7. Taxable Income
A reconciliation of the financial statement net income (loss) of the Partnership for the years ended March 30, 2017 and 2016 to the tax return income for the years ended December 31, 2016 and 2015 is as follows:
|
| 2017 | 2016 |
|
|
|
|
| Financial statement net income (loss) for the years ended March 30, 2017 and 2016 | $ 781,602 | $ (29,191) |
|
|
|
|
| Add (less) net transactions occurring between |
|
|
| January 1, 2015 and March 30, 2015 | -- | (34,658) 34,658 |
| January 1, 2016 and March 30, 2016 | 72,175 | (72,175) |
| January 1, 2017 and March 30, 2017 | 19,547 | -- |
|
|
|
|
| Adjusted financial statement net income (loss) for the years ended December 31, 2016 and 2015 | 873,324 | (136,024) |
|
|
|
|
| Management Fees and Administration Fees deductible for tax purposes when paid | 49,036 | 88,477 |
|
|
|
|
| Equity in income (loss) of investment in local partnerships | 866,064 | (475,518) |
|
|
|
|
| Gain on sale of limited partner interests/local partnership properties | 249,847 | 3,326,944 |
|
|
|
|
| Other income from local partnerships | (6,967) | (14,507) |
|
|
|
|
| Other differences | 623 | 251 |
|
|
|
|
| Tax return income for the years ended December 31, 2016 and 2015 | $ 2,031,927 | $ 2,789,623 |
The differences between investment in local partnerships for financial reporting and tax purposes as of December 31, 2016 and 2015 are as follows:
|
| 2016 | 2015 |
|
|
|
|
| Investment in local partnerships - financial reporting | $ -- | $ -- |
| Investment in local partnerships - tax | (5,283,192) | (6,490,136) |
|
|
|
|
|
| $ 5,283,192 | $ 6,490,136 |
Payable to general partner and affiliates in the accompanying balance sheets represents accrued Management Fees and Administration Fees, which are not deductible for tax purposes until paid pursuant to IRC Section 267.