BF Garden Tax Credit Fund V L.P. - FORM 10-K - EX-13 - EXHIBIT 13 - June 22, 2018

Attached files

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EX-99.1 - EXHIBIT 99.1 - BF Garden Tax Credit Fund V L.P.tv495778_ex99-1.htm
EX-32.B - EXHIBIT 32.B - BF Garden Tax Credit Fund V L.P.tv495778_ex32b.htm
EX-32.A - EXHIBIT 32.A - BF Garden Tax Credit Fund V L.P.tv495778_ex32a.htm
EX-31.B - EXHIBIT 31.B - BF Garden Tax Credit Fund V L.P.tv495778_ex31b.htm
EX-31.A - EXHIBIT 31.A - BF Garden Tax Credit Fund V L.P.tv495778_ex31a.htm
10-K - FORM 10-K - BF Garden Tax Credit Fund V L.P.tv495778_10k.htm

 

Exhibit 13

 

BOSTON CAPITAL TAX CREDIT FUND V L.P.

 

FINANCIAL STATEMENTS AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

MARCH 31, 2018 AND 2017

 

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

TABLE OF CONTENTS

 

  PAGE
   
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM F-3
   
FINANCIAL STATEMENTS  
   
BALANCE SHEETS F-4
   
STATEMENTS OF OPERATIONS F-8
   
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) F-12
   
STATEMENTS OF CASH FLOWS F-16
   
NOTES TO FINANCIAL STATEMENTS F-20

 

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 V L.P.

 

Opinion on the Financial Statements

 

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

 

Basis for Opinion

 

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

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

 

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

 

/s/CohnReznick LLP  
COHNREZNICK LLP  
   
We have served as the Partnership’s auditor since 2004.
Bethesda, Maryland  
   
June 22, 2018  

 

F-3

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS

March 31,

 

   Total 
   2018   2017 
ASSETS        
         
INVESTMENTS IN OPERATING LIMITED          
PARTNERSHIPS  $-   $517,469 
           
OTHER ASSETS          
Cash and cash equivalents   1,914,566    1,241,219 
Other assets   106,411    106,411 
           
   $2,020,977   $1,865,099 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $343   $343 
Accounts payable - affiliates   8,649,793    7,990,511 
Capital contributions payable   101    101 
           
    8,650,237    7,990,955 
           
PARTNERS’ CAPITAL (DEFICIT)          
Assignor limited partner          
Units of limited partnership interest consisting of 15,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 11,777,706 at March 31, 2018 and 2017 are issued and outstanding to the assignees   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner,  11,777,706 issued and 11,763,506 and 11,768,206 outstanding at March 31, 2018 and 2017, respectively   (6,351,484)   (5,849,339)
General partner   (277,776)   (276,517)
           
    (6,629,260)   (6,125,856)
           
   $2,020,977   $1,865,099 

 

F-4

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED

March 31,

 

   Series 47 
   2018   2017 
ASSETS        
         
INVESTMENTS IN OPERATING LIMITED          
PARTNERSHIPS  $-   $- 
           
OTHER ASSETS          
Cash and cash equivalents   776,230    373,138 
Other assets   -    - 
           
   $776,230   $373,138 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $-   $- 
Accounts payable - affiliates   3,459,744    3,362,346 
Capital contributions payable   -    - 
           
    3,459,744    3,362,346 
           
PARTNERS’ CAPITAL (DEFICIT)          
Assignor limited partner          
Units of limited partnership interest consisting of 15,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 3,478,334 at March 31, 2018 and 2017 are issued and outstanding to the assignees   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,478,334 issued and 3,476,634 and 3,478,334 outstanding at March 31, 2018 and 2017, respectively   (2,600,097)   (2,905,027)
General partner   (83,417)   (84,181)
           
    (2,683,514)   (2,989,208)
           
   $776,230   $373,138 

 

(continued)

 

F-5

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED

March 31,

 

   Series 48 
   2018   2017 
ASSETS        
         
INVESTMENTS IN OPERATING LIMITED          
PARTNERSHIPS  $-   $- 
           
OTHER ASSETS          
Cash and cash equivalents   666,873    347,379 
Other assets   -    - 
           
   $666,873   $347,379 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $-   $- 
Accounts payable - affiliates   2,138,501    1,987,717 
Capital contributions payable   -    - 
           
    2,138,501    1,987,717 
           
PARTNERS’ CAPITAL (DEFICIT)          
Assignor limited partner          
Units of limited partnership interest consisting of 15,500,000 authorized     beneficial assignee certificates (BACs), $10 stated value per BAC, 2,299,372 at March 31, 2018 and 2017 are issued and outstanding to the assignees   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 2,299,372 issued and 2,293,872 and 2,294,872 outstanding at March 31, 2018 and 2017, respectively   (1,417,187)   (1,585,475)
General partner   (54,441)   (54,863)
           
    (1,471,628)   (1,640,338)
           
   $666,873   $347,379 

 

(continued)

 

F-6

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

BALANCE SHEETS - CONTINUED

March 31,

 

   Series 49 
   2018   2017 
ASSETS        
         
INVESTMENTS IN OPERATING LIMITED          
PARTNERSHIPS  $-   $517,469 
           
OTHER ASSETS          
Cash and cash equivalents   471,463    520,702 
Other assets   106,411    106,411 
           
   $577,874   $1,144,582 
           
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)          
           
LIABILITIES          
Accounts payable and accrued expenses  $343   $343 
Accounts payable - affiliates   3,051,548    2,640,448 
Capital contributions payable   101    101 
           
    3,051,992    2,640,892 
           
PARTNERS’ CAPITAL (DEFICIT)          
Assignor limited partner          
Units of limited partnership interest consisting of 15,500,000 authorized beneficial assignee certificates (BACs), $10 stated value per BAC, 6,000,000 at March 31, 2018 and 2017 are issued and outstanding to the assignees   -    - 
Limited partners          
Units of beneficial interest of the limited partnership interest of the assignor limited partner,  6,000,000 issued and 5,993,000 and 5,995,000 outstanding at March 31, 2018 and 2017, respectively   (2,334,200)   (1,358,837)
General partner   (139,918)   (137,473)
           
    (2,474,118)   (1,496,310)
           
   $577,874   $1,144,582 

 

See notes to financial statements

 

F-7

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2018 and 2017

 

   Total 
   2018   2017 
Income          
Interest income  $3,262   $2,200 
Other income   209,432    216,288 
           
Total income   212,694    218,488 
           
Share of gain (loss) from operating limited partnerships *   649,375    (934,010)
           
Expenses and loss          
Professional fees   92,512    95,497 
Partnership management fee   964,098    897,079 
Amortization   -    120,582 
General and administrative expenses   70,206    71,834 
Impairment loss   238,657    959,317 
           
    1,365,473    2,144,309 
           
NET INCOME (LOSS)  $(503,404)  $(2,859,831)
           
Net income (loss) allocated to general partner  $(1,259)  $(7,150)
           
Net income (loss) allocated to limited partner  $(502,145)  $(2,852,681)
           
Net income (loss) per BAC  $(0.04)  $(0.24)

 

* Includes $928,187 and $-, respectively, in 2018 and 2017 from gain on disposal of operating limited partnership.

 

(continued)

 

F-8

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

   Series 47 
   2018   2017 
Income          
Interest income  $1,133   $366 
Other income   66,192    100,661 
           
Total income   67,325    101,027 
           
Share of gain (loss) from operating limited partnerships *   584,687    - 
           
Expenses and loss          
Professional fees   27,882    29,736 
Partnership management fee   296,786    280,413 
Amortization   -    - 
General and administrative expenses   21,650    22,553 
Impairment loss   -    - 
           
    346,318    332,702 
           
NET INCOME (LOSS)  $305,694   $(231,675)
           
Net income (loss) allocated to general partner  $764   $(579)
           
Net income (loss) allocated to limited partner  $304,930   $(231,096)
           
Net income (loss) per BAC  $0.09   $(0.07)

 

* Includes $584,687 and $-, respectively, in 2018 and 2017 from gain on disposal of operating limited partnership.

 

(continued)

 

F-9

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

   Series 48 
   2018   2017 
Income          
Interest income  $913   $420 
Other income   51,414    79,418 
           
Total income   52,327    79,838 
           
Share of gain (loss) from operating limited partnerships *   343,500    - 
           
Expenses and loss          
Professional fees   25,168    25,959 
Partnership management fee   183,660    135,960 
Amortization   -    - 
General and administrative expenses   18,289    18,539 
Impairment loss   -    - 
           
    227,117    180,458 
           
NET INCOME (LOSS)  $168,710   $(100,620)
           
Net income (loss) allocated to general partner  $422   $(252)
           
Net income (loss) allocated to limited partner  $168,288   $(100,368)
           
Net income (loss) per BAC  $0.07   $(0.04)

 

* Includes $343,500 and $-, respectively, in 2018 and 2017 from gain on disposal of operating limited partnership.

 

(continued)

 

F-10

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2018 and 2017

  

   Series 49 
   2018   2017 
Income          
Interest income  $1,216   $1,414 
Other income   91,826    36,209 
           
Total income   93,042    37,623 
           
Share of gain (loss) from operating limited partnerships   (278,812)   (934,010)
           
Expenses and loss          
Professional fees   39,462    39,802 
Partnership management fee   483,652    480,706 
Amortization   -    120,582 
General and administrative expenses   30,267    30,742 
Impairment loss   238,657    959,317 
           
    792,038    1,631,149 
           
NET INCOME (LOSS)  $(977,808)  $(2,527,536)
           
Net income (loss) allocated to general partner  $(2,445)  $(6,319)
           
Net income (loss) allocated to limited partner  $(975,363)  $(2,521,217)
           
Net income (loss) per BAC  $(0.16)  $(0.42)

 

See notes to financial statements

 

F-11

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

 

Years ended March 31, 2018 and 2017

 

   Limited   General     
Total  partner   partner   Total 
             
Partners’ capital (deficit),             
March 31, 2016  $(2,996,658)  $(269,367)  $(3,266,025)
                
Net loss   (2,852,681)   (7,150)   (2,859,831)
                
Partners’ capital (deficit),                
March 31, 2017   (5,849,339)   (276,517)   (6,125,856)
                
Net income (loss)   (502,145)   (1,259)   (503,404)
                
Partners’ capital (deficit), March 31, 2018  $(6,351,484)  $(277,776)  $(6,629,260)

 

(continued)

 

F-12

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

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

 

Years ended March 31, 2018 and 2017

 

   Limited   General     
Series 47  partner   partner   Total 
             
Partners’ capital (deficit),             
March 31, 2016  $(2,673,931)  $(83,602)  $(2,757,533)
                
Net loss   (231,096)   (579)   (231,675)
                
Partners’ capital (deficit),                
March 31, 2017   (2,905,027)   (84,181)   (2,989,208)
                
Net income (loss)   304,930    764    305,694 
                
Partners’ capital (deficit), March 31, 2018  $(2,600,097)  $(83,417)  $(2,683,514)

 

(continued)

 

F-13

 

  

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

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

 

Years ended March 31, 2018 and 2017

 

   Limited   General     
Series 48  partner   partner   Total 
             
Partners’ capital (deficit),             
March 31, 2016  $(1,485,107)  $(54,611)  $(1,539,718)
                
Net loss   (100,368)   (252)   (100,620)
                
Partners’ capital (deficit),                
March 31, 2017   (1,585,475)   (54,863)   (1,640,338)
                
Net income (loss)   168,288    422    168,710 
                
Partners’ capital (deficit), March 31, 2018  $(1,417,187)  $(54,441)  $(1,471,628)

 

(continued)

 

F-14

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

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

 

Years ended March 31, 2018 and 2017

 

   Limited   General     
Series 49  partner   partner   Total 
             
Partners’ capital (deficit),            
March 31, 2016  $1,162,380   $(131,154)  $1,031,226 
                
Net loss   (2,521,217)   (6,319)   (2,527,536)
                
Partners’ capital (deficit),                
March 31, 2017   (1,358,837)   (137,473)   (1,496,310)
                
Net income (loss)   (975,363)   (2,445)   (977,808)
                
Partners’ capital (deficit), March 31, 2018  $(2,334,200)  $(139,918)  $(2,474,118)

 

See notes to financial statements

 

F-15

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2018 and 2017

 

   Total 
   2018   2017 
Cash flows from operating activities          
Net income (loss)  $(503,404)  $(2,859,831)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities          
Share of (gain) loss from operating limited partnerships   (649,375)   934,010 
Impairment loss   238,657    959,317 
Distributions received from operating limited partnerships   -    49,710 
Amortization   -    120,582 
Changes in assets and liabilities          
Accounts payable and accrued expenses   -    (500)
Accounts payable - affiliates   659,282    1,068,902 
           
Net cash provided by (used in) operating activities   (254,840)   272,190 
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   928,187    - 
           
Net cash provided by investing activities   928,187    - 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   673,347    272,190 
           
Cash and cash equivalents, beginning   1,241,219    969,029 
           
Cash and cash equivalents, end  $1,914,566   $1,241,219 

 

(continued)

 

F-16

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

   Series 47 
   2018   2017 
Cash flows from operating activities          
Net income (loss)  $305,694   $(231,675)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities          
Share of (gain) loss from operating limited partnerships   (584,687)   - 
Impairment loss   -    - 
Distributions received from operating limited partnerships   -    - 
Amortization   -    - 
Changes in assets and liabilities          
Accounts payable and accrued expenses   -    (385)
Accounts payable - affiliates   97,398    353,881 
           
Net cash provided by (used in) operating activities   (181,595)   121,821 
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   584,687    - 
           
Net cash provided by investing activities   584,687    - 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   403,092    121,821 
           
Cash and cash equivalents, beginning   373,138    251,317 
           
Cash and cash equivalents, end  $776,230   $373,138 

 

(continued)

 

F-17

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

   Series 48 
   2018   2017 
Cash flows from operating activities          
Net income (loss)  $168,710   $(100,620)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities          
Share of (gain) loss from operating limited partnerships   (343,500)   - 
Impairment loss   -    - 
Distributions received from operating limited partnerships   -    - 
Amortization   -    - 
Changes in assets and liabilities          
Accounts payable and accrued expenses   -    (115)
Accounts payable - affiliates   150,784    203,917 
           
Net cash provided by (used in) operating activities   (24,006)   103,182 
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   343,500    - 
           
Net cash provided by investing activities   343,500    - 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   319,494    103,182 
           
Cash and cash equivalents, beginning   347,379    244,197 
           
Cash and cash equivalents, end  $666,873   $347,379 

 

(continued)

 

F-18

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2018 and 2017

 

   Series 49 
   2018   2017 
Cash flows from operating activities          
Net income (loss)  $(977,808)  $(2,527,536)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities          
Share of (gain) loss from operating limited partnerships   278,812    934,010 
Impairment loss   238,657    959,317 
Distributions received from operating limited partnerships   -    49,710 
Amortization   -    120,582 
Changes in assets and liabilities          
Accounts payable and accrued expenses   -    - 
Accounts payable - affiliates   411,100    511,104 
           
Net cash provided by (used in) operating activities   (49,239)   47,187 
           
Cash flows from investing activities          
Proceeds from disposition of operating limited partnerships   -    - 
           
Net cash provided by investing activities   -    - 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (49,239)   47,187 
           
Cash and cash equivalents, beginning   520,702    473,515 
           
Cash and cash equivalents, end  $471,463   $520,702 

 

See notes to financial statements

 

F-19

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS

 

March 31, 2018 and 2017

 

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Boston Capital Tax Credit Fund V L.P. (the “Fund” or “Partnership”) was formed under the laws of the State of Delaware on October 15, 2003, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which have been organized to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment complexes which qualified for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986. Accordingly, the apartment complexes are restricted as to rent charges and operating methods. The general partner of the Fund is Boston Capital Associates V L.L.C. and the limited partner is BCTC V Assignor Corp. (the “assignor limited partner”).

 

In accordance with the limited partnership agreement, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99.75% to the assignees and .25% to the general partner.

 

A Registration Statement on Form S-11 and the related prospectus, (the "Prospectus") were filed with the Securities and Exchange Commission and became effective January 2, 2004 in connection with a public offering ("Offering") in one or more series of a minimum of 250,000 BACs and a maximum of 7,000,000 BACs at $10 per BAC. On August 10, 2004, an amendment to Form S-11, which registered an additional 8,500,000 BACs for sale to the public in one or more series became effective. As of December 31, 2005, subscriptions had been received and accepted by the Fund for 11,777,706 BAC's representing capital contributions of $117,777,060.

 

The BAC’s issued and outstanding in each series at March 31, 2018 and 2017 are as follows:

 

   Issued   Outstanding 
   2018   2017   2018   2017 
                 
Series 47   3,478,334    3,478,334    3,476,634    3,478,334 
Series 48   2,299,372    2,299,372    2,293,872    2,294,872 
Series 49   6,000,000    6,000,000    5,993,000    5,995,000 
                     
    11,777,706    11,777,706    11,763,506    11,768,206 

 

F-20

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

Investments in Operating Limited Partnerships

 

The Fund accounts for its investments in operating limited partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each operating limited partnership’s results of operations and for any distributions received or accrued. However, the Fund recognizes the individual operating limited partnership’s losses only to the extent that the Fund’s share of losses from the operating limited partnerships does not exceed the carrying amount of its investment and its advances to operating limited partnerships. Unrecognized losses are suspended and offset against future individual operating limited partnership income.

 

After the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the partnership’s share of losses and, accordingly, a valuation allowance is recorded against the receivables. Accordingly, the Fund recorded a valuation allowance of $120,000 as of March 31, 2018 and 2017.

 

The Fund reviews its investment in operating limited partnerships for impairment whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the investment to the sum of the total amount of the remaining tax credits and the estimated residual value of the investment. The Fund also evaluates its intangibles for impairment in connection with its investments in operating limited partnerships. Impairment losses have been recognized for the years ended March 31, 2018 and March 31, 2017, of $238,657 and $959,317, respectively.

 

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

 

F-21

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

The operating limited partnerships maintain their financial statements based on a calendar year and the Fund utilizes a March 31 year-end. The Fund records 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 Fund records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount. The operating limited partnerships record capital contributions from the Fund when received.

 

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

 

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

 

F-22

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

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

 

F-23

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

Deferred Acquisition Costs

 

Acquisition costs were amortized on the straight-line method over 27.5 years. As of March 31, 2016, the lives of the remaining acquisition costs were reassessed and determined to be 1 year for Series 49. As of March 31, 2017, acquisition costs were fully amortized or impaired for Series 49.

 

Accumulated amortization as of March 31, 2018 and 2017 is as follows:

 

   2018   2017 
         
Series 47  $-   $- 
Series 48   -    - 
Series 49   -    120,582 
           
   $-   $120,582 

 

F-24

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

Income Taxes

 

The Fund has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns.  The Fund’s federal tax status as a pass-through entity is based on its legal status as a Fund. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Fund has no other tax positions, which must be considered for disclosure. Income tax returns filed by the Fund are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2014 remain open.

 

Cash and Cash Equivalents

 

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

 

Fiscal Year

 

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

 

F-25

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

Net Loss per Beneficial Assignee Certificate

 

Net loss per beneficial assignee partnership unit is calculated based upon the weighted average number of units outstanding during the year. The weighted average number of units in Series 47, 48 and 49 at March 31, 2018 and 2017 are as follows:

 

   2018   2017 
         
Series 47   3,477,909    3,478,334 
Series 48   2,294,622    2,298,247 
Series 49   5,994,500    5,998,000 
           
    11,767,031    11,774,581 

 

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.

 

F-26

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During the years ended March 31, 2018 and 2017, the Fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc. (BCP), Boston Capital Services, Inc. (BCS), Boston Capital Holdings Limited Partnership (BCHLP) and Boston Capital Asset Management Limited Partnership (BCAM), as follows:

 

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 various asset management and reporting fees paid by the Operating Partnerships. The fund management fees net of reporting fees incurred and the reporting fees paid by the Operating Partnerships for the years ended March 31, 2018 and 2017, are as follows:

 

   2018 
   Gross Fund
Management Fee		   Asset Management 
and Reporting Fee		   Fund Management Fee
net of Asset
Management and
Reporting Fee		 
             
Series 47  $337,070   $40,284   $296,786 
Series 48   200,784    17,124    183,660 
Series 49   511,100    27,448    483,652 
                
   $1,048,954   $84,856   $964,098 

 

   2017 
   Gross Fund
Management Fee		   Asset Management
 and Reporting Fee		   Fund Management Fee
net of Asset
Management and
Reporting Fee		 
             
Series 47  $353,881   $73,468   $280,413 
Series 48   203,917    67,957    135,960 
Series 49   511,104    30,398    480,706 
                
   $1,068,902   $171,823   $897,079 

 

F-27

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE B - RELATED PARTY TRANSACTIONS - (continued)

 

All fund management fees will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the partnership's interests in operating limited partnerships. As of March 31, 2018 and 2017, total fund management fees accrued were $8,649,793 and $7,990,511, respectively.

 

The fund management fees paid by the Fund for the years ended March 31, 2018 and 2017 are as follows:

 

   2018   2017 
         
Series 47  $239,672   $- 
Series 48   50,000    - 
Series 49   100,000    - 
           
   $389,672   $- 

 

General and administrative expenses and professional fees incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership for each series for the years ended March 31, 2018 and 2017, charged to each series’ operations are as follows:

 

   2018   2017 
         
Series 47  $16,833   $17,485 
Series 48   15,071    15,159 
Series 49   20,255    22,332 
           
   $52,159   $54,976 

 

F-28

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

 

At March 31, 2018 and 2017, the Fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes. The number of operating limited partnerships in which the Fund has limited partnership interests at March 31, 2018 and 2017 by series are as follows:

 

   2018   2017 
         
Series 47   12    14 
Series 48   9    10 
Series 49   24    24 
           
    45    48 

 

During the year ended March 31, 2018 the Fund disposed of three Operating Partnerships. A summary of the dispositions by Series for March 31, 2018 is as follows:

 

   Operating
Partnership Interest
Transferred		   Sale of Underlying
Operating
Partnership		   Partnership Proceeds
from Disposition		   Gain/(Loss) on
Disposition		 
                 
Series 47   1    1   $584,687   $584,687 
Series 48   1    -    343,500   $343,500 
Series 49   -    -    -    - 
                     
    2    1   $928,187   $928,187 

 

F-29

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS - (continued)

 

During the year ended March 31, 2017, the Fund disposed of two Operating Partnerships. A summary of the dispositions by Series for March 31, 2017 is as follows:

 

   Operating
Partnership Interest
Transferred		   Sale of Underlying
Operating
Partnership		   Partnership Proceeds
from Disposition		   Gain/(Loss) on
Disposition		 
                 
Series 47   -    1   $-   $- 
Series 48   -    1    -    - 
Series 49   -    -    -    - 
                     
    -    2   $-   $- 

 

The gain (loss) described above is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from Operating Partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Partnership’s investment in the Operating Partnership. As a result, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the financial statements.

 

Under the terms of the Fund’s investment in each operating limited partnership, the Fund is required to make capital contributions to the operating limited partnerships. These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction and/or operations. At March 31, 2018 and 2017, contributions are payable to operating limited partnerships as follows:

 

   2018   2017 
         
Series 47  $-   $- 
Series 48   -    - 
Series 49   101    101 
           
   $101   $101 

 

F-30

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The fund’s investments in operating limited partnerships at March 31, 2018 are summarized as follows:

 

   Total   Series 47   Series 48   Series 49 
                 
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters  $76,215,127   $18,281,713   $12,641,817   $45,291,597 
                     
Cumulative distributions from operating limited partnerships   (631,103)   (181,171)   (156,968)   (292,964)
                     
Cumulative impairment loss in investments in operating limited partnerships   (45,076,559)   (11,934,196)   (6,177,246)   (26,965,117)
                     
Cumulative losses from operating limited partnerships   (30,507,465)   (6,166,346)   (6,307,603)   (18,033,516)
                     
Investments in operating limited partnerships per balance sheets   -    -    -    - 

 

F-31

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

   Total   Series 47   Series 48   Series 49 
                 
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2018 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2017 (see note A).   (384,817)   -    -    (384,817)
                     
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).   (11,608,176)   (1,350,984)   (1,188,616)   (9,068,576)
                     
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).   333,626    -    -    333,626 
                     
Cumulative impairment loss in investments in operating limited partnerships   45,076,559    11,934,196    6,177,246    26,965,117 
                     
Other   504,541    (97,005)   (67,774)   669,320 
                     
Equity per operating limited partnerships’ combined financial statements  $33,921,733   $10,486,207   $4,920,856   $18,514,670 

 

F-32

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The fund’s investments in operating limited partnerships at March 31, 2017 are summarized as follows:

 

   Total   Series 47   Series 48   Series 49 
                 
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters  $84,142,212   $23,784,467   $15,066,148   $45,291,597 
                     
Cumulative distributions from operating limited partnerships   (768,784)   (250,010)   (225,810)   (292,964)
                     
Cumulative impairment loss in investments in operating limited partnerships   (49,980,719)   (14,606,765)   (8,894,814)   (26,479,140)
                     
Cumulative losses from operating limited partnerships   (32,875,240)   (8,927,692)   (5,945,524)   (18,002,024)
                     
Investments in operating limited partnerships per balance sheets   517,469    -    -    517,469 

 

F-33

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

   Total   Series 47   Series 48   Series 49 
                 
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2017 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2016 (see note A).   (384,817)   -    -    (384,817)
                     
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A).   (12,018,259)   (2,898,636)   (841,002)   (8,278,621)
                     
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A).   333,626    -    -    333,626 
                     
Cumulative impairment loss in investments in operating limited partnerships   49,980,719    14,606,765    8,894,814    26,479,140 
                     
Other   619,368    (86,527)   (66,472)   772,367 
                     
Equity per operating limited partnerships’ combined financial statements  $39,048,106   $11,621,602   $7,987,340   $19,439,164 

 

F-34

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 47, 48 and 49 hold an interest as of December 31, 2017 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

   Total   Series 47   Series 48   Series 49 
ASSETS                    
                     
Buildings and improvements, net of  accumulated depreciation  $151,521,641   $41,201,660   $26,563,277   $83,756,704 
Land   14,092,429    4,061,785    2,801,342    7,229,302 
Other assets   15,339,655    4,258,239    2,641,843    8,439,573 
                     
   $180,953,725   $49,521,684   $32,006,462   $99,425,579 
                     
LIABILITIES AND PARTNERS’ CAPITAL                    
                     
Mortgages and construction loans payable  $124,582,023   $34,176,149   $23,389,735   $67,016,139 
Accounts payable and accrued expenses   2,939,277    922,544    767,182    1,249,551 
Other liabilities   13,830,978    1,748,764    2,147,713    9,934,501 
                     
    141,352,278    36,847,457    26,304,630    78,200,191 
PARTNERS’ CAPITAL                    
Boston Capital Tax Credit                    
Fund V L.P.   33,921,733    10,486,207    4,920,856    18,514,670 
Other partners   5,679,714    2,188,020    780,976    2,710,718 
                     
    39,601,447    12,674,227    5,701,832    21,225,388 
                     
   $180,953,725   $49,521,684   $32,006,462   $99,425,579 

 

F-35

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnerships in which Series 47, 48 and 49 hold an interest as of December 31, 2016 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 

   Total   Series 47   Series 48   Series 49 
ASSETS                    
                     
Buildings and improvements, net of accumulated depreciation  $186,283,548   $59,585,266   $39,693,966   $87,004,316 
Land   18,599,345    6,625,243    4,744,800    7,229,302 
Other assets   17,655,542    5,864,937    3,410,869    8,379,736 
                     
   $222,538,435   $72,075,446   $47,849,635   $102,613,354 
                     
LIABILITIES AND PARTNERS’ CAPITAL                    
                     
Mortgages and construction loans  payable  $154,116,087   $51,300,449   $34,627,115   $68,188,523 
Accounts payable and accrued expenses   2,937,869    1,007,647    667,519    1,262,703 
Other liabilities   16,470,525    3,773,605    2,351,962    10,344,958 
                     
    173,524,481    56,081,701    37,646,596    79,796,184 
PARTNERS’ CAPITAL                    
Boston Capital Tax Credit                    
Fund V L.P.   39,048,106    11,621,602    7,987,340    19,439,164 
Other partners   9,965,848    4,372,143    2,215,699    3,378,006 
                     
    49,013,954    15,993,745    10,203,039    22,817,170 
                     
   $222,538,435   $72,075,446   $47,849,635   $102,613,354 

 

F-36

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2017 in which Series 47 through Series 49 had an interest as of December 31, 2017 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

   Total   Series 47   Series 48   Series 49 
Revenue                
Rent  $26,165,746   $7,462,574   $4,555,665   $14,147,507 
Interest and other   679,673    162,294    96,314    421,065 
                     
    26,845,419    7,624,868    4,651,979    14,568,572 
Expenses                    
Interest   3,837,515    910,864    464,186    2,462,465 
Depreciation and amortization   6,544,906    1,682,462    1,147,891    3,714,553 
Taxes and insurance   3,180,705    984,122    540,275    1,656,308 
Repairs and maintenance   3,630,230    1,080,753    642,573    1,906,904 
Operating expenses   10,203,611    2,984,871    1,884,180    5,334,560 
Other expenses   840,014    287,129    285,206    267,679 
                     
    28,236,981    7,930,201    4,964,311    15,342,469 
                     
NET INCOME (LOSS)  $(1,391,562)  $(305,333)  $(312,332)  $(773,897)
                     
Net income (loss) allocated to Boston Capital Tax Credit Fund V L.P. *  $(1,806,959)  $(390,578)  $(347,614)  $(1,068,767)
                     
Net income (loss) allocated to other partners  $415,397   $85,245   $35,282   $294,870 

 

* Amount includes $390,578, $347,614 and $789,955 for Series 47, Series 48 and Series 49, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

F-37

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2016 in which Series 47 through Series 49 had an interest as of December 31, 2016 are as follows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

   Total   Series 47   Series 48   Series 49 
Revenue                
Rent  $31,951,862   $11,369,161   $6,769,915   $13,812,786 
Interest and other   1,918,922    263,681    1,314,502    340,739 
                     
    33,870,784    11,632,842    8,084,417    14,153,525 
Expenses                    
Interest   4,766,338    1,476,017    715,567    2,574,754 
Depreciation and amortization   7,802,472    2,474,120    1,597,640    3,730,712 
Taxes and insurance   4,007,496    1,635,088    794,840    1,577,568 
Repairs and maintenance   5,797,945    1,636,286    2,180,074    1,981,585 
Operating expenses   12,267,164    4,278,826    2,651,767    5,336,571 
Other expenses   1,280,559    512,060    453,401    315,098 
                     
    35,921,974    12,012,397    8,393,289    15,516,288 
                     
NET INCOME (LOSS)  $(2,051,190)  $(379,555)  $(308,872)  $(1,362,763)
                     
Net income (loss) allocated to Boston Capital Tax Credit Fund V L.P. *  $(2,903,946)  $(833,245)  $(665,198)  $(1,405,503)
                     
Net income (loss) allocated to other partners  $852,756   $453,690   $356,326   $42,740 

 

* Amount includes $833,245, $665,198 and $471,493 for Series 47, Series 48 and Series 49, respectively, of loss not recognized under the equity method of accounting as described in note A.

 

F-38

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

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

 

   Total   Series 47   Series 48   Series 49 
Net loss for financial reporting purposes  $(503,404)  $305,694   $168,710   $(977,808)
                     
Accrued partnership management fee not deducted for income tax purposes   659,282    97,398    150,784    411,100 
                     
Other   947,068    431,883    246,324    268,861 
                     
Excess of tax depreciation over book depreciation on operating limited partnership assets   (1,630,867)   (516,698)   (280,736)   (833,433)
                     
Impairment loss not recognized for tax purposes   238,657    -    -    238,657 
                     
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting   (1,528,147)   (390,578)   (347,614)   (789,955)
                     
Difference due to fiscal year for book purposes and calendar year for tax purposes   (908,686)   (449,512)   (366,747)   (92,427)
                     
Income (loss) for tax return purposes, December 31, 2017  $(2,726,097)  $(521,813)  $(429,279)  $(1,775,005)

 

F-39

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

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

 

   Total   Series 47   Series 48   Series 49 
Net loss for financial reporting purposes  $(2,859,831)  $(231,675)  $(100,620)  $(2,527,536)
                     
Accrued partnership management fee not deducted for income tax purposes   1,068,902    353,881    203,917    511,104 
                     
Other   2,684,275    1,618,931    823,362    241,982 
                     
Excess of tax depreciation over book depreciation on operating limited partnership assets   (1,449,768)   (496,570)   (263,973)   (689,225)
                     
Impairment loss not recognized for tax purposes   959,317    -    -    959,317 
                     
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting   (1,969,936)   (833,245)   (665,198)   (471,493)
                     
Difference due to fiscal year for book purposes and calendar year for tax purposes   (332,222)   (142,829)   (99,169)   (90,224)
                     
Income (loss) for tax return purposes, December 31, 2016  $(1,899,263)  $268,493   $(101,681)  $(2,066,075)

 

F-40

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

The differences between the investments in operating limited partnerships for tax purposes and financial statement purposes at March 31, 2018 are as follows:

 

   Total   Series 47   Series 48   Series 49 
Investments in operating limited  partnerships - tax return  December 31, 2017  $26,611,014   $6,466,601   $3,845,678   $16,298,735 
                     
Impairment loss in investment in  operating limited partnerships   (45,076,559)   (11,934,196)   (6,177,246)   (26,965,117)
                     
Operating limited partnership  losses not recognized for financial  reporting purposes under the equity  method   (11,608,176)   (1,350,984)   (1,188,616)   (9,068,576)
                     
Other   30,073,721    6,818,579    3,520,184    19,734,958 
                     
Investments in operating limited  partnerships - as reported  $-   $-   $-   $- 

 

F-41

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

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

 

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

 

   Total   Series 47   Series 48   Series 49 
Investments in operating limited  partnerships - tax return  December 31, 2016  $29,314,455   $7,135,780   $4,229,169   $17,949,506 
                     
Impairment loss in investment in  operating limited partnerships   (49,980,719)   (14,606,765)   (8,894,814)   (26,479,140)
                     
Operating limited partnership  losses not recognized for financial reporting purposes under the equity  method   (12,018,259)   (2,898,636)   (841,002)   (8,278,621)
                     
Other   33,201,992    10,369,621    5,506,647    17,325,724 
                     
Investments in operating limited partnerships - as reported  $517,469   $-   $-   $517,469 

 

F-42

 

 

Boston Capital Tax Credit Fund V L.P. -

Series 47 through 49

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2018 and 2017

 

NOTE E - CASH EQUIVALENTS

 

Cash equivalents of $1,903,865 and $1,228,957 as of March 31, 2018 and 2017, respectively, include money market accounts with interest rates ranging from 0.10% to 0.35% per annum.

 

NOTE F - CONCENTRATION OF CREDIT RISK

 

The Fund maintains its cash and cash equivalent balances in several accounts in various financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits by each institution. At times, the balances may exceed these insurance limits; however, the Fund has not experienced any losses with respect to it balances in excess of FDIC insurance. Management believes that no significant concentration of credit risk with respect to these cash and cash equivalent balances exists as of March 31, 2018.

 

NOTE G - SUBSEQUENT EVENTS

 

Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure.  The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events, which provide evidence about conditions that existed after the balance sheet date, require disclosure in the accompanying notes.  Management evaluated the activity of the Fund through the date the financial statements were issued, and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

 

NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS

 

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

 

F-43

BF Garden Tax Credit Fund V L.P. Reports