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

Attached files

file	filename
EX-32.B - EXHIBIT 32.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v468493_ex32b.htm
EX-32.A - EXHIBIT 32.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v468493_ex32a.htm
EX-31.B - EXHIBIT 31.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v468493_ex31b.htm
EX-31.A - EXHIBIT 31.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v468493_ex31a.htm
10-K - FORM 10-K - BOSTON CAPITAL TAX CREDIT FUND III L P	v468493_10k.htm

Exhibit 13

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BOSTON CAPITAL TAX CREDIT FUND III L.P.

SERIES 15 THROUGH SERIES 19

MARCH 31, 2017 AND 2016

Boston Capital Tax Credit Fund III L.P.

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 L.P.

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19 (the "Partnership"), in total and for each series, as of March 31, 2017 and 2016, 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, 2017. 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 L.P. - Series 15 through Series 19, in total and for each series, as of March 31, 2017 and 2016, 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, 2017, in conformity with accounting principles generally accepted in the United States of America.

/s/ CohnReznick LLP

COHNREZNICK LLP

Bethesda, Maryland
June 23, 2017

F-3

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS

March 31, 2017 and 2016

	Total
	2017			2016
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	1,460,257		$	1,783,433

	$	1,460,257		$	1,783,433

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	27,746		$	60,728
Accounts payable - affiliates		15,299,405			15,273,764
Capital contributions payable		26,447			76,455

		15,353,598			15,410,947

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, 2017 and 2016		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,843,147 and 21,902,747 outstanding at March 31, 2017 and 2016, respectively		(11,998,679	)		(11,735,510	)
General partner		(1,894,662	)		(1,892,004	)

		(13,893,341	)		(13,627,514	)

	$	1,460,257		$	1,783,433

(continued)

F-4

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2017 and 2016

	Series 15
	2017			2016
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	64,641		$	116,858

	$	64,641		$	116,858

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	6,246		$	12,744
Accounts payable - affiliates		3,039,294			3,004,401
Capital contributions payable		-			-

		3,045,540			3,017,145

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, 2017 and 2016		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued 3,830,900 and 3,848,900 outstanding at March 31, 2017 and 2016, respectively		(2,628,901	)		(2,549,095	)
General partner		(351,998	)		(351,192	)

		(2,980,899	)		(2,900,287	)

	$	64,641		$	116,858

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2017 and 2016

	Series 16
	2017			2016
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	327,901		$	381,450

	$	327,901		$	381,450

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	10,987
Accounts payable - affiliates		8,025,811			8,130,679
Capital contributions payable		-			50,008

		8,025,811			8,191,674

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, 2017 and 2016		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,392,500 and 5,404,500 outstanding at March 31, 2017 and 2016, respectively		(7,154,323	)		(7,265,514	)
General partner		(543,587	)		(544,710	)

		(7,697,910	)		(7,810,224	)

	$	327,901		$	381,450

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2017 and 2016

	Series 17
	2017			2016
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	559,787		$	640,398

	$	559,787		$	640,398

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	14,000		$	16,499
Accounts payable - affiliates		-			-
Capital contributions payable		7,893			7,893

		21,893			24,392

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, 2017 and 2016		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued 4,962,947 and 4,972,947 outstanding at March 31, 2017 and 2016, respectively		904,722			982,053
General partner		(366,828	)		(366,047	)

		537,894			616,006

	$	559,787		$	640,398

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2017 and 2016

	Series 18
	2017			2016
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	318,027		$	353,832

	$	318,027		$	353,832

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	6,499
Accounts payable - affiliates		4,234,300			4,138,684
Capital contributions payable		18,554			18,554

		4,252,854			4,163,737

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, 2017 and 2016		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued 3,598,100 and 3,605,200 outstanding at March 31, 2017 and 2016, respectively		(3,585,251	)		(3,461,578	)
General partner		(349,576	)		(348,327	)

		(3,934,827	)		(3,809,905	)

	$	318,027		$	353,832

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2017 and 2016

	Series 19
	2017			2016
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	189,901		$	290,895

	$	189,901		$	290,895

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

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

		7,500			13,999

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, 2017 and 2016		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued 4,058,700 and 4,071,200 outstanding at March 31, 2017 and 2016, respectively		465,074			558,624
General partner		(282,673	)		(281,728	)

		182,401			276,896

	$	189,901		$	290,895

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, 2017 and 2016

	Total
	2017			2016
Income
Interest income	$	2,969		$	8,297
Other income		27,005			60,748

Total income		29,974			69,045

Share of income from operating limited partnerships		402,562			6,416,089

Expenses
Professional fees		152,076			243,551
Partnership management fee		333,848			248,919
General and administrative expenses		212,439			122,754

		698,363			615,224

NET INCOME (LOSS)	$	(265,827	)	$	5,869,910

Net income (loss) allocated to general partner	$	(2,658	)	$	58,699

Net income (loss) allocated to limited partners	$	(263,169	)	$	5,811,211

Net income (loss) per BAC	$	(0.01	)	$	0.26

(continued)

F-10

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2017 and 2016

	Series 15
	2017			2016
Income
Interest income	$	279		$	831
Other income		321			321

Total income		600			1,152

Share of income from operating limited partnerships		16,000			465,691

Expenses
Professional fees		32,907			91,209
Partnership management fee		24,931			(34,839	)
General and administrative expenses		39,374			23,548

		97,212			79,918

NET INCOME (LOSS)	$	(80,612	)	$	386,925

Net income (loss) allocated to general partner	$	(806	)	$	3,869

Net income (loss) allocated to limited partners	$	(79,806	)	$	383,056

Net income (loss) per BAC	$	(0.02	)	$	0.10

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2017 and 2016

	Series 16
	2017		2016
Income
Interest income	$	1,031	$	648
Other income		603		401

Total income		1,634		1,049

Share of income from operating limited partnerships		316,084		243,000

Expenses
Professional fees		33,916		44,634
Partnership management fee		120,878		110,286
General and administrative expenses		50,610		29,565

		205,404		184,485

NET INCOME (LOSS)	$	112,314	$	59,564

Net income (loss) allocated to general partner	$	1,123	$	596

Net income (loss) allocated to limited partners	$	111,191	$	58,968

Net income (loss) per BAC	$	0.02	$	0.01

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2017 and 2016

	Series 17
	2017			2016
Income
Interest income	$	1,104		$	4,537
Other income		7,500			20,320

Total income		8,604			24,857

Share of income from operating limited partnerships		70,478			5,692,104

Expenses
Professional fees		35,993			35,996
Partnership management fee		75,151			61,150
General and administrative expenses		46,050			26,113

		157,194			123,259

NET INCOME (LOSS)	$	(78,112	)	$	5,593,702

Net income (loss) allocated to general partner	$	(781	)	$	55,937

Net income (loss) allocated to limited partners	$	(77,331	)	$	5,537,765

Net income (loss) per BAC	$	(0.02	)	$	1.11

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2017 and 2016

	Series 18
	2017			2016
Income
Interest income	$	248		$	484
Other income		16,933			39,558

Total income		17,181			40,042

Share of income from operating limited partnerships		-			15,294

Expenses
Professional fees		26,654			43,022
Partnership management fee		79,966			80,498
General and administrative expenses		35,483			21,323

		142,103			144,843

NET INCOME (LOSS)	$	(124,922	)	$	(89,507	)

Net income (loss) allocated to general partner	$	(1,249	)	$	(895	)

Net income (loss) allocated to limited partners	$	(123,673	)	$	(88,612	)

Net income (loss) per BAC	$	(0.03	)	$	(0.02	)

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2017 and 2016

	Series 19
	2017			2016
Income
Interest income	$	307		$	1,797
Other income		1,648			148

Total income		1,955			1,945

Share of income from operating limited partnerships		-			-

Expenses
Professional fees		22,606			28,690
Partnership management fee		32,922			31,824
General and administrative expenses		40,922			22,205

		96,450			82,719

NET INCOME (LOSS)	$	(94,495	)	$	(80,774	)

Net income (loss) allocated to general partner	$	(945	)	$	(808	)

Net income (loss) allocated to limited partners	$	(93,550	)	$	(79,966	)

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

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, 2017 and 2016

	Limited			General
Total	partners			partner			Total

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	)

Net income (loss)		(263,169	)		(2,658	)		(265,827	)

Partners’ capital (deficit), March 31, 2017	$	(11,998,679	)	$	(1,894,662	)	$	(13,893,341	)

(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, 2017 and 2016

	Limited			General
Series 15	partners			partner			Total

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	)

Net income (loss)		(79,806	)		(806	)		(80,612	)

Partners’ capital (deficit), March 31, 2017	$	(2,628,901	)	$	(351,998	)	$	(2,980,899	)

(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, 2017 and 2016

	Limited			General
Series 16	partners			partner			Total

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	)

Net income (loss)		111,191			1,123			112,314

Partners’ capital (deficit), March 31, 2017	$	(7,154,323	)	$	(543,587	)	$	(7,697,910	)

(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, 2017 and 2016

	Limited			General
Series 17	partners			partner			Total

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

Net income (loss)		(77,331	)		(781	)		(78,112	)

Partners’ capital (deficit), March 31, 2017	$	904,722		$	(366,828	)	$	537,894

(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, 2017 and 2016

	Limited			General
Series 18	partners			partner			Total

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	)

Net income (loss)		(123,673	)		(1,249	)		(124,922	)

Partners’ capital (deficit), March 31, 2017	$	(3,585,251	)	$	(349,576	)	$	(3,934,827	)

(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, 2017 and 2016

	Limited			General
Series 19	partners			partner			Total

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

Net income (loss)		(93,550	)		(945	)		(94,495	)

Partners’ capital (deficit), March 31, 2017	$	465,074		$	(282,673	)	$	182,401

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, 2017 and 2016

	Total
	2017			2016
Cash flows from operating activities
Net income (loss)	$	(265,827	)	$	5,869,910
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(402,562	)		(6,416,089	)
Changes in assets and liabilities
Other assets		-			52,200
Accounts payable and accrued expenses		(32,982	)		32,494
Accounts payable - affiliates		25,641			(1,507,699	)

Net cash used in operating activities		(675,730	)		(1,969,184	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		352,554			6,721,378

Net cash provided by investing activities		352,554			6,721,378

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		(323,176	)		(739,801	)

Cash and cash equivalents, beginning		1,783,433			2,523,234

Cash and cash equivalents, end	$	1,460,257		$	1,783,433

(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, 2017 and 2016

	Series 15
	2017			2016
Cash flows from operating activities
Net income (loss)	$	(80,612	)	$	386,925
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(16,000	)		(465,691	)
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		(6,498	)		6,498
Accounts payable - affiliates		34,893			(691,424	)

Net cash used in operating activities		(68,217	)		(763,692	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		16,000			465,691

Net cash provided by investing activities		16,000			465,691

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(52,217	)		(298,001	)

Cash and cash equivalents, beginning		116,858			414,859

Cash and cash equivalents, end	$	64,641		$	116,858

(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, 2017 and 2016

	Series 16
	2017			2016
Cash flows from operating activities
Net income (loss)	$	112,314		$	59,564
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(316,084	)		(243,000	)
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		(10,987	)		6,499
Accounts payable - affiliates		(104,868	)		94,279

Net cash used in operating activities		(319,625	)		(82,658	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		266,076			243,000

Net cash provided by investing activities		266,076			243,000

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(53,549	)		160,342

Cash and cash equivalents, beginning		381,450			221,108

Cash and cash equivalents, end	$	327,901		$	381,450

(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, 2017 and 2016

	Series 17
	2017			2016
Cash flows from operating activities
Net income (loss)	$	(78,112	)	$	5,593,702
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		(70,478	)		(5,692,104	)
Changes in assets and liabilities
Other assets		-			2,200
Accounts payable and accrued expenses		(2,499	)		6,499
Accounts payable - affiliates		-			(685,587	)

Net cash used in operating activities		(151,089	)		(775,290	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		70,478			5,692,104

Net cash provided by investing activities		70,478			5,692,104

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		(80,611	)		442,619

Cash and cash equivalents, beginning		640,398			197,779

Cash and cash equivalents, end	$	559,787		$	640,398

(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, 2017 and 2016

	Series 18
	2017			2016
Cash flows from operating activities
Net income (loss)	$	(124,922	)	$	(89,507	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		-			(15,294	)
Changes in assets and liabilities
Other assets		-			50,000
Accounts payable and accrued expenses		(6,499	)		6,499
Accounts payable - affiliates		95,616			(224,967	)

Net cash used in operating activities		(35,805	)		(273,269	)

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

Net cash provided by investing activities		-			320,583

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activities		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(35,805	)		47,314

Cash and cash equivalents, beginning		353,832			306,518

Cash and cash equivalents, end	$	318,027		$	353,832

(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, 2017 and 2016

	Series 19
	2016			2015
Cash flows from operating activities
Net income (loss)	$	(94,495	)	$	(80,774	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships		-			-
Changes in assets and liabilities
Other assets		-			-
Accounts payable and accrued expenses		(6,499	)		6,499
Accounts payable - affiliates		-			-

Net cash used in operating activities		(100,994	)		(74,275	)

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

Net cash provided by investing activities		-			-

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		(100,994	)		(1,092,075	)

Cash and cash equivalents, beginning		290,895			1,382,970

Cash and cash equivalents, end	$	189,901		$	290,895

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, 2017 and 2016

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, 2017 and 2016

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

The BACs issued and outstanding in each series as of March 31, 2017 and 2016 are as follows:

	Issued				Outstanding
	2017		2016		2017		2016
Series 15		3,870,500		3,870,500		3,830,900		3,848,900
Series 16		5,429,402		5,429,402		5,392,500		5,404,500
Series 17		5,000,000		5,000,000		4,962,947		4,972,947
Series 18		3,616,200		3,616,200		3,598,100		3,605,200
Series 19		4,080,000		4,080,000		4,058,700		4,071,200
		21,996,102		21,996,102		21,843,147		21,902,747

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, 2017 and 2016

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:

	2017		2016
Series 15	$	12,394	$	12,394
Series 16		246		246
Series 17		-		-
Series 18		24,343		24,343
Series 19		25,120		25,120
	$	62,103	$	62,103

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, 2017 and 2016, 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, 2017 and 2016

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, 2017 and 2016

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, 2017 and 2016

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 2013 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, 2017 and 2016 are as follows:

	2017		2016
Series 15		3,844,400		3,856,025
Series 16		5,401,500		5,409,975
Series 17		4,970,447		4,978,752
Series 18		3,603,425		3,610,450
Series 19		4,068,075		4,073,075
		21,887,847		21,928,277

F-33

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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, 2017, 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, 2017 and 2016, 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, 2017 and 2016, 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, 2017 and 2016

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

	2017
	Gross Partnership Management Fee		Asset Management and Reporting Fee		Partnership Management Fee net of Asset Management and Reporting Fee
Series 15	$	34,893	$	9,962	$	24,931
Series 16		138,132		17,254		120,878
Series 17		76,248		1,097		75,151
Series 18		95,616		15,650		79,966
Series 19		35,172		2,250		32,922
	$	380,061	$	46,213	$	333,848

	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

The partnership management fees paid for the years ended March 31, 2017 and 2016 are as follows:

	2017		2016
Series 15	$	-	$	744,166
Series 16		243,000		82,001
Series 17		76,248		156,472
Series 18		-		320,583
Series 19		35,172		35,172
	$	354,420	$	1,338,394

F-35

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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, 2017 and 2016, total partnership management fees accrued were $15,299,405 and $15,273,764, 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, 2017 and 2016 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, 2017 and 2016 are as follows:

	2017		2016
Series 15	$	-	$	-
Series 16		-		-
Series 17		-		-
Series 18		-		-
Series 19		-		-
	$	-	$	-

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, 2017 and 2016 charged to each series’ operations are as follows:

	2017		2016
Series 15	$	18,807	$	16,250
Series 16		22,040		18,952
Series 17		18,755		16,959
Series 18		17,655		20,942
Series 19		17,196		15,253
	$	94,453	$	88,356

F-36

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

Accounts payable - affiliates at March 31, 2017 and 2016 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, 2017 and 2016, 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, 2017 and 2016 by series are as follows:

	2017		2016
Series 15		13		14
Series 16		17		20
Series 17		5		9
Series 18		12		12
Series 19		6		6
		53		61

F-37

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

During the year ended March 31, 2017 the Fund disposed of eight operating limited partnerships.

A summary of the dispositions by Series for March 31, 2017 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain on
	Transferred		Partnership		Disposition *		Disposition
Series 15		1		-	$	16,000	$	16,000
Series 16		2		1		266,076		316,084
Series 17		4		-		70,478		70,478
Series 18		-		-		-		-
Series 19		-		-		-		-
Total		7		1	$	352,554	$	402,562

* Fund proceeds from disposition does not include $50,008 which was due to a writeoff of capital contributions payable to Series 16.

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.

F-38

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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, 2017 and 2016 by series are as follows:

	2017		2016
Series 15	$	-	$	-
Series 16		-		50,008
Series 17		7,893		7,893
Series 18		18,554		18,554
Series 19		-		-
	$	26,447	$	76,455

F-39

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2017 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	$	17,980,764		$	3,800,488		$	4,254,580

Acquisition costs of operating limited partnerships		2,375,082			541,634			462,972

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

Cumulative distributions from operating limited partnerships		(48,902	)		(3,252	)		(12,055	)

Cumulative impairment loss in investment in operating limited partnerships		(2,592,909	)		(189,424	)		(806,916	)

Cumulative losses from operating limited partnerships		(17,677,580	)		(4,149,446	)		(3,898,581	)

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, 2017 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2016 (see note A)		(138,624	)		(14,246	)		(43,920	)

The Fund has recorded acquisition costs at March 31, 2017 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(235,949	)		(52,671	)		(23,359	)

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)		417,413			45,842			-

F-40

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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)		(23,818,955	)		(5,101,987	)		(6,031,371	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		123,424			53,151			52,276

Cumulative impairment loss in investment in operating limited partnerships		2,592,909			189,424			806,916

Other		(121,642	)		(80,970	)		276,948

Equity per operating limited partnerships’ combined financial statements	$	(21,181,424	)	$	(4,961,457	)	$	(4,962,510	)

F-41

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2017 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	$	2,309,391		$	5,630,054		$	1,986,251

Acquisition costs of operating limited partnerships		334,951			777,180			258,345

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

Cumulative distributions from operating limited partnerships		(2,463	)		(27,368	)		(3,764	)

Cumulative impairment loss in investment in operating limited partnerships		(322,505	)		(963,351	)		(310,713	)

Cumulative losses from operating limited partnerships		(2,319,374	)		(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, 2017 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2016 (see note A)		(55,606	)		(5,588	)		(19,264	)

The Fund has recorded acquisition costs at March 31, 2017 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(132,522	)		-			(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)		115,146			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, 2017 and 2016

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)		(3,247,701	)		(6,037,627	)		(3,400,269	)

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		322,505			963,351			310,713

Other		(45,544	)		(218,902	)		(53,174	)

Equity per operating limited partnerships’ combined financial statements	$	(3,037,016	)	$	(5,049,886	)	$	(3,170,555	)

F-43

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-44

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-45

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-46

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-47

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2016 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS

Buildings and improvements, net of accumulated depreciation	$	21,761,359		$	3,938,014		$	8,446,974

Land		3,183,588			635,918			1,094,624

Other assets		7,521,845			2,262,377			3,028,240

	$	32,466,792		$	6,836,309		$	12,569,838

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	49,589,030		$	11,286,992		$	16,669,540

Accounts payable and accrued expenses		1,586,166			197,651			150,036

Other liabilities		2,459,784			212,111			618,411

		53,634,980			11,696,754			17,437,987
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(21,181,424	)		(4,961,457	)		(4,962,510	)
Other partners		13,236			101,012			94,361

		(21,168,188	)		(4,860,445	)		(4,868,149	)

	$	32,466,792		$	6,836,309		$	12,569,838

F-48

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2016 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS

Buildings and improvements, net of accumulated depreciation	$	2,052,766		$	5,505,374		$	1,818,231

Land		326,600			856,966			269,480

Other assets		720,476			1,055,463			455,289

	$	3,099,842		$	7,417,803		$	2,543,000

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	5,206,589		$	11,504,690		$	4,921,219

Accounts payable and accrued expenses		537,964			469,370			231,145

Other liabilities		296,885			743,446			588,931

		6,041,438			12,717,506			5,741,295
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(3,037,016	)		(5,049,886	)		(3,170,555	)
Other partners		95,420			(249,817	)		(27,740	)

		(2,941,596	)		(5,299,703	)		(3,198,295	)

	$	3,099,842		$	7,417,803		$	2,543,000

F-49

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-50

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-51

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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, 2016 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	9,571,913		$	2,224,484		$	3,175,002
Interest and other		217,504			51,642			65,374

		9,789,417			2,276,126			3,240,376
Expenses
Interest		1,145,891			289,161			344,749
Depreciation and amortization		2,341,880			529,311			705,289
Taxes and insurance		1,175,081			243,240			368,219
Repairs and maintenance		2,450,999			483,523			889,590
Operating expenses		3,928,968			914,759			1,242,744
Other expenses		84,514			11,522			13,222

		11,127,333			2,471,516			3,563,813

NET LOSS	$	(1,337,916	)	$	(195,390	)	$	(323,437	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(1,407,777	)	$	(205,277	)	$	(398,454	)

Net Income (Loss) allocated to other partners	$	69,861		$	9,887		$	75,017

Amounts include $205,277, $398,454, $183,320, $484,896, and $135,830 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, 2017 and 2016

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, 2016 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	1,270,718		$	2,149,400		$	752,309
Interest and other		24,089			54,446			21,953

		1,294,807			2,203,846			774,262
Expenses
Interest		124,149			306,460			81,372
Depreciation and amortization		387,177			554,151			165,952
Taxes and insurance		158,094			298,451			107,077
Repairs and maintenance		263,229			608,437			206,220
Operating expenses		538,332			883,491			349,642
Other expenses		9,000			49,570			1,200

		1,479,981			2,700,560			911,463

NET LOSS	$	(185,174	)	$	(496,714	)	$	(137,201	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(183,320	)	$	(484,896	)	$	(135,830	)

Net Income (Loss) allocated to other partners	$	(1,854	)	$	(11,818	)	$	(1,371	)

F-53

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-54

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-55

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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, 2017 is reconciled as follows:

	Total			Series 15			Series 16

Net income (loss) for financial reporting purposes	$	(265,827	)	$	(80,612	)	$	112,314

Operating limited partnership rents received in advance		(630	)		(566	)		-

Accrued fund management fees not deducted (deducted) for tax purposes		25,641			34,893			(104,868	)

Other		5,890,488			481,964			3,478,500

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(1,407,777	)		(205,277	)		(398,454	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(433,030	)		(58,090	)		(188,917	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(733,778	)		(531,704	)		(90,001	)

Income (loss) for tax return purposes, year ended December 31, 2016	$	3,075,087		$	(359,392	)	$	2,808,574

F-56

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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	$	(78,112	)	$	(124,922	)	$	(94,495	)

Operating limited partnership rents received in advance		(851	)		787			-

Accrued fund management fees not deducted (deducted) for tax purposes		-			95,616			-

Other		1,643,453			229,138			57,433

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(183,320	)		(484,896	)		(135,830	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(4,086	)		(60,486	)		(121,451	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(91,612	)		142			(20,603	)

Income (loss) for tax return purposes, year ended December 31, 2016	$	1,285,472		$	(344,621	)	$	(314,946	)

F-57

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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

	Total			Series 15			Series 16

Net income (loss) for financial reporting purposes	$	5,869,910		$	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-58

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-59

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2017, are as follows:

	Total			Series 15			Series 16

Investments in operating limited partnerships - tax return December 31, 2016	$	(25,676,778	)	$	(5,498,998	)	$	(8,845,040	)

Estimated share of loss for the three months ended March 31, 2017		(417,413	)		(45,842	)		-

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		23,818,955			5,101,987			6,031,371

Impairment loss in investment in operating limited partnerships		(2,592,909	)		(189,424	)		(806,916	)

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

Other		(457,661	)		632,277			1,775,749

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, 2017 and 2016

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, 2017, are as follows:

	Series 17			Series 18			Series 19

Investments in operating limited partnerships - tax return December 31, 2016	$	(2,502,075	)	$	(6,141,705	)	$	(2,688,960	)

Estimated share of loss for the three months ended March 31, 2017		(115,146	)		(237,589	)		(18,836	)

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		3,247,701			6,037,627			3,400,269

Impairment loss in investment in operating limited partnerships		(322,505	)		(963,351	)		(310,713	)

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

Other		(1,408,285	)		(757,315	)		(700,087	)

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, 2017 and 2016

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-62

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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-63

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2017 and 2016

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, 2017.

NOTE F - FAIR VALUE OF FINANCIAL INSTRUMENTS

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

NOTE G - SUBSEQUENT EVENTS

Subsequent to March 31, 2017, the Fund has entered into agreements to either sell or transfer its interests in four operating limited partnerships, which closed by June 2017. The sales price and other terms for the disposition of the operating limited partnerships has been determined. The proceeds received for the operating limited partnership was $753,923. The gain on the dispositions of these operating limited partnerships was $743,423 and was recognized in the first quarter of the fiscal year ended 2018.

F-64

BOSTON CAPITAL TAX CREDIT FUND III L P - FORM 10-K - EX-13 - EXHIBIT 13 - June 23, 2017

Attached files

BOSTON CAPITAL TAX CREDIT FUND III L P Reports