Exhibit 13

 

BOSTON CAPITAL TAX CREDIT FUND III L.P.

 

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

 

MARCH 31, 2018 AND 2017

 

 

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.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III L.P. (the “Partnership”), as of March 31, 2018 and 2017, and the related statements of operations, changes in partners’ capital (deficit) and cash flows for each of the years in the two-year period ended March 31, 2018, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Partnership as of March 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the Partnership’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Partnership in accordance with the U.S. federal security laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits of the financial statements provide a reasonable basis for our opinion.

 

/s/ CohnReznick LLP
COHNREZNICK LLP

 

We have served as the Partnership’s auditor since 1992.

 

Bethesda, Maryland

June 22, 2018

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS

 

March 31, 2018 and 2017

 

		Total
		2018				2017
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	-			$	-
OTHER ASSETS
Cash and cash equivalents			1,632,938				1,460,257
		$	1,632,938			$	1,460,257
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	2,000			$	27,746
Accounts payable - affiliates			14,740,050				15,299,405
Capital contributions payable			26,447				26,447
			14,768,497				15,353,598
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, 2018 and 2017			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,778,581 and 21,843,147 outstanding at March 31, 2018 and 2017, respectively			(11,248,474	)			(11,998,679	)
General partner			(1,887,085	)			(1,894,662	)
			(13,135,559	)			(13,893,341	)
		$	1,632,938			$	1,460,257

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2018 and 2017

 

		Series 15
		2018				2017
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	-			$	-
OTHER ASSETS
Cash and cash equivalents			244,074				64,641
		$	244,074			$	64,641
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	6,246
Accounts payable - affiliates			3,034,436				3,039,294
Capital contributions payable			-				-
			3,034,436				3,045,540
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, 2018 and 2017			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued 3,811,700 and 3,830,900 outstanding at March 31, 2018 and 2017, respectively			(2,440,269	)			(2,628,901	)
General partner			(350,093	)			(351,998	)
			(2,790,362	)			(2,980,899	)
		$	244,074			$	64,641

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2018 and 2017

 

		Series 16
		2018				2017
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	-			$	-
OTHER ASSETS
Cash and cash equivalents			320,396				327,901
		$	320,396			$	327,901
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	2,000			$	-
Accounts payable - affiliates			7,890,441				8,025,811
Capital contributions payable			-				-
			7,892,441				8,025,811
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, 2018 and 2017			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,367,700 and 5,392,500 outstanding at March 31, 2018 and 2017, respectively			(7,029,717	)			(7,154,323	)
General partner			(542,328	)			(543,587	)
			(7,572,045	)			(7,697,910	)
		$	320,396			$	327,901

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2018 and 2017

 

		Series 17
		2018				2017
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	-			$	-
OTHER ASSETS
Cash and cash equivalents			536,326				559,787
		$	536,326			$	559,787
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	14,000
Accounts payable - affiliates			-				-
Capital contributions payable			7,893				7,893
			7,893				21,893
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, 2018 and 2017			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued 4,956,447 and 4,962,947 outstanding at March 31, 2018 and 2017, respectively			895,356				904,722
General partner			(366,923	)			(366,828	)
			528,433				537,894
		$	536,326			$	559,787

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2018 and 2017

 

		Series 18
		2018				2017
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	-			$	-
OTHER ASSETS
Cash and cash equivalents			351,136				318,027
		$	351,136			$	318,027
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			3,815,173				4,234,300
Capital contributions payable			18,554				18,554
			3,833,727				4,252,854
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, 2018 and 2017			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued 3,586,734 and 3,598,100 outstanding at March 31, 2018 and 2017, respectively			(3,137,537	)			(3,585,251	)
General partner			(345,054	)			(349,576	)
			(3,482,591	)			(3,934,827	)
		$	351,136			$	318,027

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

BALANCE SHEETS - CONTINUED

 

March 31, 2018 and 2017

 

		Series 19
		2018				2017
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS		$	-			$	-
OTHER ASSETS
Cash and cash equivalents			181,006				189,901
		$	181,006			$	189,901
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	7,500
Accounts payable - affiliates			-				-
Capital contributions payable			-				-
			-				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, 2018 and 2017			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued 4,056,000 and 4,058,700 outstanding at March 31, 2018 and 2017, respectively			463,693				465,074
General partner			(282,687	)			(282,673	)
			181,006				182,401
		$	181,006			$	189,901

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2018 and 2017

 

		Total
		2018				2017
Income
Interest income		$	5,610			$	2,969
Other income			55,601				27,005
Total income			61,211				29,974
Share of income from operating limited partnerships			1,127,941				402,562
Expenses
Professional fees			116,263				152,076
Partnership management fee			196,682				333,848
General and administrative expenses			118,425				212,439
			431,370				698,363
NET INCOME (LOSS)		$	757,782			$	(265,827	)
Net income (loss) allocated to general partner		$	7,577			$	(2,658	)
Net income (loss) allocated to limited partners		$	750,205			$	(263,169	)
Net income (loss) per BAC		$	0.03			$	(0.01	)

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 15
		2018				2017
Income
Interest income		$	600			$	279
Other income			321				321
Total income			921				600
Share of income from operating limited partnerships			265,241				16,000
Expenses
Professional fees			24,161				32,907
Partnership management fee			29,382				24,931
General and administrative expenses			22,082				39,374
			75,625				97,212
NET INCOME (LOSS)		$	190,537			$	(80,612	)
Net income (loss) allocated to general partner		$	1,905			$	(806	)
Net income (loss) allocated to limited partners		$	188,632			$	(79,806	)
Net income (loss) per BAC		$	0.05			$	(0.02	)

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 16
		2018				2017
Income
Interest income		$	1,293			$	1,031
Other income			2,080				603
Total income			3,373				1,634
Share of income from operating limited partnerships			262,894				316,084
Expenses
Professional fees			29,668				33,916
Partnership management fee			82,408				120,878
General and administrative expenses			28,326				50,610
			140,402				205,404
NET INCOME (LOSS)		$	125,865			$	112,314
Net income (loss) allocated to general partner		$	1,259			$	1,123
Net income (loss) allocated to limited partners		$	124,606			$	111,191
Net income (loss) per BAC		$	0.02			$	0.02

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 17
		2018				2017
Income
Interest income		$	1,846			$	1,104
Other income			11,958				7,500
Total income			13,804				8,604
Share of income from operating limited partnerships			22,000				70,478
Expenses
Professional fees			22,700				35,993
Partnership management fee			(2,045	)			75,151
General and administrative expenses			24,610				46,050
			45,265				157,194
NET INCOME (LOSS)		$	(9,461	)		$	(78,112	)
Net income (loss) allocated to general partner		$	(95	)		$	(781	)
Net income (loss) allocated to limited partners		$	(9,366	)		$	(77,331	)
Net income (loss) per BAC		$	(0.00	)		$	(0.02	)

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 18
		2018				2017
Income
Interest income		$	1,473			$	248
Other income			41,159				16,933
Total income			42,632				17,181
Share of income from operating limited partnerships			508,704				-
Expenses
Professional fees			21,770				26,654
Partnership management fee			55,827				79,966
General and administrative expenses			21,503				35,483
			99,100				142,103
NET INCOME (LOSS)		$	452,236			$	(124,922	)
Net income (loss) allocated to general partner		$	4,522			$	(1,249	)
Net income (loss) allocated to limited partners		$	447,714			$	(123,673	)
Net income (loss) per BAC		$	0.12			$	(0.03	)

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 19
		2018				2017
Income
Interest income		$	398			$	307
Other income			83				1,648
Total income			481				1,955
Share of income from operating limited partnerships			69,102				-
Expenses
Professional fees			17,964				22,606
Partnership management fee			31,110				32,922
General and administrative expenses			21,904				40,922
			70,978				96,450
NET INCOME (LOSS)		$	(1,395	)		$	(94,495	)
Net income (loss) allocated to general partner		$	(14	)		$	(945	)
Net income (loss) allocated to limited partners		$	(1,381	)		$	(93,550	)
Net income (loss) per BAC		$	(0.00	)		$	(0.02	)

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

 

Years ended March 31, 2018 and 2017

 

		Limited				General
Total		partners				partner				Total
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	)
Net income (loss)			750,205				7,577				757,782
Partners’ capital (deficit), March 31, 2018		$	(11,248,474	)		$	(1,887,085	)		$	(13,135,559	)

 

(continued)

 

 

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, 2018 and 2017

 

		Limited				General
Series 15		partners				partner				Total
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	)
Net income (loss)			188,632				1,905				190,537
Partners’ capital (deficit), March 31, 2018		$	(2,440,269	)		$	(350,093	)		$	(2,790,362	)

 

(continued)

 

 

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, 2018 and 2017

 

		Limited				General
Series 16		partners				partner				Total
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	)
Net income (loss)			124,606				1,259				125,865
Partners’ capital (deficit), March 31, 2018		$	(7,029,717	)		$	(542,328	)		$	(7,572,045	)

 

(continued)

 

 

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, 2018 and 2017

 

		Limited				General
Series 17		partners				partner				Total
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
Net income (loss)			(9,366	)			(95	)			(9,461	)
Partners’ capital (deficit), March 31, 2018		$	895,356			$	(366,923	)		$	528,433

 

(continued)

 

 

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, 2018 and 2017

 

		Limited				General
Series 18		partners				partner				Total
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	)
Net income (loss)			447,714				4,522				452,236
Partners’ capital (deficit), March 31, 2018		$	(3,137,537	)		$	(345,054	)		$	(3,482,591	)

 

(continued)

 

 

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, 2018 and 2017

 

		Limited				General
Series 19		partners				partner				Total
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
Net income (loss)			(1,381	)			(14	)			(1,395	)
Partners’ capital (deficit), March 31, 2018		$	463,693			$	(282,687	)		$	181,006

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2018 and 2017

 

		Total
		2018				2017
Cash flows from operating activities
Net income (loss)		$	757,782			$	(265,827	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(1,127,941	)			(402,562	)
Changes in assets and liabilities
Accounts payable and accrued expenses			(25,746	)			(32,982	)
Accounts payable - affiliates			(559,355	)			25,641
Net cash used in operating activities			(955,260	)			(675,730	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			1,127,941				352,554
Net cash provided by investing activities			1,127,941				352,554
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			172,681				(323,176	)
Cash and cash equivalents, beginning			1,460,257				1,783,433
Cash and cash equivalents, end		$	1,632,938			$	1,460,257

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 15
		2018				2017
Cash flows from operating activities
Net income (loss)		$	190,537			$	(80,612	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(265,241	)			(16,000	)
Changes in assets and liabilities
Accounts payable and accrued expenses			(6,246	)			(6,498	)
Accounts payable - affiliates			(4,858	)			34,893
Net cash used in operating activities			(85,808	)			(68,217	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			265,241				16,000
Net cash provided by investing activities			265,241				16,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			179,433				(52,217	)
Cash and cash equivalents, beginning			64,641				116,858
Cash and cash equivalents, end		$	244,074			$	64,641

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 16
		2018				2017
Cash flows from operating activities
Net income (loss)		$	125,865			$	112,314
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(262,894	)			(316,084	)
Changes in assets and liabilities
Accounts payable and accrued expenses			2,000				(10,987	)
Accounts payable - affiliates			(135,370	)			(104,868	)
Net cash used in operating activities			(270,399	)			(319,625	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			262,894				266,076
Net cash provided by investing activities			262,894				266,076
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(7,505	)			(53,549	)
Cash and cash equivalents, beginning			327,901				381,450
Cash and cash equivalents, end		$	320,396			$	327,901

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 17
		2018				2017
Cash flows from operating activities
Net income (loss)		$	(9,461	)		$	(78,112	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(22,000	)			(70,478	)
Changes in assets and liabilities
Accounts payable and accrued expenses			(14,000	)			(2,499	)
Accounts payable - affiliates			-				-
Net cash used in operating activities			(45,461	)			(151,089	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			22,000				70,478
Net cash provided by investing activities			22,000				70,478
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(23,461	)			(80,611	)
Cash and cash equivalents, beginning			559,787				640,398
Cash and cash equivalents, end		$	536,326			$	559,787

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 18
		2018				2017
Cash flows from operating activities
Net income (loss)		$	452,236			$	(124,922	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(508,704	)			-
Changes in assets and liabilities
Accounts payable and accrued expenses			-				(6,499	)
Accounts payable - affiliates			(419,127	)			95,616
Net cash used in operating activities			(475,595	)			(35,805	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			508,704				-
Net cash provided by investing activities			508,704				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			33,109				(35,805	)
Cash and cash equivalents, beginning			318,027				353,832
Cash and cash equivalents, end		$	351,136			$	318,027

 

(continued)

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

		Series 19
		2018				2017
Cash flows from operating activities
Net income (loss)		$	(1,395	)		$	(94,495	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(69,102	)			-
Changes in assets and liabilities
Accounts payable and accrued expenses			(7,500	)			(6,499	)
Accounts payable - affiliates			-				-
Net cash used in operating activities			(77,997	)			(100,994	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			69,102				-
Net cash provided by investing activities			69,102				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(8,895	)			(100,994	)
Cash and cash equivalents, beginning			189,901				290,895
Cash and cash equivalents, end		$	181,006			$	189,901

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS

 

March 31, 2018 and 2017

 

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.

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

The BACs issued and outstanding in each series as of March 31, 2018 and 2017 are as follows:

 

		Issued								Outstanding
		2018				2017				2018				2017
Series 15			3,870,500				3,870,500				3,811,700				3,830,900
Series 16			5,429,402				5,429,402				5,367,700				5,392,500
Series 17			5,000,000				5,000,000				4,956,447				4,962,947
Series 18			3,616,200				3,616,200				3,586,734				3,598,100
Series 19			4,080,000				4,080,000				4,056,000				4,058,700
			21,996,102				21,996,102				21,778,581				21,843,147

 

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.

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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:

 

		2018				2017
Series 15		$	12,394			$	12,394
Series 16			246				246
Series 17			-				-
Series 18			345				24,343
Series 19			25,120				25,120
		$	38,105			$	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, 2018 and 2017, 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.

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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.

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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.

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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 2014 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, 2018 and 2017 are as follows:

 

		2018				2017
Series 15			3,826,100				3,844,400
Series 16			5,386,300				5,401,500
Series 17			4,961,322				4,970,447
Series 18			3,595,259				3,603,425
Series 19			4,058,025				4,068,075
			21,827,006				21,887,847

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2018, 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, 2018 and 2017, 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, 2018 and 2017, are as follows:

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

 

		2018
		Gross Partnership Management Fee				Asset Management and Reporting Fee				Partnership Management Fee net of Asset Management and Reporting Fee
Series 15		$	58,744			$	29,362			$	29,382
Series 16			96,456				14,048				82,408
Series 17			53,052				55,097				(2,045	)
Series 18			89,577				33,750				55,827
Series 19			31,860				750				31,110
		$	329,689			$	133,007			$	196,682

 

		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
The partnership management fees paid for the years ended March 31, 2018 and 2017 are as follows:
		2018				2017
Series 15		$	63,602			$	-
Series 16			231,826				243,000
Series 17			53,052				76,248
Series 18			508,704				-
Series 19			31,860				35,172
		$	889,044			$	354,420

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2018 and 2017, total partnership management fees accrued were $14,740,050 and $15,299,405, respectively.

 

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, 2018 and 2017 charged to each series’ operations are as follows:

 

		2018				2017
Series 15		$	16,661			$	18,807
Series 16			19,172				22,040
Series 17			16,854				18,755
Series 18			15,862				17,655
Series 19			15,689				17,196
		$	84,238			$	94,453

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

 

Accounts payable - affiliates at March 31, 2018 and 2017 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, 2018 and 2017, 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, 2018 and 2017 by series are as follows:

 

		2018				2017
Series 15			9				13
Series 16			12				17
Series 17			4				5
Series 18			11				12
Series 19			3				6
			39				53

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

During the year ended March 31, 2018 the Fund disposed of fourteen operating limited partnerships.

 

A summary of the dispositions by Series for March 31, 2018 is as follows:

 

		Operating				Sale of
		Partnership				Underlying				Partnership
		Interest				Operating				Proceeds from				Gain on
		Transferred				Partnership				Disposition *				Disposition
Series 15			4				-			$	265,241			$	265,241
Series 16			5				-				262,894				262,894
Series 17			1				-				22,000				22,000
Series 18			-				1				508,704				508,704
Series 19			3				-				69,102				69,102
Total			13				1			$	1,127,941			$	1,127,941

 

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.

 

 

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2018 and 2017 by series are as follows:

 

		2018				2017
Series 15		$	-			$	-
Series 16			-				-
Series 17			7,893				7,893
Series 18			18,554				18,554
Series 19			-				-
		$	26,447			$	26,447

 

 

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Fund’s investments in operating limited partnerships at March 31, 2018 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		$	13,020,543			$	1,467,118			$	2,786,192
Acquisition costs of operating limited partnerships			1,726,379				191,597				293,893
Syndication costs from operating limited partnerships			(31,623	)			-				-
Cumulative distributions from operating limited partnerships			(40,425	)			(252	)			(8,599	)
Cumulative impairment loss in investment in operating limited partnerships			(1,881,446	)			(34,041	)			(333,505	)
Cumulative losses from operating limited partnerships			(12,793,428	)			(1,624,422	)			(2,737,981	)
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, 2018 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of  December 31, 2017 (see note A)			(138,624	)			(14,246	)			(43,920	)
The Fund has recorded acquisition costs at March 31, 2018 which have not been recorded in the net assets of the operating limited partnerships (see note A)			(208,552	)			(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)			357,921				18,909				-

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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)			(19,817,505	)			(3,285,519	)			(4,909,316	)
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)			105,239				53,151				34,091
Cumulative impairment loss in investment in operating limited partnerships			1,881,446				34,041				333,505
Other			(241,035	)			(101,375	)			179,860
Equity per operating limited partnerships’ combined financial statements		$	(18,061,110	)		$	(3,347,710	)		$	(4,429,139	)

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Fund’s investments in operating limited partnerships at March 31, 2018 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		$	2,120,191			$	5,178,705			$	1,468,337
Acquisition costs of operating limited partnerships			307,666				749,496				183,727
Syndication costs from operating limited partnerships			-				(31,623	)			-
Cumulative distributions from operating limited partnerships			(2,463	)			(27,368	)			(1,743	)
Cumulative impairment loss in investment in operating limited partnerships			(322,505	)			(963,351	)			(228,044	)
Cumulative losses from operating limited partnerships			(2,102,889	)			(4,905,859	)			(1,422,277	)
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, 2018 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of  December 31, 2017 (see note A)			(55,606	)			(5,588	)			(19,264	)
The Fund has recorded acquisition costs at March 31, 2018 which have not been recorded in the net assets of the operating limited partnerships (see note A)			(132,522	)			-				-
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)			99,965				232,601				6,446

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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)			(2,872,436	)			(6,077,395	)			(2,672,839	)
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				228,044
Other			(50,946	)			(248,150	)			(20,424	)
Equity per operating limited partnerships’ combined financial statements		$	(2,682,334	)		$	(5,123,890	)		$	(2,478,037	)

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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				-

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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	)

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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	)

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships at December 31, 2017 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 15				Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation		$	12,594,247			$	1,336,447			$	4,469,768
Land			2,186,355				269,933				652,676
Other assets			5,189,673				1,240,791				2,003,378
		$	19,970,275			$	2,847,171			$	7,125,822
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	34,764,622			$	5,852,078			$	10,783,507
Accounts payable and accrued expenses			1,413,960				116,060				157,464
Other liabilities			2,184,814				109,334				589,241
			38,363,396				6,077,472				11,530,212
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.			(18,061,110	)			(3,347,710	)			(4,429,139	)
Other partners			(332,011	)			117,409				24,749
			(18,393,121	)			(3,230,301	)			(4,404,390	)
		$	19,970,275			$	2,847,171			$	7,125,822

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships at December 31, 2017 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 

		Series 17				Series 18				Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation		$	1,556,272			$	4,774,203			$	457,557
Land			266,600				835,966				161,180
Other assets			620,829				1,005,956				318,719
		$	2,443,701			$	6,616,125			$	937,456
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	4,211,695			$	11,175,137			$	2,742,205
Accounts payable and accrued expenses			567,386				412,199				160,851
Other liabilities			280,313				647,845				558,081
			5,059,394				12,235,181				3,461,137
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.			(2,682,334	)			(5,123,890	)			(2,478,037	)
Other partners			66,641				(495,166	)			(45,644	)
			(2,615,693	)			(5,619,056	)			(2,523,681	)
		$	2,443,701			$	6,616,125			$	937,456

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2017 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

		Total				Series 15				Series 16
Revenue
Rental		$	6,919,800			$	1,153,677			$	2,125,114
Interest and other			136,457				23,128				25,896
			7,056,257				1,176,805				2,151,010
Expenses
Interest			757,006				92,829				238,102
Depreciation and amortization			1,748,660				297,243				501,821
Taxes and insurance			847,681				131,008				212,583
Repairs and maintenance			1,731,967				300,959				510,900
Operating expenses			2,976,456				541,718				896,468
Other expenses			66,377				-				7,914
			8,128,147				1,363,757				2,367,788
NET LOSS		$	(1,071,890	)		$	(186,952	)		$	(216,778	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*		$	(1,090,861	)		$	(183,370	)		$	(249,603	)
Net Income (Loss) allocated to other partners		$	18,971			$	(3,582	)		$	32,825

 

*

Amounts include $183,370, $249,603, $113,659, $495,051, and $49,178 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.

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2017 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

 

		Series 17				Series 18				Series 19
Revenue
Rental		$	1,158,320			$	2,033,200			$	449,489
Interest and other			23,502				48,207				15,724
			1,181,822				2,081,407				465,213
Expenses
Interest			106,109				281,788				38,178
Depreciation and amortization			343,736				517,189				88,671
Taxes and insurance			154,864				300,593				48,633
Repairs and maintenance			217,152				585,277				117,679
Operating expenses			465,770				850,774				221,726
Other expenses			9,000				49,463				-
			1,296,631				2,585,084				514,887
NET LOSS		$	(114,809	)		$	(503,677	)		$	(49,674	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*		$	(113,659	)		$	(495,051	)		$	(49,178	)
Net Income (Loss) allocated to other partners		$	(1,150	)		$	(8,626	)		$	(496	)

 

*

Amounts include $183,370, $249,603, $113,659, $495,051, and $49,178 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.

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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.

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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	)

 

*

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.

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2018 is reconciled as follows:

 

		Total				Series 15				Series 16
Net income (loss) for financial reporting purposes		$	757,782			$	190,537			$	125,865
Operating limited partnership rents received in advance			7,685				-				331
Accrued fund management fees not deducted (deducted) for tax purposes			(559,355	)			(4,858	)			(135,370	)
Other			8,148,135				2,718,383				2,672,005
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting			(1,090,861	)			(183,370	)			(249,603	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(282,604	)			(834	)			(108,272	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(833,095	)			(227,703	)			(413,562	)
Income (loss) for tax return purposes, year ended December 31, 2017		$	6,147,687			$	2,492,155			$	1,891,394

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

For income tax purposes, the fund reports using a December 31 year-end. The Fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2018 is reconciled as follows:

 

		Series 17				Series 18				Series 19
Net income (loss) for financial reporting purposes		$	(9,461	)		$	452,236			$	(1,395	)
Operating limited partnership rents received in advance			4,899				2,049				406
Accrued fund management fees not deducted (deducted) for tax purposes			-				(419,127	)			-
Other			491,121				938,976				1,327,650
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting			(113,659	)			(495,051	)			(49,178	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(4,699	)			(79,199	)			(89,600	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(42,431	)			(59,746	)			(89,653	)
Income (loss) for tax return purposes, year ended December 31, 2017		$	325,770			$	340,138			$	1,098,230

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

For income tax purposes, the fund reports using a December 31 year-end. The Fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2017 is reconciled as follows:

 

		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	)

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2018, are as follows:

 

		Total				Series 15				Series 16
Investments in operating limited partnerships - tax return December 31, 2017		$	(19,825,637	)		$	(3,229,489	)		$	(6,626,315	)
Estimated share of loss for the three months ended March 31, 2018			(357,921	)			(18,909	)			-
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method			19,817,505				3,285,519				4,909,316
Impairment loss in investment in operating limited partnerships			(1,881,446	)			(34,041	)			(333,505	)
Historic tax credits			-				-				-
Other			2,247,499				(3,080	)			2,050,504
Investments in operating limited partnerships - as reported		$	-			$	-			$	-

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2018, are as follows:

 

		Series 17				Series 18				Series 19
Investments in operating limited partnerships - tax return December 31, 2017		$	(2,141,413	)		$	(6,259,636	)		$	(1,568,784	)
Estimated share of loss for the three months ended March 31, 2018			(99,965	)			(232,601	)			(6,446	)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method			2,872,436				6,077,395				2,672,839
Impairment loss in investment in operating limited partnerships			(322,505	)			(963,351	)			(228,044	)
Historic tax credits			-				-				-
Other			(308,553	)			1,378,193				(869,565	)
Investments in operating limited partnerships - as reported		$	-			$	-			$	-

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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:

 

		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		$	-			$	-			$	-

 

  

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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		$	-			$	-			$	-

 

  

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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, 2018.

 

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, 2018, the Fund has entered into agreements to either sell or transfer its interests in three operating limited partnerships, which closed by June 2018. The sales price and other terms for the disposition of the operating limited partnerships has been determined. The proceeds received for the operating limited partnerships was $838,580. The gain on the dispositions of these operating limited partnerships was $828,520 and was recognized in the first quarter of the fiscal year ended 2018.