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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended December 31, 2004

                                             or

( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

      For the transition period from _______ to _______
Commission file number        0-26200

BOSTON CAPITAL TAX CREDIT FUND IV L.P.
(Exact name of registrant as specified in its charter)

Delaware

04-3208648

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrant's telephone number, including area code (617)624-8900

(Former name, former address and former fiscal year, if changed since last report)

      Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceeding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

X

 

No

_

 

 

 

 

 

BOSTON CAPITAL TAX CREDIT FUND IV L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2004

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

 
   

Pages

 

Item 1. Financial Statements

     
   

Balance Sheets

3-30

   

Statements of Operations

31-86

   

Statements of Changes in Partners' 
Capital


87-101

   

Statements of Cash Flows

102-157

   

Notes to Financial Statements

158-191

     

Item 2. Management's Discussion and Analysis of Financial Condition and Results of 
Operations



192-242

     
 

Item 3. Quantitative and Qualitative Disclosure About Market Risk


243

     
 

Item 4. Evaluation of Disclosure and Procedures


243

     

PART II - OTHER INFORMATION

 
     
 

Item 6. Exhibits and Reports on Form 8-K

244

     
     
 

Signatures

245

     
     

 

 

Boston Capital Tax Credit Fund IV L.P.

BALANCE SHEETS



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

     

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$422,643,556


$436,741,304

     

OTHER ASSETS

   
       
 

Cash and cash equivalents

21,222,194

33,051,933

 

Investments

17,419,029

20,600,420

 

Notes receivable

7,065,131

8,182,738

Acquisition costs

35,569,975

36,053,820

 

Other assets

11,379,115

 10,020,450

 

$515,299,000

$544,650,665

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses 
(Note C)


$     38,479


$   66,482

 

Accounts payable affiliates

24,651,129

21,701,204

 

Capital contributions payable

25,380,260

 32,845,438

 

Line of credit

          -

          -

 

 50,069,868

 54,613,124

     

PARTNERS' CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership 
interest, $10 stated value per BAC; 
87,500,000 authorized BACs; 
83,651,080 issued and outstanding, 
as of December 31, 2004





467,712,567





492,272,914

General Partner

(2,517,235)

(2,269,173)

Unrealized gain (loss) on securities

 

available for sale, net

     33,800

     33,800

 

465,229,132

490,037,541

 

$515,299,000

$544,650,665

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 20



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$  5,862,329


$ 9,951,958

     

OTHER ASSETS

   
 

Cash and cash equivalents

2,484,615

252,117

 

Investments

-

-

 

Notes receivable

-

-

Acquisition costs

77,695

80,374

 

Other assets

  1,817,330

  1,796,298

 

$ 10,241,969

$ 12,080,747

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses 
(Note C)


$          -


$       -

 

Accounts payable affiliates

2,716,283

3,558,524

 

Capital contributions payable

388,026

    388,026

 

Line of credit

          -

          -

 

  3,104,309

  3,946,550

     

PARTNERS CAPITAL

   
     

Limited Partners

   

Units of limited partnership 
interest, $10 stated value per BAC; 
87,500,000 authorized BACs; 
3,866,700 issued and outstanding, 
as of December 31, 2004





7,396,848





8,383,420

General Partner

(259,188)

(249,223)

Unrealized gain (loss) on securities

   
 

available for sale, net

          -

          -

 

 7,137,660

  8,134,197

 

$ 10,241,969

$ 12,080,747

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 21



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$ 1,164,366


$ 1,527,512

     

OTHER ASSETS

   
 

Cash and cash equivalents

104,954

142,893

 

Investments

-

-

 

Notes receivable

457,639

457,639

Acquisition costs

42,496

43,962

 

Other assets

   280,233

   280,232

 

$ 2,049,688

$ 2,452,238

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses 
(Note C)


$         -


$         -

 

Accounts payable affiliates

997,250

852,869

 

Capital contributions payable

457,642

   457,642

 

Line of credit

         -

         -

 

 1,454,892

 1,310,511

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership 
interest, $10 stated value per BAC; 
87,500,000 authorized BACs; 

1,892,700 issued and outstanding, 
as of December 31, 2004





750,800





1,292,262

General Partner

(156,004)

(150,535)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

  594,796

 1,141,727

 

$ 2,049,688

$ 2,452,238

     

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 22



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$ 6,992,637


$ 7,983,840

     

OTHER ASSETS

   
 

Cash and cash equivalents

262,626

320,139

 

Investments

-

-

 

Notes receivable

450,980

450,981

Acquisition costs

133,540

138,145

 

Other assets

  167,344

  167,344

 

$ 8,007,127

$ 9,060,449

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses 
(Note C)


$         -


$         -

 

Accounts payable affiliates

2,035,458

1,889,514

Capital contributions payable

477,996

   479,496

Line of credit

         -

         -

 

 2,513,454

 2,369,010

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership 
interest, $10 stated value per BAC; 87,500,000 authorized BACs; 
2,564,400 issued and outstanding, 
as of December 31, 2004





5,657,818





6,843,606

General Partner

(164,145)

(152,167)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

 5,493,673

 6,691,439

 

$ 8,007,127

$ 9,060,449

     

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 23



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$13,315,565


$14,271,144

     

OTHER ASSETS

   
 

Cash and cash equivalents

132,645

140,695

 

Investments

-

-

 

Notes receivable

-

-

Acquisition costs

198,593

205,442

 

Other assets

   269,370

   269,370

 

$13,916,173

$14,886,651

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

1,494,674

1,314,475

 

Capital contributions payable

117,796

   117,796

 

Line of credit

         -

         -

 

 1,612,470

 1,432,271

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
3,336,727 issued and outstanding,
December 31, 2004





12,465,512





13,604,682

General Partner

(161,809)

(150,302)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

12,303,703

13,454,380

 

$13,916,173

$14,886,651

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 24



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS 
(Note D)


$ 7,377,415


$ 7,862,910

     

0THER ASSETS

   
 

Cash and cash equivalents

214,236

221,188

 

Investments

-

-

 

Notes receivable

155,478

155,478

Acquisition costs

221,948

229,602

 

Other assets

   857,394

   857,394

 

$ 8,826,471

$ 9,326,572

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses 
(Note C)


$     678


$     678

 

Accounts payable affiliates

1,542,384

1,373,004

 

Capital contributions payable

368,239

368,239

 

Line of credit

         -

         -

 

 1,911,301

 1,741,921

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership 
interest, $10 stated value per BAC; 87,500,000 authorized BACs; 
2,169,878 issued and outstanding, 
as of December 31, 2004





7,031,317





7,694,103

0eneral Partner

(116,147)

(109,452)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

 6,915,170

 7,584,651

 

$ 8,826,471

$ 9,326,572

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 25



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$13,585,847


$14,051,041

     

OTHER ASSETS

   
 

Cash and cash equivalents

441,148

443,860

 

Investments

-

-

 

Notes receivable

-

-

Acquisition costs

222,899

230,586

 

Other assets

   746,785

   746,785

 

$14,996,679

$15,472,272

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$     978


$     978

 

Accounts payable affiliates

1,340,561

1,136,057

 

Capital contributions payable

943,704

943,704

 

Line of credit

         -

         -

 

 2,285,243

 2,080,739

     

PARTNERS CAPITAL

   
     

Limited Partners

   

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
3,026,109 issued and outstanding,
as of December 31, 2004





12,841,766

 

 

 

13,515,062

General Partner

(130,330)

(123,529)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

12,711,436

13,391,533

 

$14,996,679

$15,472,272

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 26



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$21,535,618


$22,225,204

     

OTHER ASSETS

   
 

Cash and cash equivalents

354,137

447,941

 

Investments

-

-

 

Notes receivable

135,822

135,822

Acquisition costs

393,015

405,693

 

Other assets

 1,564,626

 1,564,626

 

$23,983,218

$24,779,286

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$      90


$    90

 

Accounts payable affiliates

2,316,164

2,090,807

 

Capital contributions payable

1,443,838

 1,443,838

 

Line of credit

         -

         -

 

 3,760,092

 3,534,735

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
3,995,900 issued and outstanding,
as of December 31, 2004





20,361,148





21,372,359

General Partner

(138,022)

(127,808)

Unrealized gain (loss) on securities

   
 

available for sale, net

        -

         -

 

20,223,126

21,244,551

 

$23,983,218

$24,779,286

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 27



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$13,435,792


$13,905,222

     

OTHER ASSETS

   
 

Cash and cash equivalents

125,420

234,047

 

Investments

-

-

 

Notes receivable

-

-

Acquisition costs

325,091

336,302

 

Other assets

   172,425

   172,425

 

$14,058,728

$14,647,996

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

1,591,717

1,455,313

 

Capital contributions payable

39,749

39,749

 

Line of credit

         -

         -

 

 1,631,466

 1,495,062

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,460,700 issued and outstanding,
as of December 31, 2004





12,509,437





13,227,852

General Partner

(82,175)

(74,918)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

12,427,262

13,152,934

 

$14,058,728

$14,647,996

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 28



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$22,846,052


$23,747,689

     

OTHER ASSETS

   
 

Cash and cash equivalents

254,798

464,935

 

Investments

-

-

 

Notes receivable

605,000

605,000

Acquisition costs

71,786

74,262

 

Other assets

     2,595

   2,595

 

$23,780,231

$24,894,481

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$     


$    28,003

 

Accounts payable affiliates

-

-

 

Capital contributions payable

40,968

   40,968

 

Line of credit

         -

         -

 

    40,968

    68,971

     

PARTNERS CAPITAL

   
     

Limited Partners

   

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
4,000,738 issued and outstanding,
as of December 31, 2004





23,845,618





24,921,003

General Partner

(106,355)

(95,493)

Unrealized gain (loss) on securities

   
 

available for sale, net

        -

        -

 

23,739,263

24,825,510

 

$23,780,231

$24,894,481

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 29



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$18,616,409


$19,475,261

     

OTHER ASSETS

   
 

Cash and cash equivalents

262,874

328,122

 

Investments

164,800

161,713

 

Notes receivable

20,935

20,935

Acquisition costs

71,970

74,450

 

Other assets

      675

    604

 

$19,137,663

$20,061,085

     

LIABILITIES

   
     

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

964,263

760,776

 

Capital contributions payable

66,718

   86,718

 

Line of credit

         -

         -

 

 1,030,981

   847,494

     

PARTNERS CAPITAL

   
     

Limited Partners

   

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
3,991,800 issued and outstanding,
as of December 31, 2004





18,264,521





19,360,361

General Partner

(157,577)

(146,508)

Unrealized gain (loss) on securities

   
 

available for sale, net

     (262)

     (262)

 

18,106,682

19,213,591

 

$19,137,663

$20,061,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 30



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$14,446,063


$15,343,813

     

OTHER ASSETS

   
 

Cash and cash equivalents

87,751

124,788

 

Investments

-

-

 

Notes receivable

273,842

273,842

Acquisition costs

461,890

477,819

 

Other assets

    39,235

     1,771

 

$15,308,781

$16,222,033

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

350,097

184,407

 

Capital contributions payable

128,167

   128,167

 

Line of credit

         -

         -

 

   478,264

   312,574

     

PARTNERS CAPITAL

   
     

Limited Partners

   

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,651,000 issued and outstanding,
as of December 31, 2004





14,909,268





15,977,421

General Partner

(78,751)

(67,962)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

14,830,517

15,909,459

 

$15,308,781

$16,222,033

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 31



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$21,718,829


$22,596,325

     

OTHER ASSETS

   
 

Cash and cash equivalents

175,696

487,978

 

Investments

-

-

 

Notes receivable

655,675

655,675

Acquisition costs

-

-

 

Other assets

147,047

   147,047

 

$22,697,247

$23,887,025

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

264,960

264,960

 

Capital contributions payable

   682,058

   695,771

 

Line of credit

    -

    -

 

   947,018

   960,731

     

PARTNERS CAPITAL

   

Limited Partners

   

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
4,417,857 issued and outstanding,
as of December 31, 2004





21,911,986





23,076,290

General Partner

(161,757)

(149,996)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

21,750,229

22,926,294

 

$22,697,247

$23,887,025

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 32



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$26,980,607


$27,979,243

     

OTHER ASSETS

   
 

Cash and cash equivalents

170,436

319,905

 

Investments

-

-

 

Notes receivable

409,907

536,581

Acquisition costs

661,269

684,066

 

Other assets

   348,301

   448,301

 

$28,570,520

$29,968,096

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

927,780

679,092

 

Capital contributions payable

520,571

902,467

 

Line of credit

         -

         -

 

 1,448,351

 1,581,559

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
4,754,198 issued and outstanding,
as of December 31, 2004





27,257,309





28,509,033

General Partner

(135,140)

(122,496)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

27,122,169

28,386,537

 

$28,570,520

$29,968,096

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 33



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$15,316,058


$15,749,412

     

OTHER ASSETS

   
 

Cash and cash equivalents

195,157

194,499

 

Investments

-

-

 

Notes receivable

62,966

74,696

Acquisition costs

593,331

613,790

 

Other assets

   133,131

   133,131

   

$16,300,643

$16,765,528

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

597,839

467,366

 

Capital contributions payable

202,285

202,285

 

Line of credit

         -

         -

 

   800,124

   669,651

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,636,533 issued and outstanding,
as of December 31, 2004





15,571,294

 

 

 

16,160,698

General Partner

(70,775)

(64,821)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

15,500,519

16,095,877

 

$16,300,643

$16,765,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 34



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$19,227,445


$20,605,779

     

OTHER ASSETS

   
 

Cash and cash equivalents

227,744

248,852

 

Investments

-

-

 

Notes receivable

3,547

3,547

Acquisition costs

942,958

975,473

 

Other assets

    11,473

    11,473

$20,413,167

$21,845,124

     

LIABILITIES

   
       
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

1,110,089

890,192

 

Capital contributions payable

75,968

85,968

 

Line of credit

         -

         -

 

 1,186,057

   976,160

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
3,529,319 issued and outstanding,
as of December 31, 2004





19,335,230





20,960,665

General Partner

(108,120)

(91,701)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

19,227,110

20,868,964

 

$20,413,167

$21,845,124

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 35



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$17,882,053


$18,651,926

     

OTHER ASSETS

   
 

Cash and cash equivalents

625,050

568,900

 

Investments

-

-

 

Notes receivable

322,784

322,784

Acquisition costs

2,672,233

2,764,380

 

Other assets

   124,353

   196,002

 

$21,626,473

$22,503,992

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

451,452

300,478

 

Capital contributions payable

603,740

603,740

 

Line of credit

         -

         -

 

 1,055,192

   904,218

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
3,300,463 issued and outstanding,
as of December 31, 2004





20,647,593





21,665,801

General Partner

(76,312)

(66,027)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

20,571,281

21,599,774

 

$21,626,473

$22,503,992

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 36



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$10,992,940


$11,525,838

     

OTHER ASSETS

   
 

Cash and cash equivalents

72,553

79,639

Investments

-

-

Notes receivable

322,784

322,784

Acquisition costs

1,834,837

1,898,107

Other assets

   338,277

   338,277

$13,561,391

$14,164,645

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

Accounts payable affiliates

761,732

634,828

 

Capital contributions payable

657,998

657,998

 

Line of credit

         -

         -

 

 1,419,730

 1,292,826

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,106,837 issued and outstanding,
as of December 31, 2004





12,198,908





12,921,764

General Partner

(57,247)

(49,945)

Unrealized gain (loss) on securities

available for sale, net

         -

         -

12,141,661

12,871,819

$13,561,391

$14,164,645

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 37



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$14,802,543


$15,180,208

     

OTHER ASSETS

   
 

Cash and cash equivalents

390,988

168,094

 

Investments

-

-

 

Notes receivable

131,073

155,490

Acquisition costs

2,047,376

2,114,865

 

Other assets

   98,159

   277,840

 

$17,470,139

$17,896,497

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

Accounts payable affiliates

617,155

463,506

Capital contributions payable

155,363

155,363

Line of credit

         -

         -

 

772,518

618,869

     

PARTNERS CAPITAL

   
     

Limited Partners

   

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,512,500 issued and outstanding,
as of December 31, 2004





16,746,208





17,320,415

General Partner

(48,587)

(42,787)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

16,697,621

17,277,628

 

$17,470,139

$17,896,497

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 38



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$15,124,552


$15,667,255

     

OTHER ASSETS

   

Cash and cash equivalents

187,029

139,965

 

Investments

-

-

 

Notes receivable

-

-

Acquisition costs

2,325,601

2,397,527

 

Other assets

     4,875

    64,336

 

$17,642,057

$18,269,083

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

542,066

414,973

 

Capital contributions payable

117,735

117,735

 

Line of credit

         -

         -

 

   659,801

   532,708

     

PARTNERS CAPITAL

   

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,543,100 issues and outstanding,
December 31, 2004





17,030,718





17,777,296

General Partner

(48,462)

(40,921)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

16,982,256

17,736,375

 

$17,642,057

$18,269,083

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 39



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$13,029,711


$13,521,338

     

OTHER ASSETS

   
 

Cash and cash equivalents

189,930

96,315

 

Investments

-

-

 

Notes receivable

-

-

Acquisition costs

2,150,672

2,216,508

 

Other assets

   184,159

   294,028

 

$15,554,472

$16,128,189

     

LIABILITIES

   
       
 

Accounts payable & accrued expenses
(Note C)


$         -


$         -

 

Accounts payable affiliates

601,358

494,497

 

Capital contributions payable

-

-

 

Line of credit

         -

         -

 

$ 601,358

   494,497

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,292,152 issued and outstanding,
as of December 31, 2004





15,000,025





15,673,797

General Partner

(46,911)

(40,105)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

14,953,114

15,633,692

 

$15,554,472

$16,128,189

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 40



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$16,620,316


$17,263,072

     

OTHER ASSETS

   
 

Cash and cash equivalents

13,705

40,313

 

Investments

-

-

 

Notes receivable

-

-

Acquisition costs

2,615,741

2,692,163

 

Other assets

   325,418

   325,418

 

$19,575,180

$20,320,966

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$    36,733


$    36,733

 

Accounts payable affiliates

905,281

750,951

 

Capital contributions payable

152,424

152,424

 

Line of credit

         -

         -

 

1,094,438

  940,108

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC; 87,500,000 authorized BACs;
2,630,256 issued and outstanding,
as of December 31, 2004





18,520,877





19,411,992

General Partner

(40,135)

(31,134)

Unrealized gain (loss) on securities

   
 

available for sale, net

         -

         -

 

18,480,742

19,380,858

 

$19,575,180

$20,320,966

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 41



December 31,
2004
(Unaudited)

March 31,
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$16,330,318


$18,522,070

     

OTHER ASSETS

   
 

Cash and cash equivalents

166,959

323,017

 

Investments

-

-

 

Notes receivable

2,858,894

50,000

Acquisition costs

2,941,043

 

Other assets

   627,489

  419,693

 

$19,983,660

$22,255,823

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$     -


$     -

 

Accounts payable affiliates

884,162

683,357

 

Capital contributions payable

480,554

838,164

 

Line of credit

         -

         -

 

 1,364,716

 1,521,521

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC;
87,500,000 authorized BACs;
2,891,626 issued and outstanding,
as of December 31, 2004





18,683,315





20,777,519

General Partner

(64,371)

(43,217)

Unrealized gain (loss) on securities

   
 

available for sale, net

       -

       -

 

18,618,944

20,734,302

 

$19,983,660

$22,255,823

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 42



December 31,
2004
(Unaudited)

March 31,

2004

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)


$17,089,910


$17,580,082

     

OTHER ASSETS

   
 

Cash and cash equivalents

448,366

1,858,784

 

Investments

-

-

 

Notes receivable

1,084,924

1,065,305

Acquisition costs

2,913,041

2,948,991

 

Other assets

   450,939

  278,222

 

$21,987,180

$23,731,384

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$      -


$     -

 

Accounts payable affiliates

698,228

516,481

 

Capital contributions payable

913,898

2,026,211

 

Line of credit

         -

         -

 

 1,612,126

 2,542,692

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC;
87,500,000 authorized BACs;
2,744,262 issued and outstanding,
as of December 31, 2004





20,407,534





21,213,036

General Partner

(32,480)

(24,344)

Unrealized gain (loss) on securities

   
 

available for sale, net

       -

       -

 

20,375,054

21,188,692

 

$21,987,180

$23,731,384

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 43



December 31,
2004
(Unaudited)

March 31,

2004

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$23,015,185

$ 24,108,220

     

OTHER ASSETS

   
 

Cash and cash equivalents

622,150

1,723,622

 

Investments

380,934

2,401,514

 

Notes receivable

1,102,775

1,317,945

Acquisition costs

3,754,066

3,812,241

 

Other assets

 192,354

 201,025

 

$29,067,464

$33,564,567

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$   -


$   -

 

Accounts payable affiliates

623,071

395,891

 

Capital contributions payable

1,111,386

4,608,555

 

Line of credit

         -

         -

 

 1,734,457

5,004,446

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC;
87,500,000 authorized BACs;
3,637,987 issued and outstanding,
as of December 31, 2004





27,367,673





28,582,516

General Partner

(43,968)

(31,697)

Unrealized gain (loss) on securities

   
 

available for sale, net

   9,302

     9,302

 

27,333,007

28,560,121

$29,067,464

$33,564,567

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 44



December 31,
2004
(Unaudited)

March 31
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$14,493,889

$ 14,763,643

     

OTHER ASSETS

   
 

Cash and cash equivalents

2,205,946

1,867,420

 

Investments

4,054,529

3,964,717

 

Notes receivable

-

747,691

Acquisition costs

2,683,617

2,755,762

 

Other assets

  110,234

     1,250

 

$23,548,215

$24,100,483

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$ -


$ -

 

Accounts payable affiliates

275,131

116,471

 

Capital contributions payable

1,700,804

2,077,152

 

Line of credit

        -

         -

 

1,975,935

 2,193,623

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC;
87,500,000 authorized BACs;
2,701,973 issued and outstanding,
as of December 31, 2004





21,581,336

 

 

 

21,912,570

General Partner

(17,924)

(14,578)

Unrealized gain (loss) on securities

   
 

Available for sale, net

     8,868

     8,868

 

21,572,280

21,906,860

$23,548,215

$24,100,483

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 45



December 31,
2004
(Unaudited)

March 31
2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$23,686,727

$22,349,618

     

OTHER ASSETS

   
 

Cash and cash equivalents

3,791,634

5,967,616

 

Investments

9,520,767

10,634,756

 

Notes receivable

869,000

830,543

Acquisition costs

3,021,675

2,897,541

 

Other assets

   495,959

 1,014,271

 

$41,385,762

$43,694,345

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$ -


$ -

 

Accounts payable affiliates

-

-

 

Capital contributions payable

7,458,379

9,227,492

 

Line of credit

         -

         -

 

 7,458,379

 9,227,492

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC;
87,500,000 authorized BACs;
4,014,367 issued and outstanding,
as of December 31, 2004





33,920,667

 

 

 

34,454,769

General Partner

(10,812)

(5,444)

Unrealized gain (loss) on securities

   
 

available for sale, net

    17,528

    17,528

 

33,927,383

34,466,853

$41,385,762

$43,694,345

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.
BALANCE SHEETS

Series 46



December 31,
2004
(Unaudited)

March 31,

2004
(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$17,154,380

$ 10,331,681

     

OTHER ASSETS

   
 

Cash and cash equivalents

7,013,647

15,846,289

 

Investments

3,297,999

3,437,720

 

Notes receivable

 

-

Acquisition costs

2,273,741

2,044,726

 

Other assets

1,868,935

    10,692

 

$31,608,702

$31,671,108

     

LIABILITIES

   
     
 

Accounts payable & accrued expenses
(Note C)


$ -


$ -

 

Accounts payable affiliates

41,974

12,415

 

Capital contributions payable

6,074,254

5,999,770

 

Line of credit

         -

         -

 

 6,116,228

 6,012,185

     

PARTNERS CAPITAL

   
     

Limited Partners

   
 

Units of limited partnership
interest, $10 stated value per BAC;
87,500,000 authorized BACs;
2,980,998 issued and outstanding,
as of December 31, 2004





25,497,841

 

 

 

25,662,622

General Partner

(3,731)

(2,063)

Unrealized gain (loss) on securities

   
 

available for sale, net

   (1,636)

   (1,636)

 

25,492,474

25,658,923

$31,608,702

$31,671,108

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

 


  2004


  2003

     

Income

   
 

Interest income

$    300,546

$    368,442

 

Other income

     7,001

     46,500

 

    307,547

    414,942

Share of loss from Operating
Partnerships (Note D)


(5,963,455)


(5,414,083)

     

Expenses

   
 

Professional fees

71,632

109,891

 

Fund management fee (Note C)

1,643,002

1,633,122

 

Organization costs

-

81,813

 

Amortization

439,108

438,544

 

General and administrative expenses

    256,463

    362,770

 

  2,410,205

  2,626,140

     

NET INCOME (LOSS)

$(8,066,113)

$(7,625,281)

     

Net income (loss) allocated to
limited partners


$(7,985,451)


$(7,549,029)

     

Net income (loss) allocated to
general partner


$   (80,662)


$   (76,252)

     

Net income (loss) per BAC

$      (.10)

$      (.09)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 20


    2004


    2003

     

Income

 

Interest income

$      2,354

$        242

 

Other income

       -

        900

 

      2,354

      1,142

Share of loss from Operating
Partnerships(Note D)


  (166,462)


  (182,989)

     

Expenses

   
 

Professional fees

2,809

10,788

 

Fund management fee (Note C)

80,061

89,660

 

Organization costs

-

-

 

Amortization

893

893

 

General and administrative expenses

      7,906

     10,949

  

     91,669

    112,290

     

NET INCOME (LOSS)

$  (255,777)

$  (294,137)

     

Net income (loss) allocated to limited
partners


$  (253,219)


$  (291,196)

     

Net income (loss) allocated to general
partner


$    (2,558)


$    (2,941)

     

Net income (loss) per BAC

$      (.07)

$      (.08)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 21


    2004


    2003

     

Income

   
 

Interest income

$        105

$        181

 

Other income

          -

        450

 

105

        631

Share of loss from Operating 
Partnerships(Note D)


  (109,103)


  (168,997)

     

Expenses

   
 

Professional fees

2,981

6,447

 

Fund management fee (Note C) 

54,608

56,460

 

Organization costs

-

-

 

Amortization

488

488

 

General and administrative expenses

      4,170

      6,634

  

     62,247

     70,029

     

NET INCOME (LOSS)

$  (171,245)

$  (238,395)

     

Net income (loss) allocated to limited
partners


$  (169,533)


$  (236,011)

     

Net income (loss) allocated to general 
partner

$   (1,712)

$    (2,384)

     

Net income (loss) per BAC


$   (.09)


$      (.12)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 22


    2004


    2003

     

Income

   
 

Interest income

$        258

$        350

 

Other income

       -

      2,400

 

       258

      2,750

Share of loss from Operating 
Partnerships(Note D)


  (282,879)


  (220,094)

     

Expenses

   
 

Professional fees

1,219

634

 

Fund management fee (Note C) 

60,119

60,374

 

Organization costs

-

-

 

Amortization

1,535

1,535

 

General and administrative expenses

      5,665

      8,699

 

     68,538

     71,242

     

NET INCOME (LOSS)

$  (351,159)

$  (288,586)

     

Net income (loss) allocated to limited
partners


$  (347,647)


$  (285,700)

     

Net income (loss) allocated to general 
partner


$    (3,512)


$    (2,886)

     

Net income (loss) per BAC

$      (.14)

$      (.11)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 23


    2004


    2003

     

Income

 

Interest income

$        125

$        141

 

Other income

        801

      2,400

 

        926

      2,541

Share of loss from Operating
Partnerships(Note D)


  (310,271)


  (157,418)

     

Expenses

 

Professional fees

1,455

3,255

 

Fund management fee (Note C)

56,002

55,079

 

Organization costs

-

-

 

Amortization

2,283

2,283

 

General and administrative expenses

      7,137

     10,259

 

     66,877

     70,876

     

NET INCOME (LOSS)

$  (376,222)

$  (225,753)

     

Net income (loss) allocated to limited
partners


$  (372,460)


$  (223,495)

     

Net income (loss) allocated to general
partner


$   (3,762)


$    (2,258)

     

Net income (loss) per BAC

$      (.11)

$      (.07)

     


















The accompanying notes are an ntegral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 24


    2004


    2003

     

Income

   
 

Interest income

$       208

$        213

 

Other income

          -

      1,500

 

        208

      1,713

Share of loss from Operating
Partnerships(Note D)


  (127,915)


   (81,799)

     

Expenses

   
 

Professional fees

1,075

4,365

 

Fund management fee (Note C)

49,674

53,084

 

Organization costs

-

-

 

Amortization

2,551

2,551

 

General and administrative expenses

      4,558

      8,647

 

     57,858

     68,647

     

NET INCOME (LOSS)

$  (185,565)

$  (148,733)

     

Net income (loss) allocated to limited
partners


$  (183,709)


$  (147,246)

     

Net income (loss) allocated to general
partner


$   (1,856)


$    (1,487)

     

Net income (loss) per BAC

$      (.08)

$      (.07)

     







 











The accompanying notes are an integral part of this statement




Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 25


    2004


    2003

     

Income

   
 

Interest income

$       438

$       479

 

Other income

         -

     3,900

 

       438

     4,379

Share of loss from Operating 
Partnerships(Note D)


 (108,818)


 (230,954)

     

Expenses

   
 

Professional fees

4,560

1,985

 

Fund management fee (Note C) 

67,202

65,702

 

Organization costs

-

-

 

Amortization

3,805

3,805

 

General and administrative expenses

     6,130

     9,481

 

    81,697

    80,973

     

NET INCOME (LOSS)

$ (190,077)

$ (307,548)

     

Net income (loss) allocated to limited
partners


$ (188,176)


$ (304,473)

     

Net income (loss) allocated to general 
partner


$   (1,901)


$   (3,075)

     

Net income (loss) per BAC

$     (.06)

$     (.10)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 26


    2004


    2003

     

Income

   
 

Interest income

$       343

$       352

 

Other income

         -

     2,400

 

       343

     2,752

Share of loss from Operating
Partnerships(Note D)


 (189,819)


 (401,947)

     

Expenses

   
 

Professional fees

2,692

8,500

 

Fund management fee (Note C)

97,586

104,517

 

Organization costs

-

-

 

Amortization

4,226

4,226

 

General and administrative expenses

     6,618

    14,890

 

   111,122

   132,133

     

NET INCOME (LOSS)

$ (300,598)

$ (531,328)

     

Net income (loss) allocated to limited
partners


$ (297,592)


$ (526,015)

     

Net income (loss) allocated to general
partner


$   (3,006)


$   (5,313)

     

Net income (loss) per BAC

$     (.07)

$     (.13)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 27


    2004


    2003

     

Income

   
 

Interest income

$       122

$       348

 

Other income

-

     3,900

 

122

     4,248

Share of loss from Operating
Partnerships(Note D)

(131,762)


 (187,202)

     

Expenses

   
 

Professional fees

1,095

1,945

 

Fund management fee (Note C)

78,594

77,094

 

Organization costs

-

-

 

Amortization

3,914

3,914

 

General and administrative expenses

     3,849

     7,700

 

    87,452

    90,653

     

NET INCOME (LOSS)

$ (219,092)

$ (273,607)

     

Net income (loss) allocated to limited
partners


$ (216,901)


$ (270,871)

     

Net income (loss) allocated to general
partner


$   (2,191)


$   (2,736)

     

Net income (loss) per BAC

$     (.09)

$     (.11)

     















The accompanying notes are an integral part of this statement

Boston Capital Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 28


    2004


    2003

     

Income

   
 

Interest income

$     281

$       536

 

Other income

         -

     4,050

 

      281

     4,586

Share of loss from Operating 
Partnerships(Note D)


 (231,633)


 (302,712)

     

Expenses

   
 

Professional fees

2,691

8,499

 

Fund management fee (Note C) 

69,593

82,529

 

Organization costs

-

-

 

Amortization

825

825

 

General and administrative expenses

     5,879

    10,935

 

   78,988

   102,788

     

NET INCOME (LOSS)

$ (310,340)

$ (400,914)

     

Net income (loss) allocated to limited
partners


$ (307,237)


$ (396,905)

     

Net income (loss) allocated to general 
partner


$   (3,103)


$   (4,009)

     

Net income (loss) per BAC

$     (.08)

$     (.10)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 29


    2004


    2003

     

Income

 

Interest income

$     2,421

$     1,140

 

Other income

     3,100

    12,150

 

     5,521

    13,290

Share of loss from Operating
Partnerships(Note D)


 (311,861)


 (289,501)

     

Expenses

   
 

Professional fees

2,541

4,567

 

Fund management fee (Note C)

75,064

82,995

 

Organization costs

-

-

 

Amortization

828

828

 

General and administrative expenses

     7,256

    12,582

 

    85,689

   100,972

     

NET INCOME (LOSS)

$ (392,029)

$ (377,183)

     

Net income (loss) allocated to limited
partners


$ (388,109)


$ (373,411)

     

Net income (loss) allocated to general
partner


$   (3,920)


$   (3,772)

     

Net income (loss) per BAC

$     (.10)

$     (.09)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 30


    2004


    2003

     

Income

   
 

Interest income

$       87

$        81

 

Other income

         -

     7,950

 

      87

     8,031

Share of loss from Operating 
Partnerships(Note D)


 (328,782)


 (233,581)

     

Expenses

   
 

Professional fees

1,984

1,269

 

Fund management fee (Note C) 

51,900

50,907

 

Organization costs

-

-

 

Amortization

5,310

5,310

 

General and administrative expenses

     3,897

     8,044

 

    63,091

    65,530

     

NET INCOME (LOSS)

$ (391,786)

$ (291,080)

     

Net income (loss) allocated to limited
partners


$ (387,868)


$ (288,169)

     

Net income (loss) allocated to general 
partner


$  (3,918)


$   (2,911)

     

Net income (loss) per BAC

$     (.15)

$     (.11)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 31


    2004


    2003

     

Income

   
 

Interest income

$       213

$       254

 

Other income

     3,100

         -

 

     3,313

       254

Share of loss from Operating
Partnerships(Note D)


 (387,761)


 (365,058)

     

Expenses

   
 

Professional fees

929

634

 

Fund management fee (Note C)

97,860

99,360

 

Organization costs

-

-

 

Amortization

-

-

 

General and administrative expenses

     6,120

    11,081

 

   104,909

   111,075

     

NET INCOME (LOSS)

$ (489,357)

$ (475,879)

     

Net income (loss) allocated to limited
partners


$ (484,463)


$ (471,120)

     

Net income (loss) allocated to general
partner


$   (4,894)


$   (4,759)

     

Net income (loss) per BAC

$     (.11)

$     (.11)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 32


    2004


    2003

     

Income

   
 

Interest income

$      162

$       237

 

Other income

         -

     4,500

 

      162

     4,737

Share of loss from Operating
Partnerships(Note D)


 (333,578)


 (279,197)

     

Expenses

   
 

Professional fees

1,847

4,812

 

Fund management fee (Note C)

77,436

82,226

 

Organization costs

-

-

 

Amortization

9,181

9,181

 

General and administrative expenses

    6,639

    15,515

 

   95,103

   111,734

     

NET INCOME (LOSS)

$ (428,519)

$ (386,194)

     

Net income (loss) allocated to limited
partners


$ (424,234)


$ (382,332)

     

Net income (loss) allocated to general
partner


$   (4,285)


$   (3,862)

     

Net income (loss) per BAC

$     (.09)

$     (.08)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 33


    2004


    2003

     

Income

   
 

Interest income

$       185

$       191

 

Other income

         -

         -

 

       185

       191

Share of loss from Operating
Partnerships(Note D)


 (129,953)


 (163,582)

     

Expenses

   
 

Professional fees

1,105

2,046

 

Fund management fee (Note C)

36,822

43,491

 

Organization costs

-

-

 

Amortization

6,820

6,820

 

General and administrative expenses

     3,687

     8,355

 

    48,434

    60,712

     

NET INCOME (LOSS)

$ (178,202)

$ (224,103)

     

Net income (loss) allocated to limited
partners


$ (176,420)


$ (221,862)

     

Net income (loss) allocated to general
Partner


$  (1,782)


$   (2,241)

     

Net income (loss) per BAC

$     (.07)

$     (.08)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 34


    2004


    2003

     

Income

   
 

Interest income

$       231

$       267

 

Other income

         -

         -

 

       231

       267

Share of loss from Operating 
Partnerships(Note D)


 (533,091)


 (372,380)

     

Expenses

   
 

Professional fees

869

634

 

Fund management fee (Note C) 

70,019

72,099

 

Organization costs

-

-

 

Amortization

10,984

10,984

 

General and administrative expenses

     5,034

    10,297

 

    86,906

    94,014

     

NET INCOME (LOSS)

$ (619,766)

$ (466,127)

     

Net income (loss) allocated to limited
partners


$ (613,568)


$ (461,466)

Net income (loss) allocated to general 
partner


$   (6,198)


$   (4,661)

     

Net income (loss) per BAC

$     (.17)

$     (.13)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 35


    2004


    2003

     

Income

   
 

Interest income

$      974

$       760

 

Other income

         -

         -

 

     974

       760

Share of loss from Operating 
Partnerships(Note D)


 (273,288)


 (199,454)

     

Expenses

   
 

Professional fees

854

634

 

Fund management fee (Note C) 

53,890

57,090

 

Organization costs

-

-

 

Amortization

32,309

32,310

 

General and administrative expenses

     4,859

     9,979

 

    91,912

   100,013

     

NET INCOME (LOSS)

$ (364,226)

$ (298,707)

     

Net income (loss) allocated to limited
partners


$ (360,584)


$ (295,720)

     

Net income (loss) allocated to general 
partner


$   (3,642)


$   (2,987)

     

Net income (loss) per BAC

$     (.11)

$     (.09)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 36


    2004


    2003

     

Income

   
 

Interest income

$        68

$       35

 

Other income

        -

         -

 

        68

        35

Share of loss from Operating
Partnerships(Note D)


 (169,662)


 (150,652)

     

Expenses

 

Professional fees

1,737

3,255

 

Fund management fee (Note C)

39,572

37,572

 

Organization costs

-

-

 

Amortization

22,116

22,116

 

General and administrative expenses

     5,036

     7,526

 

    68,461

    70,469

     

NET INCOME (LOSS)

$ (238,055)

$ (221,086)

     

Net income (loss) allocated to limited
partners


$ (235,674)


$ (218,875)

     

Net income (loss) allocated to general
partner


$   (2,381)


$   (2,211)

     

Net income (loss) per BAC

$     (.11)

$     (.10)

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 37


    2004


    2003

     

Income

   
 

Interest income

$       365

$       136

 

Other income

         -

         -

 

       365

       136

Share of loss from Operating 
Partnerships(Note D)


 (147,815)


 (202,338)

     

Expenses

   
 

Professional fees

798

993

 

Fund management fee (Note C) 

51,216

44,238

 

Organization costs

-

-

 

Amortization

24,914

23,705

 

General and administrative expenses

     3,303

     7,851

 

    80,231

    76,787

     

NET INCOME (LOSS)

$ (227,681)

$ (278,989)

     

Net income (loss) allocated to limited
partners


$ (225,404)


$ (276,199)

     

Net income (loss) allocated to general 
partner


$   (2,277)


$   (2,790)

     

Net income (loss) per BAC

$     (.09)

$     (.11)

     












 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 38


    2004


    2003

     

Income

 

Interest income

$       178

$       145

 

Other income

         -

         -

 

       178

       145

Share of loss from Operating 
Partnerships(Note D)


 (174,186)


 (222,881)

     

Expenses

   
 

Professional fees

1,397

3,255

 

Fund management fee (Note C) 

41,100

41,100

 

Organization costs

-

-

 

Amortization

24,728

24,728

 

General and administrative expenses

     5,793

     8,370

 

    73,018

    77,453

     

NET INCOME (LOSS)

$ (247,026)

$ (300,189)

     

Net income (loss) allocated to limited
partners


$ (244,556)


$ (297,187)

     

Net income (loss) allocated to general 
partner


$   (2,470)


$   (3,002)

     

Net income (loss) per BAC

$     (.10)

$     (.12)

     













 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 39


    2004


    2003

     

Income

   
 

Interest income

$       178

$        90

 

Other income

         -

         -

 

       178

        90

Share of loss from Operating 
Partnerships(Note D)


 (136,724)


 (245,467)

     

Expenses

   
 

Professional fees

1,379

3,255

 

Fund management fee (Note C) 

26,700

34,200

 

Organization costs

-

-

 

Amortization

22,581

22,581

 

General and administrative expenses

     5,901

     8,108

 

    56,561

    68,144

     

NET INCOME (LOSS)

$ (193,107)

$ (313,521)

     

Net income (loss) allocated to limited
partners


$ (191,176)


$ (310,386)

     

Net income (loss) allocated to general 
partner


$   (1,931)


$   (3,135)

     

Net income (loss) per BAC

$     (.08)

$     (.14)

     













 

 

 

 

 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 40


    2004

2003

     

Income

   
 

Interest income

$        13

$        35

 

Other income

         -

         -

 

        13

        35

Share of loss from Operating
Partnerships(Note D)


 (212,217)


 (238,239)

     

Expenses

   
 

Professional fees

2,237

4,598

 

Fund management fee (Note C)

48,501

42,070

 

Organization costs

-

-

 

Amortization

28,433

28,429

 

General and administrative expenses

     5,605

     8,303

 

    84,776

    83,400

     

NET INCOME (LOSS)

$ (296,980)

$ (321,604)

     

Net income (loss) allocated to limited
partners

$ (294,010)

$ (318,388)

     

Net income (loss) allocated to general
partner


$   (2,970)


$   (3,216)

     

Net income (loss) per BAC

$     (.11)

$     (.12)

     














 

 

 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 41


2004


2003

     

Income

   
 

Interest income

$       3,343

$      -

 

Other income

       -

         -

 

     3,343

         -

Share of loss from Operating
Partnerships(Note D)


 (539,064)


 (185,524)

     

Expenses

   
 

Professional fees

2,194

4,318

 

Fund management fee (Note C)

67,747

58,952

 

Organization costs

-

-

 

Amortization

33,472

33,472

 

General and administrative expenses

     6,751

    11,030

 

   110,164

   107,644

     

NET INCOME (LOSS)

$ (645,885)

$ (293,168)

     

Net income (loss) allocated to limited
partners


$ (639,426)


$ (290,236)

     

Net income (loss) allocated to general
partner


$   (6,459)


$   (2,932)

     

Net income (loss) per BAC

$     (.22)

$     (.10)

     














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 42


2004


2003

     

Income

   
 

Interest income

$    2,049

$   106,529

 

Other income

        -

         -

 

  2,049

   106,529

Share of loss from Operating
Partnerships(Note D)


(153,563)


 (146,812)

     

Expenses

   
 

Professional fees

1,410

3,574

 

Fund management fee (Note C)

50,127

35,609

 

Organization costs

-

-

 

Amortization

29,028

89,960

 

General and administrative expenses

  6,976

    15,599

 

  87,541

   144,742

     

NET INCOME (LOSS)

$ (239,055)

$ (185,025)

     

Net income (loss) allocated to limited
partners


$ (236,664)


$ (183,175)

     

Net income (loss) allocated to general
partner


$   (2,391)


$   (1,850)

     

Net income (loss) per BAC

$     (.09)

$     (.07)

     














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 43


    2004


    2003

     

Income

   
 

Interest income

$    24,215

$   160,479

 

Other income

         -

         -

 

    24,215

   160,479

Share of loss from Operating
Partnerships(Note D)


(352,703)


 (117,170)

     

Expenses

   
 

Professional fees

3,874

6,309

 

Fund management fee (Note C)

67,444

64,995

 

Organization costs

-

 
 

Amortization

41,169

107,728

 

General and administrative expenses

    14,407

    33,947

 

   126,894

   212,979

     

NET INCOME (LOSS)

$ (455,382)

$ (169,670)

     

Net income (loss) allocated to limited
partners


$ (450,828)


$ (167,973)

     

Net income (loss) allocated to general
partner


$   (4,554)


$   (1,697)

     

Net income (loss) per BAC

$    (0.12)

$    (0.05)

     














The accompanying notes are an integral part of this statement


Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 44


    2004


    2003

     

Income

   
 

Interest income

$    67,025

$    27,209

 

Other income

    -

         -

 

    67,025

    27,209

Share of loss from Operating
Partnerships(Note D)


(57,170)


  (64,651)

     

Expenses

   
 

Professional fees

7,082

4,247

 

Fund management fee (Note C)

52,887

69,660

 

Organization costs

-

-

 

Amortization

25,315

-

 

General and administrative expenses

   20,920

    33,385

 

   106,204

   107,292

     

NET INCOME (LOSS)

$ (96,349)

$ (144,734)

     

Net income (loss) allocated to limited
partners


$ (95,386)


$ (143,287)

     

Net income (loss) allocated to general
partner


$   (963)


$   (1,447)

   

Net income (loss) per BAC

$   (0.04)

$    (0.05)

     














The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 45


    2004

2003

     

Income

   
 

Interest income

$   137,396

$    49,802

 

Other income

    -

         -

 

  137,396

    49,802

Share of loss from Operating
Partnerships(Note D)

  (73,987)


   (3,484)

     

Expenses

   
 

Professional fees

12,384

10,399

 

Fund management fee (Note C)

67,532

59,127

 

Organization costs

 

-

 

Amortization

33,838

-

 

General and administrative expenses

   62,869

    54,482

 

  176,623

   124,008

     

NET INCOME (LOSS)

$ (113,214)

$  (77,690)

     

Net income (loss) allocated to limited
partners


$ (112,082)


$  (76,913)

     

Net income (loss) allocated to general
partner


$   (1,132)


$     (777)

     

Net income (loss) per BAC

$    (0.03)

$    (0.02)

   














The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 46


    2004

2003

     

Income

   
 

Interest income

$    57,209

$    18,210

 

Other income

    -

         -

 

  57,209

    18,210

Share of gain from Operating
Partnerships(Note D)

  10,612


         -

     

Expenses

   
 

Professional fees

6,434

4,674

 

Fund management fee (Note C)

53,746

12,932

 

Organization costs

 

81,813

 

Amortization

67,562

-

 

General and administrative expenses

   29,498

    10,122

 

  157,240

   109,541

     

NET INCOME (LOSS)

$  (89,419)

$  (91,331)

     

Net income (loss) allocated to limited
partners


$  (88,525)


$  (90,418)

     

Net income (loss) allocated to general
partner


$    (894)


$     (913)

     

Net income (loss) per BAC

$    (0.03)

$    (0.03)

   







 

 

 








The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

 


  2004


  2003

     

Income

   
 

Interest income

$     860,381

$     698,110

 

Other income

  20,737

      48,836

881,118

     746,946

Share of loss from Operating
Partnerships (Note D)


(18,400,924)


(16,927,614)

     

Expenses

   
 

Professional fees

680,880

705,555

 

Fund management fee (Note C)

4,618,359

4,376,681

 

Organization costs

-

160,044

 

Amortization

1,183,230

920,250

 

General and administrative expenses

     803,872

     704,066

 

   7,286,341

   6,866,596

     

NET INCOME (LOSS)

$(24,806,147)

$(23,047,264)

     

Net income (loss) allocated to
limited partners


$(24,558,085)


$(22,816,791)

     

Net income (loss) allocated to
general partner


$   (248,062)


$   (230,473)

     

Net income (loss) per BAC

$       (.30)

$       (.28)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 20


    2004


    2003

     

Income

   
 

Interest income

$      6,828

$        880

 

Other income

     7,423

      3,236

 

     14,251

      4,116

Share of loss from Operating
Partnerships(Note D)


  (714,254)


  (497,054)

     

Expenses

   
 

Professional fees

32,477

39,684

 

Fund management fee (Note C)

243,968

246,534

 

Organization costs

-

-

 

Amortization

2,679

2,679

 

General and administrative expenses

     17,410

     21,570

  

    296,534

    310,467

     

NET INCOME (LOSS)

$  (996,537)

$  (803,405)

     

Net income (loss) allocated to limited
partners


$  (986,572)


$  (795,371)

     

Net income (loss) allocated to general
partner


$    (9,965)


$    (8,034)

     

Net income (loss) per BAC

$      (.26)

$      (.21)

     


















The accompanying notes are an integral part of this statement

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 21


    2004


    2003

     

Income

   
 

Interest income

$        355

$        698

 

Other income

          -

        450

 

355

      1,148

Share of loss from Operating 
Partnerships(Note D)


  (363,146)


  (400,186)

     

Expenses

   
 

Professional fees

18,541

34,837

 

Fund management fee (Note C) 

152,528

168,380

 

Organization costs

-

-

 

Amortization

1,465

1,465

 

General and administrative expenses

     11,606

     13,322

  

    184,140

    218,004

     

NET INCOME (LOSS)

$  (546,931)

$  (617,042)

     

Net income (loss) allocated to limited
partners


$  (541,462)


$  (610,872)

     

Net income (loss) allocated to general 
partner

$   (5,469)

$    (6,170)

     

Net income (loss) per BAC


$   (.29)


$      (.32)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 22


    2004


    2003

     

Income

   
 

Interest income

$        813

$      1,265

 

Other income

      2,913

      2,400

 

      3,726

      3,665

Share of loss from Operating 
Partnerships(Note D)


  (982,620)


  (660,231)

     

Expenses

   
 

Professional fees

24,678

24,772

 

Fund management fee (Note C) 

175,700

182,704

 

Organization costs

-

-

 

Amortization

4,605

4,605

 

General and administrative expenses

     13,889

     16,583

 

    218,872

    228,664

     

NET INCOME (LOSS)

$ (1,197.766)

$  (885,230)

     

Net income (loss) allocated to limited
partners


$ (1,185,788)


$  (876,378)

     

Net income (loss) allocated to general 
partner


$    (11,978)


$    (8,852)

     

Net income (loss) per BAC

$       (.46)

$      (.34)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 23


    2004


    2003

     

Income

 

Interest income

$        395

$        561

 

Other income

        801

      2,400

 

      1,196

      2,961

Share of loss from Operating
Partnerships(Note D)


  (945,000)


  (706,677)

     

Expenses

 

Professional fees

24,480

30,358

 

Fund management fee (Note C)

159,385

171,961

 

Organization costs

-

-

 

Amortization

6,848

6,848

 

General and administrative expenses

    16,160

     19,880

 

    206,873

    229,047

     

NET INCOME (LOSS)

$(1,150,677)

$  (932,763)

     

Net income (loss) allocated to limited
partners


$(1,139,170)


$  (923,435)

     

Net income (loss) allocated to general
partner


$   (11,507)


$    (9,328)

     

Net income (loss) per BAC

$      (.34)

$      (.28)

     


















The accompanying notes are an ntegral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 24


    2004


    2003

     

Income

   
 

Interest income

$        636

$        834

 

Other income

          -

      1,500

 

        636

      2,334

Share of loss from Operating
Partnerships(Note D)


  (482,260)


  (285,976)

     

Expenses

   
 

Professional fees

23,870

28,771

 

Fund management fee (Note C)

144,066

128,817

 

Organization costs

-

-

 

Amortization

7,653

7,653

 

General and administrative expenses

     12,268

     15,086

 

    187,857

    180,327

     

NET INCOME (LOSS)

$  (669,481)

$  (463,969)

     

Net income (loss) allocated to limited
partners


$  (662,786)


$  (459,329)

     

Net income (loss) allocated to general
partner


$   (6,695)


$    (4,640)

     

Net income (loss) per BAC

$      (.31)

$      (.21)

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 25


    2004


    2003

     

Income

   
 

Interest income

$      1,347

$      1,635

 

Other income

          -

      3,900

 

      1,347

      5,535

Share of loss from Operating 
Partnerships(Note D)


  (461,450)


  (744,804)

     

Expenses

   
 

Professional fees

31,330

30,081

 

Fund management fee (Note C) 

162,198

179,957

 

Organization costs

-

-

 

Amortization

11,414

11,414

 

General and administrative expenses

     15,052

     19,255

 

    219,994

    240,707

     

NET INCOME (LOSS)

$  (680,097)

$  (979,976)

     

Net income (loss) allocated to limited
partners


$  (673,296)


$  (970,176)

     

Net income (loss) allocated to general 
partner


$    (6,801)


$    (9,800)

     

Net income (loss) per BAC

$      (.22)

$      (.32)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 26


    2004


    2003

     

Income

   
 

Interest income

$       1,078

$      1,453

 

Other income

          -

      2,400

 

    1,078

      3,853

Share of loss from Operating
Partnerships(Note D)


 (669,831)


(1,274,899)

     

Expenses

   
 

Professional fees

39,410

52,918

 

Fund management fee (Note C)

284,059

279,480

 

Organization costs

-

-

 

Amortization

12,678

12,678

 

General and administrative expenses

     16,525

     26,162

 

    352,672

    371,238

     

NET INCOME (LOSS)

$(1,021,425)

$(1,642,284)

     

Net income (loss) allocated to limited
partners


$(1,011,211)


$(1,625,861)

     

Net income (loss) allocated to general
partner


$   (10,214)


$   (16,423)

     

Net income (loss) per BAC

$      (.25)

$      (.41)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 27


    2004


    2003

     

Income

   
 

Interest income

$        412

$      1,098

 

Other income

        108

      3,900

 

        520

      4,998

Share of loss from Operating
Partnerships(Note D)


  (464,818)


  (578,006)

     

Expenses

   
 

Professional fees

19,569

21,628

 

Fund management fee (Note C)

218,120

220,873

 

Organization costs

-

-

 

Amortization

11,741

11,741

 

General and administrative expenses

     11,944

     14,809

 

    261,374

    269,051

     

NET INCOME (LOSS)

$  (725,672)

$  (842,059)

     

Net income (loss) allocated to limited
partners


$  (718,415)


$  (833,638)

     

Net income (loss) allocated to general
partner


$    (7,257)


$    (8,421)

     

Net income (loss) per BAC

$      (.29)

$      (.23)

     
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 28


    2004


    2003

     

Income

   
 

Interest income

$      1,088

$      6,821

 

Other income

         -

      4,050

 

     1,088

     10,871

Share of loss from Operating 
Partnerships(Note D)


 (861,206)


  (885,612)

     

Expenses

   
 

Professional fees

29,614

41,942

 

Fund management fee (Note C) 

178,503

223,380

 

Organization costs

-

-

 

Amortization

2,475

2,475

 

General and administrative expenses

    15,537

     23,981

 

   226,129

    291,778

     

NET INCOME (LOSS)

$(1,086,247)

$(1,166,519)

     

Net income (loss) allocated to limited
partners

$(1,075,385)


$(1,154,854)

     

Net income (loss) allocated to general 
partner


$   (10,862)


$   (11,665)

     

Net income (loss) per BAC

$     (.27)

$      (.29)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 29


    2004


    2003

     

Income

 

Interest income

$      5,819

$      5,248

 

Other income

      6,092

     12,150

 

     11,911

     17,398

Share of loss from Operating
Partnerships(Note D)


  (858,852)


(1,008,776)

     

Expenses

   
 

Professional fees

26,125

31,539

 

Fund management fee (Note C)

211,349

230,986

 

Organization costs

-

-

 

Amortization

2,484

2,483

 

General and administrative expenses

     20,010

     25,043

 

    259,968

    290,051

     

NET INCOME (LOSS)

$(1,106,909)

$(1,281,429)

     

Net income (loss) allocated to limited
partners


$(1,095,840)


$(1,268,615)

     

Net income (loss) allocated to general
partner


$   (11,069)


$   (12,814)

     

Net income (loss) per BAC

$      (.27)

$      (.32)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 30


    2004


    2003

     

Income

   
 

Interest income

$        336

       363

 

Other income

          -

      7,950

 

        336

      8,313

Share of loss from Operating 
Partnerships(Note D)


  (884,041)


  (853,235)

     

Expenses

   
 

Professional fees

36,479

23,479

 

Fund management fee (Note C) 

130,797

140,855

 

Organization costs

-

-

 

Amortization

15,929

15,929

 

General and administrative expenses

     12,032

     15,159

 

   195,237

    195,422

     

NET INCOME (LOSS)

$(1,078,942)

$(1,040,344)

     

Net income (loss) allocated to limited
partners


$(1,068,153)


$(1,029,941)

     

Net income (loss) allocated to general 
partner


$  (10,789)


$   (10,403)

     

Net income (loss) per BAC

$      (.40)

$      (.39)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 31


    2004


    2003

     

Income

 

Interest income

$        937

$        907

 

Other income

     3,100

          -

 

     4,037

        907

Share of loss from Operating
Partnerships(Note D)


(875,627)


(1,390,398)

     

Expenses

   
 

Professional fees

24,659

24,981

 

Fund management fee (Note C)

264,128

285,199

 

Organization costs

-

-

 

Amortization

-

-

 

General and administrative expenses

     15,688

     21,392

 

    304,475

    331,572

     

NET INCOME (LOSS)

$(1,176,065)

$(1,721,063)

     

Net income (loss) allocated to limited
partners


$(1,164,304)


$(1,703,852)

     

Net income (loss) allocated to general
partner


$   (11,761)


$   (17,211)

     

Net income (loss) per BAC

$      (.26)

$      (.39)

     


















The accompanying notes are an integral part of this statement

Boston Capital5 Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 32


    2004


    2003

     

Income

   
 

Interest income

$      5,949

$        920

 

Other income

          -

      4,500

 

      5,949

      5,420

Share of loss from Operating
Partnerships(Note D)


  (993,891)


(1,004,820)

     

Expenses

   
 

Professional fees

26,913

34,254

 

Fund management fee (Note C)

204,445

211,313

 

Organization costs

-

-

 

Amortization

27,542

27,542

 

General and administrative expenses

     17,526

     28,240

 

    276,426

    301,349

     

NET INCOME (LOSS)

$(1,264,368)

$(1,300,749)

     

Net income (loss) allocated to limited
partners


$(1,251,724)


$(1,287,742)

     

Net income (loss) allocated to general
partner


$   (12,644)


$   (13,007)

     

Net income (loss) per BAC

$      (.26)

$      (.27)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 33


    2004


    2003

     

Income

   

Interest income

$        566

$        705

 

Other income

          -

          -

 

        566

        705

Share of loss from Operating
Partnerships(Note D)


  (432,721)


  (460,852)

     

Expenses

   
 

Professional fees

12,664

17,246

 

Fund management fee (Note C)

117,246

130,473

 

Organization costs

-

-

 

Amortization

20,458

20,459

 

General and administrative expenses

     12,835

     16,565

 

    163,203

    184,743

     

NET INCOME (LOSS)

$  (595,358)

$  (644,890)

     

Net income (loss) allocated to limited
partners


$  (589,404)


$  (638,441)

     

Net income (loss) allocated to general
Partner


$  (5,954)


$    (6,449)

     

Net income (loss) per BAC

$      (.22)

$      (.24)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 34


    2004


    2003

     

Income

   
 

Interest income

$        732

$        943

 

Other income

          -

          -

 

        732

        943

Share of loss from Operating 
Partnerships(Note D)


(1,376,358)


(1,251,607)

     

Expenses

   
 

Professional fees

19,734

18,354

 

Fund management fee (Note C) 

198,886

212,113

 

Organization costs

-

-

 

Amortization

32,953

32,953

 

General and administrative expenses

     14,655

     20,472

 

   266,228

    283,892

     

NET INCOME (LOSS)

$(1,641,854)

$(1,534,556)

     

Net income (loss) allocated to limited
partners


$(1,625,435)


$(1,519,210)

Net income (loss) allocated to general 
partner


$   (16,419)


$   (15,346)

     

Net income (loss) per BAC

$      (.46)

$      (.43)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 35


    2004


    2003

     

Income

   
 

Interest income

$     2,064

$      2,612

 

Other income

          -

          -

 

   2,064

      2,612

Share of loss from Operating 
Partnerships(Note D)


 (765,095)


  (543,990)

     

Expenses

   
 

Professional fees

9,868

9,859

 

Fund management fee (Note C) 

144,270

166,270

 

Organization costs

-

-

 

Amortization

96,926

96,928

 

General and administrative expenses

     14,398

     19,720

 

    265,462

    292,777

     

NET INCOME (LOSS)

$(1,028,493)

$  (834,155)

     

Net income (loss) allocated to limited
partners


$ 1,018,208)


$  (825,813)

     

Net income (loss) allocated to general 
partner


$   (10,285)


$    (8,342)

     

Net income (loss) per BAC

$      (.31)

$      (.25)

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 36


    2004


    2003

     

Income

   
 

Interest income

$         232

$        260

 

Other income

        150

          -

 

        382

        260

Share of loss from Operating
Partnerships(Note D)


  (526,821)


  (421,607)

     

Expenses

 

Professional fees

13,921

17,567

 

Fund management fee (Note C)

109,882

103,146

 

Organization costs

-

-

 

Amortization

66,347

66,347

 

General and administrative expenses

     13,569

     14,465

 

    203,719

    201,525

     

NET INCOME (LOSS)

$  (730,158)

$  (622,872)

     

Net income (loss) allocated to limited
partners


$  (722,856)


$  (616,643)

     

Net income (loss) allocated to general
partner


$    (7,302)


$    (6,229)

     

Net income (loss) per BAC

$      (.35)

$      (.30)

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 37


    2004


    2003

     

Income

   
 

Interest income

$       914

$      523

 

Other income

         -

         -

 

       914

       523

Share of loss from Operating 
Partnerships(Note D)


 (340,111)


 (461,540)

     

Expenses

   
 

Professional fees

14,331

30,157

 

Fund management fee (Note C) 

143,131

98,198

 

Organization costs

-

-

 

Amortization

71,115

74,184

 

General and administrative expenses

    12,233

    15,515

 

   240,810

   218,054

     

NET INCOME (LOSS)

$ (580,007)

$ (679,071)

     

Net income (loss) allocated to limited
partners


$ (574,207)


$ (672,280)

     

Net income (loss) allocated to general 
partner


$   (5,800)


$   (6,791)

     

Net income (loss) per BAC

$     (.23)

$     (.26)

     












 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 38


    2004


    2003

     

Income

   
 

Interest income

$       516

$       379

 

Other income

         -

         -

 

       516

       379

Share of loss from Operating 
Partnerships(Note D)


 (540,445)


 (238,659)

     

Expenses

   
 

Professional fees

15,006

26,901

 

Fund management fee (Note C) 

113,101

57,098

 

Organization costs

-

-

 

Amortization

74,184

49,456

 

General and administrative expenses

    11,899

    7,145

 

   214,190

   140,600

     

NET INCOME (LOSS)

$ (754,119)

$ (378,880)

     

Net income (loss) allocated to limited
partners


$ (746,578)


$ (375,091)

     

Net income (loss) allocated to general 
partner


$   (7,541)


$   (3,789)

     

Net income (loss) per BAC

$     (.29)

$     (.15)

     













 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 39


    2004


    2003

     

Income

   
 

Interest income

$       515

$        256

 

Other income

         -

         -

 

       515

       256

Share of loss from Operating 
Partnerships(Note D)


 (489,718)


 (641,640)

     

Expenses

   
 

Professional fees

16,923

22,583

 

Fund management fee (Note C) 

95,100

85,896

 

Organization costs

-

-

 

Amortization

67,743

67,743

 

General and administrative expenses

    11,609

    14,791

 

   191,375

   191,013

     

NET INCOME (LOSS)

$ (680,578)

$ (832,397)

     

Net income (loss) allocated to limited
partners


$ (673,772)


$ (824,073)

     

Net income (loss) allocated to general 
partner


$   (6,806)


$   (8,324)

     

Net income (loss) per BAC

$     (.29)

$     (.36)

     













 

 

 

 

 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 40


    2004

2003

     

Income

   
 

Interest income

$        73

$       265

 

Other income

         -

         -

 

        73

       265

Share of loss from Operating
Partnerships(Note D)


 (634,257)


 (607,712)

     

Expenses

   
 

Professional fees

29,204

27,287

 

Fund management fee (Note C)

139,371

131,810

 

Organization costs

-

-

 

Amortization

85,297

85,287

 

General and administrative expenses

    12,060

    16,001

 

   265,932

   260,385

     

NET INCOME (LOSS)

$ (900,116)

$ (867,832)

     

Net income (loss) allocated to limited
partners

$ (891,115)

$ (859,154)

     

Net income (loss) allocated to general
partner


$   (9,001)


$   (8,678)

     

Net income (loss) per BAC

$     (.34)

$     (.33)

     














 

 

 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 41


2004


2003

     

Income

   
 

Interest income

$      4,229

$     33,324

 

Other income

       150

          -

 

   4,379

     33,324

Share of loss from Operating
Partnerships(Note D)


(1,789,574)


  (954,179)

     

Expenses

   
 

Professional fees

22,683

29,378

 

Fund management fee (Note C)

193,357

196,317

 

Organization costs

-

-

 

Amortization

100,402

100,033

 

General and administrative expenses

    13,721

     21,639

 

  330,163

    347,367

     

NET INCOME (LOSS)

$(2,115,358)

$(1,268,222)

     

Net income (loss) allocated to limited
partners


$(2,094,204)


$(1,255,540)

     

Net income (loss) allocated to general
partner


$   (21,154)


$   (12,682)

     

Net income (loss) per BAC

$      (.72)

$      (.43)

     














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 42


2004


2003

     

Income

   
 

Interest income

$    7,205

$   174,543

 

Other income

        -

        -

 

  7,205

   174,543

Share of loss from Operating
Partnerships(Note D)


(547,355)


(521,037)

     

Expenses

   
 

Professional fees

21,669

27,095

 

Fund management fee (Note C)

150,595

106,511

 

Organization costs

-

-

 

Amortization

86,442

89,960

 

General and administrative expenses

  14,782

   45,085

 

  273,488

  268,651

     

NET INCOME (LOSS)

$(813,638)

$(615,145)

     

Net income (loss) allocated to limited
partners


$(805,502)


$(608,994)

     

Net income (loss) allocated to general
partner


$  (8,136)


$  (6,151)

     

Net income (loss) per BAC

$    (.30)

$    (.22)

     














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 43


    2004


    2003

     

Income

   
 

Interest income

$    71,559

$    277,640

 

Other income

         -

         -

 

    71,559

   277,640

Share of loss from Operating
Partnerships(Note D)


(881,174)


(234,279)

     

Expenses

   
 

Professional fees

33,367

36,651

 

Fund management fee (Note C)

207,312

138,760

 

Organization costs

-

-

 

Amortization

123,310

107,728

 

General and administrative expenses

  53,510

    85,500

 

   417,499

368,639

     

NET INCOME (LOSS)

$(1,227,114)

$ (325,278)

     

Net income (loss) allocated to limited
partners


$(1,214,843)


$ (322,025)

     

Net income (loss) allocated to general
partner


$   (12,271)


$   (3,253)

     

Net income (loss) per BAC

$    (0.33)

$    (0.09)

     














The accompanying notes are an integral part of this statement


Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 44


    2004


    2003

     

Income

 

Interest income

$   187,337

$   104,444

 

Other income

     -

        -

 

   187,337

   104,444

Share of loss from Operating
Partnerships(Note D)


(176,067)


  (64,651)

     

Expenses

   
 

Professional fees

28,432

19,075

 

Fund management fee (Note C)

149,361

114,971

 

Organization costs

-

-

 

Amortization

76,117

-

 

General and administrative expenses

   91,940

    78,328

 

   345,850

   212,374

     

NET INCOME (LOSS)

$ (334,580)

$ (172,581)

     

Net income (loss) allocated to limited
partners


$ (331,234)


$ (170,855)

     

Net income (loss) allocated to general
partner


$   (3,346)


$   (1,726)

   

Net income (loss) per BAC

$   (0.12)

$   (0.06)

     














The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 45


    2004

2003

     

Income

   
 

Interest income

$    376,491

$    60,872

 

Other income

    -

-

 

   376,491

    60,872

Share of loss from Operating
Partnerships(Note D)

(344,301)


   (3,484)

     

Expenses

   
 

Professional fees

54,880

12,163

 

Fund management fee (Note C)

193,548

92,149

 

Organization costs

-

78,231

 

Amortization

99,238

-

 

General and administrative expenses

221,355

    70,087

 

569,021

   252,630

     

NET INCOME (LOSS)

$ (536,831)

$ (195,242)

     

Net income (loss) allocated to limited
partners


$ (531,463)


$ (193,290)

     

Net income (loss) allocated to general
partner


$  (5,368)


$   (1,952)

     

Net income (loss) per BAC

$   (0.13)

$    (0.05)

   














The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 46


    2004

2003

     

Income

   
 

Interest income

$    181,955

$    18,211

 

Other income

    -

-

 

   181,955

    18,211

Share of gain from Operating
Partnerships(Note D)

69


-

     

Expenses

   
 

Professional fees

30,053

5,241

 

Fund management fee (Note C)

133,953

12,932

 

Organization costs

-

81,813

 

Amortization

75,185

-

 

General and administrative expenses

109,659

    10,123

 

348,850

   110,109

     

NET INCOME (LOSS)

$ (166,826)

$ (91,898)

     

Net income (loss) allocated to limited
partners


$ (165,158)


$ (90,979)

     

Net income (loss) allocated to general
partner


$  (1,668)


$   (919)

     

Net income (loss) per BAC

$   (0.06)

$    (0.03)

   














The accompanying notes are an integral part of this statement

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL


Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

         

Partners' capital
(deficit)
  April 1, 2004



$ 492,272,914



$ (2,269,173)



$      33,800



$ 490,037,541

         

Capital contributions

 -

-

-

-

         

Selling commissions and
  registration costs


(2,262)


- -


- -


(2,262)

         

Net income (loss)

(24,558,085)

    (248,062)

           -

(24,806,147)

         

Partners' capital
(deficit),
  December 31, 2004



$ 467,712,567



$ (2,517,235)



$      33,800



$ 465,229,132

         

























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 20

       

Partners' capital
(deficit)
  April 1, 2004



$  8,383,420



$  (249,223)



$         -



$  8,134,197

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (986,572)

    (9,965)

         -

  (996,537)

         

Partners' capital
(deficit),
  December 31, 2004



$  7,396,848



$  (259,188)



$         -



$  7,137,660

         

Series 21

       

Partners' capital
(deficit)
  April 1, 2004



$  1,292,262



$  (150,535)



$          



$  1,141,727

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (541,462)

    (5,469)

         -

  (546,931)

         

Partners' capital
(deficit),
  December 31, 2004



$   750,800



$  (156,004)



$         -



$   594,796

         








The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 22

       

Partners' capital
(deficit)
  April 1, 2004



$  6,843,606



$  (152,167)



$          -



$  6,691,439

         

Capital contributions

-

-

-

-

         

Selling commissions and
registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,185,788)

 (11,978)

          -

  (1,197,766)

         

Partners' capital
(deficit),
  December 31, 2004



$  5,657,818



$  (164,145)



$          -



$  5,493,673

         

Series 23

       

Partners' capital
(deficit)
  April 1, 2004



$ 13,604,682



$  (150,302)



$          -



$ 13,454,380

    

       

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,139,170)

   (11,507)

          -

(1,150,677)

         

Partners' capital
(deficit),
  December 31, 2004



$ 12,465,512



$  (161,809)



$          -



$ 12,303,703

         









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 24

       

Partners' capital
 (deficit)
  April 1, 2004



$  7,694,103



$  (109,452)


   



$  7,584,651

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (662,786)

    (6,695)

          -

  (669,481)

         

Partners' capital
(deficit),
  December 31, 2004



$  7,031,317



$  (116,147)



$          -



$  6,915,170

         

Series 25

       

Partners' capital
(deficit)
  April 1, 2004



$ 13,515,062



$ (123,529)



$          -



$ 13,391,533

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (673,296)

    (6,801)

          -

  (680,097)

         

Partners' capital
(deficit),
  December 31, 2004



$ 12,841,766



$  (130,330)



$          -



$ 12,711,436

         









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 26

       

Partners' capital
(deficit)
  April 1, 2004



$ 21,372,359



$   (127,808)



$          -



$ 21,244,551

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,011,211)

    (10,214)

          -

  (1,021,425)

         

Partners' capital
(deficit),
  December 31, 2004



$ 20,361,148



$   (138,022)



$          -



$ 20,223,126

         

Series 27

       

Partners' capital
(deficit)
  April 1, 2004



$ 13,227,852



$    (74,918)



$          -



$ 13,152,934

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(718,415)

    (7,257)

          -

  (725,672)

         

Partners' capital
(deficit),
  December 31, 2004



$  12,509,437



$   (82,175)



$          -



$ 12,427,262

         









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 28

       

Partners' capital
(deficit)
  April 1, 2004



$ 24,921,003



$   (95,493)



$         -



$ 24,825,510

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,075,385)

    (10,862)

          -

(1,086,247)

         

Partners' capital
(deficit),
  December 31, 2004



$ 23,845,618



$   (106,355)



$         -



$ 23,739,263

         

Series 29

       

Partners' capital
(deficit)
  April 1, 2004



$ 19,360,361



$ (146,508)



$      (262)



$ 19,213,591

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,095,840)

    (11,069)

          -

(1,106,909)

         

Partners' capital
(deficit),
  December 31, 2004



$ 18,264,521



$  (157,577)



$      (262)



$ 18,106,682

         









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 30

       

Partners' capital
(deficit)
  April 1, 2004



$ 15,977,421



$   (67,962)



$         -



$ 15,909,459

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,068,153)

   (10,789)

          -

(1,078,942)

         

Partners' capital
(deficit),
  December 31, 2004



$ 14,909,268



$   (78,751)



$          -



$ 14,830,517

         

Series 31

       

Partners' capital
(deficit)
  April 1, 2004



$ 23,076,290



$ (149,996)



$          -



$ 22,926,294

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,164,304)

    (11,761)

          -

(1,176,065)

         

Partners' capital
(deficit),
  December 31, 2004



$ 21,911,986



$   (161,757)



$          -



$ 21,750,229

         









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 32

       

Partners' capital
(deficit)
  April 1, 2004



$ 28,509,033



$   (122,496)



$          -



$ 28,386,537

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,251,724)

    (12,644)

          -

(1,264,368)

         

Partners' capital
(deficit),
  December 31, 2004



$ 27,257,309



$   (135,140)



$          -



$ 27,122,169

         

Series 33

       

Partners' capital
(deficit)
  April 1, 2004



$ 16,160,698



$   (64,821)



$          -



$ 16,095,877

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (589,404)

    (5,954)

          -

  (595,358)

         

Partners' capital
(deficit),
  December 31, 2004



$ 15,571,294



$   (70,775)



$          -



$ 15,500,519

         









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 34

       

Partners' capital
(deficit)
  April 1, 2004



$ 20,960,665



$   (91,701)



$          -



$ 20,868,964

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,625,435)

    (16,419)

          -

(1,641,854)

         

Partners' capital
(deficit),
  December 31, 2004



$ 19,335,230



$   (108,120)



$          -



$ 19,227,110

         

Series 35

       

Partners' capital
(deficit)
  April 1, 2004



$ 21,665,801



$   (66,027)



$          -



$ 21,599,774

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

Net income (loss)

(1,018,208)

    (10,285)

          -

(1,028,493)

         

Partners' capital
(deficit),
  December 31, 2004



$ 20,647,593



$   (76,312)



$          -



$ 20,571,281

         









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 36

Partners' capital
(deficit)
  April 1, 2004



$ 12,921,764



$    (49,945)



$          -



$ 12,871,819

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -

-

         

Net income (loss)

  (722,856)

     (7,302)

          -

  (730,158)

         

Partners' capital
(deficit),
  December 31, 2004



$ 12,198,908



$    (57,247)



$          -



$ 12,141,661

         

Series 37

Partners' capital
(deficit)
  April 1, 2004



$ 17,320,415



$    (42,787)



$          -



$ 17,277,628

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (574,207)

     (5,800)

          -

  (580,007)

         

Partners' capital
(deficit),
  December 31, 2004



$ 16,746,208



$    (48,587)



$          -



$ 16,697,621

         








The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 38

       

Partners' capital
(deficit)
  April 1, 2004



$ 17,777,296



$   (40,921)



$          -



$ 17,736,375

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (764,578)

     (7,541)

          -

  (754,119)

         

Partners' capital
(deficit),
  December 31, 2004



$ 17,030,718



$   (48,462)



$          -



$ 16,982,256

         

Series 39

       

Partners' capital
(deficit)
  April 1, 2004



$ 15,673,797



$   (40,105)



$          -



$ 15,633,692

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


          -


- -

         

Net income (loss)

  (673,772)

    (6,806)

          -

(680,578)

         

Partners' capital
(deficit),
  December 31, 2004



$ 15,000,025



$ (46,911)



$          -



$ 14,953,114

         



 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 40

       

Partners' capital
(deficit)
  April 1, 2004



$ 19,411,992



$  (31,134)



$           -



$ 19,380,858

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

  (891,115)

    (9,001)

          -

  (900,116)

         

Partners' capital
(deficit),
  December 31, 2004



$ 18,520,877



$   (40,135)



$          -



$ 18,480,742

         

Series 41

       

Partners' capital
(deficit)
  April 1, 2004



$ 20,777,519



$    (43,217)



$        -



$ 20,734,302

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(2,094,204)

    (21,154)

          -

(2,115,358)

         

Partners' capital
(deficit),
  December 31, 2004



$ 18,683,315



$    (64,371)



$        -



$ 18,618,944

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 42

       

Partners' capital
(deficit)
  April 1, 2004



$ 21,213,036



$    (24,344)



$      -



$ 21,188,692

         

Capital contributions

-

          -

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

Net income (loss)

  (805,502)

     (8,136)

          -

  (813,638)

         

Partners' capital
(deficit),
  December 31, 2004



$ 20,407,534



$    (32,480)



$      -



$ 20,375,054

         

Series 43

       

Partners' capital
(deficit)
  April 1, 2004



$ 28,582,516



$  (31,697)



$    9,302



$ 28,560,121

         

Capital contributions

-

-

-

-

         

Selling commissions and
  registration costs


- -


- -


- -


- -

         

Net income (loss)

(1,214,843)

    (12,271)

          -

(1,227,114)

         

Partners' capital
(deficit),
  December 31, 2004



$ 27,367,673



$    (43,968)



$    9,302



$ 27,333,007

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 44

       

Partners' capital
(deficit)
  April 1, 2004



$ 21,912,570



$    (14,578)



$      8,868



$ 21,906,860

         

Capital contributions

-

          -

-

-

         

Selling commissions and
  registration costs



- -


- -


         

Net income (loss)

  (331,234)

     (3,346)

          -

(334,580)

         

Partners' capital
(deficit),
  December 31, 2004



$ 21,581,336



$    (17,924)



$      8,868



$ 21,572,280

         

Series 45

       

Partners' capital
(deficit)
  April 1, 2004



$ 34,454,769



$    (5,444)



$     17,528



$ 34,466,853

         

Capital contributions

 

          -

-

-

         

Selling commissions and
  registration costs


(2,639)


- -


- -


(2,639)

         

Net income (loss)

  (531,463)

    (5,368)

          -

  (536,831)

         

Partners' capital
(deficit),
  December 31, 2004



$ 33,920,667



$   (10,812)



$     17,528



$ 33,927,383

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine months Ended December 31, 2004
(Unaudited)

 





Assignees



General
Partner


Accumulated
or other
comprehensive
income





Total

Series 46

       

Partners' capital
(deficit)
  April 1, 2004



$ 25,662,622



$    (2,063)



$    (1,636)



$ 25,658,923

         

Capital contributions

-

          -

-

-

         

Selling commissions and
  registration costs


377


- -


- -


377

         

Net income (loss)

  (165,158)

    (1,668)

          -

    (166,826)

         

Partners' capital
(deficit),
  December 31, 2004



$ 25,497,841



$    (3,731)



$    (1,636)



$ 25,492,474

         

         
         
         
         
         
         
         
         
         

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement


Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(24,806,147)

$(23,047,264)

 

Adjustments

   
 

Amortization

1,183,230

920,250

 

Distributions from Operating
  Partnerships


3,938,993


79,977

 

Share of Loss from Operating
  Partnerships


18,400,924


16,927,614

 

Changes in assets and liabilities

   

Decrease (Increase) in 
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


(28,003)


(837,407)

 

Decrease (Increase) in prepaid
  expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


(1,201,753)


2,362,938

 

(Decrease) Increase in accounts
  payable affiliates


2,949,929


4,512,456

 

Line of credit

          -

           -

     
 

Net cash (used in) provided by 
operating activities


   437,173


     918,564

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(607,147)



(6,184,308)

 

Capital contributions paid to 
  Operating Partnerships


(15,829,828)


(46,287,987)

 

Advances to Operating Partnerships

990,932

5,174,851

 

Investments

  3,181,392

(15,532,519)

     

Net cash (used in) provided by
investing activities


(12,264,651)


(62,829,963)






The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

(2,262)

(10,222,820)

 

Capital contributions received

   -

  84,182,410

     
 

Net cash (used in) provided by
financing activities


   (2,262)


  73,959,590

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


(11,829,740)


  12,048,191

     

Cash and cash equivalents, beginning

  33,051,934

  26,358,111

     

Cash and cash equivalents, ending

$  21,222,194

$  38,406,302

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$   5,556,197





$  22,950,039

     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 20

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (996,537)

$  (803,405)

Adjustments

 

Amortization

2,679

2,679

 

Distributions from Operating
  Partnerships


3,375,375


9,697

 

Share of Loss from Operating
  Partnerships


714,254


497,054

 

Changes in assets and liabilities

   
 

Decrease (Increase) in 
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses



(9,900)

 

Decrease (Increase) in accounts
  receivable


(21,032)


- -

 

(Decrease) Increase in accounts
  payable affiliates


(842,241)


280,980

 

Line of credit

          -

          -

     

Net cash (used in) provided by 
operating activities


  2,232,498


   (22,895)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to 
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


          -


          -



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 20

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


  2,232,498


   (22,895)

     

Cash and cash equivalents, beginning

    252,117

    244,384

     

Cash and cash equivalents, ending

$  2,484,615

$    221,489

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 21

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (546,931)

$  (617,042)

 

Adjustments

   
 

Amortization

1,465

1,465

 

Distributions from Operating
  Partnerships


- -


436

 

Share of Loss from Operating
  Partnerships


363,146


400,186

 

Changes in assets and liabilities

   
 

Decrease (Increase) in 
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable



 

(Decrease) Increase in accounts
  payable affiliates


144,381


169,379

 

Line of credit

          -

          -

 

Net cash (used in) provided by 
operating activities


   (37,939)


   (45,576)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to 
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


          -


          -




The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 21

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (37,939)


   (45,576)

     

Cash and cash equivalents, beginning

    142,893

    211,070

     

Cash and cash equivalents, ending

$    104,954

$    165,494

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 22

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (1,197,766)

$  (885,230)

 

Adjustments

   
 

Amortization

4,605

4,605

 

Distributions from Operating
  Partnerships


8,584


1,731

 

Share of Loss from Operating
  Partnerships


982,620


660,231

 

Changes in assets and liabilities

   
 

Decrease (Increase) in 
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in prepaid
  expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


- -


575

 

(Decrease) Increase in accounts
  payable affiliates


145,944


190,943

 

Line of credit

       -

          -

     

Net cash (used in) provided by 
operating activities

   (56,013)

   (27,145)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to 
  Operating Partnerships


(1,500)


(1,500)

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


    (1,500)


    (1,500)



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 22

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


     -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (57,513)


   (28,645)

     

Cash and cash equivalents, beginning

    320,139

    354,902

     

Cash and cash equivalents, ending

$    262,626

$    326,257

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

   

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 23

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (1,150,677)

$  (932,763)

 

Adjustments

   
 

Amortization

6,848

6,848

 

Distributions from Operating
  Partnerships

10,579


5,188

 

Share of Loss from Operating
  Partnerships


945,000


706,677

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in prepaid
  expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


- -


- -

 

(Decrease) Increase in accounts
  payable affiliates


180,200


180,199

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


    (8,050)


   (33,851)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships

-


- -

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


          -


          -




The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 23

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

-

-

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


    (8,050)


   (33,851)

     

Cash and cash equivalents, beginning

    140,695

    167,196

     

Cash and cash equivalents, ending

$    132,645

$    133,345

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 24

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (669,481)

$  (463,969)

 

Adjustments

   
 

Amortization

7,653

7,653

 

Distributions from Operating
  Partnerships

3,236


- -

 

Share of Loss from Operating
  Partnerships


482,260


285,976

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


(21,650)

 

Decrease (Increase) in accounts
  receivable


- -


(4,398)

 

(Decrease) Increase in accounts
  payable affiliates


169,380


166,293

 

Line of credit

          -

          -

 

Net cash (used in) provided by
operating activities


   (6,952)


   (30,095)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


(1,636)

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


          -


    (1,636)




The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 24

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


    (6,952)


   (31,731)

     

Cash and cash equivalents, beginning

    221,188

    233,010

Cash and cash equivalents, ending

$    214,236

$    201,279

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 25

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (680,097)

$  (979,976)

 

Adjustments

   
 

Amortization

11,414

11,414

 

Distributions from Operating
  Partnerships

17


7,272

 

Share of Loss from Operating
  Partnerships


461,450


744,804

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


(29,899)

 

Decrease (Increase) in accounts
  receivable

 


829

 

(Decrease) Increase in accounts
  payable affiliates


204,504


204,508

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


    (2,712)


   (41,048)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

-

-

 

Investments

           -

           -

     

Net cash (used in) provided by
investing activities

           
-


           -



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 25

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (2,712)


   (41,048)

     

Cash and cash equivalents, beginning

    443,860

    489,697

     

Cash and cash equivalents, ending

$    441,148

$    448,649

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,

(Unaudited)

Series 26

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (1,021,425)

$(1,642,284)

 

Adjustments

   
 

Amortization

12,678

12,678

 

Distributions from Operating
  Partnerships


19,755


8,917

 

Share of Loss from Operating
  Partnerships


669,831


1,274,899

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


(100,595)

 

Decrease (Increase) in accounts
  receivable


- -


- -

 

(Decrease) Increase in accounts
  payable affiliates


225,357


328,186

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


   (93,804)


  (118,199)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


(41,895)

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

   

-

 

Net cash (used in) provided by
investing activities


          -

   (41,895)




The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 26

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (93,804)


  (160,094)

     

Cash and cash equivalents, beginning

    447,941

    516,145

     

Cash and cash equivalents, ending

$    354,137

$    356,051

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 27

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (725,672)

$  (842,059)

 

Adjustments

   
 

Amortization

11,741

11,741

 

Distributions from Operating
  Partnerships


4,082


969

 

Share of Loss from Operating
  Partnerships


464,818


578,006

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


- -


- -

 

(Decrease) Increase in accounts
  payable affiliates


136,404


236,405

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
Operating activities


  (108,627)


   (14,938)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

-

 
 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


          -


          -




The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 27

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


  (108,627)


   (14,938)

     

Cash and cash equivalents, beginning

    234,047

    339,714

     

Cash and cash equivalents, ending

$    125,420

$    324,776

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 28

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,086,247)

$(1,166,519)

 

Adjustments

   
 

Amortization

2,475

2,475

 

Distributions from Operating
  Partnerships


40,432


24,454

 

Share of Loss from Operating
  Partnerships


861,206


885,612

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


(28,003)


- -

 

Decrease (Increase) in accounts
  receivable


- -


350,506

 

(Decrease) Increase in accounts
  payable affiliates


- -


- -

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


  (210,137)


     96,528

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


(79,812)

 

Advances to Operating Partnerships

-

-

 

Investments


-


    150,337

     
 

Net cash (used in) provided by
investing activities

-


     70,525



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 28

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS

(210,137)


    167,053

     

Cash and cash equivalents, beginning

    464,935

    304,688

     

Cash and cash equivalents, ending

$    254,798

$    471,741

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,

(Unaudited)

Series 29

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,106,909)

$(1,281,429)

 

Adjustments

   
 

Amortization

2,484

2,483

 

Distributions from Operating
  Partnerships


- -


4,411

 

Share of Loss from Operating
  Partnerships


858,852


1,008,776

 

Changes in assets and liabilities

   
 

Decrease (Increase) in 
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


(75)


149,755

 

(Decrease) Increase in accounts
  payable affiliates


203,487


253,519

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by 
operating activities


   (42,161)


    137,515

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to 
  Operating Partnerships


(20,000)


(218,187)

 

Advances to Operating Partnerships

-

 
 

Investments

    (3,087)

  (146,722)

     
 

Net cash (used in) provided by
investing activities


   (23,087)


  (364,909)



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 29

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (65,248)


  (227,394)

     

Cash and cash equivalents, beginning

    328,122

    468,844

     

Cash and cash equivalents, ending

$    262,874

$    241,450

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 30

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,078,942)

$(1,040,344)

 

Adjustments

   
 

Amortization

15,929

15,929

 

Distributions from Operating
  Partnerships


13,709


3,356

 

Share of Loss from Operating
  Partnerships


884,041


853,235

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


(37,464)


- -

 

(Decrease) Increase in accounts
  payable affiliates


165,690


128,868

 

Line of credit

      -

          -

     
 

Net cash (used in) provided by
operating activities

(37,037)

   (38,956)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     

Net cash (used in) provided by
investing activities


    -


          -




The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 30

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (37,037)


   (38,956)

     

Cash and cash equivalents, beginning

    124,788

    121,470

     

Cash and cash equivalents, ending

$     87,751

$     82,514

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 31

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,176,065)

$(1,721,063)

 

Adjustments

   
 

Amortization

-

-

 

Distributions from Operating
  Partnerships


1,868


477

 

Share of Loss from Operating
  Partnerships


875,627


1,390,398

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


-


269,434

 

(Decrease) Increase in accounts
  payable affiliates


- -


198,720

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


  (298,570)


    137,966

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


(13,712)


(10,000)

 

Advances to Operating Partnerships

-

-

 

Investments

    -

          -

     
 

Net cash (used in) provided by
investing activities

   (13,712)


   (10,000)



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 31

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


  (312,282)


    127,966

     

Cash and cash equivalents, beginning

    487,978

    294,050

     

Cash and cash equivalents, ending

$    175,696

$    422,016

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 32

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,264,368)

$(1,300,749)

 

Adjustments

   
 

Amortization

27,542

27,542

 

Distributions from Operating
  Partnerships


- -


- -

 

Share of Loss from Operating
  Partnerships


993,891


1,004,820

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses

-


- -

 

Decrease (Increase) in accounts
  receivable


- -


 

(Decrease) Increase in accounts
  payable affiliates


226,673


249,678

 

Line of credit

 248,688

          -

     
 

Net cash (used in) provided by
operating activities


  232,426 


   (18,709)

     
     

Cash flows from investing activities:

 

 
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


(381,896)


(42,166)

 

Advances to Operating Partnerships

-

-

 

Investments

         -

          -

     

Net cash (used in) provided by
investing activities


(381,896)


   (42,166)



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 32

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


(149,470)


   (60,875)

     

Cash and cash equivalents, beginning

    319,906

    303,823

     

Cash and cash equivalents, ending

$    170,436

$    242,948

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 33

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (595,358)

$  (644,890)

 

Adjustments

   
 

Amortization

20,458

20,459

 

Distributions from Operating
  Partnerships


633


- -

 

Share of Loss from Operating
  Partnerships


432,721

460,852

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


- -


33,002

 

(Decrease) Increase in accounts
  payable affiliates


130,473


130,472

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


   (11,073)


      (105)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

11,731

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


      11,731


          -



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 33

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


    658


      (105)

     

Cash and cash equivalents, beginning

    194,499

    179,335

     

Cash and cash equivalents, ending

$    195,157

$    179,230

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 34

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,641,854)

$(1,534,556)

 

Adjustments

   
 

Amortization

32,953

32,953

 

Distributions from Operating
  Partnerships


1,538


1,540

 

Share of Loss from Operating
  Partnerships


1,376,358


1,251,607

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


- -


- -

 

(Decrease) Increase in accounts
  payable affiliates


219,897


219,896

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


   (11,108)


   (28,560)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


(10,000)


(10,000)

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


   (10,000)


   (10,000)


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 34

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (21,108)


   (38,560)

     

Cash and cash equivalents, beginning

    248,852

    286,227

     

Cash and cash equivalents, ending

$    227,744

$    247,667

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 35

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,028,493)

$  (834,155)

Adjustments

 

Amortization

96,926

96,928

 

Distributions from Operating
  Partnerships


- -


- -

 

Share of Loss from Operating
  Partnerships


765,095


543,990

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


71,652


- -

 

(Decrease) Increase in accounts
  payable affiliates


150,970


171,269

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities

56,150


   (21,968)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


          -


          -



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 35

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


56,150


   (21,968)

     

Cash and cash equivalents, beginning

    568,900

    581,040

     

Cash and cash equivalents, ending

$    625,050

$    559,072

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 36

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (730,158)

$  (622,872)

 

Adjustments

   

Amortization

66,347

66,347

 

Distributions from Operating
  Partnerships


3,000


1,000

 

Share of Loss from Operating
  Partnerships


526,821


421,607

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


- -


- -

 

(Decrease) Increase in accounts
  payable affiliates


126,904


129,984

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


    (7,086)


    (3,934)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



- -

 

Capital contributions paid to
  Operating Partnerships


- -


(22,431)

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     

Net cash (used in) provided by
investing activities


-


   (22,431)





The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 36

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS

(7,086)


   (26,365)

     

Cash and cash equivalents, beginning

     79,639

     96,390

     

Cash and cash equivalents, ending

$     72,553

$     70,025

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 37

 


2004


2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (580,007)

$  (686,293)

 

Adjustments

   
 

Amortization

71,115

71,116

 

Distributions from Operating
  Partnerships


33,930

-

 

Share of Loss from Operating
  Partnerships


340,111


470,362

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses

-


- -

 

Decrease (Increase) in accounts
  receivable


179,680


- -

 

(Decrease) Increase in accounts
  payable affiliates


153,649


132,715

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


    198,478


   (12,100)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



(1,779,528)

 

Capital contributions paid to
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

24,416

1,646,485

 

Investments

          -

          -

 

Net cash (used in) provided by
investing activities


24,416


  (133,043)



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 37

 


2004


2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


    222,894


  (145,143)

     

Cash and cash equivalents, beginning

    168,094

    305,836

     

Cash and cash equivalents, ending

$    390,988

$    160,693

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     










 





The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 38

 


2004


2003

Cash flows from operating activities:

   

 

Net income (loss)

$  (754,119)

$  (679,071)

 

Adjustments

   
 

Amortization

74,184

74,184

 

Distributions from Operating
  Partnerships


- -


- -

 

Share of Loss from Operating
  Partnerships


540,445


461,540

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


59,461


- -

 

(Decrease) Increase in accounts
  payable affiliates


127,093


132,070

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


     47,064


   (11,277)

     
     

Cash flows from investing activities:

   
     

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



- -



(7,651)

 

Capital contributions paid to
  Operating Partnerships


- -


- -

 

Advances to Operating Partnerships

-

-

 

Investments

         -

         -

     
 

Net cash (used in) provided by
investing activities


         -


   (7,651)



 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 38

 


2004


2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


     47,064


   (18,928)

     

Cash and cash equivalents, beginning

    139,965

    155,345

     

Cash and cash equivalents, ending

$    187,029

$    136,417

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 39

 


2004


2003

Cash flows from operating activities:

   

 

Net income (loss)

$  (680,578)

$  (832,397)

 

Adjustments

   
 

Amortization

67,743

67,743

 

Distributions from Operating
  Partnerships


- -


- -

 

Share of Loss from Operating
  Partnerships


489,718


641,640

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


109,869


5,346

 

(Decrease) Increase in accounts
  payable affiliates


106,863


265,365

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


93,615


    147,697

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired





 

Capital contributions paid to
  Operating Partnerships


- -


(105,120)

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


     -


  (105,120)



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 39

 


2004


2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


     93,615


     42,577

     

Cash and cash equivalents, beginning

    96,315

     49,200

     

Cash and cash equivalents, ending

$    189,930

$     91,777

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$         -





$          -

     
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 40

 

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (xloss)

$  (900,116)

$  (867,832)

Adjustments

 

Amortization

85,297

85,287

 

Distributions from Operating
  Partnerships


- -


5,574

 

Share of Loss from Operating
  Partnerships


634,257


607,712

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


- -

 

Decrease (Increase) in accounts
  receivable


- -


312,318

 

(Decrease) Increase in accounts
  payable affiliates


154,330


273,260

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


   (26,232)


    416,319

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(376)



(5,513)

 

Capital contributions paid to
  Operating Partnerships



(473,760)

 

Advances to Operating Partnerships

-

-

 

Investments

          -

          -

     

Net cash (used in) provided by
investing activities


    (376)


   (479,273)



 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 40

 


2004


2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

 

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


   (26,608)


   (62,954)

     

Cash and cash equivalents, beginning

     40,313

     97,331

     

Cash and cash equivalents, ending

$     13,705

$     34,377

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 41

 

2004

2003

     

Cash flows from operating activities:

   
     
 

Net income (loss)

$(2,115,358)

$(1,268,222)

 

Adjustments

   
 

Amortization

100,402

100,033

 

Distributions from Operating
  Partnerships


376,038


4,499

 

Share of Loss from Operating
  Partnerships


1,789,574


954,179

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


(700)

 

Decrease (Increase) in accounts
  receivable


(207,796)


926,647

 

(Decrease) Increase in accounts
  payable affiliates


200,805


212,740

 

Line of credit

          -

          -

     
 

Net cash (used in) provided by
operating activities


   143,665


    929,176

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(4,458)



(3,745)

 

Capital contributions paid to
  Operating Partnerships


(345,265)


(2,126,936)

 

Advances to Operating Partnerships

50,000

310,383

 

Investments

          -

          -

     
 

Net cash (used in) provided by
investing activities


(299,723)


(1,820,298)



 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 41

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


 (156,058)


  (891,122)

     

Cash and cash equivalents, beginning

    323,017

  1,406,695

     

Cash and cash equivalents, ending

$    166,959

$    515,573

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$          -





$          -

     












The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 42

 


2004


2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (813,638)

$  (615,145)

 

Adjustments

   
 

Amortization

86,442

89,960

 

Distributions from Operating
  Partnerships

17,649


521,037

 

Share of Loss from Operating
  Partnerships


547,355


- -

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


30

 

Decrease (Increase) in accounts
  receivable


(156,733)


780,507

 

(Decrease) Increase in accounts
  payable affiliates


181,747


114,972

 

Line of credit

          -

          -

     

Net cash (used in) provided by
operating activities


  (137,178)


    891,361

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(48,215)



(14,807)

 

Capital contributions paid to
  Operating Partnerships


(1,205,406)


(6,299,788)

 

Advances to Operating Partnerships

(19,619)

1,624,600

 

Investments

     -

  3,480,319

     
 

Net cash (used in) provided by
investing activities


(1,273,240)


(1,209,676)



 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 42

 


2004


2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

-

 

Capital contributions received

          -

          -

     
 

Net cash (used in) provided by
financing activities


          -


          -

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


(1,410,418)


(318,315)

     

Cash and cash equivalents, beginning

  1,858,784

  1,528,577

     

Cash and cash equivalents, ending

$   448,366

$  1,210,262

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its inves0tments
  for unpaid capital contributions
  due to the Operating Partnerships

 

 

 

$   - 

 

 

 

$          -

     


 

 

 

 


The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 43

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$(1,227,114)

$  (325,278)

 

Adjustments

   
 

Amortization

123,310

107,728

 

Distributions from Operating
  Partnerships


25,281


456

 

Share of Loss from Operating
  Partnerships


881,174


234,279

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


(111,742)

 

Decrease (Increase) in accounts
  receivable


11,446


994,873

 

(Decrease) Increase in accounts
  payable affiliates


227,184


139,760

 

Line of credit

          -

          -

     

Net cash (used in) provided by
operating activities


 41,281


  1,040,076

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(50,799)



(253,737)

 

Capital contributions paid to
  Operating Partnerships


(3,327,705)


(10,499,755)

 

Advances to Operating Partnerships

215,170

1,807,702

 

Investments

2,020,581

 (2,107,715)

     
 

Net cash (used in) provided by
investing activities


 (1,142,753)


(11,053,505)



 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 43

 


2004


2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

111,260

 

Capital contributions received

           -

           -

     
 

Net cash (used in) provided by
financing activities


           -


   111,260

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


(1,101,472)


 (9,902,169)

     

Cash and cash equivalents, beginning

   1,723,622

  11,183,205

     

Cash and cash equivalents, ending

$    622,150

$   1,281,036

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$   -





$   4,971,370

     

 

 

 

 

 


 


The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 44

 

2004

2003

Cash flows from operating activities:

   
     
 

Net income (loss)

$  (334,580)

$  (172,581)

 

Adjustments

   
 

Amortization

76,117

-

 

Distributions from Operating
  Partnerships


3,287


- -

 

Share of Loss from Operating
  Partnerships


176,067


64,651

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -


- -

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


(689,757)

 

Decrease (Increase) in accounts
  receivable


(108,984)


(341,031)

 

(Decrease) Increase in accounts
  payable affiliates


158,661


(11,357)

 

Line of credit

          -

          -

     

Net cash (used in) provided by
operating activities


   (29,432)


(1,150,075)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(3,778)



(1,181,310)

 

Capital contributions paid to
  Operating Partnerships


(286,143)


(10,763,417)

 

Advances to Operating Partnerships

747,691

616,224

 

Investments

(89,812)

(4,321,192)

     
 

Net cash (used in) provided by
investing activities


  367,958


(15,649,695)



 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 44


2004


2003

   

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

-

(1,328,144)

 

Capital contributions received

           -

 14,228,760

     
 

Net cash (used in) provided by
financing activities


           -


 12,900,616

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


  338,526


(3,899,154)

     

Cash and cash equivalents, beginning

   1,867,420

  6,439,937

     

Cash and cash equivalents, ending

$   2,205,946

$  2,540,783

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships





$    -





$  4,742,194

     

 

 

 

 

 


 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)


Series 45

 

2004

2003

Cash flows from operating activities:

   

 

Net income (loss)

$     (536,831)

$  (195,242)

 

Adjustments

   
 

Amortization

99,238

-

 

Distributions from Operating
  Partnerships


- -

-

 

Share of Loss from Operating
  Partnerships


344,301

3,484

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -

-

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


3,481

 

Decrease (Increase) in accounts
  receivable


529,793


(1,083,673)

 

(Decrease) Increase in accounts
  payable affiliates


- -


- -

 

Line of credit

           -

          -

     

Net cash (used in) provided by
operating activities


  436,501


(1,271,950)

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(206,755)



(2,812,323)

 

Capital contributions paid to
  Operating Partnerships


(3,478,621)


(11,215,959)

 

Advances to Operating Partnerships

 (38,457)

(830,543)

 

Investments

1,113,989

(9,243,207)

     
 

Net cash (used in) provided by
investing activities


 (2,609,844)


(24,102,032)



 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 45

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

(2,639)

(5,137,963)

 

Capital contributions received

   -

40,143,670

     
 

Net cash (used in) provided by
financing activities


(2,639)

35,005,707

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


(2,175,982)

 9,631,725

     

Cash and cash equivalents, beginning

  5,967,616

         -

     

Cash and cash equivalents, ending

$  3,791,634

$ 9,631,725

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships

 

 

 

$ 1,658,694





$ 9,594,688

   

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)


Series 46

 

2004

 

Cash flows from operating activities:

   

 

Net income (loss)

$   (166,826)

$  (91,898)

 

Adjustments

   
 

Amortization

75,185

-

 

Distributions from Operating
  Partnerships


- -

-

 

Share of Loss from Operating
  Partnerships


(69)

-

 

Changes in assets and liabilities

   
 

Decrease (Increase) in
  organization costs


- -

-

 

(Decrease) Increase in accounts
  payable and accrued expenses


- -


123,325

 

Decrease (Increase) in accounts
  receivable


(1,858,243)


(31,752)

 

(Decrease) Increase in accounts
  payable affiliates


29,559


13,632

 

Line of credit

          -

         -

     

Net cash (used in) provided by
operating activities


(1,920,394)


    13,307

     
     

Cash flows from investing activities:

   
     
 

Acquisition costs repaid (paid) for
  Operating Partnerships acquired
  or to be acquired



(292,766)



(1,912,873)

 

Capital contributions paid to
  Operating Partnerships


(6,759,580)


(2,588,446)

 

Advances to Operating Partnerships

 -

-

 

Investments

139,721

 (3,344,339)

     
 

Net cash (used in) provided by
investing activities

(6,912,625)


(7,845,658)



 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund IV L.P.

STATEMENTS OF CASH FLOWS

Nine months Ended December 31,
(Unaudited)

Series 46

 

2004

2003

     

Continued

   
     

Cash flows from financing activities:

   
     
 

Sales and registration costs paid

377

(3,867,973)

 

Capital contributions received

   -

29,809,980

     
 

Net cash (used in) provided by
financing activities


377

25,942,007

     
     

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS


(8,832,642)

18,109,656

     

Cash and cash equivalents, beginning

 15,846,289

         -

     

Cash and cash equivalents, ending

$   7,013,647

$18,109,656

     

Supplemental schedule of non-cash
  investing and financing activities
  the fund has increased its investments
  for unpaid capital contributions
  due to the Operating Partnerships

 

 

 

$  3,897,503





$ 3,641,787

   

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund IV L.P. (the "Fund") was organized under the laws of the State of Delaware as of October 5, 1993, for the purpose of acquiring, holding, and disposing of limited partnership interests in Operating Partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was a restructuring, and as a result, the Fund's general partner was reorganized as follows. The General Partner of the Fund continues to be Boston Capital Associates IV L.P., a Delaware limited partnership. The general partner of the General Partner is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of th e General Partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates. The Assignor Limited Partner is BCTC IV Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.

Pursuant to the Securities Act of 1933, the Fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective December 16, 1993 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 registered 30,000,000 BACs at $10 per BAC for sale to the public in one or more series. One April 18, 1996 an amendment to Form S-11 which registered an additional 10,000,000 BACs for sale to the public in one or more series became effective. On April 2, 1998 an amendment to Form S-11, which registered an additional 25,000,000 BACs for sale to the public in one or more series became effective. On August 31, 1999 an amendment to Form S-11, which registered an additional 8,000,000 BACs for sale to the public in one or more series became effective. On July 26, 2000 an amendment to Form S-11, which regi stered an additional 7,500,000 BACs for sale to the public in one or more series became effective. On July 24, 2001 an amendment to Form S-11, which registered an additional 7,000,000 BACs for sale to the public in one or more series became effective. On July 24, 2002 an amendment to Form S- 11, which registered an additional 7,000,000 BAC's for sale to the public became effective. On July 1, 2003 an amendment to Form S- 11, which registered an additional 7,000,000 BAC's for sale to the public became effective.

Below is a summary of the BACs sold and total equity raised by series as of the date of this filing:

Series

Closing Date

BACs Sold

Equity Raised

Series 20

June 24, 1994

3,866,700

$38,667,000

Series 21

December 31, 1994

1,892,700

$18,927,000

Series 22

December 28, 1994

2,564,400

$25,644,000

Series 23

June 23, 1995

3,336,727

$33,366,000

Series 24

September 22, 1995

2,169,878

$21,697,000

Series 25

December 29, 1995

3,026,109

$30,248,000

Series 26

June 25, 1996

3,995,900

$39,959,000

Series 27

September 17, 1996

2,460,700

$24,607,000

Series 28

January 29, 1997

4,000,738

$39,999,000

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2004
(Unaudited)

NOTE A - ORGANIZATION (continued)

Series

Closing Date

BACs Sold

Equity Raised

Series 29

June 10, 1997

3,991,800

$39,918,000

Series 30

September 10, 1997

2,651,000

$26,490,750

Series 31

January 18, 1998

4,417,857

$44,057,750

Series 32

June 23, 1998

4,754,198

$47,431,000

Series 33

September 21, 1998

2,636,533

$26,362,000

Series 34

February 11, 1999

3,529,319

$35,273,000

Series 35

June 28, 1999

3,300,463

$33,004,630

Series 36

September 28, 1999

2,106,837

$21,068,375

Series 37

January 28, 2000

2,512,500

$25,125,000

Series 38

July 31, 2000

2,543,100

$25,431,000

Series 39

January 31, 2001

2,292,152

$22,921,000

Series 40

July 31, 2001

2,630,256

$26,629,250

Series 41

January 31, 2002

2,891,626

$28,916,260

Series 42

July 31, 2002

2,744,262

$27,442,620

Series 43

December 31,2002

3,637,987

$36,379,870

Series 44

April 30, 2003

2,701,973

$27,019,730

Series 45

September 16, 2003

4,014,367

$40,143,670

Series 46

December 19, 2003

2,980,998

$29,809,980

The Fund concluded its public offering of BACs in the Fund on December 19, 2003.

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements herein as of December 31, 2004 and for the three and nine months then ended have been prepared by the Fund, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.

The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principals have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund's Annual Report on Form 10-K.

Investment Securities

The Fund has determined that all of its investment securities are to be categorized as securities available for sale. Securities classified as available for sale are those debt securities that the Fund purchased that may be liquidated prior to the maturity date should the need arise.

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2004
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES (continued)

These securities are carried at approximate fair market value. All of the investments held by the Fund are tax-exempt municipal bonds and Certificates of Deposit.

The amortized cost of securities available for sale as of December 31, 2004 by contractual maturity are as follows:

 

Amortized Cost

   

Due in one year or less

$ 9,867,337

Due after one year

7,517,892

Total

$17,385,229

The fair market value of the securities is $17,419,029. The difference being an unrealized gain on securities available for sale of $33,800, as of December 31, 2004.

Amortization

The Fund began amortizing unallocated and deferred acquisition costs over 330 months as of June 1999. Accumulated amortization of acquisition costs by Series as of December 31, 2004 and 2003 is as follows:

 

2004

2003

Series 20

$   20,540

$   16,968

Series 21

11,235

9,281

Series 22

35,304

29,164

Series 23

48,175

39,044

Series 24

58,676

48,472

Series 25

58,927

48,679

Series 26

99,437

82,532

Series 27

85,944

70,997

Series 28

18,976

15,676

Series 29

18,900

15,588

Series 30

121,988

100,749

Series 32

173,500

143,104

Series 33

155,938

128,661

Series 34

247,512

204,156

Series 35

702,761

579,897

Series 36

478,089

393,729

Series 37

424,152

334,166

Series 38

311,658

215,756

Series 39

263,330

175,550

Series 40

200,169

97,775

Series 41

316,603

201,222

Series 42

195,110

83,125

Series 43

252,661

  107,728

Series 44

101,204

-

Series 45

109,205

-

Series 46

   63,750

   -

 

$4,573,744

$3,142,019

 

 

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2004
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates of the general partner, including Boston Capital Holdings Limited Partnership, Boston Capital Securites, Inc., and Boston Capital Asset Management L.P. as follows:

An annual partnership management fee based on .375 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships has been accrued to Boston Capital Asset Management Limited Partnership. Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management LP, the amounts accrued are not net of reporting fees received. The partnership management fee accrued for the quarters ended December 31, 2004 and 2003 are as follows:

 

2004

2003

Series 20

$   92,061

$   93,660

Series 21

56,460

56,460

Series 22

63,648

63,648

Series 23

60,066

60,066

Series 24

56,460

55,431

Series 25

68,169

68,169

Series 26

109,395

109,395

Series 27

78,801

78,801

Series 29

84,495

84,495

Series 30

55,230

55,230

Series 31

-

99,360

Series 32

82,896

83,226

Series 33

43,491

43,491

Series 34

73,299

73,299

Series 35

57,090

57,090

Series 36

40,149

40,149

Series 37

51,216

44,238

Series 38

41,100

41,100

Series 39

34,200

34,200

Series 40

50,001

48,570

Series 41

70,744

68,145

Series 42

58,941

36,432

Series 43

75,144

64,995

Series 44

52,887

47,144

Series 45

   -

   -

Series 46

   16,495

   12,932

 

$1,472,438

$1,519,726

     

 

 

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2004
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS (continued)

The fund management fees paid for the quarters ended December 31, 2004 and 2003 are as follows:

 

2004

2003

Series 28

$ 83,529

$ 83,529

Series 31

99,360

-

Series 44

-

33,774

Series 45

65,103

-

Series 46

 37,251

       -

$ 285,243

$ 117,303

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2004 and 2003 the Fund has limited partnership interests in 509 and 496 Operating Partnerships, respectively, which own or are constructing apartment complexes.

The breakdown of Operating Partnerships within the Fund at December 31, 2004 and 2003 is as follows:

 

2004

2003

Series 20

24

24

Series 21

14

14

Series 22

29

29

Series 23

22

22

Series 24

24

24

Series 25

22

22

Series 26

45

45

Series 27

16

16

Series 28

26

26

Series 29

22

22

Series 30

20

20

Series 31

27

27

Series 32

17

17

Series 33

10

10

Series 34

14

14

Series 35

11

11

Series 36

11

11

Series 37

7

7

Series 38

10

10

Series 39

9

9

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

 

2004

2003

Series 40

16

16

Series 41

23

23

Series 42

22

21

Series 43

22

21

Series 44

8

9

Series 45

26

22

Series 46

 12

  4

 

509

496

Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships. These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations. The contributions payable at December 31, 2004 and 2003 are as follows:

 

2004

2003

Series 20

$   388,026

$   388,026

Series 21

457,642

457,642

Series 22

477,996

479,496

Series 23

117,797

117,797

Series 24

368,239

368,239

Series 25

943,704

943,704

Series 26

1,443,838

1,443,838

Series 27

39,749

39,749

Series 28

40,968

40,968

Series 29

66,718

86,718

Series 30

128,167

128,167

Series 31

682,058

695,771

Series 32

520,571

893,997

Series 33

202,285

202,285

Series 34

75,968

85,968

Series 35

603,740

603,740

Series 36

657,998

657,998

Series 37

155,363

155,363

Series 38

117,735

117,735

Series 39

-

-

Series 40

152,424

152,424

Series 41

480,554

1,045,960

Series 42

913,898

2,141,903

Series 43

1,111,386

7,278,590

Series 44

 1,700,804

5,467,376

Series 45

7,458,378

9,594,688

Series 46

 6,074,254

 3,641,787

 

$25,380,260

$37,229,929

 

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2004
(Unaudited)

NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS - (continued)

The Fund's fiscal year ends March 31st for each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the nine months ended September 30, 2004.

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 20

 

        2004

        2003

     

Revenues

   
 

Rental

$  7,164,786

$  6,704,347

 

Interest and other

    346,933

    358,207

 

  7,511,719

  7,062,554

     

Expenses

   
 

Interest

2,153,135

1,923,737

 

Depreciation and amortization

2,065,768

1,893,525

 

Operating expenses

  4,266,108

  3,818,179

 

  8,485,011

  7,635,441

     

NET LOSS

$  (973,292)

$  (572,887)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (714,254)


$  (497,054)

     

Net loss allocated to other partners


$    (9,733)


$    (5,729)

     

Net loss suspended

$  (249,305)

$   (70,104)




The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 21

 

        2004

        2003

     

Revenues

   
 

Rental

$  3,600,073

$    3,005,651

 

Interest and other

     59,568

     45,539

 

  3,659,641

  3,051,190

     

Expenses

   
 

Interest

1,365,931

1,127,288

 

Depreciation and amortization

648,540

666,465

 

Operating expenses

  2,743,295

  1,965,086

 

  4,757,766

  3,758,839

     

NET LOSS

$(1,098,125)

$  (707,649)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$ (363,146)


$  (400,186)

     

Net loss allocated to other Partners


$   (10,981)


$    (7,076)

     

Net loss suspended

$  (723,998)

$  (300,387)

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 22

 

        2004

        2003

     

Revenues

   
 

Rental

$  4,036,671

$    3,953,782

 

Interest and other

    156,230

    224,287

 

  4,192,901

  4,178,069

  4,178,069

       

Expenses

     
 

Interest

1,027,416

960,402

 

Depreciation and amortization

1,427,697

1,253,509

 

Operating expenses

  2,763,200

  2,634,158

 

  5,218,313

  4,848,069

  4,848,069

       

NET LOSS

$(1,025,412)

$  (670,000)

$  (670,000)

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (982,620)


$  (660,231)


$  (660,231)

       

Net loss allocated to other Partners


$   (10,254)


$    (6,700)


$    (6,700)

       

Net loss suspended

$  ( 32,538)

$    (3,069)

$    (3,069)

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 23

 

        2004

        2003

     

Revenues

   
 

Rental

$  4,612,959

$  4,464,806

 

Interest and other

    144,607

    177,910

 

  4,757,566

  4,642,716

     

Expenses

   
 

Interest

1,298,374

1,261,698

 

Depreciation and amortization

1,308,188

1,268,569

 

Operating expenses

  3,105,548

  2,826,265

 

  5,712,110

  5,356,532

     

NET LOSS

$  (954,545)

$  (713,816)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (944,999)


$  (706,677)

     

Net loss allocated to other Partners


$    (9,546)


$    (7,139)

     

Net loss suspended

$          -

$          -

 

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 24

 

        2004

        2003

     

Revenues

   
 

Rental

$  3,403,439

$  3,229,847

 

Interest and other

     61,257

    370,364

 

  3,464,696

  3,600,211

     

Expenses

   
 

Interest

770,798

810,587

 

Depreciation and amortization

984,083

994,187

 

Operating expenses

  2,284,956

  2,122,995

 

4,039,837

  3,927,769

     

NET LOSS

$ (575,141)

$  (327,558)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (482,260)


$  (285,976)

     

Net loss allocated to other Partners


$   (5,750)


$    (3,275)

     

Net loss suspended

$   (87,131)

$   (38,307)

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 25

 

        2004

        2003

     

Revenues

   
 

Rental

$  6,236,411

$  5,592,204

 

Interest and other

    158,432

   171,612

 

  6,394,843

  5,763,816

     

Expenses

   
 

Interest

1,425,901

1,501,309

 

Depreciation and amortization

1,564,614

1,566,159

 

Operating expenses

  4,015,905

  3,711,904

 

  7,006,420

  6,779,372

     

NET LOSS

$  (611,577)

$(1,015,556)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (461,450)


$  (744,804)

     

Net loss allocated to other Partners


$    (6,116)


$   (10,156)

     

Net loss suspended

$  (144,011)

$  (260,596)

     


The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 20040
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 26

 

        2004

        2003

     

Revenues

 

Rental

$  7,593,312

$  7,100,245

 

Interest and other

    177,403

    191,412

 

  7,770,715

  7,291,657

     

Expenses

   
 

Interest

1,714,391

2,068,712

 

Depreciation and amortization

2,209,151

2,186,233

 

Operating expenses

  4,659,372

  4,527,557

 

  8,582,914

  8,782,502

     

NET LOSS

$  (812,199)

$(1,490,845)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (669,831)


$ (1,274,899)

     

Net loss allocated to other Partners


$    (8,122)


$   (14,908)

     

Net loss suspended

$  (134,246)

$  (201,038)

     
     


The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 27

 

        2004

        2003

     

Revenues

   
 

Rental

$  5,116,508

$  5,014,422

 

Interest and other

     59,863

     74,118

 

  5,176,371

  5,088,540

     

Expenses

   
 

Interest

1,917,688

2,100,403

 

Depreciation and amortization

1,355,378

1,290,509

 

Operating expenses

  2,512,954

  2,433,819

 

  5,786,020

  5,824,731

     

NET LOSS

$  (609,649)

$  (736,191)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (464,818)


$  (578,006)

     

Net loss allocated to other Partners


$    (6,096)


$    (7,362)

     

Net loss suspended

$  (138,735)

$  (150,823)

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 28

 

        2004

        2003

     

Revenues

   
 

Rental

$  4,680,556

$  4,653,213

 

Interest and other

     88,583

    101,152

 

  4,769,139

  4,754,365

     

Expenses

   
 

Interest

1,212,968

1,242,848

 

Depreciation and amortization

1,645,899

1,665,381

 

Operating expenses

  2,780,179

  2,740,694

 

  5,639,046

  5,648,923

     

NET LOSS

$  (869,907)

$  (894,558)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (861,206)


$  (885,612)

     

Net loss allocated to other Partners


$    (8,701)


$    (8,946)

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 29

 

        2004

        2003

     

Revenues

   
 

Rental

$  5,253,466

$  5,156,885

 

Interest and other

    178,453

    176,255

 

  5,431,919

  5,333,140

     

Expenses

   
 

Interest

1,134,708

1,263,773

 

Depreciation and amortization

1,958,322

1,905,222

 

Operating expenses

  3,206,416

  3,183,111

 

  6,299,446

6,352,106

     

NET LOSS

$  (867,527)

$(1,018,966)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (858,852)


$(1,008,776)

     

Net loss allocated to other Partners


$    (8,675)


$   (10,190)

     
     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 30

 

        2004

        2003

     

Revenues

   
 

Rental

$  3,538,293

$  3,518,455

 

Interest and other

    135,260

    106,339

 

  3,673,553

  3,624,794

     

Expenses

   
 

Interest

823,329

915,822

 

Depreciation and amortization

1,156,905

1,102,722

 

Operating expenses

  2,586,290

  2,468,103

 

  4,566,524

  4,486,647

     

NET LOSS

$  (892,971)

$  (861,853)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (884,041)


$  (853,235)

     

Net loss allocated to other Partners


$    (8,930)


$    (8,618)

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 31

 

        2004

        2003

     

Revenues

   
 

Rental

$ 7,540,216

$  7,273,384

 

Interest and other

    263,261

    269,557

 

  7,803,477

  7,542,941

     

Expenses

   
 

Interest

1,404,880

1,648,876

 

Depreciation and amortization

2,324,591

2,574,344

 

Operating expenses

  4,958,478

  4,724,164

 

  8,687,949

 8,947,384

     

NET LOSS

$  (884,472)

$(1,404,443)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (875,627)


$(1,390,398)

     

Net loss allocated to other Partners


$    (8,845)


$   (14,045)

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 32

 

        2004

        2003

     

Revenues

   
 

Rental

$  4,198,361

$  4,319,391

 

Interest and other

    136,612

    198,744

 

  4,334,973

  4,518,135

     

Expenses

 

Interest

914,787

984,831

 

Depreciation and amortization

1,832,124

1,886,523

 

Operating expenses

  2,695,383

  2,746,308

 

  5,442,294

  5,617,662

NET LOSS

$(1,107,321)

$(1,099,527)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (993,891)


$(1,004,820)

     

Net loss allocated to other Partners


$   (11,073)


$   (10,995)

     

Net loss suspended


$  (102,357)


$   (83,712)

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 33

 

        2004

        2003

     

Revenues

   
 

Rental

$  2,248,856

$  2,311,229

 

Interest and other

    16,118

     61,677

 

  2,264,974

  2,372,906

     

Expenses

   
 

Interest

729,749

798,516

 

Depreciation and amortization

747,085

889,227

 

Operating expenses

  1,225,232

  1,150,669

 

  2,702,066

  2,838,412

     

NET LOSS

$  (437,092)

$  (465,506)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (432,721)


$  (460,852)

     

Net loss allocated to other Partners


$    (4,371)


$    (4,654)

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 34

 

        2004

        2003

     

Revenues

 

Rental

$  3,966,062

$  4,014,053

 

Interest and other

    117,586

   175,371

 

  4,083,648

  4,189,424

     

Expenses

   
 

Interest

1,152,723

1,166,306

 

Depreciation and amortization

1,779,016

1,723,788

 

Operating expenses

  2,542,170

  2,563,580

 

  5,473,909

  5,453,674

     

NET LOSS

$(1,390,261)

$(1,264,250)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.

$(1,376,358)

$(1,251,607)

     

Net loss allocated to other Partners


$   (13,903)


$   (12,643)

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,

Series 35

 

        2004

        2003

     

Revenues

   
 

Rental

$  3,102,523

$  3,163,697

 

Interest and other

    118,491

    121,685

 

  3,221,014

  3,285,382

     

Expenses

   
 

Interest

808,651

778,196

 

Depreciation and amortization

1,169,927

1,105,486

 

Operating expenses

  2,015,261

  1,951,185

 

  3,993,839

  3,834,867

     

NET LOSS

$  (772,825)

$  (549,485)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (765,095)


$  (543,990)

     

Net loss allocated to other Partners


$    (7,730)


$    (5,495)

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 36

 

        2004

        2003

     

Revenues

   
 

Rental

$  2,285,184

$  2,252,173

 

Interest and other

     59,192

     82,531

 

  2,344,376

  2,334,704

     

Expenses

   
 

Interest

813,600

782,312

 

Depreciation and amortization

818,000

802,337

 

Operating expenses

  1,245,938

  1,175,921

 

  2,877,538

  2,760,570

     

NET LOSS

$  (533,162)

$  (425,866)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (526,821)


$  (421,607)

     

Net loss allocated to other Partners


$    (5,332)


$    (4,259)

     

Net loss suspended

$    (1,009)

$      -

     
     

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 37

 

          2004

        2003

     

Revenues

   
 

Rental

$  3,281,561

$  3,232,703

 

Interest and other

    150,325

    213,147

 

  3,431,886

  3,445,850

     

Expenses

   
 

Interest

847,401

923,385

 

Depreciation and amortization

1,046,841

1,053,871

 

Operating expenses

  1,881,190

  1,943,708

 

  3,775,432

  3,920,964

     

NET LOSS

$  (343,546)

$  (475,114)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (340,111)


$  (470,362)

     

Net loss allocated to other Partners


$    (3,435)


$    (4,752)

     

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 38

 


        2004


        2003

     

Revenues

 

Rental

$  2,278,222

$  2,234,494

 

Interest and other

     77,887

     65,562

 

  2,356,109

  2,300,056

     

Expenses

   
 

Interest

635,171

629,796

 

Depreciation and amortization

833,066

794,171

 

Operating expenses

  1,433,777

  1,342,292

 

  2,902,014

  2,766,259

     

NET LOSS

$  (545,905)

$  (466,203)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (540,445)


$  (461,540)

     

Net loss allocated to other Partners


$    (5,460)


$    (4,663)

     

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 39

 

        

2004

        

2003

     

Revenues

   
 

Rental

$  1,583,503

$  1,601,179

Interest and other

   158,151

    139,305

 

  1,741,654

  1,740,484

     

Expenses

   
 

Interest

452,244

427,340

 

Depreciation and amortization

693,177

686,090

 

Operating expenses

  1,090,897

  1,275,176

 

  2,236,318

  2,388,606

     

NET LOSS

$  (494,664)

$  (648,122)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (489,718)


$  (641,640)

     

Net loss allocated to other Partners


$    (4,946)


$    (6,482)

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 40

2004

2003

     

Revenues

   
 

Rental

$  2,580,037

$  2,505,237

 

Interest and other

     79,598

     61,474

 

  2,659,635

  2,566,711

     

Expenses

   
 

Interest

738,190

684,453

 

Depreciation and amortization

1,080,676

1,098,066

 

Operating expenses

  1,481,433

  1,398,042

 

  3,300,299

  3,180,561

     

NET LOSS

$  (640,664)

$  (613,850)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (634,257)


$  (607,712)

     


Net loss allocated to other Partners


$    (6,407)


$    (6,138)

     

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 41

 

        2004

        2003

     

Revenues

   
 

Rental

$  3,797,671

$    2,196,242

 

Interest and other

     81,364

    108,569

 

  3,879,035

  2,304,811

     

Expenses

   
 

Interest

1,582,020

668,239

 

Depreciation and amortization

1,780,526

1,134,832

 

Operating expenses

2,324,217

  1,465,557

 

  5,686,763

  3,268,628

     

NET LOSS

$(1,807,728)

$  (963,817)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$(1,789,574)


$  (954,179)

     

Net loss allocated to other Partners


$   (18,077)


$    (9,638)

     
     

Net loss suspended

$     (77)

$      -

     

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

        Series 42

 

 

2004

        2003

     

Revenues

   
 

Rental

$ 3,814,046

$ 2,040,273

 

Interest and other

   130,001

   136,191

 

 3,944,047

 2,176,464

     

Expenses

   
 

Interest

1,180,003

837,159

 

Depreciation and amortization

1,293,605

712,182

 

Operating expenses

 2,023,323

 1,153,422

 

 4,496,931

2,702,763

     

NET LOSS

$ (552,884)

$ (526,299)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$ (547,355)


$ (521,037)

     

Net loss allocated to other Partners


$   (5,529)


$   (5,262)

     

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 43

 

2004

        2003

     

Revenues

 

Rental

$ 4,033,063

$   821,503

 

Interest and other

    88,736

    36,488

 

 4,121,799

   857,991

     

Expenses

   
 

Interest

1,196,976

203,739

 

Depreciation and amortization

1,579,430

123,930

 

Operating expenses

 2,235 468

   766,768

 

 5,011,874

 1,094,437

     

NET LOSS

$ (890,075)

$ (236,446)

     

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$ (881,174)


$ (234,279)

     

Net loss allocated to other Partners


$   (8,901)


$   (2,167)

     

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 44

 

             2004

        2003

     

Revenues

   
 

Rental

$ 2,329,497

$ 104,867

 

Interest and other

   107,264

    2,673

 

2,436,761

  107,540

  107,540

       

Expenses

     
 

Interest

713,940

48,925

 

Depreciation and amortization

701,892

40,000

 

Operating expenses

  1,198,774

    83,919

 

2,614,606

  172,844

  172,844

       

NET LOSS

$  (177,845)

$  (65,304)

$  (65,304)

       

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (176,067)


$  (64,651)


$  (64,651)

       

Net loss allocated to other Partners


$   (1,778)


$   (653)


$   (653)

     

 

 



 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

Series 45

 

2004

          2003

     

Revenues

 

Rental

$  2,755,407

$    72,518

 

Interest and other

   109,199

    10,176

 

2,864,606

82,694

 
       

Expenses

     
 

Interest

667,312

12,837

 

Depreciation and amortization

853,687

4,092

 

Operating expenses

  1,691,386

    69,284

 

3,212,385

 86,213

 
       

NET LOSS

$  (347,779)

$  (3,519)

 
       

Net loss allocated to Boston Capital Tax Credit Fund IV L.P.


$  (344,301)


$  (3,484)

 
       

Net loss allocated to other Partners


$   (3,478)


$    (35)

 
     

 

 

 

 

 

 

Boston Capital Tax Credit Fund IV L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2004

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months Ended September 30,
(Unaudited)

 

 

        Series 46

        2004

   

Revenues

 
 

Rental

$   861,944

 

Interest and other

    5,521

 

   867,465

   

Expenses

 
 

Interest

168,145

 

Depreciation and amortization

140,055

 

Operating expenses

   559,195

 

   867,395

   

NET GAIN

$   70

   

Net gain allocated to Boston Capital Tax Credit Fund IV L.P.


$   69

   

Net gain allocated to other Partners


$      1

   

 

 

*The Operating Partnerships in Series 46 did not commence operations until after March 31, 2003, therefore, they do not have comparative information to report.

 

Boston Capital Tax Credit Fund IV L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2004
(Unaudited)

NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED

When comparing the results of operations from the Operating Partnerships for the nine months ended September 30, 2004 and 2003 numerous variances, some material in nature, exist. The variances, in most cases, are the result of a number of factors including an increase in the number of Operating Partnerships owned, an increase in the number which have completed construction, and an increase in the number which have completed the lease-up phase.

NOTE E - TAXABLE LOSS

The Fund's taxable loss for the fiscal year ended March 31, 2005 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 2. Management's Discussions and Analysis of Financial Condition and
Results of Operations


Liquidity

The Fund's primary source of funds is the proceeds of its Public Offering. Other sources of liquidity will include (i) interest earned on capital contributions held pending investment and on working capital and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has and will invest. The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships.

The Fund is currently accruing the fund management fee for Series 20, Series 21, Series 22, Series 23, Series 24, Series 25, Series 26, Series 27, Series 29, Series 30, Series 32, Series 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43, Series 44, and Series 46. Pursuant to the Partnership Agreement, such liabilities will be deferred until the Fund receives sales or refinancing proceeds from the Operating Partnerships, which will be used to satisfy such liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund. The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations.

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on December 16, 1993. The Fund received $38,667,000, $18,927,000, $25,644,000, $33,366,000, $21,697,000, $30,248,000, $39,959,000, $24,607,000, $39,999,000, $39,918,000, $26,490,750, $44,057,750, $47,431,000, $26,362,000, $35,273,000, $33,004,630, $21,068,375, $25,125,000, $25,431,000, $22,921,000, $26,629,250, $28,916,260, $27,442,620, $27,442,620, $36,379,870, $27,019,730, $40,143,670 and $29,809,980 representing 3,866,700, 1,892,700, 2,564,400, 3,336,727, 2,169,878, 3,026,109, 3,995,900, 2,460,700, 4,000,738, 3,991,800, 2,651,000, 4,417,857, 4,754,198, 2,636,533, 3,529,319, 3,300,463, 2,106,837, 2,512,500, 2,543,100, 2,292,152, 2,630,257, 2,891,626, 2,744,262, 3,637,987, 2,701,973, 4,014,367 and 2,908,998 BACs from investors admitted as BAC Holders in Series 20, Series 21, Series 22, Series 23, Series 24, Series 25, Series 26, Series 27, Series 28, Series 29, Series 30, Series 31, Series 32, Se ries 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43, Series 44, Series 45 and Series 46, respectively, as of December 31, 2004.

Series 20

The Fund commenced offering BACs in Series 20 on January 21, 1994. Offers and sales of BACs in Series 20 were completed on June 24, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 24 Operating Partnerships in the amount of $24,333,293.

During the quarter ended December 31, 2004, Series 20 did not record any releases of capital contributions. Series 20 has outstanding contributions payable in the amount of $388,026 as of December 31, 2004. Of the amount outstanding, $252,771 has been advanced to the Operating Partnerships. The advances will be converted to capital and the remaining contributions of $135,255 will be released from available net offering proceeds when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 21

The Fund commenced offering BACs in Series 21 on July 1, 1994. Offers and sales of BACs in Series 21 were completed on December 31, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $13,872,730.

During the quarter ended December 31, 2004, Series 21 did not record any releases of capital contributions. Series 21 has outstanding contributions payable in the amount of $457,642 as of December 31, 2004 all of which has been loaned to the Operating Partnerships. The loans will be converted to capital proceeds when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 22

The Fund commenced offering BACs in Series 22 on October 10, 1994. Offers and sales of BACs in Series 22 were completed on December 28, 1994. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 29 Operating Partnerships in the amount of $18,758,748.

During the quarter ended December 31, 2004, Series 22 did not record any releases of capital contributions. Series 22 has outstanding contributions payable in the amount of $477,996 as of December 31, 2004. Of the amount outstanding, $450,981 has been loaned to the Operating Partnerships. The loans will be converted to capital and the remaining contributions of $27,015 will be released from available net offering proceeds when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 23

The Fund commenced offering BACs in Series 23 on January 10, 1995. Offers and sales of BACs in Series 23 were completed on September 23, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $24,352,278.

During the quarter ended December 31, 2004, Series 23 did not record any releases of capital contributions. Series 23 has outstanding contributions payable of $117,797 as of December 31, 2004, all of which has previously been advanced or loaned to the Operating Partnerships. The advances and loans will be converted to capital when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 24

The Fund commenced offering BACs in Series 24 on June 9, 1995. Offers and sales of BACs in Series 24 were completed on September 22, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 24 Operating Partnerships in the amount of $15,417,237.

During the quarter ended December 31, 2004, Series 24 did not record any releases of capital contributions. Series 24 has outstanding contributions payable in the amount of $368,239 as of December 31, 2004. Of the amount outstanding, $358,239 has been advanced or loaned to some of the Operating Partnerships. The advances and loans will be converted to capital and the remaining contributions of $10,000 will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 25

The Fund commenced offering BACs in Series 25 on December 31, 1995. Offers and sales of BACs in Series 25 were completed on December 29, 1995. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $22,324,540.

During the quarter ended December 31, 2004, Series 25 did not record any releases of capital contributions. Series 25 has outstanding contributions payable in the amount of $943,704 as of December 31, 2004. Of the amount outstanding, $706,465 has been advanced or loaned to some of the Operating Partnerships. The advances and loans will be converted to capital and the remaining contributions of $237,239, will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 26

The Fund commenced offering BACs in Series 26 on January 18, 1996. Offers and sales of BACs in Series 26 were completed on June 25, 1996. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 45 Operating Partnerships in the amount of $29,401,215.

During the quarter ended December 31, 2004, Series 26 did not record any releases of capital contributions. Series 26 has outstanding contributions payable in the amount of $1,443,838 as of December 31, 2004. Of the amount outstanding, $1,400,060 has been advanced or loaned to some of the Operating Partnerships. The advances and loans will be converted to capital and the remaining contributions of $43,778, will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their Partnership agreements.

Series 27

The Fund commenced offering BACs in Series 27 on June 24, 1996. Offers and sales of BACs in Series 27 were completed on September 17, 1996. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 16 Operating Partnerships in the amount of $17,881,572.

During the quarter ended December 31, 2004, Series 27 did not record any releases of capital contributions. Series 27 has outstanding contributions payable in the amount of $39,749 as of December 31, 2004. Of the amount outstanding, $6,500 has been advanced to the Operating Partnerships. The advances will be converted to capital and the remaining contributions of $33,249 will be released from available net offering proceeds when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 28

The Fund commenced offering BACs in Series 28 on December 31,1996. Offers and sales of BACs in Series 28 were completed on January 31, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnership in the amount of $29,281,983.

During the quarter ended December 31, 2004, Series 28 did not record any releases of capital contributions. Series 28 has outstanding contributions payable in the amount of $40,968 as of December 31, 2004. The remaining contributions will be released from available net offering proceeds when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 29

The Fund commenced offering BACs in Series 29 on February 10, 1997. Offers and sales of BACs in Series 29 were completed on June 10, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $29,137,877.

During the quarter ended December 31, 2004, Series 29 recorded capital contribution releases of $20,000. Series 29 has outstanding contributions payable in the amount of $66,718 as of December 31, 2004. Of the amount outstanding, $20,935 has been loaned to the Operating Partnerships. The loans will be converted to capital and the remaining contributions of $45,783 will be released from available net offering proceeds when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 30

The Fund commenced offering BACs in Series 30 on June 23, 1997. Offers and sales of BACs in Series 30 were completed on September 10, 1997. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 20 Operating Partnerships in the amount of $19,497,869.

During the quarter ended December 31, 2004, Series 30 did not record any releases of capital contributions. Series 30 has outstanding contributions payable in the amount of $128,167 as of December 31, 2004. The remaining contributions will be released from available net offering proceeds and collection of accounts receivable, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 31

The Fund commenced offering BACs in Series 31 on September 11, 1997. Offers and sales of BACs in Series 31 were completed on January 18, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 27 Operating Partnerships in the amount of $32,569,100.

During the quarter ended December 31, 2004, Series 31 did not record any releases of capital contributions. Series 31 has outstanding contributions payable in the amount of $682,058 as of December 31, 2004. Of the amount outstanding, $615,674 has been advanced or loaned to some of the Operating Partnerships. In addition, $25,000 has been funded into an escrow account on behalf of one of the Operating Partnerships. The advances and loans will be converted to capital and the remaining contributions of $66,384, will be released from the escrow account and available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 32

The Fund commenced offering BACs in Series 32 on January 19, 1998. Offers and sales of BACs in Series 32 were completed on June 23, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 16 Operating Partnerships in the amount of $34,121,207. The series has also purchased assignments in Bradley Phase I of Massachusetts LLC, Bradley Phase II of Massachusetts LLC, Byam Village of Massachusetts LLC,Hanover Towers of Massachusetts LLC, Harbor Towers of Massachusetts LLC and Maple Hill of Massachusetts LLC. Under the terms of the Assignments of Membership Interests dated December 1, 1998 the series is entitled to certain profits, losses, tax credits, cash flow, proceeds from capital transactions and capital account as defined in the individual Operating Agreements. The series utilized $1,092,847 of funds available to invest in Operating Partnerships for this investment.

During the quarter ended December 31, 2004, Series 32 recorded capital contribution releases of $228,307. Series 32 has outstanding contributions payable in the amount of $520,571 as of December 31, 2004. Of the amount outstanding, $261,571 has been loaned or advanced to the Operating Partnerships. In addition, $125,000 has been funded into escrow accounts on behalf of other Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $259,000 will be released from the escrow accounts and available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 33

The Fund commenced offering BACs in Series 33 on June 22, 1998. Offers and sales of BACs in Series 33 were completed on September 21, 1998. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $19,594,100.

During the quarter ended December 31, 2004, Series 33 did not record any releases of capital contributions. Series 33 has outstanding contributions payable in the amount of $202,285 as of December 31, 2004. Of the amount outstanding, $62,966 has been loaned to the Operating Partnerships. In addition, $125,000 has been funded into an escrow account on behalf of other Operating Partnerships. The loans will be converted to capital and the remaining contributions of $139,319, will be released from the escrow account and available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 34

The Fund commenced offering BACs in Series 34 on September 22, 1998. Offers and sales of BACs in Series 34 were completed on February 11, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 14 Operating Partnerships in the amount of $25,738,978.

During the quarter ended December 31, 2004, Series 34 recorded capital contribution releases of $10,000. Series 34 has outstanding contributions payable to the Operating Partnerships in the amount of $75,968 as of December 31, 2004. Of the amount outstanding, $11,473 has been loaned to the Operating Partnerships. The loans will be converted to capital and the remaining contributions of $64,495, will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 35

The Fund commenced offering BACs in Series 35 on February 22, 1999. Offers and sales of BACs in Series 35 were completed on June 25, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 11 Operating Partnerships in the amount of $24,002,391.

During the quarter ended December 31, 2004, Series 35 did not record any releases of capital contributions. Series 35 has outstanding contributions payable in the amount of $603,740 as of December 31, 2004. Of the amount outstanding, $422,172 has been loaned to some of the Operating Partnerships. In addition, $10,855 has been funded into escrow accounts on behalf of other Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $181,568, will be released from the escrow accounts and available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 36

The Fund commenced offering BACs in Series 36 on June 22, 1999. Offers and sales of BACs in Series 36 were completed on September 28, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 11 Operating Partnerships in the amount of $15,277,041.

During the quarter ended December 31, 2004, Series 36 did not record any releases of capital contributions. Series 36 has outstanding contributions payable in the amount of $657,998 as of December 31, 2004 all of which has been loaned or advanced to the Operating Partnerships. The loans and advances will be converted to capital when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 37

The Fund commenced offering BACs in Series 37 on October 29, 1999. Offers and sales of BACs in Series 37 were completed on January 28, 1999. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 7 Operating Partnerships in the amount of $18,735,142.

During the quarter ended December 31, 2004, Series 37 did not record any releases of capital contributions. Series 37 has outstanding contributions payable in the amount of $155,363 as of December 31, 2004. Of the amount outstanding, $131,074 has been loaned to one of the Operating Partnerships. The loans will be converted to capital and the remaining contributions of $24,289, will be released when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 38

The Fund commenced offering BACs in Series 38 on February 1, 2000. Offers and sales of BACs in Series 38 were completed on July 31, 2000. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 10 Operating Partnerships in the amount of $18,612,287. In addition the Fund committed and used $420,296 of Series 38 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.

During the quarter ended December 31, 2004, Series 38 did not record any releases of capital contributions. Series 38 has outstanding contributions payable in the amount of $117,735 as of December 31, 2004. The remaining contributions will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 39

The Fund commenced offering BACs in Series 39 on August 1, 2000. Offers and sales of BACs in Series 39 were completed on January 31, 2001. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 9 Operating Partnerships in the amount of $17,115,492 as of December 31, 2004. In addition the Fund committed and used $192,987 of Series 39 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.

Prior to the quarter ended December 31, 2004, Series 39 had released all payments of its capital contributions to the Operating Partnerships.

Series 40

The Fund commenced offering BACs in Series 40 on February 1, 2001. Offers and sales of BACs in Series 40 were completed on July 31, 2001. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 16 Operating Partnerships in the amount of $19,030,771 as of December 31, 2004. In addition, the Fund committed and used $578,755 of Series 40 net offering proceeds to acquire limited partnership equity interests in limited liability companies, which are the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.

During the quarter ended December 31, 2004, Series 40 did not record any releases of capital contributions. Series 40 has outstanding contributions payable in the amount of $152,424 as of December 31, 2004. Of the amount outstanding, $143,730 has been loaned or advanced to some of the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $8,649 will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 41

The Fund commenced offering BACs in Series 41 on August 1, 2001. Offers and sales of BACs in Series 41 were completed on January 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 23 Operating Partnerships in the amount of $21,278,631. In addition, the Fund committed and used $195,249 of Series 41 net offering proceeds to acquire a limited partnership equity interest in a limited liability company, which is the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes.

During the quarter ended December 31, 2004, Series 41 recorded capital contribution releases of $92,746. Series 41 has outstanding contributions payable in the amount of $480,554 as of December 31, 2004. Of the amount outstanding, $440,966 has been loaned or advanced to some of the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $39,588, will be released from collections of notes and accounts receivable and available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 42

The Fund commenced offering BACs in Series 42 on February 1, 2002. Offers and sales of BACs in Series 42 were completed on July 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $20,156,428.

During the quarter ended December 31, 2004, Series 42 recorded capital contribution releases of $659,316. Series 42 has outstanding contributions payable in the amount of $913,898 as of December 31, 2004. Of the amount outstanding, $343,470 has

been loaned or advanced to some of the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $570,428 will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 43

The Fund commenced offering BACs in Series 43 on August 1, 2002. Offers and sales of BCAs in Series 43 were completed in December 31, 2002. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 22 Operating Partnerships in the amount of $25,934,306. The Fund also committed and used $805,160 of Series 43 net offering proceeds to acquire limited partnership equity interests in limited liability companies, which are the general partner of other operating limited partnerships, which own or are constructing, rehabilitating or operating apartment complexes. In addition, the Fund committed and used $268,451 of net offering proceeds to acquire the General Partner equity interest in all of the Operating Partnerships in Series 43

During the quarter ended December 31, 2004, Series 43 recorded capital contribution releases of $1,856,958. Series 43 has outstanding contributions payable in the amount of $1,111,386 as of December 31, 2004. Of the amount outstanding, $327,513 has been loaned or advanced to some of the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $783,873 will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 44

The Fund commenced offering BACs in Series 44 on January 14, 2003. Offers and sales of BCAs in Series 44 were completed in April 30, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 8 Operating Partnerships in the amount of $16,018,063. In addition, the Fund committed and used $164,164 of Series 44 net offering proceeds to acquire the General Partner equity interest in all of the Operating Partnerships in Series 44.

During the quarter ended December 31, 2004, Series 44 did not record any releases of capital contributions. Series 44 has outstanding contributions payable in the amount of $1,700,804 as of December 31, 2004. The remaining contributions will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

Series 45

The Fund commenced offering BACs in Series 45 on July 1, 2003. Offers and sales of BACs in Series 45 were completed on September 16, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnerships in the amount of $24,322,022. In addition, the Fund committed and used $302,862 of Series 45 net offering proceeds to acquire the General Partner equity interest in all of the Operating Partnerships in Series 45.

During the quarter ended December 31, 2004, Series 45 recorded capital contribution releases of $1,045,772. Series 45 has outstanding contributions payable in the amount of $7,458,379 as of December 31, 2004. Of the amount outstanding, $869,000 has been loaned or advanced to some of the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $6,589,379 will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

 

 

 

 

Series 46

The Fund commenced offering BACs in Series 46 on September 23, 2003. Offers and sales of BACs in Series 46 were completed on December 19, 2003. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 12 Operating Partnerships in the amount of $17,022,498. In addition, the Fund committed and used $228,691 of Series 46 net offering proceeds to acquire the General Partner equity interest in all of the Operating Partnerships in Series 46.

During the quarter ended December 31, 2004, Series 46 recorded capital contribution releases of $2,074,687. Series 46 has outstanding contributions payable in the amount of $6,074,254 as of December 31, 2004. Of the amount outstanding, $1,853,171 has been loaned or advanced to some of the Operating Partnerships. The loans and advances will be converted to capital and the remaining contributions of $4,221,083 will be released from available net offering proceeds, when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

 

 

Results of Operations

As of December 31, 2004 and 2003 the Fund held limited partnership interests in 509 and 496 Operating Partnerships, respectively. In each instance the Apartment Complex owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit. Initial occupancy of a unit in each Apartment Complex which complied with the Minimum Set-Aside Test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to hereinafter as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective Apartment Complexes are described more fully in the Prospectus or applicable report on Form 8-K. The General Partner believes that there is adequate casualty insurance on the properties.

The Fund's results of operations for future periods will vary significantly from those for the period ended December 31, 2004 as Series 44, Series 45 and Series 46 continue to use the funds raised to invest in partnership interests of additional Operating Partnerships.

The variance in net loss per BAC for Series 41 through Series 44 of the Fund for the current nine-month period to the prior Nine-month period is a mainly a result of a decrease in interest income and a variance in the losses from Operating Partnerships reported by each series. Interest income reported is expected to decrease for each series from year to year, after the first full year of operations, as limited partner contributions raised in the first year are expended on payments to Operating Partnerships in subsequent years. Losses reported from Operating Partnerships are expected to fluctuate until the series has fully invested in its Operating Partnerships and they achieve stabilized operations.

The Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnership in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of certain asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred for the quarter ended December 31, 2004 for Series 20, Series 21, Series 22, Series 23, Series 24, Series 25, Series 26, Series 27, Series 28, Series 29, Series 30, Series 31, Series 32, Series 33, Series 34, Series 35, Series 36, Series 37, Series 38, Series 39, Series 40, Series 41, Series 42, Series 43, Series 44, Series 45 and Series 46 were $80,061, $54,608, $60,119, $56,002, $49,674, $67,202, $97,586, $78,594, $69,593, $75,064, $51,900, $97,860, $77,436, $36,822, $70,019, $53,890, $39,572, $51,216, $41,100, $26,700, $48,501, $67,747, $50,127, $67,444, $52,887, $67,532 and $53,746 respectively.

The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest. The Fund's investments in Operating Partnerships have been and will be made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders.

Series 20

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 24 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 20 reflects net loss from Operating Partnerships of $(973,292) and $(572,887), respectively, which includes depreciation and amortization of $2,065,768 and $1,893,525, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

 

Series 20 has invested in 4 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Coushatta Seniors II Apartments, Floral Acres Apartments II, Harrisonburg Seniors Apartments and Shady Lane Apartments. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 112 apartment units in total. The low income housing tax credit available annually to Series 20 from the Calhoun Partnerships is approximately $143,240, which is approximately 3% of the total annual tax credit available to investors in Series 20.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 20 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer

Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in

the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.


Breeze Cove Limited Partnership (Breeze Cove Apartments) operated significantly below breakeven through 2004 due to low occupancy, high operating expenses, and rent collection problems. Pinnacle Management Services, began managing the property in December 2003. By end of the fourth quarter 2004, occupancy increased to 88% from 86% in the third quarter. Evictions for non-payment increased, tenant accounts receivable grew significantly, and the property reported bad debts expense in the fourth quarter 2004. The management agent is focusing on rent collections to improve cash flow. In August, 2004, the property initiated a rent concession of first and last month's rent and dropped the rental rate. This rent special expired at the end of October, 2004 due to a significant amount of move-ins during September and through mid-October. The property is currently offering one month free rent. The end of January, 2005 net projected occupancy is 97%. The latter occupancy percentage does not take into account th e four pending evictions and potential 7 additional evictions. If eleven tenants are evicted the net projected occupancy for February, 2005 is 80%.

Net operating revenue increased by approximately $10,000 due to continued occupancy gains. The property experienced negative cash flow of $29,000 during the quarter, due to higher than expected expenses, led by utility costs and maintenance expenses. The property is in fair condition due to the need for asphalt repairs and window replacements. The mortgage, taxes and insurance are current. With continued high occupancy and improved rent collections, the long-term prospects for this property are favorable. A market and sales analysis was prepared by a national real estate brokerage firm in January, 2005. The analysis reported that the property could be sold at a substantial profit. The potential for disposing of this asset will continue to be reviewed taking into consideration current property operations and tax considerations.

East Douglas Apartments Limited Partnership (East Douglas Apartments) produced a negative cash flow of $2,733 for 2003 due to a combination of the low rent structure allowed by the state tax credit monitoring agency, the Illinois Housing Development Authority (IHDA), high debt and the costs associated with repairing damages sustained during a small kitchen fire that occurred in April 2003. The total cost to repair the fire and water damage totaled slightly less than the insurance deductible of $10,000. An arbitration hearing was held on April 12, which resulted in a judgment in the amount of $9,798.75 including attorney's fees of $752.50. As no appeal was filed, the judgment was executed and collection proceedings have been started by the attorney including the garnishment of wages. The property operated well above breakeven through the fourth quarter of 2004. Physical occupancy averaged 92% and economic occupancy averaged 90% through the fourth quarter. Available operating cash along with the TIF r efund that was received in the third quarter and posted in the fourth quarter should be sufficient to pay the accounts payable through 2004. The property generated $1,300 in cash flow and has $7,707 in cash available in 2004. The Operating Partnership had planned to submit a mortgage application to IHDA during the second quarter of 2004 to replace the high interest first mortgage loan held by Arbor Commercial Mortgage. In July, Arbor, the existing loan servicing company, expressed interest in possibly renegotiating the current first mortgage. An initial package has been presented to their analyst who expressed interest and indicated that Arbor may be able to restructure the current first mortgage. Arbor has since assigned a specific analyst to develop possible mortgage restructuring strategies for the property. The mandatory "Physical Needs Assessment" has been completed and has been delivered to Arbor as part of the mortgage application package. It is hoped that a new mortgage will yield th e necessary funds to complete the exterior repairs and preventative maintenance needs including tuck pointing, replacement of the remaining original windows, repair and replacement of deteriorating wooden trim, exterior paint, replacement of the clay tile caps and other miscellaneous repairs. If successful, the reduced interest rate mortgage will have a positive effect on future cash flow. On January 1, 2004, Mark III Management Corporation of Indianapolis, Indiana assumed property management responsibilities for the property. Mark III is a reputable company with operations based within a two-hour drive of the property. It is hoped that their familiarity with the mid-west market and readily available corporate resources will contribute to improved operations and cash flow. The mortgage, property taxes and insurance are all current.


Evergreen Hills Associates, L.P. (Evergreen Hills Apartments) is a 72 unit property located in Macedon, NY, that has historically operated below breakeven, and continued to do so in 2003. When comparing current operations with expected cash flow, expenses are running significantly higher than projected, specifically real estate taxes and insurance. Although rents are currently $80 less than the tax credit maximum allowable rents, this property is part of a three phase complex, and any rental increase would be detrimental to occupancy. In addition, management does not feel that the area where the property is located can support an increase. Occupancy through the fourth quarter 2004 decreased to 82% from the 2003 average occupancy of 90%. As a result the property is operating below breakeven at year end. The Operating General Partner has stated that the economy is poor in part due to the decrease in employment at Kodak, and other area corporations. The Operating General Partner interest has been transferred from Home Properties of New York, LP to Silver Evergreen, LLC, with an effective date of September 30, 2004. Home Properties has decided to exit the Affordable Housing business and has been actively transferring its tax credit portfolio over the last two years. The new Operating General Partner is making strong efforts to improve operations at the property and increase occupancy.

Parkside Housing, LP (Parkside Apartments) is a 54-unit family apartment complex in Avondale, Arizona. The property generated negative cash flow of $30,447 in 2003, mainly due to high administrative and maintenance expenses. Although the property has been able to lower operating expenses in 2004, the average year to date occupancy which increased slightly since the last quarter to 82.2%, is still shy of last years average occupancy of 90%. In an effort to increase occupancy, the property management company continues to advertise through newspapers and flyers. In addition, the property continues to provide concessions such as discounted security deposits, one month free rent and move in gifts to entice occupants. The operating deficit guarantee is unlimited in time and amount

Clarksville Estates, LP (Clarksville Estates) is a 32-unit property located in Clarksville, Missouri. Despite an average occupancy of 85% through December 2004 the property is operating above breakeven after adjusting for the over-funded Replacement Reserve. Occupancy has been low throughout most of 2004 because there was insufficient operating income to perform major turnover and tenant damage repairs to several vacant units. Management tried to get approval from Rural Development to use Replacement Reserve funds for the renovations; however, RD would not approve the withdrawal. In October the property had generated enough operating income to hire two maintenance personnel who turned all but one unit over as rent-ready. As a result only one unit was vacant as of December 2004. The Investment General Partner will continue to monitor this property until the property has stabilized with average occupancy above 90%.

 

Series 21

As of the December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 14 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 21 reflects net loss from Operating Partnerships of $(1,098,125) and $(707,649), respectively, which includes depreciation and amortization of $648,540 and $666,465, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Atlantic City Housing Urban Renewal Associates L.P. (Atlantic City Apartments) filed for protection under Chapter 11 of the Bankruptcy Code in June of 2001.  A confirmation hearing was conducted on August 5, 2003 and the reorganization plan was confirmed on September 5, 2003.  An entity to be formed by Subsidized Properties LLC and Vision 2000 will acquire the current Operating General Partner positions. The present Operating General Partners will withdraw upon plan implementation with a payment of $400,000 to the Operating Partnership in satisfaction of all obligations. The reorganization plan requires the Investment General Partner to contribute $500,000 in new funding.  The contribution will be in the form of a loan with a seven-year pay back and will have priority over Operating General Partner distributions. The Investment General Partner will exit the Operating Partnership upon completion of the tax credit compliance period and full repayment of the $500,000 loan.  The restructur e also calls for a surrender of the existing municipal bond debt and replacement with a new issue at $0.60 per dollar of the existing principal balance.  The approximate amount of the new debt will be $2.31 million. The board of the Atlantic City Housing Authority has approved the issuance of the New Bonds in accordance with the Plan.

 

The new management company has completed the renovation of the apartments, and achieved an average of 94% occupancy for the fourth quarter. Atlantic City Apartments increased revenue by $12,407 to $391,905. Expenses were $567,822 for the quarter due to the costs of rehabilitating the units.

The new management coupled with city funding and new investor capital is expected to bring the property to stabilization within several months following plan implementation, which is projected to occur in first quarter 2005.      

Centrum Fairfax LP (Forest Glen at Sully Station) is a 119-unit senior complex located in Fairfax, VA which has historically experienced low occupancy. In 2003, average physical occupancy was 67%. Through the third quarter of 2004, the average occupancy was 72%; however, in the fourth quarter 2004 occupancy decreased to 71%. In an effort to increase and stabilize occupancy the management company replaced the site manager in September of 2004. The new site manager has extensive leasing experience and will pursue new marketing ideas such as networking with local civic and community groups. The management company will also increase the volume of advertising in community newspapers and local churches to attract potential tenants. Finally management will continue to offer monthly rental concession of $100 to $200 on the apartment types that are not leasing. The property is in excellent physical condition. The Operating General Partner's contractual obligation to fund operating deficits expired in the thi rd quarter of 2003. Despite this expiration, the Operating General Partner has continued to fund deficits and has indicated a commitment to continue to do so through the compliance period. The mortgage, taxes, insurance and payables are current.

Pumphouse Crossing II, LP (Pumphouse Crossing II Apartments) is a 48-unit, family property located in Chippewa, Wisconsin. The property operated with an average occupancy of 94% in 2004. Operating expenses are below the Investment General Partner's state average. Although occupancy increased and expenses remain reasonable, low rental rates in the area prevented the property from achieving breakeven operations through the fourth quarter of 2004. The management company continues to market the available units by working closely with the housing authority and by continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the Operating Partnership. The mortgage, taxes, insurance and payables are current.

Black River Run, LP (River Run Apartments) is a 48-unit, family property located in Black River Falls, Wisconsin. The property operated with an average occupancy of 89% for the year 2003. Occupancy decreased to an average of 82% based on the most recent 2004 occupancy report. Although operating expenses are below the Investment General Partner's state average, declining occupancy, coupled with low rental rates in the area prevented the property from achieving breakeven operations through the fourth quarter of 2004. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.


Lookout Ridge LP (Lookout Ridge Apts.) is a 30 unit development located in Covington, KY. The property is unable to support its operations due to high operating expenses and low rental rates. Operating expenses increased by $26,940 or $848 per unit in 2003. Early in 2004 the full time property manager and maintenance staff personnel were let go, in an attempt to lower operating expenses. The staff was replaced by a new property manager (working part time), and subcontracts for all maintenance related items. In the beginning of 2004 the property suffered from low occupancy of 80%; however through diligent efforts by the new property manager the property reached occupancy of 97% in the third quarter, and maintained that level into the fourth quarter of 2004.

Additionally, the management agent began implementing a $40 per unit, per month rent increase in the second quarter of 2004 to help increase revenue at the property. The new property manager also began an aggressive rental collection policy, which has assisted in increasing revenue in the fourth quarter.

The current Operating General Partner remains in negotiations with a replacement Operating General Partner that will be able to provide better economies of scale with regards to payroll and other operating expenses.

Pinedale II, LP (Pinedale Apartments II) is a 60-unit, family property located in Menomonie, Wisconsin. The property operated with an average occupancy of 92% in 2003. Occupancy increased to an average of 95% through the fourth quarter of 2004. The property's operating expenses are below the Investment General Partner's state average. Despite occupancy in the 90's, low rental rates in the area prevented the property from achieving breakeven operations through the third quarter of 2004. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Series 22

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 29 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 22 reflects net loss from Operating Partnerships of $(1,025,412) and $(670,000), respectively, which includes depreciation and amortization of $1,427,697 and $1,253,509, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

Black River Run, LP (River Run Apartments) is a 48-unit, family property located in Black River Falls, Wisconsin. The property operated with an average occupancy of 89% for the year 2003. Occupancy decreased to an average of 82% based on the most recent 2004 occupancy report. Although operating expenses are below the Investment General Partner's state average, declining occupancy, coupled with low rental rates in the area prevented the property from achieving breakeven operations through the fourth quarter of 2004. The management agent continues to market the available units by working closely with the housing authority and continuing various marketing efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The mortgage, taxes, insurance and payables are current.

Roxbury Veterans Housing, Limited Partnership (Highland House) is a 14 unit property located in Roxbury, Massachusetts. The Operating General Partner has been very inconsistent in reporting occupancy and operational numbers to the Investment General Partner and no audited financials had been reported since 2002 other than tax returns, until June 2004 when a draft of the 2002 audit was received. In addition, the Investment Limited Partner identified potential discrepancies in the tax returns submitted for year-end 2003 and is currently working to resolve these issues. Reported occupancy for the third quarter of 2004 was 93%. The Operating General Partner has a guarantee that is unlimited in time and amount.

Lake Street Apartments, L.P. (Lake Street Apartments) is a 32 unit property located in Girard, PA. Average occupancy through the fourth quarter of 2004 is 90%. Occupancy has steadily increased during the year. Management has stated that the decreased occupancy in the first half of the year was not tied to a specific cause and that strong occupancy is anticipated going forward. Management pays the utilities for all of the units, and prices are very high. The utility company is owned by the community in which the project is located. Rents were increased in 2004 by $38 per unit. As a result of increased rental revenue and decreased operating expenses, the property is operating above breakeven for the year. Both the mortgage and real estate taxes are current and the Operating General Partner's operating deficit guaranty is unlimited in time and amount.

Kimbark 1200 Apartments is a 48-unit property for families located in Longmont, CO. Due to an average occupancy of 80% through the fourth quarter of 2004 the property is operating below breakeven. Boulder and the surrounding areas, such as Longmont, lost a number of employers over the past two years. As a result, residents of the area either moved to other cities or moved from larger units, "doubling up" in smaller less expensive apartments. Management continues to use advertising, existing resident referrals and competitive rents to attract new tenants; however, there is still minimal employment opportunities to attract more potential residents to the area. The Investment General Parter will monitor the management company's efforts to improve occupancy. All taxes, insurance and mortgage payments are current and the Operating General Partner is funding deficits.

Series 23

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 23 reflects net loss from Operating Partnerships of $(954,545) and $(713,816), respectively, which includes depreciation and amortization of $1,308,188 and $1,268,569, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 23 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Mathis Apartments. Ltd. and Orange Grove Seniors. The affordable housing properties owned by the Calhoun Partnerships are located in Texas and consist of approximately 56 apartment units in total. The low income housing tax credit available annually to Series 23 from the Calhoun Partnerships is approximately $73,077, which is approximately 2% of the total annual tax credit available to investors in Series 23.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 23 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Mid City Associates (Mid City Apartments) is a 58 unit, family property located in Jersey City, NJ. The subject property is a scatter site development. The property operated with an average occupancy of 95% thru November of 2004. Despite the improvement in the occupancy, over the 2003 average of 90%, the property is not projected to breakeven in 2004. The Operating General Partner continues to fund shortfalls despite the expiration of the guarantee. The mortgage and taxes are current.


South Hills Apartments L.P. (South Hills Apartments) is a 72-unit, family property located in Bellevue, Nebraska. The property operated with an average occupancy of 86% in 2003. The average occupancy improved slightly to 88% through September 30, 2004 however as of the fourth quarter, occupancy declined to 72%. There are few qualified prospective residents that can afford the tax credit rents without obtaining rental assistance. Currently there is limited assistance as evidence by a nine-month waiting list at the local housing authority. The Operating General Partner completed a site management change at the end of the fourth quarter. They are currently offering a $100/month rent reduction for the 1st 12 monnths for all new tenants. Per an agreement with the Operating General Partner, the Management Company is deferring all fees until operations improve. The Operating General Partner continues to fund the operating deficits, as needed. The property's mortgag e, taxes and insurance are all current.

Sacramento SRO, L.P. (La Pensione K Apartments), is a 129-unit single-room occupancy (SRO) property, for special needs residents, located in Sacramento, CA. The property had maintained an average occupancy of 93% through year end 2004 but operated below breakeven due to increased administrative salary expenses for more site staff with greater experience. 24-hour security and property housekeeper are also on staff to support the special needs population. Property manager turnover has been frequent and an internal promotion to the property manager position has, reportedly, stabilized the situation. Taxes, insurance, and mortgage payments are all current and the Operating General Partner continues to fund deficits.

Series 24

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 99.9%. The series had a total of 24 properties at December 31, 2004. Out of the total 23 were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 24 reflects net loss from Operating Partnerships of $(575,141) and $(327,558), respectively, which includes depreciation and amortization of $984,083 and $994,187, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 24 has invested in Zwolle Partnership, A LA Partnership in Commendam (the "Calhoun Partnership") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The affordable housing property owned by the Calhoun Partnership is located in Louisiana and consist of approximately 32 apartment units in total. The low income housing tax credit available annually to Series 24 from the Calhoun Partnership is approximately $39,393, which is approximately 1% of the total annual tax credit available to investors in Series 24.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 24 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Elm Street Associates Limited Partnership (Elm Street Apartments) is located in Yonkers, New York. The neighborhood has been a difficult one in which to operate due in part to high crime. Almost all tenants have some public subsidy, making this a very management-intensive property. Poor tenancy has historically resulted in operating deficits. Management issues, including poor rent collections and deferred maintenance, had negatively impacted the property. Occupancy levels have increased in the fourth quarter. As of December 2004, occupancy is 91% with two pending leases for a total of 97% occupied and leased. The property is operating below breakeven due to the vacancies and high operating expenses. Although operating expenses are running higher than budgeted, some expenses relate to Westhab's program to re-stabilize the property and are expected to normalize once the transition and re-stabilization is complete. Westhab has secured an additional loan from the City of Yonkers in order to cure some deferred maintenance issues. The loan is in the amount of $150,000 which has been earmarked for the replacement of hot water tanks, concrete repairs in the rear of the building, updating the electrical systems, and the installation of security cameras. All of the above capital expenditures have been completed with the exception of the security cameras and the installation of magnetic locks on the front entry doors. It is anticipated that this work will be completed in the first quarter of 2005. It had been previously noted that the $150,000 was to be in the form of a grant, however the City is requesting a zero percent cash flow loan. The Investment General Partner will continue to monitor this Partnership until property operations have stabilized.

North Hampton Place Limited Partnership (North Hampton Place), located in Columbia, Missouri, operated below breakeven in 2003 due to low occupancy. Despite improved occupancy that has averaged 94% through the fourth quarter of 2004, the property has continued to operate below breakeven due to the low rent levels. In 2003, rents were decreased in order to attract more residents. Now that occupancy has improved, rent levels need to be increased to allow the property to operate above breakeven. Management has budgeted a rent increase that will go into effect in March 2005. Although, the property is showing significant improvement, the Investment General Partner continues to monitor this property monthly.

Series 25

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 99.9%. The series had a total of 22 properties at December 31, 2004. Out of the total 21 were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 25 reflects net loss from Operating Partnerships of $(611,577) and $(1,015,556), respectively, which includes depreciation and amortization of $1,564,614 and $1,566,159, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Ohio Investors Limited Partnership (Washington Arms) is a 93 unit property located in Dayton, Ohio. The property suffers from high expenses, high turnover, and insufficient rental revenue. Management has requested a rent increase, but rents are at their maximum per Section 8 housing requirements. The property continues to operate below breakeven in 2004 and has expended more than $23,000 in cash thus far. Despite these setbacks, occupancy was 99% as of December 31, 2004. The required deposits have been made to the replacement reserve account. The Operating General Partner continues to fund operating deficits despite the fact that the Operating General Partner guarantee expired in September of 2001. The Investment General Partner is working diligently with the management company on reducing both turnover and expenses.

Sutton Place Apartments, L.P. (Sutton Place Apartments) is a 357 unit apartment complex in Indianapolis, Indiana. The property has maintained occupancy at around 93%, and is working to lower operating expenses. The Partnership is undergoing a operating General Partner/Management Company transfer, expected to complete within the first two weeks of January 2005. The new Operating General Partner will replace the Management Company with their own company. In preparation for that transition the incoming property manager has been shadowing operations at Sutton Place for over two months. This will make the transition easy, and allow the new management company to enter the property with a strong notion of property operations, and what is needed to strengthen them. With the change of Operating General Partner interest several units were found to be less than adequately maintained, and unrented for several months. As a result those units have been brought online in December 2004, and are expected to lease i n the first quarter of 2005. The Incoming Operating General Partner/Management Company, has a stronger presence in the Indianapolis metro area, and stronger operational abilities. This operational strength is projected to assist the management company lower operating expenses. The mortgage, taxes and insurance are all current.


352 Lenox Associates, LP, (Lenox Avenue Apartments) is an 18-unit property located in Manhattan, NY. At year-end, the property had reached 98% occupancy and continued to operate above breakeven. This is due to a reduction in debt service from the July, 2004 refinance, receipt of credit for previously overpaid water and sewer charges, and a decrease in maintenance expenses. The Investment General Partner continues to work with the management company in reducing operating expenses. The mortgage, taxes, and property insurance are all current. As the operations have improved and stabilized, special disclosure will not be reported in 2005.

M.R.H., L.P. (The Mary Ryder Home), a 48 unit property located in St. Louis,

MO, received a 60-day letter issued by the IRS proposing to reduce the amount of low income housing tax credits allowable because it asserts that certain fees and other expenditures were not includible in the eligible basis of the property. The 60-day letter was the result of an IRS audit of the Operating Partnership's books and records. As a result of their audit, the IRS has proposed an adjustment that would disallow approximately 18% of past and future tax credits. The adjustment would also include interest. The Investment General Partner and its counsel along with the Operating General Partner and its counsel filed an appeal on June 30, 2003 and continue negotiations with the IRS Appeals Office.

On March 23,2004, the Operating Partnership received a Notice of Final Partnership Administrative Adjustment denying the appeal of June 30, 2003. The Operating Partnership had the opportunity to challenge the denial and petition the tax court. On June 22, 2004, the Operating General Partner and its counsel filed a petition in tax court for the tax years ending 2000 and 2001. The Investment General Partner and its counsel will continue to monitor the court proceedings and report on them accordingly.

Rose Square L.P. (Rose Square Apartments) is an 11 unit property located in Connellsville, PA. At year end 2003, the property operated below breakeven. When the property was built a tax abatement was in place. The abatement expired in February 2002, and taxes increased to $9,800. Spread over 11 units, this was prohibitive to generating cash flow. The property was re-assessed by the county, and received a reduction in real estate taxes of approximately 40% to $5,600 in 2004. Low occupancy has had an effect on rental revenue at the property. The area in which this property is located is very depressed and the market has been prohibitive in improving occupancy. Occupancy remained low for the first three quarters of 2004; however has increased in the fourth quarter, reaching 100%. Average occupancy in 2004 is 77%, and the property remains full at year end. As a result of low occupancy in the first three quarters, the property has below breakeven operations in 2004. The Investment General Partner will cont inue to monitor operations and occupancy.

Series 26

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 99.8% and 100%, respectively. The series had a total of 45 properties at December 31, 2004. Out of the total 44 were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 26 reflects net loss from Operating Partnerships of $(812,199) and $(1,490,845), respectively, which includes depreciation and amortization of $2,209,151 and $2,186,233, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 26 has invested in 6 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The operating partnerships are Bearuegard Apartments Partnership, Brookhaven Apartments Partnership, Butler Estates, Cameron Apartments Partnership, Southwind Apartments and TR Bobb Apartments A LDHA. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 191 apartment units in total. The low income housing tax credit available annually to Series 26 from the Calhoun Partnerships is approximately $617,547, which is approximately 13% of the total annual tax credit available to investors in Series 26.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 26 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.


Warrensburg Heights, Limited Partnership, (Warrensburg Heights) is a 28-unit property located in Warrensburg, Missouri. Despite an average occupancy of 88% through December 2004 the property is operating above breakeven. Occupancy has increased slowly over the last six months partially because management made three long-standing vacant units rent-ready. Currently four units are vacant, three of which are rent ready. Management has had problems getting Rural Development to approve Replacement Reserve withdrawals for major turnover and tenant damage repairs. Thus, funds for these renovations have been used from operating income; however, RD seems to be somewhat more receptive to the use of replacement reserve funds for future renovations. The Investment General Partner will continue to monitor this property and the occupancy improvements.


Country Edge LP (Country Edge Apts.) is a 48-unit property located in Fargo, North Dakota. Average occupancy through December of 2004 is 89.9%, with occupancy at 91.6% for the month of January 2005. The property's occupancy issues arose because of issues surrounding a refugee population similar to 2002. A number of refugees had rented apartments after meeting the resident selection criteria. However, a few of the residents had criminal backgrounds that were not exposed during the typical background check. Management will need to being eviction proceedings on the problem residents as well as non-paying residents which may leave the development with a large vacancy rate. The Operating General Partner/management company continues to offer rent concessions and rate reductions as a rental incentive. The manager was replaced in the month of October to a more seasoned manager. As a result occupancy has increased slightly. The Investment General Partner will continue to work with the Operating General Partne r to stabilize occupancy. The Operating General Partner continues to fund all operating deficits, despite the expiration of their guarantee. Although the property has had low occupancy, there are no deferred maintenance items at this time. The mortgage, trade payables, property taxes, and insurance are current.

Grandview Apartments (Grandview Apts.) is a 36-unit property located in Fargo, North Dakota. Average occupancy through December 2004 is 91.44% as a result of rent concessions and rate reductions. Despite the increase in occupancy, concessions and rate reductions have contributed to the negative cash flow at the property. The Investment General Partner will continue to work with the Operating General Partner to stabilize the physical occupancy. The Operating General Partner continues to fund all operating deficits, despite the expiration of their guarantee. The mortgage, trade payables, property taxes, and insurance are current.

Series 27

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 27 reflects net loss from Operating Partnerships of $(609,649) and $(736,191), respectively, which includes depreciation and amortization of $1,355,378 and $1,290,509, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 27 has invested in Magnolia Place Apartments Partnership (the "Calhoun Partnership") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The affordable housing property owned by the Calhoun

Partnership is located in Mississippi and consist of approximately 40 apartment units in total. The low income housing tax credit available annually to Series 27 from the Calhoun Partnership is approximately $129,037, which is approximately 5% of the total annual tax credit available to investors in Series 27.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 27 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships where Riemer Calhoun either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Holly Heights Limited Partnership (Holly Heights Apartments) is a 30 unit property located in Storm Lake, Iowa. The property continues to incur operating deficits due to high tenant turnover and low rental rates. This property operated with an average occupancy of 82% for 2003. Occupancy declined slightly and averaged 78% through the third quarter of 2004. As of the end of the fourth quarter 2004 the property was 81% occupied. The site manager stated there has been increased activity at the property due the increase in the military population at the area base. Despite the recent up swing, there are sill limited job opportunities in the area, and as a result, residents continue to move to other areas to find work. Also, management continues a strong campaign of evicting residents who do not pay their rent. In response to declining occupancy, the management agent intensified leasing efforts by offering concessions of 1 month free rent and other incentives, such as lower rents, no security deposits and incr eased resident referral rewards. As a result of the low occupancy, there is negative cash flow and high payables. In 2003 an audit by the state regulatory agency identified issues of non-compliance. All the issues noted by the state have been corrected. The Investment General Partner will continue to closely monitor the property. The Operating General Partner continues to fund the operating deficits, as needed. The mortgage, taxes, and insurance are all current.

Angelou Court (Angelou Court Apts.) is a 23-unit co-op property located in Harlem, New York. At year-end, the occupancy had remained at 100% and the property's operations were at breakeven. A new co-op board, elected on July 28, 2004, voted to implement an 11% increase effective January 1, 2005. The rent increase, together with the reduction in maintenance expenses that began in the second quarter, are expected to keep the property operating at breakeven or better. The Investment General Partner continues to work with the Operating General Partner to improve collections. All mortgages and insurance payments are current. The property pays no property taxes as the result of a tax abatement. Provided that the property's operations remain stable we will no longer report on this partnership.

Series 28

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 26 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 28 reflects net loss from Operating Partnerships of $(869,907) and $(894,558), respectively, which includes depreciation and amortization of $1,645,899 and $1,665,381, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 28 has invested in 6 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Bienville III Apartments, Blanchard Partnership, Cottonwood Partnership, in Commendam, Evangeline Partnership, Jackson Place Apartments LP and Maplewood Apartments Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 200 apartment units in total. The low income housing tax credit available annually to Series 28 from the Calhoun Partnerships is approximately $516,536, which is approximately 12% of the total annual tax credit available to investors in Series 28.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 28 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

1374 Boston Road L.P. (1374 Boston Road) is a 15-unit property located in New York City. As of December 2004, occupancy was at 88% with no increase over the previous quarter and the partnership continued to operate at a deficit. The property has had high collection losses and management has instituted a more stringent tenant screening process. However, there is a shortage of credit-worthy applicants in the neighborhood, resulting in a delay in leasing the vacant units. Upon the recommendation of the Investment General Partner, the Operating General Partner is considering refinancing options for the property's first mortgage. Asset Management will continue to monitor this property. The property is very well-kept and the Operating General Partner continues to fund deficits. The mortgage, property taxes and insurance are current.

Series 29

As of December 31, 2004 and 2003 the average Qualified Occupancy for the Series was 100%. The series had a total of 22 properties at December 31, 2004 all of which were 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 29 reflects net loss from Operating Partnerships of $(867,527) and $(1,018,966), respectively, which includes depreciation and amortization of $1,958,322 and $1,905,222, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 29 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Edgewood Apartments Partnership, Plametto Place Apartments and Westfield Apartments Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 152 apartment units in total. The low income housing tax credit available annually to Series 29 from the Calhoun Partnerships is approximately $603,385, which is approximately 14% of the total annual tax credit available to investors in Series 29.


In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 29 is not an investor. The Investment General Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the co st certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.


Lombard Partners LP (Lombard Heights Apts.) located in Springfield, Missouri, has operated below breakeven through the fourth quarter of 2004. The main reason for its cash expenditure is its low occupancy, which averaged 80% through the third quarter of 2004 and averaged 92% for the fourth quarter of 2004. The Operating General Partner felt that the property was operating below breakeven due to the management company. Therefore, the Operating General Partner replaced the management company in June 2004. The new management company was able to lease up the property within 45 days. In the past the Operating General Partner has had difficulty reporting in a timely manner. The Investment General Partner will be working closely with the new management company and the Operating General Partner to improve reporting for the property.

Lincoln Hotel Partnership, L.P. (Lincoln Hotel), is a 41-unit single-room occupancy (SRO) property located in downtown San Diego, CA. The property had an average physical occupancy of 95% through 2003 and an average occupancy of 93% through year end 2004. Despite strong occupancy, the property operated below breakeven due to high administrative expenses and very low rents. Due to additional program funding requirements, rents at the property are capped at approximately 50% lower than "usual" maximum tax credit rents. This results in an average rent of $272 per unit per month In May, 2004 management received approval to implement an 8% rent increase on lease renewal that is expected to bring the property back to breakeven operations. The Lincoln Hotel also has a commercial tenant at the property which accounts for approximately 44% of the annual income to the property. Taxes, insurance, and mortgage payments are all current and the Operating General Partner continues to fund op erating deficits.

Glenbrook Apartments, L.P. (Glenbrook Apartments) is a 24-unit property located in Saint Jo, Texas. Occupancy was 79% in the third quarter of 2004. Due to high operating expenses $1,229 in cash was expended in 2003. The property is projected to expend $8,120 in 2004. The Operating General Partner has reported similar occupancy struggles at the nearest adjacent property, both of which are 100 miles outside of Dallas. Investment General Partner is working closely with the Operating General Partner to boost occupancy to generate more income for the property. The Operating General Partner has an unlimited guarantee in both time and amount, to fund all shortfalls.

Forest Hill Apartments L.P. (The Arbors) is an 85 unit, Senior Property located in Richmond, VA. In the first quarter of 2004, the property was severely damaged by a fire. There were no reported injuries as a result of the loss and all of the residents were successfully relocated. The fire marshal has been unable to definitively determine the cause of the fire. The Operating General Partner received an initial insurance payment totaling $500,000 and it was determined that the building should be raised due to the significant fire and water damage. After bidding the property repairs, the Operating General Partner determined that there were additional costs of approximately $1.4 million due to building code changes since its original construction in 1998. The Operating General Partner's primary underwriter, Lloyd's of London, and their excess property insurance carrier, RSUI Group, determined that the policy did not cover code changes of more then $10,000. The Operating General Partner appealed the ir initial determination regarding additional coverage and to date have had no formal resolution. The General Partner received an additional insurance payment totaling $2 million dollars, representing the insurance company's estimate to rebuild the community minus the code change upgrades in dispute. The insurance proceeds are currently being held by the lender, The Virginia Housing Development Authority (VHDA). VHDA approved the release of sufficient insurance proceeds $148,000 to raise the property which occurred in the third quarter of 2004.

As of January 2005, construction had not begun at the property as the Operating General Partner is not prepared to fund the current $1.4 million difference between replacement cost, including the code changes and the insurance proceeds allocated to the project to date. The insurance company, as noted above, has taken the position that the policy covers only $10,000 of the code changes. However the General Partner believes their policy should cover up to $2.5 million dollars in code changes. The GP has been diligently attempting to get a resolution to code change coverage and has provided the Investment General Partner with e-mails and documents supporting their efforts. The insurance company has continued to use stalling tactics, pushing the claim from one underwriter to another.

Determining that Operating General Partner is at an impasse with the insurance company, the Operating General Partner has retained counsel and prepared a suit that is expected to be filed in the first quarter of 2005, to resolve the code change issue. The case can reasonably be expected to be heard late in the second quarter or early in the third quarter of 2005. However, the Operating General Partner believes that there is a strong likelihood that the case will be settled once the suit is filed. It is the Operating General Partner's intention to reconstruct the property once the issues with its insurance company are resolved.

It is important to note that the Operating General Partner is an experienced developer with experience in loss claims. While he anticipates he will be successful in obtaining the additional proceeds required, Investment General Partner is working with legal counsel to determine its recourse should the GP's claim be unsuccessful.

As the Operating General Partner awaits the receipt of the insurance proceeds, the Investment Limited Partner must ascertain whether tax credits can be taken on these units. Currently, there is a potential risk of loss of current and future tax credits. In order to properly assess this risk the Investment Limited Partner will continue to monitor the progress of rebuilding Forest Hill Apartments.

Series 30

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 20 properties at December 31, 2004 all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 30 reflects net loss from Operating Partnerships of $(892,971) and $(861,853), respectively, which includes depreciation and amortization of $1,156,905 and $1,102,722, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Mesa Grande, LP (Mesa Grande Apartments) is a 72-unit, family property located in Carlsbad, New Mexico. On April 2, 2003, the mortgage lender issued a default notice for monetary and non-monetary defaults. Although the Operating General Partner was aware of the defaults, no steps were taken to remedy the situation. On June 16, 2003, the Lender notified the Operating and Investment General Partners of its right to accelerate the note. As a result of the defaults, the Investment General Partner requested a change in the management company, which was a related entity of the Operating General Partner. Effective November 1, 2003, a new management agent took over the property management duties. Throughout 2004, the Investment General Partner and the management agent made numerous requests for funding from the Operating General Partner, with no response. Due to the unresponsiveness, the Fund filed a Civil Action against the Operating General Partners with the intent to force them to honor their obligation a nd fund all operating deficits. The suit was filed on April 8, 2004, prior to the termination of their Operating Deficit Guarantee in May 2004. A demand notice was issued on September 4, 2004 to the Operating General Partner with a 30-day cure period. No response was received. On October 22, 2004 an interim Operating General Partner, affiliated with the Investment General Partner was named until a suitable replacement can be found.

On September 10, 2004, the non-performing loan was sold to a new lender. The new lender issued an Acceleration Notice on October 20, 2004 with a ten day notice to cure. The Investment General Partner reviewed options to correct the loan default. Property operations had been suffering due to market conditions, high payables and much needed deferred maintenance. The management company had improved the tenant profile at the property in an effort to increase collections and improve the reputation of the property within the community, however operations were still suffering. The deferred maintenance and high payables were a direct result of the negligence of the prior management company. The Investment General Partner filed a lawsuit against the former Operating General Partner to recover all operating deficits incurred as a result of his negligence. The Investment General Partner visited the property to evaluate its condition and determine if a cash infusion is necessary in order for the management company to operate the property effectively. The Investment General Partner carefully reviewed the cash needs of the property and met with the lender during the fourth quarter to propose a work-out plan that included restructuring the debt to allow for a significant cash infusion for deferred maintenance and back taxes. The lender refused to restructure the debt and began the foreclosure process on December 27, 2004. (As of this writing, the Investment General Partner has yet to be served with a notice of the foreclosure.) In the meantime, HUD contracted with a consultant to do an analysis of this property and four others in New Mexico, (all with HOME funds) to determine if it would be prudent to allow additional HOME funds to be lent to the properties as part of a debt restructure. The final report will be released on March 10. These funds along with others that the Investment General Partner is currently pursuing would allow for a complete restructure of the debt prior to foreclosure being granted.

Sunrise Homes, LP (Sunrise Homes and Broadway Place Apartments) are two family properties containing a total of 44-units, located in Hobbs, New Mexico. On April 2, 2003, the mortgage lender issued a default notice for monetary and non-monetary defaults. Although the Operating General Partner was aware of the defaults, no steps were taken to remedy the situation. On June 16, 2003, the Lender notified the Investment and Operating General Partners of its right to accelerate the note. As a result of the defaults, the Investment General Partner requested a change in the management company, which was a related entity of the Operating General Partner. Effective November 1, 2003, a new management agent took over the property management duties. Throughout 2004, the Investment General Partner and the management agent made numerous requests for funding from the Operating General Partner, with no response. Due to the unresponsiveness, the Investment General Partner filed a Civil Action against the Operating Gene ral Partner to recover all operating deficits incurred as a result of his negligence. The suit was filed prior to the termination of the Operating General Partner's Operating Deficit Guarantee. A demand notice was issued on September 4, 2004 to the Operating General Partner with a 30-day cure period. No response was received. On October 22, 2004 an interim Operating General Partner, affiliated with the Investment General Partner was named until a suitable replacement can be found.

On September 10, 2004, the non-performing loan was sold to a new lender. The new lender issued an Acceleration Notice on October 20, 2004 with a ten-day notice to cure. The current Investment General Partner reviewed options to correct the loan default. The property operations had been suffering due to market conditions, high payables and much needed deferred maintenance. The deferred maintenance and high payables are a direct result of the negligence of the prior management company. The Investment General Partner filed a lawsuit against the former Operating General Partner to recover all operating deficits incurred as a result of his negligence. The Investment General Partner conducted a site visit to evaluate the condition of the property to determine if a cash infusion is necessary in order for the management company to operate the property effectively. The Investment General Partner carefully reviewed the cash needs of the property and met with the lender during the fourth quarter to propose a work-o ut plan that included restructuring the debt to allow for a significant cash infusion for deferred maintenance and back taxes. The lender refused to restructure the debt and began the foreclosure process on December 27, 2004. (As of this writing, the Investment General Partner has yet to be served with a notice of the foreclosure.) In the meantime, HUD has contracted with a consultant to do an analysis of this property and four others in New Mexico, (all with HOME funds) to determine if it would be prudent to allow additional HOME funds to be lent to the properties as part of a debt restructure. The final report will be released on March 10. These funds along with others that the Investment General Partner is currently pursuing would allow for a complete restructure of the debt prior to foreclosure being granted.

JMC LLC (Farwell Mills Apts.) is a 27-unit development located in Lisbon, ME. Due to increased marketing efforts by the management company, average occupancy for the third and fourth quarters of 2004 increased to 95% from a first and second quarter average of 82%. Operating expenses continue to be above average at $4,972 per unit for 2004; primarily due to increased advertising, marketing, and maintenance expenses caused by unit turnover. Management expects that operations will continue to improve during 2005.

Linden Partners II (Western Trails Apartments II) is a 30-unit property located in Council Bluffs, IA. Although the occupancy was stabilized in 2003, the property suffered from high payables, high tenant account receivables, high operating expenses, and negative cash flow. Through the third quarter of 2004 physical occupancy averaged 89%. In the fourth quarter average physical occupancy increased to 93%. As of September 30, 2004, all accrued expenses had been paid and the tenant receivables were $1,400. Low occupancy through most of 2004 contributed to high operating expenses and negative cash flow. The partnership was unable to make mortgage payments for four months. However, in September, the construction of the main road was finished and physical occupancy started to increase. The management company was able to increase the monthly rental rates by $10/unit in the third quarter of 2004.

In order to bring the mortgage current, the Partnership has reached an agreement with the lender to modify certain terms of the original mortgage. The lender has agreed to capitalize $31,616.00 of delinquent interest into the current principal balance of $728,384 bringing the new loan balance to $760,000, the original principal balance. Also, according to the new tax statements from the City of Council Bluffs, annual Real Estate taxes will be reduced by $18,686 from $45,894 to $27,208. With the new annual debt payments and assuming both the reduced Real Estate Taxes and 7% vacancy rate, the partnership will operate with DCSR of 1.10.

Nocona Apartments, L.P. (Nocona Apartments) is a 36-unit property located in Nocona, Texas. Occupancy was 72% as of the third quarter of 2004. The Operating General Partner has reported similar occupancy struggles at the nearest adjacent property, both of which are 100 miles outside of Dallas. The Investment General Partner is working closely with the Operating General Partner to boost occupancy to generate more income for the property. The Operating General Partner has an unlimited guarantee in time and amount to fund all shortfalls.

Series 31

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 27 properties at December 31, 2004 all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 31 reflects net loss from Operating Partnerships of $(884,472) and $(1,404,443), respectively, which includes depreciation and amortization of $2,324,591 and $2,574,344, respectively. This is an interim period estimate; it is not indicative of the final year end results.

There was a decrease in the net loss per BAC for Series 31 in the current year. The decrease is mainly the result of over stated interest expense by one of the operating partnerships in the prior year that has been correctly recorded in the current year.

Summerdale Partners LP, II (Summerdale Commons - Phase II) is a 108 unit property located in Atlanta, GA. In 2003, the property was able to operate above breakeven and maintain an average occupancy of 90%. Through the fourth quarter of 2004, operations at the property have declined as a result of low occupancy and greater than average operating expenses. The average occupancy for the year was 88%. Management has stated that the housing market in Atlanta is soft and that the property is constantly competing with another low-income property in the neighborhood. Utility expenses are high as a result large scale improvements to the sewage system in the City of Atlanta. The Operating General Partner has been working with the Housing Authority of the City of Atlanta to both improve occupancy and reduce expenses. Through February 2005, the property has been making interest payments on the second mortgage, which is only to be paid from available cash flow. The property has ceased payments on this second mortgage as the property is not generating cash. This is expected to have a positive impact on operations going forward. The Investment General Partner will be meeting with the Operating General Partner and the Atlanta Housing Authority in January 2005 to establish a strategic plan to bring operations back above breakeven.

Pilot Point Apartments is a 40-unit property located in Pilot Point, TX. In January 2004, there was a fire in a unit that damaged the unit and caused smoke damage in the seven other units in the building. Due to the damage, the entire 8-unit building was taken offline. The repairs were all completed and paid for from the insurance proceeds. The certificates of occupancy were issued as of August 15, 2004. Repairs were not completed until 8 months after the fire due to the delay in reaching a settlement with the insurance provider. Occupancy has continued to struggle after the fire and averaged 83% for the fourth quarter of 2004. The manager was replaced in November 2004 and they have expanded their advertising efforts. Management expects the property to be leased up by March 1, 2005.


Series 32

As of December 31, 2004 and 2003, the average Qualified Occupancy for the series was 100%. The series had a total of 17 properties at December 31, 2004, all of which were at 100% Qualified Occupancy

For the period ended December 31, 2004 and 2003, Series 32 reflects net loss from Operating Partnerships of $(1,107,321) and $(1,099,527), respectively, which includes depreciation and amortization of $1,832,124 and $1,886,523, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 32 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Pearlwood Apartments LP, Pecan Manor Apartments and Pineridge Apartments Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana or Mississippi and consist of approximately 120 apartment units in total. The low income housing tax credit available annually to Series 32 from the Calhoun Partnerships is approximately $537,868, which is approximately 11% of the total annual tax credit available to investors in Series 32.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 32 is not an investor. The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

FFLM Associates is an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP. Carriage Pointe Investors LP (Carriage Pointe Apartments) historically has suffered from negative cash flow, high accounts payables, and under-funded replacement reserves, in part due to the fact that the property only has 18 units. The Operating General Partner was successful in 2004 in getting the lender to reduce the interest rate on the loan by 2%. Even with the reduction in rate, the property is still operating at below break even. The property has historically had 100% occupancy. The Operating General Partner continues to fund all operating deficits and the first mortgage lender is content to leave the loan in place. Numbers for the fourth quarter show that property continues to operate at a loss, despite 100% occupancy.

Indiana Development Limited Partnership (Clear Creek Apartments) is a 64-unit development, located in North Manchester, Indiana. The property operates below breakeven as a result of low occupancy which was last reported at 84% for December 2004. Occupancy issues are primarily due to a downturn in the local economy; recently, numerous manufacturing plants have closed forcing tenants to relocate to other areas in order to find employment. Biggs Management, a new, locally based, management company, should provide the local knowledge and manpower necessary to positively impact both occupancy and operating expenses. The Operating General Partner's Operating Deficit Guarantee, which was unlimited in amount, expired in June 2004. The Operating General Partner is active in the industry and as such, has continued to fund deficits.

Series 33

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 10 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 33 reflects net loss from Operating Partnerships of $(437,092) and $(465,506), respectively, which includes depreciation and amortization of $747,085 and $889,227, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 33 has invested in Forest Park Apartments (the "Calhoun Partnership") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The affordable housing property owned by the Calhoun Partnership is located in Louisiana and consist of approximately 40 apartment units in total. The low income housing tax credit available annually to Series 33 from the Calhoun Partnership is approximately $208,599, which is approximately 8% of the total annual tax credit available to investors in Series 33.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 33 is not an investor. The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer

Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.


FFLM Associates is an Operating Partnership that owns 3 limited partner interests, one of which is Carriage Pointe Investors, LP. Carriage Pointe Investors LP (Carriage Pointe Apartments) historically has suffered from negative cash flow, high accounts payables, and under-funded replacement reserves, in part due to the fact that the property only has 18 units. The Operating General Partner was successful in 2004 in getting the lender to reduce the interest rate on the loan by 2%. Even with the reduction in rate, the property is still operating at below break even. The property has historically had 100% occupancy. The Operating General Partner continues to fund all operating deficits and the first mortgage lender is content to leave the loan in place. Numbers for the fourth quarter show that property continues to operate at a loss, despite 100% occupancy.


Stearns Assisted Housing Associates, L.P. (Stearns Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. Historically, this property struggled to operate at breakeven due to low occupancy, high utility expenses and excessive property tax liabilities. The property's rural location and stagnant local economy have made it difficult to maintain a strong tenant base. However, through increased marketing efforts and additional rental subsidies awarded to the property, occupancy averaged 91% for 2004. Although Management has made many positive changes to control operating expenses, the site continues to operate below breakeven. Operating expenses are currently $6,447 per unit, primarily due to high expenses in the utility and maintenance categories. The Operating General Partner continues to fund deficits using the operating deficit reserve account and his operating deficit guarantee is unlimited in time and amount.

Bradford Group Partners of Jefferson County, L.P. (Bradford Square North Apartments) is a 50 unit senior complex located in Jefferson City, TN. Occupancy at this property averaged 86% for 2003. Recent reporting indicates the property is operating at 88% physical occupancy. The site manager has been successful in retaining current residents by offering different types of incentives. The taxes and insurance are being properly escrowed and the mortgage is current. Continued improvement in occupancy is expected.

Merchants Court is a 192-unit property located in Dallas, GA. The property operated below breakeven in 2004 due to an average occupancy of only 77%. Some of the property's occupancy problem is due to aggressive first-time homebuyer programs that are offering mortgages with no downpayment and monthly payments comparable to rents. More of the problem, however, seems to be the result of ineffective management that was unable to achieve site control or initiate appropriate marketing campaigns. In November 2004, both the site management and regional manager were replaced in an effort to bring new focus to these issues. The Investment General Partner is working with the management in determining the effectiveness of their concessions. Taxes, mortgage and insurance payments are all current.

Series 34

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 14 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 34 reflects net loss from Operating Partnerships of $(1,390,261) and $(1,264,250), respectively, which includes depreciation and amortization of $1,779,016 and $1,723,788, respectively. This is an interim period estimate; it is not indicative of the final year end results.

RHP 96-I Limited Partnership (Hillside Club Apartments), a 56-unit property located in Petosky, Michigan, operates below breakeven as a result of low occupancy, which was reported at 73% as of December 2004. The Operating General Partner indicates that the local economy relies heavily on seasonal employment, which has resulted in lower than normal occupancy. A new management company has been brought in to positively impact the occupancy through rigorous marketing and advertising. In 2003, the Operating General Partner made a loan to the property in the amount of $66,076 to fund deficits. Although the Operating General Partner's Operating Deficit Guarantee has since lapsed, the Operating General Partner has continued to fund the property.

Merchants Court is a 192-unit property located in Dallas, GA. The property is operating below breakeven through year-end due to an average occupancy of only 77%. Some of the property's occupancy problem is due to aggressive first-time homebuyer programs that are offering mortgages with no downpayment and monthly payments comparable to rents. More of the problem, however, seems to be the result of ineffective management that was unable to achieve site control or initiate appropriate marketing campaigns. In November 2004, both the site management and regional manager were replaced in an effort to bring new focus to these issues. The Investment General Partner is working with the management in determining the effectiveness of their concessions. Taxes, mortgage and insurance payments are all current.

Series 35

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 11 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 35 reflects net loss from Operating Partnerships of $(772,825) and $(549,485), respectively, which includes depreciation and amortization of $1,169,927 and $1,105,486, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 36

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 99.7% and 100%, respectively. The series had a total of 11 properties at December 31, 2004. Out of the total 10 were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 36 reflects net loss from Operating Partnerships of $(533,162) and $(425,866), respectively, which includes depreciation and amortization of $818,000 and $802,337, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 36 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Willowbrook Apartments Partnership and Wingfield Apartments LP. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 80 apartment units in total. The low income housing tax credit available annually to Series 36 from the Calhoun Partnerships is approximately $382,522, which is approximately 18% of the total annual tax credit available to investors in Series 36.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 36 is not an investor. The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Annadale Housing Partners (Annadale Apartments) has historically reported net losses due to operational issues associated with the property. In 2003, occupancy decreased from the previous year's level, averaging 81.9% for the year. As a result of the low occupancy the site staff was replaced during the fourth quarter of 2003. Due to the efforts of the new site staff and continued aggressive marketing, occupancy has shown improvement in 2004, with fourth quarter occupancy remaining strong at 94%. Management has promoted events such as a food drive to bring the community together. A new advertisement has been running in the local paper offering the first month's rent free at the Senior property. Expenses decreased from the prior year levels, however remain higher than the state average. Maintenance costs continue to be high due to the provisions of the loan agreements which stipulate that the Operating Partnership must spend a minimum of $55,000 per year on capital improvements, with the funding coming f rom operations. A substantial rent increase went into effect in February 2004, and operating statements through December 2004 demonstrate that the Operating Partnership continues to operate above breakeven. As operations have stabilized over the course of 2004, the Investment General Partner will no longer provide special disclosure on this Operating Partnership.

Series 37

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 7 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 37 reflects net loss from Operating Partnerships of $(343,546) and $(475,114), respectively, which includes depreciation and amortization of $1,046,841 and $1,053,871, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Stearns Assisted Housing Associates, L.P. (Stearns Assisted Housing), is a 20-unit property in Millinocket, ME providing congregate housing to seniors. Historically, this property struggled to operate at breakeven due to low occupancy, high utility expenses and excessive property tax liabilities. The property's rural location and stagnant local economy have made it difficult to maintain a strong tenant base. However, through increased marketing efforts and additional rental subsidies awarded to the property, occupancy averaged 91% for 2004. Although Management has made many positive changes to control operating expenses, the site continues to operate below breakeven. Operating expenses are currently $6,447 per unit, primarily due to high expenses in the utility and maintenance categories. The Operating General Partner continues to fund deficits using the operating deficit reserve account and his operating deficit guarantee is unlimited in time and amount.

Series 38

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 10 properties at December 31, 2004, all of which were at 100% qualified occupancy.

For the period ended December 31, 2004 and 2003, Series 38 reflects net loss from Operating Partnerships of $(545,905) and $(466,203), respectively, which includes depreciation and amortization of $833,066 and $794,171, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 38 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Hammond Place Apartments Partnership and Willowbrook II Apartments Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 80 apartment units in total. The low income housing tax credit available annually to Series 38 from the Calhoun Partnerships is approximately $386,388, which is approximately 16% of the total annual tax credit available to investors in Series 38.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation with respect to approximately 40 Operating Partnerships in which Series 38 is not an investor. The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Series 39

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 9 properties at December 31, 2004, all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 39 reflects net loss from Operating Partnerships of $(494,664) and $(648,122), respectively, which includes depreciation and amortization of $693,177 and $686,090, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 39 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Tally-Ho II Partnership and Timber Trails I Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 58 apartment units in total. The low income housing tax credit available annually to Series 39 from the Calhoun Partnerships is approximately $126,268, which is approximately 6% of the total annual tax credit available to investors in Series 39.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation for each of the Calhoun Partnerships (as well as with respect to approximately 38 other operating partnerships in which Series 39 is not an investor). The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective O perating Partnerships, thereby improperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Arbors at Ironwood L.P. (Arbors at Ironwood), is an 88-unit family property located in Mishawaka, IN. The property had an average physical occupancy of 94% through 2003 but this has decreased throughout 2004 to a year-end average of 88%. The decline in occupancy was due to evictions and dissatisfied resident moving to other properties. Staff changes occurred at the end of the third quarter and marketing efforts have been initiated in an effort to return to previous occupancy. The property is currently operating at a slight deficit. Taxes, insurance, and mortgage payments are all current and the Operating General Partner continues to fund operating deficits.

The Investment General Partner has been working closely with the Operating General Partner and management company for the past several months. Occupancy reports are being forwarded to the Investment General Partner each week and monthly conference calls are held with the director of Sterling Management to review progress. The Investment General Partner visited the property again in November 2004 and found the area to be economically strong and the property to be in good condition.

Series 40

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at December 31, 2004, all of which at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 40 reflects net loss from Operating Partnerships of $(640,664) and $(613,850), respectively, which includes depreciation and amortization of $1,080,676 and $1,098,066, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 40 has invested in 3 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Center Place Apartments II LP and Oakland Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana or Texas and consist of approximately 126 apartment units in total. The low income housing tax credit available annually to Series 40 from the Calhoun Partnerships is approximately $255,292, which is approximately 10% of the total annual tax credit available to investors in Series 40.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation (as well as with respect to approximately 37 other operating partnerships in which Series 40 is not an investor). The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby impr operly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.

Arbors at Ironwood II, L.P. (Arbors at Ironwood II), is a 40-unit family property located in Mishawaka, IN. The property had an average physical occupancy of 94% through 2003 but this has decreased throughout 2004 to a year-end average of 86%. The decline in occupancy was due to evictions and dissatisfied resident moving to other properties. Staff changes occurred at the end of the third quarter and marketing efforts have been initiated in an effort to return to previous. The property is currently operating at a slight deficit. Taxes, insurance, and mortgage payments are all current and the Operating General Partner continues to fund operating deficits.

The Investment General Partner has been working closely with the Operating General Partner and management company for the past several months. Occupancy reports are being forwarded to the Investment General Partner each week and monthly conference calls are held with the director of Sterling Management to review progress. The Investment General Partner visited the property again in November 2004 and found the area to be economically strong and the property to be in good condition.

Series 41

As of December 31, 2004 and 2003 the average Qualified Occupancy for the series was 100%. The series had a total of 23 properties at December 31, 2004 all of which were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 41 reflects net loss from Operating Partnerships of $(1,807,728) and $(963,817), respectively, which includes depreciation and amortization of $1,780,526 and $1,134,832, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 41 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Bienville Partnership and Red Hill Apartments I Partnership. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 64 apartment units in total. The low income housing tax credit available annually to Series 41 from the Calhoun Partnerships is approximately $128,767, which is approximately 5% of the total annual tax credit available to investors in Series 41.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation (as well as with respect to approximately 38 other operating partnerships in which Series 41 is not an investor). The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby impr operly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.


San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its Limited Partner, BCP/Fox Hollow LLC (Plaintiff) filed a law suit against the former Operating General Partner and its affiliates for breaches of various agreements.  The former Operating General Partner and its affiliates filed a counter lawsuit which was dismissed with prejudice against the defendants on Friday, July 30, 2004. The only remedy for the former Operating General Partner and its affiliates is to appeal the judge's decision. A bench trial was conducted during the period April 6 through May 12, 2004, before the Superior Court of California - County of San Diego. A Tentative Decision was filed by the court on May 18, 2004. In its Tentative Decision the court found the former Operating General Partner to have been in material breach and that the removal of the Operating General Partner was proper and effective.  After requesting additional information from all parties, the judge filed his final Statement of Decision on August 11, 2004.  San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its Limited Partner, BCP/Fox Hollow LLC are preparing a separate motion to the court for recovery of legal fees in connection with the dispute. There is nothing further to report and this property will be removed from this report next quarter.

Brookstone Place II LDHA, L.P. (Brookstone Place II Apartments), is a 72-unit family property located in Port Huron, MI. The property had maintained an average physical occupancy of 96% through 2003 but has since dropped to an average occupancy of 81% through year end 2004. The decline in occupancy has been due to a large number of evictions coupled with residents unhappy with the overall condition of the property. To increase occupancy, referral bonuses are offered to residents who refer applicants that move into the property. Management has also taken a more proactive approach to resident retention by offering incentives for lease renewals. The residents are being offered items such as ceiling fans, carpet cleaning, or closet organizers. As a result of the low occupancy and increased turnover costs the property is operating below breakeven. The Investment General Partner has been working closely with the Operating General Partner and management company for the past several months. Occupancy reports are being forwarded to the Investment General Partner each week and monthly conference calls are held with the director of Sterling Management to review progress. The Investment General Partner visited the property again in November 2004 and found the area to be economically strong and the property to be in good condition. Taxes, insurance, and mortgage payments are all current and the Operating General Partner continues to fund operating deficits.

Series 42

As of December 31, 2004 and 2003 the average Qualified Occupancy was 99.7% and 96.9%, respectively. The series had a total of 22 properties at December 31, 2004. Out of the total 21 were at 100% Qualified Occupancy, and 1 was in active lease up.

For the period ended December 31, 2004 and 2003, Series 42 reflects net loss from Operating Partnerships of $(552,884) and $(526,299), respectively, which includes depreciation and amortization of $1,293,605 and $712,182, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Series 42 has invested in 2 Operating Partnerships (the "Calhoun Partnerships") in which the Operating General Partner initially was Riemer Calhoun, Jr. or an entity which was affiliated with or controlled by Riemer Calhoun (the "Riemer Calhoun Group"). The Operating Partnerships are Natchez Place II Partnership and Wingfield Apartments Partnership II. The affordable housing properties owned by the Calhoun Partnerships are located in Louisiana and consist of approximately 74 apartment units in total. The low income housing tax credit available annually to Series 42 from the Calhoun Partnerships is approximately $286,417, which is approximately 13% of the total annual tax credit available to investors in Series 42.

In the summer of 2002, the US Attorney for the Western District of Louisiana notified the Investment General Partner that the Riemer Calhoun group was under investigation by several federal agencies for the alleged manipulation of property cost certifications. In early 2003, the Investment General Partner learned that the US Attorney intended to bring criminal charges against certain members of the Riemer Calhoun group for falsifying the certified cost basis upon which the Louisiana Housing Finance Agency determined the tax credit calculation (as well as with respect to approximately 38 other operating partnerships in which Series 42 is not an investor). The Investment Limited Partner used these certifications in determining the tax credits investors would receive through their investment in the Calhoun Partnerships. In effect, it appears that the contractor that built the apartment properties (an affiliate of Mr. Calhoun's) overbilled the respective Operating Partnerships, thereby imp roperly inflating the cost certification and the amount of tax credit generated.

In late March, 2003, Riemer Calhoun, Jr. pleaded guilty to charges of wire fraud and conspiracy to commit equity skimming. At that time, the Investment General Partner obtained $1,282,202, currently held in escrow, from Riemer Calhoun for the purpose of offsetting any potential losses to tax credits caused by Mr. Calhoun's fraud.

On September 25, 2003, judgment in a criminal case was entered against Riemer Calhoun, Jr. and TF Management, Inc. On Count 1, alleging wire fraud, Riemer Calhoun, Jr. was sentenced to 60 months in the custody of the United States Bureau of Prisons. On Count 2, Mr. Calhoun received a concurrent 60 month sentence. Mr. Calhoun's prison sentence began on October 13, 2003. Mr. Calhoun was further fined $500,000 and ordered to pay restitution of $4,363,683 to various parties. The amount of restitution ordered paid to the Investment General Partner was $1,559,723. This amount includes the monies previously paid by Mr. Calhoun. The additional $277,521 was received in December 2003.

The Investment General Partner has cooperated fully with the US Attorney in the investigation, and there has been no suggestion of any wrongdoing on the part of it or any of its affiliates.

In 2003, the Internal Revenue Service commenced an audit of the Calhoun partnerships in order to finally determine the amount of overstated tax credits. The Investment General Partner has reached a resolution with the IRS whereby the adjustments to tax credits will be made only for the tax years 2004 and thereafter in order to avoid amending tax returns already filed for the years 2001, 2002 and 2003. It is anticipated that final Closing Agreements will be entered into with the IRS for each of the partnerships in the next two to three months. At this point, the Investment Partnerships have incurred substantial legal and accounting costs based upon Mr. Calhoun's fraud. It is anticipated that some of these costs will continue at least through completion of the Closing Agreements. It is further anticipated that the $1,559,723 will be sufficient to fully protect the investors and provide restitution to the Investment Partnerships affected.

With respect to each of the Calhoun Partnerships either (a) Riemer Calhoun's controlling interest in the Operating General Partner has been assigned to Murray Calhoun the son of Riemer Calhoun or (b) in some cases the Operating General Partner entity itself has been replaced with a new entity controlled by Murray Calhoun and in which Riemer Calhoun has no interest. Murray Calhoun is the principal of Calhoun Property Management, L.L.C., which has provided property level management services for the apartment properties owned by the Calhoun Partnerships. Murray Calhoun also cooperated fully with the criminal investigation of his father, and the Investment General Partner and its affiliates have confirmed directly with the US Attorney that no evidence was found of any wrongdoing on the part of Murray Calhoun.

Murray Calhoun and the Investment General Partner and its affiliates have all undertaken discussions with the Rural Housing Service of the U.S. Department of Agriculture, in its capacity as first mortgage lender for each of the Calhoun Partnerships, to make sure that all of the mortgage loans are and will continue to be in good standing notwithstanding the overstated credit and the criminal prosecution resulting therefrom. RHS has also indicated that it will consent to the replacement of general partners noted above.

Finally, the Investment General Partner and its affiliates are reviewing their business dealings with the Calhoun Partnerships in general to attempt to determine if any other irregularities have occurred.


San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its Limited Partner, BCP/Fox Hollow LLC (Plaintiff) filed a law suit against the former Operating General Partner and its affiliates for breaches of various agreements.  The former Operating General Partner and its affiliates filed a counter lawsuit which was dismissed with prejudice against the defendants on Friday, July 30, the only remedy for the former Operating General Partner and its affiliates is to appeal the judge's decision. A bench trial was conducted during the period April 6 through May 12, 2004, before the Superior Court of California - County of San Diego. A Tentative Decision was filed by the court on May 18, 2004. In its Tentative Decision the court found the former Operating General Partner to have been in material breach and that the removal of the Operating General Partner was proper and effective.  After requesting additional information from all parties, the judge filed his final Statement of Decision on August 11, 2004.  San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its Limited Partner, BCP/Fox Hollow LLC are preparing a separate motion to the court for recovery of legal fees in connection with the dispute. There is nothing further to report and this property will be removed from this report next quarter.

Dorchester Court Limited Dividend Housing Association Limited Partnership (Dorchester Court Apartments) is a 131 unit, multi-building apartment complex located in Port Huron, MI. While initial lease-up progressed slowly at three of the buildings which contain a total of 32 family units, 100% of these units were occupied as of April 30, 2004. The fourth building, which consists of 99 elderly units, received temporary certificates of occupancy in September and October 2003. Due to a tight senior housing rental market in Port Huron, the lease-up of the senior building progressed slowly during the first half of 2004. During September 2004, the market was reviewed and the rents on the one and two bedroom senior units were subsequently lowered to $399 and $499, respectively. In addition, the property offered free rent from the lease date through the end of 2004 on these senior units. The management agent, Lockwood Property Management ("Lockwood"), developed a comp rehensive marketing plan which included local advertising and mass mailings, outreach to senior organizations, working closely with the local Housing Authority and hosting various events for the senior community. In order to avoid a two-thirds tax credit situation, the initial lease-up on the senior building had to be completed before December 31, 2004. Due to the extraordinary efforts of Lockwood, the senior building achieved 100% initial occupancy before December 31, 2004. Because construction completion occurred 7 months later than projected and lease up completion is currently estimated to occur 10 months later than projected, a downward timing adjuster is expected to reduce the amount of Series 42 and Series 43 required capital contributions by approximately $260,000 each. As a result, the property had a permanent mortgage funding gap in the amount of approximately $200,000. This amount represents monies owed to the general contractor for construction costs. Currently, the general contractor is ow ed approximately $50,000. The Operating General Partner has made several payments to the general contractor over the past few months. The general contractor has placed a lien on the property for the balance of the outstanding construction costs. The Operating General Partner is in the process of negotiating a settlement with the general contractor. If the $50,000 gap needs to be paid to the general contractor, it is likely that Series 42 and Series 43 will loan the amount to the Operating Partnership from the proceeds available from the timing adjuster. The construction and lease up delays will not change the total amount of projected tax credits to be returned to the investors in Series 42 and Series 43; only the timing of the tax credits to be recognized in 2003 and 2004.

The Operating Partnership's mortgage taxes and insurance are current. However, payables of approximately $79,000 were outstanding as of December 31, 2004. As of January 31, 2005, the physical occupancy was 92% with 2 units leased for a projected physical occupancy of 95%. The property is currently offering one month free and a reduced security deposit. The property is anticipated to maintain high occupancy rates throughout 2005 and generate positive cash flow by the third quarter of 2005.

Series 43

As of December 31, 2004 and 2003 the average Qualified Occupancy was 99.7% and 80.8%, respectively. The series had a total of 22 properties at December 31, 2004. Out of the total 21 were at 100% Qualified Occupancy and 1 was in lease up.

For the period ended December 31, 2004 and 2003, Series 43 reflects net loss from Operating Partnerships of $(890,075) and $(236,446), respectively, which includes depreciation and amortization of $1,579,430 and $123,930, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its Limited Partner, BCP/Fox Hollow LLC (Plaintiff) filed a law suit against the former Operating General Partner and its affiliates for breaches of various agreements.  The former Operating General Partner and its affiliates filed a counter lawsuit which was dismissed with prejudice against the defendants on Friday, July 30, the only remedy for the former Operating General Partner and its affiliates is to appeal the judge's decision. A bench trial was conducted during the period April 6 through May 12, 2004, before the Superior Court of California - County of San Diego. A Tentative Decision was filed by the court on May 18, 2004. In its Tentative Decision the court found the former Operating General Partner to have been in material breach and that the removal of the Operating General Partner was proper and effective.  After requesting additional information from all parties, the judge filed his final Statement of Decision on August 1 1, 2004.  San Diego/Fox Hollow LP (Hollywood Palms Apts.) and its Limited Partner, BCP/Fox Hollow LLC are preparing a separate motion to the court for recovery of legal fees in connection with the dispute. There is nothing further to report and this property will be removed from this report next quarter.

Dorchester Court Limited Dividend Housing Association Limited Partnership (Dorchester Court Apartments) is a 131 unit, multi-building apartment complex located in Port Huron, MI. While initial lease-up progressed slowly at three of the buildings which contain a total of 32 family units, 100% of these units were occupied as of April 30, 2004. The fourth building, which consists of 99 elderly units, received temporary certificates of occupancy in September and October 2003. Due to a tight senior housing rental market in Port Huron, the lease-up of the senior building progressed slowly during the first half of 2004. During September 2004, the market was reviewed and the rents on the one and two bedroom senior units were subsequently lowered to $399 and $499, respectively. In addition, the property offered free rent from the lease date through the end of 2004 on these senior units. The management agent, Lockwood Property Management ("Lockwood"), developed a comprehensive marketing plan which i ncluded local advertising and mass mailings, outreach to senior organizations, working closely with the local Housing Authority and hosting various events for the senior community. In order to avoid a two-thirds tax credit situation, the initial lease-up on the senior building had to be completed before December 31, 2004. Due to the extraordinary efforts of Lockwood, the senior building achieved 100% initial occupancy before December 31, 2004. Because construction completion occurred 7 months later than projected and lease up completion is currently estimated to occur 10 months later than projected, a downward timing adjuster is expected to reduce the amount of Series 42 and Series 43 required capital contributions by approximately $260,000 each. As a result, the property had a permanent mortgage funding gap in the amount of approximately $200,000. This amount represents monies owed to the general contractor for construction costs. Currently, the general contractor is owed approximately $50,000. The O perating General Partner has made several payments to the general contractor over the past few months. The general contractor has placed a lien on the property for the balance of the outstanding construction costs. The Operating General Partner is in the process of negotiating a settlement with the general contractor. If the $50,000 gap needs to be paid to the general contractor, it is likely that Series 42 and Series 43 will loan the amount to the Operating Partnership from the proceeds available from the timing adjuster. The construction and lease up delays will not change the total amount of projected tax credits to be returned to the investors in Series 42 and Series 43; only the timing of the tax credits to be recognized in 2003 and 2004.

The Operating Partnership's mortgage taxes and insurance are current. However, payables of approximately $79,000 were outstanding as of December 31, 2004. As of January 31, 2005, the physical occupancy was 92% with 2 units leased for a projected physical occupancy of 95%. The property is currently offering one month free and a reduced security deposit. The property is anticipated to maintain high occupancy rates throughout 2005 and generate positive cash flow by the third quarter of 2005.

 

 

 

Series 44

As of December 31, 2004 and 2003 the average Qualified Occupancy was 99.5% and 100%, respectively. The series had a total of 8 properties at December 31, 2004. Out of the total 7 were at 100% Qualified Occupancy.

For the period ended December 31, 2004 and 2003, Series 44 reflects net loss from Operating Partnerships of $(177,845) and $(65,304), respectively, which includes depreciation and amortization of $701,892 and $40,000, respectively. This is an interim period estimate; it is not indicative of the final year end results.


Series 45

As of December 31, 2004 the average Qualified Occupancy was 100% and 96.3%, respectively. The series had a total of 26 properties at December 31, 2004. Out of the total 23 were at 100% Qualified Occupancy and 1 was in active lease-up. The series also had 2 properties that were still under construction at December 31, 2004.

For the period ended December 31, 2004 and 2003, Series 45 reflects net loss from Operating Partnerships of $(347,779) and $(3,519), respectively, which includes depreciation and amortization of $853,687 and $4,092, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Brookstone Place II LDHA, L.P. (Brookstone Place II Apartments), is a 72-unit family property located in Port Huron, MI. The property had maintained an average physical occupancy of 96% through 2003 but has since dropped to an average occupancy of 81% through year end 2004. The decline in occupancy has been due to a large number of evictions coupled with residents unhappy with the overall condition of the property. To increase occupancy, referral bonuses are offered to residents who refer applicants that move into the property. Management has also taken a more proactive approach to resident retention by offering incentives for lease renewals. The residents are being offered items such as ceiling fans, carpet cleaning, or closet organizers. As a result of the low occupancy and increased turnover costs the property is operating below breakeven. The Investment General Partner has been working closely with the Operating General Partner and management company for the past several months. Occupancy reports are being forwarded to the Investment General Partner each week and monthly conference calls are held with the director of Sterling Management to review progress. The Investment General Partner visited the property again in November 2004 and found the area to be economically strong and the property to be in good condition. Taxes, insurance, and mortgage payments are all current and the Operating General Partner continues to fund operating deficits.

Series 46

As of December 31, 2004 the average Qualified Occupancy was 78.5%. The series had a total of 12 properties at December 31, 2004. Out of the total 7 were at 100% Qualified Occupancy and 3 were in initial lease up. The series also had 2 properties that were still under construction. Since all of the properties were acquired after December 31, 2003, there is no comparative information to report.

For the period ended December 31, 2004, Series 46 reflects net gain from Operating Partnerships of $70, which includes depreciation and amortization of $140,055. This is an interim period estimate; it is not indicative of the final year end results.

 

 

 

 

 

 

 

 

Principal Critical Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Fund to make certain estimates and assumptions. A summary of significant accounting policies is provided in Note 1 to the financial statements. The following section is a summary of certain aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of Fund's financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Fund is required to assess potential impairments to its long-lived assets, which is primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of the Operating Limited Partnership.

If the book value of the Fund's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Partnership and the estimated residual value to the Partnership, the Partnership reduces its investment in any such Operating Limited Fund and includes such reduction in equity in loss of investment of limited partnerships.

Item 3

Quantitative and Qualitative Disclosure About Market Risk

   
 

Not Applicable

 

Item 4

Controls & Procedures

     
 

(a)

Evaluation of Disclosure Controls and Procedures

   

As of the end of the period covered by this report, the Fund's General Partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management Inc. carried out an evaluation of the effectiveness of the Fund's "disclosure controls and procedures" as defined in the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on that evaluation, the Partnership's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund's disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Fund required to be included in the Fund's periodic SEC filings.

     
 

(b)

Changes in Internal Controls

   

There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended December 31, 2004 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

   
 

None

   

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

   
 

None

   

Item 3.

Defaults upon Senior Securities

   
 

None

   

Item 4.

Submission of Matters to a Vote of Security 
Holders

   
 

None

   

Item 5.

Other Information

   
 

None

   

Item 6.

Exhibits 

   
 

(a)Exhibits

   
   

31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

   
   

31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

   
   

32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

     
   

32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

   
   
   
     

 

 

 

 

 

 

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

 

Boston Capital Tax Credit Fund IV L.P.  

 

By:

Boston Capital Associates IV L.P.
General Partner

   
 
 

By:

BCA Associates Limited Partnership
General Partner

 

By:

C&M Management, Inc.
General Partner

     

Date: February 22, 2005

 

By:

/s/ John P. Manning
John P. Manning

     
     

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Fund and in the capacities and on the dates indicated:

DATE:

SIGNATURE:

TITLE:

February 22, 2005

/s/ John P. Manning

Director, President (Principal Executive Officer), C&M Management, Inc.; Director, President (Principal Executive Officer) BCTC IV Assignor Corp.

 

John P. Manning

   
   
   
   
   
     

February 22, 2005

/s/ Marc N. Teal

Marc N. Teal

Sr. Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) C&M Management Inc.; Sr. Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) BCTC IV Assignor Corp.