FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

 

BOSTON CAPITAL TAX CREDIT FUND II

LIMITED PARTNERSHIP -

SERIES 7, 9 THROUGH 12, AND 14

 

MARCH 31, 2012 AND 2011

 

 

Boston Capital Tax Credit Fund Limited Partnership II

Series 7, 9 through 12, and 14

 

TABLE OF CONTENTS

 

		PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		F-3
FINANCIAL STATEMENTS
BALANCE SHEETS		F-4
STATEMENTS OF OPERATIONS		F-11
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)		F-18
STATEMENTS OF CASH FLOWS		F-22
NOTES TO FINANCIAL STATEMENTS		F-29

 

Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes thereto.

 

  

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

To the Partners

Boston Capital Tax Credit Fund II Limited Partnership

 

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund II Limited Partnership - Series 7, Series 9 through 12, and Series 14, in total and for each series, as of March 31, 2012 and 2011, and the related statements of operations, changes in partners’ capital (deficit) and cash flows for the total partnership and for each of the series for each of the years in the two-year period ended March 31, 2012. These financial statements are the responsibility of the partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund II L.P. - Series 7, Series 9 through 12, and Series 14, in total and for each series, as of March 31, 2012 and 2011, and the results of its operations and its cash flows for the total partnership and for each of the series for each of the years in the two-year period ended March 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

 

 

/s/ Reznick Group, P.C.

 

REZNICK GROUP, P.C.

 

Bethesda, Maryland

June 29, 2012

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS

 

March 31, 2012 and 2011

 

		Total
		2012				2011
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	1,302,447			$	1,618,141
Other			342,718				3,300
		$	1,645,165			$	1,621,441
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	42,600			$	37,600
Accounts payable - affiliates			20,842,344				21,219,377
Capital contributions payable			169,974				169,974
			21,054,918				21,426,951
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 18,679,738 issued and 18,671,338 and 18,678,038 outstanding to the assignees at March 31, 2012 and 2011			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 18,679,738 issued and 18,671,338 and 18,678,038 outstanding at March 31, 2012 and 2011			(17,834,720	)			(18,226,519	)
General partner			(1,575,033	)			(1,578,991	)
			(19,409,753	)			(19,805,510	)
		$	1,645,165			$	1,621,441

 

(continued)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2012 and 2011

 

		Series 7
		2012				2011
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	-			$	-
Other			-				-
		$	-			$	-
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			-				-
Capital contributions payable			-				-
			-				-
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 1,036,100 issued and  outstanding to the assignees at March 31, 2012 and 2011			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 1,036,100 issued and outstanding at March 31, 2012 and 2011			(84,506	)			(84,506	)
General partner			84,506				84,506
			-				-
		$	-			$	-

 

(continued)

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2012 and 2011

 

		Series 9
		2012				2011
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	316,051			$	71,556
Other			-				-
		$	316,051			$	71,556
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	35,000			$	-
Accounts payable - affiliates			6,676,676				6,591,231
Capital contributions payable			-				-
			6,711,676				6,591,231
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 4,178,029 issued and 4,176,329 and 4,177,329 outstanding to the assignees at March 31, 2012 and 2011			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,178,029 issued and 4,176,329 and 4,177,329 outstanding at March 31, 2012 and 2011			(5,996,831	)			(6,119,640	)
General partner			(398,794	)			(400,035	)
			(6,395,625	)			(6,519,675	)
		$	316,051			$	71,556

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2012 and 2011

 

		Series 10
		2012				2011
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	250,847			$	270,086
Other			339,418				-
		$	590,265			$	270,086
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			2,357,127				2,260,615
Capital contributions payable			-				-
			2,357,127				2,260,615
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,428,925 issued and 2,423,225 and 2,427,925 outstanding to the assignees at March 31, 2012 and 2011			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,428,925 issued and 2,423,225 and 2,427,925 outstanding at March 31, 2012 and 2011			(1,554,281	)			(1,775,711	)
General partner			(212,581	)			(214,818	)
			(1,766,862	)			(1,990,529	)
		$	590,265			$	270,086

  

(continued)  

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2012 and 2011

 

		Series 11
		2012				2011
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	205,808			$	465,155
Other			-				-
		$	205,808			$	465,155
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	-			$	-
Accounts payable - affiliates			998,760				1,180,122
Capital contributions payable			-				-
			998,760				1,180,122
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,489,599 issued and  outstanding to the assignees at March 31, 2012 and 2011			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,489,599 issued and outstanding at March 31, 2012 and 2011			(570,338	)			(493,133	)
General partner			(222,614	)			(221,834	)
			(792,952	)			(714,967	)
		$	205,808			$	465,155

 

(continued)

  

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2012 and 2011

 

		Series 12
		2012				2011
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	170,287			$	479,986
Other			-				-
		$	170,287			$	479,986
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	7,500			$	37,500
Accounts payable - affiliates			3,884,690				4,054,166
Capital contributions payable			9,241				9,241
			3,901,431				4,100,907
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 2,972,795 issued and 2,971,795 and 2,972,795 outstanding to the assignees at March 31, 2012 and 2011			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,972,795 issued and 2,971,795 and 2,972,795 outstanding at March 31, 2012 and 2011			(3,442,702	)			(3,333,581	)
General partner			(288,442	)			(287,340	)
			(3,731,144	)			(3,620,921	)
		$	170,287			$	479,986

 

(continued)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2012 and 2011

 

		Series 14
		2012				2011
ASSETS
OTHER ASSETS
Cash and cash equivalents		$	359,454			$	331,358
Other			3,300				3,300
		$	362,754			$	334,658
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses		$	100			$	100
Accounts payable - affiliates			6,925,091				7,133,243
Capital contributions payable			160,733				160,733
			7,085,924				7,294,076
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated value, 5,574,290 issued and  outstanding to the assignees at March 31, 2012 and 2011			-				-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,574,290 issued and outstanding at March 31, 2012 and 2011			(6,186,062	)			(6,419,948	)
General partner			(537,108	)			(539,470	)
			(6,723,170	)			(6,959,418	)
		$	362,754			$	334,658

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2012 and 2011

 

		Total
		2012				2011
Income
Interest income		$	3,818			$	12,736
Miscellaneous income			18,255				246,685
			22,073				259,421
Share of income from operating limited partnerships			1,284,829				1,641,881
Expenses
Professional fees			141,425				207,080
Partnership management fee			666,597				670,896
General and administrative expenses			103,123				107,296
			911,145				985,272
NET INCOME (LOSS)		$	395,757			$	916,030
Net income (loss) allocated to general partner		$	3,958			$	9,160
Net income (loss) allocated to assignees		$	391,799			$	906,870
Net income (loss) per BAC		$	0.02			$	0.05

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 7
		2012				2011
Income
Interest income		$	-			$	-
Miscellaneous income			-				-
Total income			-				-
Share of income from operating limited partnerships			-				-
Expenses
Professional fees			-				-
Partnership management fee			-				-
General and administrative expenses			-				-
			-				-
NET INCOME (LOSS)		$	-			$	-
Net income (loss) allocated to general partner		$	-			$	-
Net income (loss) allocated to assignees		$	-			$	-
Net income (loss) per BAC		$	-			$	-

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 9
		2012				2011
Income
Interest income		$	424			$	656
Miscellaneous income			330				1,367
Total income			754				2,023
Share of income from operating limited partnerships			278,008				-
Expenses
Professional fees			25,333				37,641
Partnership management fee			99,125				191,164
General and administrative expenses			30,254				21,794
			154,712				250,599
NET INCOME (LOSS)		$	124,050			$	(248,576	)
Net income (loss) allocated to general partner		$	1,241			$	(2,486	)
Net income (loss) allocated to assignees		$	122,809			$	(246,090	)
Net income (loss) per BAC		$	0.03			$	(0.06	)

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 10
		2012				2011
Income
Interest income		$	557			$	786
Miscellaneous income			3,718				185,384
Total income			4,275				186,170
Share of income from operating limited partnerships			338,168				6,276
Expenses
Professional fees			21,338				30,531
Partnership management fee			82,181				54,430
General and administrative expenses			15,257				16,459
			118,776				101,420
NET INCOME (LOSS)		$	223,667			$	91,026
Net income (loss) allocated to general partner		$	2,237			$	910
Net income (loss) allocated to assignees		$	221,430			$	90,116
Net income (loss) per BAC		$	0.09			$	0.04

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 11
		2012				2011
Income
Interest income		$	820			$	7,163
Miscellaneous income			3,020				12,387
Total income			3,840				19,550
Share of income from operating limited partnerships			54,381				1,217,636
Expenses
Professional fees			22,924				32,177
Partnership management fee			98,732				25,831
General and administrative expenses			14,550				15,620
			136,206				73,628
NET INCOME (LOSS)		$	(77,985	)		$	1,163,558
Net income (loss) allocated to general partner		$	(780	)		$	11,636
Net income (loss) allocated to assignees		$	(77,205	)		$	1,151,922
Net income (loss) per BAC		$	(0.03	)		$	0.46

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 12
		2012				2011
Income
Interest income		$	800			$	1,568
Miscellaneous income			1,300				11,950
Total income			2,100				13,518
Share of income from operating limited partnerships			44,097				344,107
Expenses
Professional fees			28,539				47,086
Partnership management fee			110,794				100,781
General and administrative expenses			17,087				19,421
			156,420				167,288
NET INCOME (LOSS)		$	(110,223	)		$	190,337
Net income (loss) allocated to general partner		$	(1,102	)		$	1,903
Net income (loss) allocated to assignees		$	(109,121	)		$	188,434
Net income (loss) per BAC		$	(0.04	)		$	0.06

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 14
		2012				2011
Income
Interest income		$	1,217			$	2,563
Miscellaneous income			9,887				35,597
Total income			11,104				38,160
Share of income from operating limited partnerships			570,175				73,862
Expenses
Professional fees			43,291				59,645
Partnership management fee			275,765				298,690
General and administrative expenses			25,975				34,002
			345,031				392,337
NET INCOME (LOSS)		$	236,248			$	(280,315	)
Net income (loss) allocated to general partner		$	2,362			$	(2,803	)
Net income (loss) allocated to assignees		$	233,886			$	(277,512	)
Net income (loss) per BAC		$	0.04			$	(0.05	)

 

See notes to financial statements 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

 

Years ended March 31, 2012 and 2011

 

Total		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2010			(19,059,586	)			(1,587,406	)			(20,646,992	)
Net income (loss)			906,870				9,160				916,030
Distributions			(73,803	)			(745	)			(74,548	)
Partners’ capital (deficit), March 31, 2011			(18,226,519	)			(1,578,991	)			(19,805,510	)
Net income (loss)			391,799				3,958				395,757
Partners’ capital (deficit), March 31, 2012		$	(17,834,720	)		$	(1,575,033	)		$	(19,409,753	)

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

 

Years ended March 31, 2012 and 2011

 

Series 7		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2010			(84,506	)			84,506				-
Net income (loss)			-				-				-
Distributions			-				-				-
Partners’ capital (deficit), March 31, 2011			(84,506	)			84,506				-
Net income (loss)			-				-				-
Partners’ capital (deficit), March 31, 2012		$	(84,506	)		$	84,506			$	-

 

Series 9		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2010			(5,873,550	)			(397,549	)			(6,271,099	)
Net income (loss)			(246,090	)			(2,486	)			(248,576	)
Distributions			-				-				-
Partners’ capital (deficit), March 31, 2011			(6,119,640	)			(400,035	)			(6,519,675	)
Net income (loss)			122,809				1,241				124,050
Partners’ capital (deficit), March 31, 2012		$	(5,996,831	)		$	(398,794	)		$	(6,395,625	)

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

 

Years ended March 31, 2012 and 2011

 

Series 10		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2010			(1,792,024	)			(214,983	)			(2,007,007	)
Net income (loss)			90,116				910				91,026
Distributions			(73,803	)			(745	)			(74,548	)
Partners’ capital (deficit), March 31, 2011			(1,775,711	)			(214,818	)			(1,990,529	)
Net income (loss)			221,430				2,237				223,667
Partners’ capital (deficit), March 31, 2012		$	(1,554,281	)		$	(212,581	)		$	(1,766,862	)

 

Series 11		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2010			(1,645,055	)			(233,470	)			(1,878,525	)
Net income (loss)			1,151,922				11,636				1,163,558
Distributions			-				-				-
Partners’ capital (deficit), March 31, 2011			(493,133	)			(221,834	)			(714,967	)
Net income (loss)			(77,205	)			(780	)			(77,985	)
Partners’ capital (deficit), March 31, 2012		$	(570,338	)		$	(222,614	)		$	(792,952	)

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

 

Years ended March 31, 2012 and 2011

 

Series 12		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2010			(3,522,015	)			(289,243	)			(3,811,258	)
Net income (loss)			188,434				1,903				190,337
Distributions			-				-				-
Partners’ capital (deficit), March 31, 2011			(3,333,581	)			(287,340	)			(3,620,921	)
Net income (loss)			(109,121	)			(1,102	)			(110,223	)
Partners’ capital (deficit), March 31, 2012		$	(3,442,702	)		$	(288,442	)		$	(3,731,144	)

 

Series 14		Assignees				General partner				Total
Partners’ capital (deficit), March 31, 2010			(6,142,436	)			(536,667	)			(6,679,103	)
Net income (loss)			(277,512	)			(2,803	)			(280,315	)
Distributions			-				-				-
Partners’ capital (deficit), March 31, 2011			(6,419,948	)			(539,470	)			(6,959,418	)
Net income (loss)			233,886				2,362				236,248
Partners’ capital (deficit), March 31, 2012		$	(6,186,062	)		$	(537,108	)		$	(6,723,170	)

 

See notes to financial statements

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2012 and 2011

 

		Total
		2012				2011
Cash flows from operating activities
Net income (loss)		$	395,757			$	916,030
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(1,284,829	)			(1,641,881	)
Changes in assets and liabilities
Accounts payable and accrued expenses			5,000				(98,500	)
Accounts payable - affiliates			(377,033	)			(544,848	)
Other assets			(339,418	)			1,800
Net cash provided by (used in) operating activities			(1,600,523	)			(1,367,399	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			1,284,829				1,641,881
Net cash provided by investing activities			1,284,829				1,641,881
Cash flows from financing activities
Distributions paid to assignees			-				(74,548	)
Net cash used in financing  activities			-				(74,548	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(315,694	)			199,934
Cash and cash equivalents, beginning			1,618,141				1,418,207
Cash and cash equivalents, end		$	1,302,447			$	1,618,141

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 7
		2012				2011
Cash flows from operating activities
Net income (loss)		$	-			$	-
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			-				-
Changes in assets and liabilities
Accounts payable and accrued expenses			-				-
Accounts payable - affiliates			-				-
Other assets			-				-
Net cash provided by (used in) operating activities			-				-
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			-				-
Net cash provided by investing activities			-				-
Cash flows from financing activities
Distributions paid to assignees			-				-
Net cash used in financing  activities			-				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			-				-
Cash and cash equivalents, beginning			-				-
Cash and cash equivalents, end		$	-			$	-

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 9
		2012				2011
Cash flows from operating activities
Net income (loss)		$	124,050			$	(248,576	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(278,008	)			-
Changes in assets and liabilities
Accounts payable and accrued expenses			35,000				-
Accounts payable - affiliates			85,445				204,984
Other assets			-				-
Net cash provided by (used in) operating activities			(33,513	)			(43,592	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			278,008				-
Net cash provided by investing activities			278,008				-
Cash flows from financing activities
Distributions paid to assignees			-				-
Net cash used in financing  activities			-				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			244,495				(43,592	)
Cash and cash equivalents, beginning			71,556				115,148
Cash and cash equivalents, end		$	316,051			$	71,556

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 10
		2012				2011
Cash flows from operating activities
Net income (loss)		$	223,667			$	91,026
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(338,168	)			(6,276	)
Changes in assets and liabilities
Accounts payable and accrued expenses			-				(30,000	)
Accounts payable - affiliates			96,512				96,888
Other assets			(339,418	)			-
Net cash provided by (used in) operating activities			(357,407	)			151,638
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			338,168				6,276
Net cash provided by investing activities			338,168				6,276
Cash flows from financing activities
Distributions paid to assignees			-				(74,548	)
Net cash used in financing  activities			-				(74,548	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(19,239	)			83,366
Cash and cash equivalents, beginning			270,086				186,720
Cash and cash equivalents, end		$	250,847			$	270,086

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 11
		2012				2011
Cash flows from operating activities
Net income (loss)		$	(77,985	)		$	1,163,558
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(54,381	)			(1,217,636	)
Changes in assets and liabilities
Accounts payable and accrued expenses			-				(46,000	)
Accounts payable - affiliates			(181,362	)			(1,256,301	)
Other assets			-				-
Net cash provided by (used in) operating activities			(313,728	)			(1,356,379	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			54,381				1,217,636
Net cash provided by investing activities			54,381				1,217,636
Cash flows from financing activities
Distributions paid to assignees			-				-
Net cash used in financing  activities			-				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(259,347	)			(138,743	)
Cash and cash equivalents, beginning			465,155				603,898
Cash and cash equivalents, end		$	205,808			$	465,155

 

(continued) 

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 12
		2012				2011
Cash flows from operating activities
Net income (loss)		$	(110,223	)		$	190,337
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(44,097	)			(344,107	)
Changes in assets and liabilities
Accounts payable and accrued expenses			(30,000	)			30,000
Accounts payable - affiliates			(169,476	)			138,792
Other assets			-				-
Net cash provided by (used in) operating activities			(353,796	)			15,022
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			44,097				344,107
Net cash provided by investing activities			44,097				344,107
Cash flows from financing activities
Distributions paid to assignees			-				-
Net cash used in financing  activities			-				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(309,699	)			359,129
Cash and cash equivalents, beginning			479,986				120,857
Cash and cash equivalents, end		$	170,287			$	479,986

 

(continued)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2012 and 2011

 

		Series 14
		2012				2011
Cash flows from operating activities
Net income (loss)		$	236,248			$	(280,315	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income from operating limited partnerships			(570,175	)			(73,862	)
Changes in assets and liabilities
Accounts payable and accrued expenses			-				(52,500	)
Accounts payable - affiliates			(208,152	)			270,789
Other assets			-				1,800
Net cash provided by (used in) operating activities			(542,079	)			(134,088	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships			570,175				73,862
Net cash provided by investing activities			570,175				73,862
Cash flows from financing activities
Distributions paid to assignees			-				-
Net cash used in financing  activities			-				-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			28,096				(60,226	)
Cash and cash equivalents, beginning			331,358				391,584
Cash and cash equivalents, end		$	359,454			$	331,358

 

See notes to financial statements 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS

 

March 31, 2012 and 2011

 

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Boston Capital Tax Credit Fund II Limited Partnership (the “Partnership” or “Fund”) was formed under the laws of the State of Delaware on June 28, 1989, for the purpose of acquiring, holding and disposing of limited partnership interests in operating limited partnerships which were to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes which qualify for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Accordingly, the apartment complexes are restricted as to rent charges and operating methods. Certain of the apartment complexes also qualified for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure and are subject to the provisions of the Internal Revenue Code relating to the Rehabilitation Investment Credit. The general partner of the Partnership is Boston Capital Associates II Limited Partnership and the limited partner is BCTC Assignor Corp. II (the “assignor limited partner”).

 

Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective October 25, 1989, which covered the offering (the “Public Offering”) of the Partnership’s beneficial assignee certificates (“BACs”) representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner. The Partnership registered 20,000,000 BACs at $10 per BAC for sale to the public in six series. BACs sold in bulk over $100,000 were offered to investors at a reduced cost per BAC. The Partnership is no longer selling any BACs related to any series. The final closing in Series 14 was January 27, 1992.

 

The BACs issued in each series at March 31, 2012 and 2011 are as follows:

 

		2012				2011
Series   7			1,036,100				1,036,100
Series   9			4,178,029				4,178,029
Series 10			2,428,925				2,428,925
Series 11			2,489,599				2,489,599
Series 12			2,972,795				2,972,795
Series 14			5,574,290				5,574,290
			18,679,738				18,679,738

 

In accordance with the limited partnership agreement, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Investments in Operating Limited Partnerships

 

After the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the funds’ share of losses and, accordingly a valuation allowance is recorded against the receivables. Accordingly, the Partnership recorded a valuation allowance as follows:

 

		2012				2011
Series   7		$	-			$	-
Series   9			30,198				30,198
Series 10			5,443				5,443
Series 11			72,890				72,890
Series 12			86,870				86,870
Series 14			16,744				16,744
		$	212,145			$	212,145

 

The Partnership reviews its investment in operating limited partnerships for impairment whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the investment to the future net undiscounted cash flows expected to be generated by the operating limited partnerships including the low-income housing tax credits and the residual value upon sale or disposition of the equity interest in the operating limited partnerships.  If the investment is considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of the investment exceeds the fair value of such investment. During the years ended March 31, 2012 and 2011, the Partnership did not record an impairment loss.

 

Capital contributions to operating limited partnerships are adjusted by tax credit adjusters. Tax credit adjusters are defined as adjustments to operating limited partnership capital contributions due to reductions in actual tax credits from those originally projected. The Partnership records tax credit adjusters as a reduction in investments in operating limited partnerships and capital contributions payable.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Investments in Operating Limited Partnerships (Continued)

 

The operating limited partnerships maintain their financial statements based on a calendar year and the Partnership utilizes a March 31 year end. The fund records losses and income from the operating limited partnerships on a calendar year basis which is not materially different from losses and income generated if the operating limited partnerships utilized a March 31 year end.

 

The Partnership records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount. The operating limited partnerships record capital contributions from the Partnership when received.

 

The Partnership records certain acquisition costs as an increase in its investments in operating limited partnerships. Certain operating limited partnerships have not recorded the acquisition costs as a capital contribution from the Partnership. These differences are shown as reconciling items in Note C.

 

In accordance with the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party is required to consolidate the VIE.

 

The Partnership determines whether an entity is a VIE and whether it is the primary beneficiary at the date of initial involvement with the entity. The Partnership reassesses whether it is the primary beneficiary of a VIE on an ongoing basis based on changes in facts and circumstances. In determining whether it is the primary beneficiary, the partnership considers the purpose and activities of the VIE, including the variability and related risks the VIE incurs and transfers to other entities and their related parties. These factors are considered in determining whether the Partnership has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance and whether the Partnership also has the obligation to absorb losses of or receive benefits from the VIE that could be potentially significant to the VIE. If the Partnership determines that it is the primary beneficiary of the VIE, the VIE is consolidated within the partnership’s financial statements.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Investments in Operating Limited Partnerships (Continued)

 

Based on this guidance, the operating limited partnerships in which the Partnership invests meet the definition of a VIE. However, management does not consolidate the Partnership's interests in these VIEs under this guidance, as it is not considered to be the primary beneficiary. The Partnership currently records the amount of its investment in these operating limited partnerships as an asset on its balance sheets, recognizes its share of the operating limited partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership's balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership's exposure to loss on these operating limited partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the operating general partners and their guarantee against credit recapture.

 

Cash Equivalents

 

Cash equivalents include money market accounts having original maturities at date of acquisition of three months or less. The carrying amounts approximate fair value because of the short maturity of these instruments.

 

Income Taxes

 

The Partnership has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns.  The Partnership’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Fiscal Year

 

For financial reporting purposes the Partnership uses a March 31 year end, whereas for income tax reporting purposes, the Partnership uses a calendar year. The operating limited partnerships use a calendar year for both financial and income tax reporting.

 

Net Income (Loss) per Beneficial Assignee Certificate

 

Net income (loss) per beneficial assignee certificate is calculated based upon the weighted average number of units outstanding. The weighted average number of units outstanding in each series at March 31, 2012 and 2011 are as follows:

 

		2012				2011
Series  7			1,036,100				1,036,100
Series  9			4,176,329				4,177,329
Series 10			2,423,225				2,427,925
Series 11			2,489,599				2,489,599
Series 12			2,971,795				2,972,795
Series 14			5,574,290				5,574,290
TOTAL			18,671,338				18,678,038

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

Recent Accounting Changes

 

In June 2009, the Financial Accounting Standards Board (FASB) issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics, and replaced quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment was effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 did not have a material effect on the Partnership’s financial statements.

 

Plan of Liquidation and Dissolution

 

On July 1, 2010, BAC Holders approved a Plan of Liquidation and Dissolution for the Partnership, (the “Plan”). Pursuant to the Plan, the general partner may, without further action by the BAC Holders, sell the remaining assets held by the Partnership. It was anticipated that the sale of all the apartment complexes would be completed sometime in 2012. However, because of numerous uncertainties, the liquidation may take longer than expected, and the final liquidating distribution may occur months after all of the apartment complexes have been sold. Because the liquidation of the Partnership was not imminent, as of March 31, 2012, the financial statements are presented assuming the Partnership will continue as a going concern.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During the years ended March 31, 2012 and 2011, the Partnership entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:

 

Boston Capital Asset Management Limited Partnership is entitled to an annual partnership management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships. The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level. The partnership management fees net of reporting fees incurred and the reporting fees paid by the Operating Partnerships for the years ended March 31, 2012 and 2011, are as follows:

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

		2012
		Gross Partnership Management Fee				Asset Management & Reporting Fee				Partnership Management Fee net of Asset Management & Reporting Fee
Series 7		$	-			$	-			$	-
Series 9			170,445				71,320				99,125
Series 10			96,512				14,331				82,181
Series 11			118,638				19,906				98,732
Series 12			130,524				19,730				110,794
Series 14			341,848				66,083				275,765
		$	857,967			$	191,370			$	666,597

 

		2011
		Gross Partnership Management Fee				Asset Management & Reporting Fee				Partnership Management Fee net of Asset Management & Reporting Fee
Series 7		$	-			$	-			$	-
Series 9			204,984				13,820				191,164
Series 10			96,888				42,458				54,430
Series 11			131,199				105,368				25,831
Series 12			138,792				38,011				100,781
Series 14			370,789				72,099				298,690
		$	942,652			$	271,756			$	670,896

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

The partnership management fees paid by the Partnership for the years ended March 31, 2012 and 2011 are as follows:

 

		2012				2011
Series   7		$	-			$	-
Series   9			85,000				-
Series 10			-				-
Series 11			300,000				1,387,500
Series 12			300,000				-
Series 14			550,000				100,000
TOTAL		$	1,235,000			$	1,487,500

 

All partnership management fees will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in operating limited partnerships. As of March 31, 2012 and 2011, total partnership management fees accrued were $20,689,156 and $21,066,189, respectively.

 

An affiliate of the general partner of the Partnership advanced funds to pay some operating expenses of the Partnership, and to make advances and/or loans to operating limited partnerships. These advances are included in accounts payable-affiliates. The total advances from the affiliate of the general partner to the operating limited partnerships as of March 31, 2012 and 2011 are as follows:

 

		2012				2011
Series   7		$	-			$	-
Series   9			-				-
Series 10			-				-
Series 11			-				-
Series 12			153,188				153,188
Series 14			-				-
TOTAL		$	153,188			$	153,188

 

All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in operating limited partnerships.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership (BCAMLP) during the years ended March 31, 2012 and 2011 charged to each series’ operations are as follows:

 

		2012				2011
Series   7		$	-			$	-
Series   9			12,132				13,615
Series 10			10,600				10,916
Series 11			10,346				10,526
Series 12			11,703				12,816
Series 14			16,871				21,831
TOTAL		$	61,652			$	69,704

 

Accounts payable - affiliates at March 31, 2012 and 2011 represents general and administrative expenses, partnership management fees, and may include advances which are payable to Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

 

At March 31, 2012 and 2011, the Partnership has limited partnership interests in operating limited partnerships which own operating apartment complexes. During the year ended March 31, 2012, the Partnership disposed of its operating limited partnership interest in six, one, and five of the operating limited partnerships owned by Series 9, Series 10, and Series 14, respectively. During the year ended March 31, 2011, the Partnership disposed of its operating limited partnership interest in one, three, and two of the operating limited partnerships owned by Series 11, Series 12, and Series 14, respectively. The number of operating limited partnerships in which the Partnership has limited partnership interests at March 31, 2012 and 2011 by series is as follows:

 

		2012				2011
Series   7			-				-
Series   9			18				24
Series 10			15				16
Series 11			16				16
Series 12			23				23
Series 14			46				51
TOTAL			118				130

 

 

Boston Capital Tax Credit Fund II Limited Partnership

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

During the year ended March 31, 2012 the Partnership disposed of twelve of the operating limited partnerships. In addition the Partnership received additional proceeds from two operating limited partnerships disposed of in the prior year. A summary of the dispositions by Series for March 31, 2012 is as follows:

 

		Operating				Sale of
		Partnership				Underlying				Partnership
		Interest				Operating				Proceeds from				Gain on
		Transferred				Partnership				Disposition				Disposition
Series   7			-				-			$	-			$	-
Series   9			6				-				278,008				278,008
Series 10			-				1				338,168				338,168
Series 11			-				-				54,381				54,381
Series 12			-				-				44,097				44,097
Series 14			4				1				570,175				570,175
Total			10				2			$	1,284,829			$	1,284,829

 

During the year ended March 31, 2011 the Partnership disposed of six of the operating limited partnerships. In addition the Partnership received additional proceeds from three operating limited partnerships disposed of in the prior year. A summary of the dispositions by Series for March 31, 2011 is as follows:

 

		Operating				Sale of
		Partnership				Underlying				Partnership
		Interest				Operating				Proceeds from				Gain on
		Transferred				Partnership				Disposition				Disposition
Series   7			-				-			$	-			$	-
Series   9			-				-				-				-
Series 10			-				-				6,276				6,276
Series 11			-				1				1,217,636				1,217,636
Series 12			-				3				344,107				344,107
Series 14			-				2				73,862				73,862
Total			-				6			$	1,641,881			$	1,641,881

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

Under the terms of the Partnership’s investments in each operating limited partnership, the Partnership is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction or operations.

 

The contributions payable to operating limited partnerships at March 31, 2012 and 2011 by series are as follows:

 

		2012				2011
Series   7		$	-			$	-
Series   9			-				-
Series 10			-				-
Series 11			-				-
Series 12			9,241				9,241
Series 14			160,733				160,733
TOTAL		$	169,974			$	169,974

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2012 are summarized as follows:

 

		Total
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	35,592,215
Acquisition costs of operating limited partnerships			4,811,644
Cumulative distributions from operating limited partnerships			(204,969	)
Cumulative impairment loss in investments in operating limited partnerships			(3,521,265	)
Cumulative losses from operating limited partnerships			(36,677,625	)
Investments in operating limited partnerships per balance sheets			-
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2012, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2011 (see note A).			(139,775	)
The Partnership has recorded acquisition costs at March 31, 2012, which have not been recorded in the net assets of the operating limited partnerships (see note A).			(384,641	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			938,709
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(32,626,477	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			453,386
Cumulative impairment loss in investments in operating limited partnerships			3,521,265
Other			669,725
Equity per operating limited partnerships’ combined financial statements		$	(27,567,808	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2012 are summarized as follows:

 

		Series 7				Series 9				Series 10
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	-			$	5,389,239			$	3,657,956
Acquisition costs of operating limited partnerships			-				736,066				384,746
Cumulative distributions from operating limited partnerships			-				(22,130	)			(31,287	)
Cumulative impairment loss in investments in operating limited partnerships			-				(369,919	)			(457,341	)
Cumulative losses from operating limited partnerships			-				(5,733,256	)			(3,554,074	)
Investments in operating limited partnerships per balance sheets			-				-				-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 7				Series 9				Series 10
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2012, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2011 (see note A).			-				-				-
The Partnership has recorded acquisition costs at March 31, 2012, which have not been recorded in the net assets of the operating limited partnerships (see note A).			-				(80,244	)			(1,908	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			-				-				-
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			-				(6,554,370	)			(3,477,406	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			-				43,771				24,187
Cumulative impairment loss in investments in operating limited partnerships			-				369,919				457,341
Other			-				202,362				135,281
Equity per operating limited partnerships’ combined financial statements		$	-			$	(6,018,562	)		$	(2,862,505	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2012 are summarized as follows:

 

		Series 11				Series 12				Series 14
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	5,468,694			$	5,430,816			$	15,645,510
Acquisition costs of operating limited partnerships			765,909				691,480				2,233,443
Cumulative distributions from operating limited partnerships			(54,407	)			(8,581	)			(88,564	)
Cumulative impairment loss in investments in operating limited partnerships			(282,491	)			(185,348	)			(2,226,166	)
Cumulative losses from operating limited partnerships			(5,897,705	)			(5,928,367	)			(15,564,223	)
Investments in operating limited partnerships per balance sheets			-				-				-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 11				Series 12				Series 14
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2012, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2011 (see note A).			-				-				(139,775	)
The Partnership has recorded acquisition costs at March 31, 2012, which have not been recorded in the net assets of the operating limited partnerships (see note A).			(6,867	)			(33,153	)			(262,469	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			-				177,104				761,605
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(4,552,756	)			(6,646,523	)			(11,395,422	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			101,163				168,031				116,234
Cumulative impairment loss in investments in operating limited partnerships			282,491				185,348				2,226,166
Other			406,405				53,168				(127,491	)
Equity per operating limited partnerships’ combined financial statements		$	(3,769,564	)		$	(6,096,025	)		$	(8,821,152	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2011 are summarized as follows:

 

		Total
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	40,341,117
Acquisition costs of operating limited partnerships			5,462,155
Cumulative distributions from operating limited partnerships			(286,639	)
Cumulative impairment loss in investments in operating limited partnerships			(3,982,635	)
Cumulative losses from operating limited partnerships			(41,533,998	)
Investments in operating limited partnerships per balance sheets			-
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2011, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A).			(139,775	)
The Partnership has recorded acquisition costs at March 31, 2011, which have not been recorded in the net assets of the operating limited partnerships (see note A).			(440,012	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			984,858
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(34,676,928	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			453,476
Cumulative impairment loss in investments in operating limited partnerships			3,982,635
Other			560,873
Equity per operating limited partnerships’ combined financial statements		$	(29,274,873	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2011 are summarized as follows:

 

		Series 7				Series 9				Series 10
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	-			$	8,137,530			$	4,038,966
Acquisition costs of operating limited partnerships			-				1,154,369				451,024
Cumulative distributions from operating limited partnerships			-				(28,246	)			(31,287	)
Cumulative impairment loss in investments in operating limited partnerships			-				(369,919	)			(628,541	)
Cumulative losses from operating limited partnerships			-				(8,893,734	)			(3,830,162	)
Investments in operating limited partnerships per balance sheets			-				-				-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 7				Series 9				Series 10
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2011, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A).			-				-				-
The Partnership has recorded acquisition costs at March 31, 2011, which have not been recorded in the net assets of the operating limited partnerships (see note A).			-				(135,615	)			(1,908	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			-				-				-
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			-				(8,343,885	)			(3,243,148	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			-				43,771				24,277
Cumulative impairment loss in investments in operating limited partnerships			-				369,919				628,541
Other			-				295,448				(33,814	)
Equity per operating limited partnerships’ combined financial statements		$	-			$	(7,770,362	)		$	(2,626,052	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships at March 31, 2011 are summarized as follows:

 

		Series 11				Series 12				Series 14
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters		$	5,468,694			$	5,430,816			$	17,265,111
Acquisition costs of operating limited partnerships			765,909				691,480				2,399,373
Cumulative distributions from operating limited partnerships			(54,407	)			(8,581	)			(164,118	)
Cumulative impairment loss in investments in operating limited partnerships			(282,491	)			(171,947	)			(2,529,737	)
Cumulative losses from operating limited partnerships			(5,897,705	)			(5,941,768	)			(16,970,629	)
Investments in operating limited partnerships per balance sheets			-				-				-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

		Series 11				Series 12				Series 14
The Partnership (has recorded) has not recorded capital contributions to the operating limited partnerships during the year ended March 31, 2011, which (have not) have been included in the Partnerships’ capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A).			-				-				(139,775	)
The Partnership has recorded acquisition costs at March 31, 2011, which have not been recorded in the net assets of the operating limited partnerships (see note A).			(6,867	)			(33,153	)			(262,469	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A).			-				177,104				807,754
Equity in losses from operating limited partnerships not recognizable under the equity method of accounting (see note A).			(4,272,778	)			(6,461,505	)			(12,355,612	)
The Partnership has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).			101,163				168,031				116,234
Cumulative impairment loss in investments in operating limited partnerships			282,491				171,947				2,529,737
Other			409,272				54,320				(164,353	)
Equity per operating limited partnerships’ combined financial statements		$	(3,486,719	)		$	(5,923,256	)		$	(9,468,484	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2011 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 7				Series 9				Series 10
ASSETS
Buildings and improvements, net of accumulated depreciation		$	76,549,334			$	-			$	13,279,570			$	9,378,695
Land			8,439,971				-				1,184,475				907,099
Other assets			19,057,448				-				2,161,880				2,358,522
		$	104,046,753			$	-			$	16,625,925			$	12,644,316
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	124,595,980			$	-			$	22,136,569			$	14,463,045
Accounts payable and accrued expenses			1,705,101				-				403,807				153,345
Other liabilities			5,670,589				-				1,112,247				279,034
			131,971,670				-				23,652,623				14,895,424
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(27,567,808	)			-				(6,018,562	)			(2,862,505	)
Other partners			(357,109	)			-				(1,008,136	)			611,397
			(27,924,917	)			-				(7,026,698	)			(2,251,108	)
		$	104,046,753			$	-			$	16,625,925			$	12,644,316

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2011 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 

		Series 11				Series 12				Series 14
ASSETS
Buildings and improvements, net of accumulated depreciation		$	11,147,376			$	11,761,666			$	30,982,027
Land			1,193,181				1,434,569				3,720,647
Other assets			3,806,377				3,403,656				7,327,013
		$	16,146,934			$	16,599,891			$	42,029,687
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	18,657,713			$	21,609,391			$	47,729,262
Accounts payable and accrued expenses			227,171				233,915				686,863
Other liabilities			925,204				1,105,754				2,248,350
			19,810,088				22,949,060				50,664,475
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(3,769,564	)			(6,096,025	)			(8,821,152	)
Other partners			106,410				(253,144	)			186,364
			(3,663,154	)			(6,349,169	)			(8,634,788	)
		$	16,146,934			$	16,599,891			$	42,029,687

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2010 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

		Total				Series 7				Series 9				Series 10
ASSETS
Buildings and improvements, net of accumulated depreciation		$	89,290,638			$	-			$	18,929,470			$	10,611,555
Land			9,880,141				-				2,058,491				988,347
Other assets			20,535,968				-				3,782,741				2,388,481
		$	119,706,747			$	-			$	24,770,702			$	13,988,383
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	140,393,760			$	-			$	31,112,909			$	15,414,225
Accounts payable and accrued expenses			2,325,783				-				572,478				127,124
Other liabilities			6,599,273				-				2,075,128				294,760
			149,318,816				-				33,760,515				15,836,109
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(29,274,873	)			-				(7,770,362	)			(2,626,052	)
Other partners			(337,196	)			-				(1,219,451	)			778,326
			(29,612,069	)			-				(8,989,813	)			(1,847,726	)
		$	119,706,747			$	-			$	24,770,702			$	13,988,383

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 7, 9 through 12, and 14 hold an interest at December 31, 2010 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 

		Series 11				Series 12				Series 14
ASSETS
Buildings and improvements, net of accumulated depreciation		$	11,908,900			$	12,575,398			$	35,265,315
Land			1,193,181				1,434,569				4,205,553
Other assets			3,759,788				3,021,464				7,583,494
		$	16,861,869			$	17,031,431			$	47,054,362
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable		$	18,920,725			$	21,820,629			$	53,125,272
Accounts payable and accrued expenses			216,739				212,565				1,196,877
Other liabilities			921,313				1,089,698				2,218,374
			20,058,777				23,122,892				56,540,523
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund II Limited Partnership			(3,486,719	)			(5,923,256	)			(9,468,484	)
Other partners			289,811				(168,205	)			(17,677	)
			(3,196,908	)			(6,091,461	)			(9,486,161	)
		$	16,861,869			$	17,031,431			$	47,054,362

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2011 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2011 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2011

 

		Total				Series 7				Series 9				Series 10
Revenue
Rental		$	24,091,023			$	-			$	3,604,626			$	2,771,672
Interest and other			470,447				-				54,006				56,827
			24,561,470				-				3,658,632				2,828,499
Expenses
Interest			3,469,195				-				571,780				317,364
Depreciation and amortization			5,710,025				-				935,726				725,288
Taxes and insurance			3,055,513				-				500,031				370,984
Repairs and maintenance			5,891,102				-				849,059				751,599
Operating expenses			8,458,333				-				1,279,518				978,338
Other expenses			307,168				-				61,730				47,677
			26,891,336				-				4,197,844				3,191,250
NET INCOME (LOSS)		$	(2,329,866	)		$	-			$	(539,212	)		$	(362,751	)
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*		$	(2,145,042	)		$	-			$	(490,952	)		$	(292,886	)
Net income (loss) allocated to other partners		$	(184,824	)		$	-			$	(48,260	)		$	(69,865	)

 

*

Amounts include $0, $490,952, $292,886, $325,309, $247,885 and $788,010 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2011 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2011 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

 

Year ended December 31, 2011

 

		Series 11				Series 12				Series 14
Revenue
Rental		$	4,077,181			$	4,117,689			$	9,519,855
Interest and other			114,817				70,217				174,580
			4,191,998				4,187,906				9,694,435
Expenses
Interest			546,215				639,888				1,393,948
Depreciation and amortization			1,030,268				894,897				2,123,846
Taxes and insurance			555,808				460,090				1,168,600
Repairs and maintenance			1,041,359				983,794				2,265,291
Operating expenses			1,426,361				1,399,652				3,374,464
Other expenses			35,544				65,353				96,864
			4,635,555				4,443,674				10,423,013
NET INCOME (LOSS)		$	(443,557	)		$	(255,768	)		$	(728,578	)
Net loss allocated to Boston Capital Tax Credit Fund II  Limited Partnership*		$	(325,309	)		$	(247,885	)		$	(788,010	)
Net income (loss) allocated to other partners		$	(118,248	)		$	(7,883	)		$	59,432

 

*

Amounts include $0, $490,952, $292,886, $325,309, $247,885 and $788,010 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2010 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2010 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2010

 

		Total				Series 7				Series 9				Series 10
Revenue
Rental		$	26,136,437			$	-			$	5,173,094			$	2,916,950
Interest and other			1,436,935				-				1,009,145				69,785
			27,573,372				-				6,182,239				2,986,735
Expenses
Interest			4,050,308				-				897,627				381,876
Depreciation and amortization			6,420,237				-				1,370,197				752,322
Taxes and insurance			3,516,072				-				777,083				402,226
Repairs and maintenance			6,322,493				-				1,143,219				744,397
Operating expenses			9,169,519				-				1,790,516				1,026,795
Other expenses			380,198				-				87,577				42,561
			29,858,827				-				6,066,219				3,350,177
NET INCOME (LOSS)		$	(2,285,455	)		$	-			$	116,020			$	(363,442	)
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*		$	(2,773,816	)		$	-			$	(505,658	)		$	(347,148	)
Net income (loss) allocated to other partners		$	488,361			$	-			$	621,678			$	(16,294	)

 

*

Amounts include $0, $505,658, $347,148, $289,458, $469,684 and $1,161,868 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2010 in which Series 7, 9 through 12, and 14 hold an interest as of December 31, 2010 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

 

Year ended December 31, 2010

 

		Series 11				Series 12				Series 14
Revenue
Rental		$	3,920,744			$	3,960,611			$	10,165,038
Interest and other			70,505				52,935				234,565
			3,991,249				4,013,546				10,399,603
Expenses
Interest			563,108				652,852				1,554,845
Depreciation and amortization			1,023,303				870,000				2,404,415
Taxes and insurance			558,393				486,676				1,291,694
Repairs and maintenance			854,228				1,090,805				2,489,844
Operating expenses			1,328,328				1,366,340				3,657,540
Other expenses			31,354				53,256				165,450
			4,358,714				4,519,929				11,563,788
NET INCOME (LOSS)		$	(367,465	)		$	(506,383	)		$	(1,164,185	)
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership*		$	(289,458	)		$	(469,684	)		$	(1,161,868	)
Net income (loss) allocated to other partners		$	(78,007	)		$	(36,699	)		$	(2,317	)

 

*

Amounts include $0, $505,658, $347,148, $289,458, $469,684 and $1,161,868 for Series 7, Series 9, Series 10, Series 11, Series 12 and Series 14, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2012 is reconciled as follows:

 

		Total				Series 7				Series 9				Series 10
Net income (loss) for financial reporting purposes, March 31, 2012		$	395,757			$	-			$	124,050			$	223,667
Operating limited partnership rents received in advance			(26,057	)			-				-				(23,357	)
Accrued partnership management fees not recognized (recognized) for tax purposes			(377,033	)			-				85,445				96,512
Other			4,716,199				-				2,565,458				13,273
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(2,145,042	)			-				(490,952	)			(292,886	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(1,127,950	)			-				(192,798	)			(90,412	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(1,704,620	)			-				(276,867	)			(150,458	)
Income (loss) for tax return purposes, December 31, 2011		$	(268,746	)		$	-			$	1,814,336			$	(223,661	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2012 is reconciled as follows:

 

		Series 11				Series 12				Series 14
Net income (loss) for financial reporting purposes, March 31, 2012		$	(77,985	)		$	(110,223	)		$	236,248
Operating limited partnership rents received in advance			-				-				(2,700	)
Accrued partnership management fees not recognized (recognized) for tax purposes			(181,362	)			(169,476	)			(208,152	)
Other			(6,394	)			122,895				2,020,967
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(325,309	)			(247,885	)			(788,010	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(194,330	)			(174,377	)			(476,033	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(809,231	)			(57,195	)			(410,869	)
Income (loss) for tax return purposes, December 31, 2011		$	(1,594,611	)		$	(636,261	)		$	371,451

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2011 is reconciled as follows:

 

		Total				Series 7				Series 9				Series 10
Net income (loss) for financial reporting purposes, March 31, 2011		$	916,030			$	-			$	(248,576	)		$	91,026
Operating limited partnership rents received in advance			(2,154	)			-				112				-
Accrued partnership management fees not recognized (recognized) for tax purposes			(544,848	)			-				204,984				96,888
Other			2,303,371				-				(622,784	)			304,583
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(2,773,816	)			-				(505,658	)			(347,148	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(1,139,108	)			-				(238,339	)			(71,346	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(2,142,641	)			-				(19,983	)			(198,219	)
Income (loss) for tax return purposes, December 31, 2010		$	(3,383,166	)		$	-			$	(1,430,244	)		$	(124,216	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

For income tax purposes, the Partnership reports using a December 31 year-end. The Partnership’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2011 is reconciled as follows:

 

		Series 11				Series 12				Series 14
Net income (loss) for financial reporting purposes, March 31, 2011		$	1,163,558			$	190,337			$	(280,315	)
Operating limited partnership rents received in advance			-				(122	)			(2,144	)
Accrued partnership management fees not recognized (recognized) for tax purposes			(1,256,301	)			138,792				270,789
Other			841,960				99,229				1,680,383
Operating limited partnership loss not allowed for financial reporting under equity method of accounting			(289,458	)			(469,684	)			(1,161,868	)
Excess of tax depreciation over book depreciation on operating limited partnership assets			(123,956	)			(207,180	)			(498,287	)
Difference due to fiscal year for book purposes and calendar year for tax purposes			(852,933	)			(359,097	)			(712,409	)
Income (loss) for tax return purposes, December 31, 2010		$	(517,130	)		$	(607,725	)		$	(703,851	)

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2012 are as follows:

 

		Total				Series 7				Series 9				Series 10
Investments in operating limited partnerships - tax return December 31, 2011		$	(48,393,618	)		$	-			$	(10,525,978	)		$	(5,088,117	)
Add back losses not recognized under the equity method			32,626,477				-				6,554,370				3,477,406
Impairment loss in investments in operating limited partnerships			(3,521,265	)			-				(369,919	)			(457,341	)
Less share of loss - three months ended March 31, 2012			(938,709	)			-				-				-
Other			20,227,115				-				4,341,527				2,068,052
Investments in operating limited partnerships - as reported, March 31, 2012		$	-			$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2012 are as follows:

 

		Series 11				Series 12				Series 14
Investments in operating limited partnerships - tax return December 31, 2011		$	(6,882,763	)		$	(9,490,387	)		$	(16,406,373	)
Add back losses not recognized under the equity method			4,552,756				6,646,523				11,395,422
Impairment loss in investments in operating limited partnerships			(282,491	)			(185,348	)			(2,226,166	)
Less share of loss - three months ended March 31, 2012			-				(177,104	)			(761,605	)
Other			2,612,498				3,206,316				7,998,722
Investments in operating limited partnerships - as reported, March 31, 2012		$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2011 are as follows:

 

		Total				Series 7				Series 9				Series 10
Investments in operating limited partnerships - tax return December 31, 2010		$	(48,868,866	)		$	-			$	(12,134,087	)		$	(4,706,026	)
Add back losses not recognized under the equity method			34,676,928				-				8,343,885				3,243,148
Impairment loss in investments in operating limited partnerships			(3,982,635	)			-				(369,919	)			(628,541	)
Less share of loss - three months ended March 31, 2011			(984,858	)			-				-				-
Other			19,159,431				-				4,160,121				2,091,419
Investments in operating limited partnerships - as reported, March 31, 2011		$	-			$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

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

 

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2011 are as follows:

 

		Series 11				Series 12				Series 14
Investments in operating limited partnerships - tax return December 31, 2010		$	(6,302,349	)		$	(9,131,923	)		$	(16,594,481	)
Add back losses not recognized under the equity method			4,272,778				6,461,505				12,355,612
Impairment loss in investments in operating limited partnerships			(282,491	)			(171,947	)			(2,529,737	)
Less share of loss - three months ended March 31, 2011			-				(177,104	)			(807,754	)
Other			2,312,062				3,019,469				7,576,360
Investments in operating limited partnerships - as reported, March 31, 2011		$	-			$	-			$	-

 

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2012 and 2011

 

NOTE E - SUBSEQUENT EVENTS

 

Subsequent to March 31, 2012, the Partnership has entered into an agreement to sell its interest in one operating limited partnership. The estimated sale price and other terms for the disposition of the operating limited partnership has been determined. The estimated proceed to be received for the operating limited partnership is $171,000. The estimated gain on sale of the operating limited partnership is $156,000, which is expected to be recognized in the first quarter of fiscal year 2013.

 

NOTE F - CONCENTRATION OF CREDIT RISK

 

The Partnership maintains its cash and cash equivalent balances in several accounts in various financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits by each institution. At times, the balances may exceed these insurance limits; however, the Partnership has not experienced any losses with respect to its balances in excess of FDIC insurance. Management believes that no significant concentration of credit risk with respect to these cash and cash equivalent balances exists as of March 31, 2012.

 

NOTE G - FAIR VALUE OF FINANCIAL INSTRUMENTS

 

As of March 31, 2012, the Partnership’s financial instruments relate to accounts payable - affiliates. Management has not disclosed the fair value of the financial instruments because determination of such fair value is deemed to be impractical. The accounts payable - affiliates are owed to affiliates of the Partnership. The unique nature of these financial instruments makes determination of any fair value impractical. See note B for disclosure of the carrying amount and terms of these financial instruments.