54

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 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-55

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 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, 2016 is reconciled as follows:

	Total			Series 15			Series 16

Net income (loss) for financial reporting purposes	$	5,869,910		$	386,925		$	59,564

Operating limited partnership rents received in advance		41			(1,731	)		-

Accrued fund management fees not deducted (deducted) for tax purposes		(872,337	)		(691,424	)		94,279

Other		9,102,061			2,146,122			449,774

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(2,484,936	)		(400,421	)		(1,077,035	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(432,684	)		(63,505	)		(156,524	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(6,236,798	)		38,200			(408,306	)

Income (loss) for tax return purposes, year ended December 31, 2015	$	4,945,257		$	1,414,166		$	(1,038,248	)

F-56

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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	$	5,593,702		$	(89,507	)	$	(80,774	)

Operating limited partnership rents received in advance		(1,474	)		2,767			479

Accrued fund management fees not deducted (deducted) for tax purposes		(50,225	)		(224,967	)		-

Other		6,613,088			(143,620	)		36,697

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(347,353	)		(510,849	)		(149,278	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(20,175	)		(73,921	)		(118,559	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(5,619,894	)		(240,563	)		(6,235	)

Income (loss) for tax return purposes, year ended December 31, 2015	$	6,167,669		$	(1,280,660	)	$	(317,670	)

F-57

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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

	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-58

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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-59

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 15			Series 16

Investments in operating limited partnerships - tax return December 31, 2015	$	(29,261,568	)	$	(5,701,029	)	$	(11,373,043	)

Estimated share of loss for the three months ended March 31, 2016		(437,128	)		(48,582	)		-

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		27,468,772			5,078,894			9,143,256

Impairment loss in investment in operating limited partnerships		(3,397,130	)		(189,424	)		(1,326,748	)

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

Other		301,248			860,141			1,711,699

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, 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 17			Series 18			Series 19

Investments in operating limited partnerships - tax return December 31, 2015	$	(3,872,136	)	$	(5,826,248	)	$	(2,489,112	)

Estimated share of loss for the three months ended March 31, 2016		(132,121	)		(237,589	)		(18,836	)

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		4,426,234			5,555,949			3,264,439

Impairment loss in investment in operating limited partnerships		(606,894	)		(963,351	)		(310,713	)

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

Other		(915,393	)		(591,094	)		(764,105	)

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, 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 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-62

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

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 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-63

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2016 and 2015

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, 2016.

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.

F-64

BOSTON CAPITAL TAX CREDIT FUND III L P - FORM 10-K - EX-13 - EXHIBIT 13 - June 23, 2016

Attached files

BOSTON CAPITAL TAX CREDIT FUND III L P Reports