Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 30, 2018 | Jun. 25, 2018 | Sep. 29, 2017 | |
Document and Entity Information: | |||
Entity Registrant Name | AMERICAN TAX CREDIT TRUST SERIES I | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 30, 2018 | ||
Trading Symbol | atctix | ||
Amendment Flag | false | ||
Entity Central Index Key | 897,315 | ||
Current Fiscal Year End Date | --03-30 | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Entity Public Float | $ 0 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 7,523 | $ 22,904 |
Investment in Pemberwick Fund - a short duration bond fund | 1,694,731 | 1,314,600 |
Total assets | 1,702,254 | 1,337,504 |
Liabilities | ||
Accounts payable and accrued expenses | 17,498 | 24,615 |
Payable to manager and affiliates | 8,434 | 456,082 |
Total liabilities | 25,932 | 480,697 |
Commitments and contingencies | ||
Owners' equity (deficit) | ||
Manager | (148,992) | (157,271) |
Beneficial owners (18,654 units of beneficial ownership interest outstanding) | 1,837,670 | 1,018,017 |
Accumulated other comprehensive loss | (12,356) | (3,939) |
Total equity (deficit) | 1,676,322 | 856,807 |
Total liabilities & equity (deficit) | $ 1,702,254 | $ 1,337,504 |
BALANCE SHEETS PARENTHETICAL
BALANCE SHEETS PARENTHETICAL - shares | Mar. 30, 2018 | Mar. 30, 2017 |
BALANCE SHEETS PARENTHETICAL | ||
Units of beneficial ownership interest outstanding | 18,654 | 18,654 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
REVENUE | ||
Interest | $ 24,930 | $ 12,290 |
TOTAL REVENUE | 24,930 | 12,290 |
EXPENSES | ||
Management fee - affiliate | 41,425 | 65,709 |
Professional fees | 46,836 | 38,297 |
Printing, postage and other | 8,737 | 12,220 |
TOTAL EXPENSES | 96,998 | 116,226 |
LOSS PRIOR TO GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | (72,068) | (103,936) |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 900,000 | 1,331,798 |
NET INCOME | 827,932 | 1,227,862 |
NET INCOME ATTRIBUTABLE TO | ||
Manager income | 8,279 | 209,845 |
Beneficial owners income | $ 819,653 | $ 1,018,017 |
NET INCOME per unit of beneficial ownership interest (18,654 units of beneficial ownership interest) | $ 43.94 | $ 54.57 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
NET INCOME | $ 827,932 | $ 1,227,862 |
Other comprehensive loss - Pemberwick Fund | (8,417) | (5,175) |
COMPREHENSIVE INCOME | $ 819,515 | $ 1,222,687 |
STATEMENTS OF CHANGES IN OWNERS
STATEMENTS OF CHANGES IN OWNERS' EQUITY (DEFICIT) - USD ($) | Manager | Beneficial Owners | Accumulated Other Comprehensive Income (Loss) | Total |
Owners' equity (deficit) at Mar. 30, 2016 | $ (367,116) | $ 1,236 | $ (365,880) | |
NET INCOME | 209,845 | $ 1,018,017 | 1,227,862 | |
Other comprehensive loss - Pemberwick Fund | (5,175) | (5,175) | ||
Owners' equity (deficit) at Mar. 30, 2017 | (157,271) | 1,018,017 | (3,939) | 856,807 |
NET INCOME | 8,279 | 819,653 | 827,932 | |
Other comprehensive loss - Pemberwick Fund | (8,417) | (8,417) | ||
Owners' equity (deficit) at Mar. 30, 2018 | $ (148,992) | $ 1,837,670 | $ (12,356) | $ 1,676,322 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Interest Received | $ 25,966 | $ 11,294 |
Cash paid for management fees | (489,073) | (304,488) |
Cash paid for professional fees | (50,820) | (42,848) |
Cash paid for printing, postage and other expenses | (11,870) | (9,075) |
Net cash used in operating activities | (525,797) | (345,117) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds in connection with sale of limited partner interests/local partnership properties | 900,000 | 1,331,798 |
Investments in Pemberwick Fund | (725,584) | (1,318,291) |
Redemptions from Pemberwick Fund | 336,000 | 345,000 |
Net cash provided by investing activities | 510,416 | 358,507 |
Net increase (decrease) in cash and cash equivalents | (15,381) | 13,390 |
Cash and cash equivalents at beginning of year | 22,904 | 9,514 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 7,523 | 22,904 |
SIGNIFICANT NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized loss on investment in Pemberwick Fund | $ (8,417) | $ (5,175) |
STATEMENTS OF CASH FLOWS - CONT
STATEMENTS OF CASH FLOWS - CONTINUED - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
STATEMENTS OF CASH FLOWS - CONTINUED | ||
NET INCOME | $ 827,932 | $ 1,227,862 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Gain on sale of limited partner interests/local partnership properties | (900,000) | (1,331,798) |
(Gain)/loss on redemptions from Pemberwick Fund | 1,036 | (996) |
Decrease in accounts payable and accrued expenses | (7,117) | (1,406) |
Decrease in payable to manager and affiliates | (447,648) | (238,779) |
NET CASH USED IN OPERATING ACTIVITIES | $ (525,797) | $ (345,117) |
1. Organization, Purpose and Su
1. Organization, Purpose and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
1. Organization, Purpose and Summary of Significant Accounting Policies | 1. Organization, Purpose and Summary of Significant Accounting Policies American Tax Credit Trust, a Delaware statutory business trust Series I (the "Trust") was formed on February 4, 1993 under Chapter 38 of Title 12 of the Delaware Code. There was no operating activity until admission of the investors (the Beneficial Owners) on November 29, 1993. The Trust was formed to invest primarily in leveraged low-income multifamily residential complexes (the "Property" or "Properties") that qualified for the low-income housing tax credit (the "Low-income Housing Tax Credit") in accordance with Section 42 of the Internal Revenue Code (the IRC), through the acquisition of limited partner equity interests (the Local Partnership Interest or Local Partnership Interests) in partnerships (the "Local Partnership" or "Local Partnerships") that are the owners of the Properties. Such interests were acquired from 1993 to 1995. Richman American Credit Corp. (the "Manager") was formed on April 5, 1993 to act as the Manager of the Trust. On September 13, 1993, the Trust commenced the offering for sale of units of beneficial ownership (the "Units") to Beneficial Owners in one to twenty series ("Series I through Series XX"; each a "Series"). These notes and the accompanying financial statements are presented for Series I only. Basis of Accounting and Fiscal Year The Trusts records are maintained on the accrual basis of accounting for both financial reporting and tax purposes. For financial reporting purposes, the Trust's fiscal year ends March 30 and its quarterly periods end June 29, September 29 and December 30. The Local Partnerships have a calendar year for financial reporting purposes. The Trust and the Local Partnerships each have a calendar year for income tax purposes. Investment in Local Partnerships The Trust accounts for its investment in local partnerships in accordance with the equity method of accounting, under which the investment is carried at cost and is adjusted for the Trust's share of each Local Partnership's results of operations and by cash distributions received. Equity in loss of each investment in Local Partnership allocated to the Trust is recognized to the extent of the Trusts investment balance in each Local Partnership. Equity in loss in excess of the Trusts investment balance in a Local Partnership is allocated to other partners' capital in any such Local Partnership. Previously unrecognized equity in loss of any Local Partnership is recognized in the fiscal year in which equity in income is earned by such Local Partnership or additional investment is made by the Trust. Distributions received subsequent to the elimination of an investment balance for any such investment in a Local Partnership are recorded as other income from local partnerships. As a result of cumulative equity losses and distributions and the sale of certain Local Partnerships Properties and/or the Partnerships Local Partnership Interests, the Partnerships investment in local partnerships reached a zero balance in a prior year. The Trust assessed the carrying value (the Carrying Value) of its investment in local partnerships at least annually in the fourth quarter of its fiscal year or whenever there were indications that a permanent impairment may have occurred. If the Carrying Value of an investment in a Local Partnership exceeded the estimated value derived by management, the Trust reduced its investment in any such Local Partnership (unless the impairment was considered to be temporary) and included such reduction in equity in income (loss) of investment in local partnerships. Impairment was measured by comparing the investment carrying amount to the estimated residual value of the investment. The Trust does not consolidate the accounts and activities of the Local Partnerships, which are considered Variable Interest Entities as defined by Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810; Subtopic 10, because the Trust is not considered the primary beneficiary. The Trust's balance in investment in local partnerships represents the maximum exposure to loss in connection with such investments. The Trust's exposure to loss on the Local Partnerships is mitigated by the condition and financial performance of the underlying Properties as well as the financial strength of the general partners of the Local Partnerships (the Local General Partners). In addition, the Local Partnerships partnership agreements grant the Local General Partners the power to direct the activities that most significantly impact the Local Partnerships economic success. As described above herein Note 1, the Trusts investment in local partnerships reached a zero balance in a prior year. Advances and additional capital contributions (collectively the Advances) that are not required under the terms of the Local Partnerships partnership agreements but which are made to the Local Partnerships are recorded as investment in local partnerships. Certain Advances are considered by the Trust to be voluntary loans to the respective Local Partnerships and the Trust may be reimbursed at a future date to the extent such Local Partnerships generate distributable cash flow or receive proceeds from sale or refinancing. Cash and Cash Equivalents The Trust considers all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates market value. Fair Value Measurements ASC Topic 820 clarifies the principle that fair value should be based on the assumptions that market participants would use when pricing the asset or liability and establishes the following fair value hierarchy: · · · For instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level input that is significant to the fair value measurement in its entirety. Investment in Pemberwick Fund The Trust carries its investment in Pemberwick Fund (Pemberwick), an investment grade institutional short duration bond fund, at fair value. Realized gains (losses) are included in (offset against) interest revenue. Investment in Pemberwick is classified as available-for-sale and unrealized gains (losses) are included as items of comprehensive income (loss) and are reported as a separate component of owners' equity (deficit). Income Taxes The Trust is a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income and deductions are passed through to and are reported by its owners on their respective income tax returns. The Trusts federal tax status as a pass-through entity is based on its legal status as a trust. Accordingly, the Trust is not required to take any tax positions in order to qualify as a pass-through entity. The Trust is required to file and does file tax returns with the Internal Revenue Service (the IRS) and other taxing authorities. Income tax returns filed by the Trust are subject to examination by the IRS for a period of three years. While no Trust income tax returns are currently being examined by the IRS, tax years subsequent to 2013 remain subject to examination. The accompanying financial statements do not reflect a provision for income taxes and the Trust has no other tax positions which must be considered for disclosure. In accordance with ASC Topic 740; Subtopic 10, the Trust has included in Note 7 disclosures related to differences in the financial and tax bases of accounting. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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. |
2. Capital Contributions
2. Capital Contributions | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
2. Capital Contributions | 2. Capital Contributions On September 13, 1993, the Trust commenced the offering of Units through Merrill Lynch, Pierce, Fenner & Smith Incorporated and PaineWebber Incorporated (the Selling Agents). On November 29, 1993, January 28, 1994 and May 25, 1994, under the terms of the Fourth Amended and Restated Agreement of Trust of the Trust (the "Trust Agreement"), the Manager admitted Beneficial Owners to the Trust in three closings. At these closings, subscriptions for a total of 18,654 Units representing $18,654,000 in Beneficial Owner capital contributions were accepted. In connection with the offering of Units, the Trust incurred organization and offering costs of $2,330,819, of which $75,000 was capitalized as organization costs and $2,255,819 was charged to the Beneficial Owners' equity as syndication costs. The Manager contributed $100 to the Trust. Net loss was allocated 99% to the Beneficial Owners and 1% to the Manager in accordance with the Trust Agreement until such time as the Beneficial Owners capital reached zero as a result of loss allocations, after which excess losses were allocated to the Manager. Net income for the year ended March 30, 2017 was allocated 100% to the Manager until the allocation agreed to the excess losses allocated to the Manager in a prior year; the remainder was allocated 99% to the Beneficial Owners and 1% to the Manager. Net income for the year ended March 30, 2018 was allocated 99% to the Beneficial Owners and 1% to the Manager. |
3. Cash and Cash Equivalents
3. Cash and Cash Equivalents | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
3. Cash and Cash Equivalents | 3. Cash and Cash Equivalents As of March 30, 2018, the Trust has cash and cash equivalents of $7,523, all of which is held in accounts at two financial institutions in which such accounts are insured up to $250,000 at each institution by the Federal Deposit Insurance Corporation (the FDIC). The entire amount is FDIC insured as of March 30, 2018. |
4. Investment in Pemberwick Fun
4. Investment in Pemberwick Fund | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
4. Investment in Pemberwick Fund | 4. Investment in Pemberwick Fund The Trust carries its investment in Pemberwick, an investment grade institutional short duration bond fund, at fair value. Pemberwick was organized in February 2010 as a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, that seeks maximum current income consistent with liquidity and stability of principal. In selecting a portfolio of securities for Pemberwick, the investment advisor of Pemberwick (the Advisor) will select investments so that 90% of Pemberwicks assets will be rated A- or better by a nationally recognized statistical rating organization (NRSRO) such as Moodys Investor Services, Inc. (Moodys) and/or by Standard & Poors Financial Services, LLC (S&P) (or if commercial paper rated in the highest category) or, if a rating is not available, deemed to be of comparable quality by the Advisor, or securities issued by banking institutions operating in the United States and having assets in excess of $200 billion. The weighted average duration of Pemberwicks assets is approximately 3.18 years as of March 30, 2018. Redemptions from Pemberwick are immediately liquid and unrestricted. Pemberwicks net asset value (NAV) is $9.98 and $10.03 per share as of March 30, 2018 and 2017, respectively. The Trusts investment in Pemberwick as of March 30, 2018 and 2017 is $1,694,731 and $1,314,600, respectively. An unrealized loss of $12,356 as of March 30, 2018 is reflected as accumulated other comprehensive loss in the accompanying balance sheet as of March 30, 2018. The Trust has earned $93,511 of interest revenue from the date of its initial investment in Pemberwick through March 30, 2018. The fair value of the Trusts investment in Pemberwick is classified within Level 1 of the fair value hierarchy of the guidance on Fair Value Measurements (see Note 1). Pemberwicks NAV was $9.99 as of May 31, 2018. The Advisor is an affiliate of the Manager. For its services, the Advisor is entitled to receive an annual advisory fee of 0.50% of the average daily net assets of Pemberwick through December 5, 2016. Such fee was reduced to 0.25% as of December 6, 2016. The Advisor may, in its discretion, voluntarily waive its fees or reimburse certain Pemberwick expenses; however, the Advisor is not required to do so. The Advisor has waived all fees fee earned in excess of 0.15% since Pemberwicks inception and earned $2,508 and $1,837 in connection with the Trusts investment in Pemberwick for the years ended March 30, 2018 and 2017, respectively, enough to cover its direct costs. The Advisors asset management affiliate, Richman Asset Management, Inc. (RAM) has agreed to reduce its management fees (see Note 6) payable by the Trust to the extent any fee of the Advisor payable by Pemberwick would be duplicative of any profit that RAM would receive from the Trust. |
5. Investment in Local Partners
5. Investment in Local Partnerships | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
5. Investment in Local Partnerships | 5. Investment in Local Partnerships The Trust initially acquired a Local Partnership Interest in ten Local Partnerships. As of March 30, 2018, the Trust owns a 99% Local Partnership Interest in one Local Partnership, Vision Limited Dividend Housing Association Limited Partnership (Vision). In connection with the initial purchase of ten Local Partnership Interests, under the terms of the partnership agreement of each Local Partnership, as of March 30, 2018 the Trust is committed to make capital contributions in the aggregate of $14,837,956, which includes Advances to certain Local Partnerships and all of which has been paid. Vision owns a 97 unit subsidized and leveraged low-income multifamily residential complex located in Detroit, Michigan. The required holding period of each Property, in order to avoid Low-income Housing Tax Credit recapture, is fifteen years from the year in which the Low-income Housing Tax Credits commence on the last building of the Property (the Compliance Period). The Compliance Periods of all the Local Partnerships expired in a prior year. The rents of Vision are subject to specific laws, regulations and agreements with federal and state agencies. During the year ended March 30, 2018, the Trust sold its Local Partnership Interest in Creative Choice Homes VII, Ltd. to an unaffiliated third party; the Trust received $900,000 in connection with the sale. Such amount is reflected as gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Trust for the year ended March 30, 2018. During the year ended March 30, 2017, the Trust sold its Local Partnership Interest in ACP Housing Associates, L.P. (ACP Housing) to an affiliate of the Local General Partner of ACP Housing; the Trust received $1,331,798 in connection with the sale. Such amount is reflected as gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Trust for the year ended March 30, 2017. Equity in loss of investment in local partnerships is limited to the Trusts investment balance in each Local Partnership; any excess is applied to other partners' capital in any such Local Partnership (see Note 1). The amount of such excess losses applied to other partners' capital was $112,218 and $180,177 for the years ended December 31, 2017 and 2016, respectively, as reflected in the combined statements of operations of the Local Partnerships herein Note 5. The differences between the Trusts investment in local partnerships as of March 30, 2018 and 2017 and the amounts reflected as the Trusts investment balance in the combined balance sheets of the Local Partnerships as of December 31, 2017 and 2016 herein Note 5 represent cumulative Carrying Value adjustments made by the Trust (see Note 1). The combined balance sheets of the Local Partnerships as of December 31, 2017 and 2016 and the combined statements of operations of the Local Partnerships for the years then ended are reflected on pages 21 and 22, respectiv The combined balance sheets of the Local Partnerships as of December 31, 2017 and 2016 are as follows: 2017 2016 ASSETS Cash and cash equivalents $ 75,844 $ 179,344 Rents receivable 5,065 28,960 Escrow deposits and reserves 386,784 1,296,653 Land 179,799 179,799 Buildings and improvements (net of accumulated depreciation of $5,593,736 and $7,820,447) 3,464,656 6,037,801 Other assets 82,650 105,387 $ 4,194,798 $ 7,827,944 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities Accounts payable and accrued expenses $ 11,899 $ 39,284 Due to related parties 56,474 861,622 Mortgages and notes payable 4,609,748 6,236,502 Accrued interest 324,377 2,075,697 Other liabilities 36,264 53,034 5,038,762 9,266,139 Partners' equity (deficit) American Tax Credit Trust, Series I Capital contributions, net of distributions 1,405,544 3,775,145 Cumulative loss (1,197,744) (3,273,345) 207,800 501,800 General partners and other limited partners Capital contributions, net of distributions 100 (5,897) Cumulative loss (1,051,864) (1,934,098) (1,051,764) (1,939,995) (843,964) (1,438,195) $ 4,194,798 $ 7,827,944 The combined statements of operations of the Local Partnerships for the years ended December 31, 2017 and 2016 are as follows: 2017 2016 REVENUE Rental $ 1,380,099 $ 2,227,795 Interest and other 35,090 121,318 TOTAL REVENUE 1,415,189 2,349,113 EXPENSES Administrative 215,732 279,499 Payroll 161,618 303,714 Utilities 197,457 409,131 Operating and maintenance 195,659 473,314 Taxes and insurance 138,041 196,083 Financial 165,585 258,378 Depreciation and amortization 452,802 563,241 TOTAL EXPENSES 1,526,894 2,483,360 NET LOSS $ (111,705) $ (134,247) NET LOSS ATTRIBUTABLE TO American Tax Credit Trust, Series I $ -- $ -- General partners and other limited partners (includes $112,218 and $180,177 of Trust losses in excess of investment and specially allocated income of $1,631 and $47,273) (111,705) (134,247) $ (111,705) $ (134,247) |
6. Transactions With Manager an
6. Transactions With Manager and Affiliates | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
6. Transactions With Manager and Affiliates | 6. Transactions with Manager and Affiliates Pursuant to the terms of the Trust Agreement, the Trust incurs an annual management fee (the Management Fee) payable to the Manager for its services in connection with the management of the affairs of the Trust. The annual Management Fee is equal to 0.5% of Invested Assets (as such term is defined in the Trust Agreement). The Trust incurred Management Fees of $41,425 and $65,709 for the years ended March 30, 2018 and 2017, respectively. Unpaid Management Fees in the amount of $8,434 and $456,082 are reflected as payable to manager and affiliates in the accompanying balance sheets as of March 30, 2018 and 2017, respectively. |
7. Taxable Income
7. Taxable Income | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
7. Taxable Income | 7. Taxable Income A reconciliation of the financial statement net income of the Trust for the years ended March 30, 2018 and 2017 to the tax return income for the years ended December 31, 2017 and 2016 is as follows: 2018 2017 Financial statement net income for the years ended March 30, 2018 and 2017 $ 827,932 $ 1,227,862 Add (less) net transactions occurring between January 1, 2016 and March 30, 2016 -- (306,378) 306,378 January 1, 2017 and March 30, 2017 (21,683) 21,683 January 1, 2018 and March 30, 2018 15,942 -- Adjusted financial statement net income for the years ended December 31, 2017 and 2016 822,191 943,167 Management Fees deductible for tax purposes when paid (741,762) 63,326 Equity in loss of investment in local partnerships (20,239) (110,243) Gain on sale of limited partner interests/local partnership properties 163,007 (147,589) Other differences 23 124 Tax return income for the years ended December 31, 2017 and 2016 $ 223,220 $ 748,785 The differences between investment in local partnerships for financial reporting and tax purposes as of December 31, 2017 and 2016 are as follows: 2017 2016 Investment in local partnerships - financial reporting $ -- $ -- Investment in local partnerships - tax (604,610) (747,378) $ 604,610 $ 747,378 Payable to manager and affiliates in the accompanying balance sheets represents accrued Management Fees, which are not deductible for tax purposes until paid pursuant to IRC Section 267. |
8. Fair Value of Financial Inst
8. Fair Value of Financial Instruments | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
8. Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments The fair value amounts have been determined using available market information, assumptions, estimates and valuation methodologies. Cash and cash equivalents The carrying amount approximates fair value. Investment in Pemberwick Fund - a short duration bond fund The fair value of Pemberwick is based on current market quotes received from active markets. Pemberwicks NAV is calculated and published daily (see Note 4). Investment in local partnerships The Trust assessed the carrying value of its investment in local partnerships at least annually in the fourth quarter of its fiscal year or whenever there were indications that a permanent impairment may have occurred (see Note 1). If the Carrying Value of an investment in a Local Partnership exceeded the estimated value derived by management, the Partnership reduced its investment in any such Local Partnership (unless the impairment was considered to be temporary) and included such reduction in equity in income (loss) of investment in local partnerships. Impairment was measured by comparing the investment carrying amount to the estimated residual value of the investment. Although the investment in local partnerships is carried at zero as of March 30, 2017, the Trust was able to negotiate a sale of its Local Partnership Interest in Creative Choice during the year ended March 30, 2018 (see Note 5). |
1. Organization, Purpose and 17
1. Organization, Purpose and Summary of Significant Accounting Policies: Basis of Accounting and Fiscal Year (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
Policies | |
Basis of Accounting and Fiscal Year | Basis of Accounting and Fiscal Year The Trusts records are maintained on the accrual basis of accounting for both financial reporting and tax purposes. For financial reporting purposes, the Trust's fiscal year ends March 30 and its quarterly periods end June 29, September 29 and December 30. The Local Partnerships have a calendar year for financial reporting purposes. The Trust and the Local Partnerships each have a calendar year for income tax purposes. |
1. Organization, Purpose and 18
1. Organization, Purpose and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Trust considers all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates market value. |
1. Organization, Purpose and 19
1. Organization, Purpose and Summary of Significant Accounting Policies: Fair Value Measurements (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
Policies | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820 clarifies the principle that fair value should be based on the assumptions that market participants would use when pricing the asset or liability and establishes the following fair value hierarchy: · · · For instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level input that is significant to the fair value measurement in its entirety. |
1. Organization, Purpose and 20
1. Organization, Purpose and Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
Policies | |
Income Taxes | Income Taxes The Trust is a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income and deductions are passed through to and are reported by its owners on their respective income tax returns. The Trusts federal tax status as a pass-through entity is based on its legal status as a trust. Accordingly, the Trust is not required to take any tax positions in order to qualify as a pass-through entity. The Trust is required to file and does file tax returns with the Internal Revenue Service (the IRS) and other taxing authorities. Income tax returns filed by the Trust are subject to examination by the IRS for a period of three years. While no Trust income tax returns are currently being examined by the IRS, tax years subsequent to 2013 remain subject to examination. The accompanying financial statements do not reflect a provision for income taxes and the Trust has no other tax positions which must be considered for disclosure. In accordance with ASC Topic 740; Subtopic 10, the Trust has included in Note 7 disclosures related to differences in the financial and tax bases of accounting. |
1. Organization, Purpose and 21
1. Organization, Purpose and Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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. |
5. Investment in Local Partne22
5. Investment in Local Partnerships: Combined Balance Sheets of the Local Partnerships (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Combined Balance Sheets of the Local Partnerships | 2017 2016 ASSETS Cash and cash equivalents $ 75,844 $ 179,344 Rents receivable 5,065 28,960 Escrow deposits and reserves 386,784 1,296,653 Land 179,799 179,799 Buildings and improvements (net of accumulated depreciation of $5,593,736 and $7,820,447) 3,464,656 6,037,801 Other assets 82,650 105,387 $ 4,194,798 $ 7,827,944 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities Accounts payable and accrued expenses $ 11,899 $ 39,284 Due to related parties 56,474 861,622 Mortgages and notes payable 4,609,748 6,236,502 Accrued interest 324,377 2,075,697 Other liabilities 36,264 53,034 5,038,762 9,266,139 Partners' equity (deficit) American Tax Credit Trust, Series I Capital contributions, net of distributions 1,405,544 3,775,145 Cumulative loss (1,197,744) (3,273,345) 207,800 501,800 General partners and other limited partners Capital contributions, net of distributions 100 (5,897) Cumulative loss (1,051,864) (1,934,098) (1,051,764) (1,939,995) (843,964) (1,438,195) $ 4,194,798 $ 7,827,944 |
5. Investment in Local Partne23
5. Investment in Local Partnerships: Combined Statements of Operations of the Local Partnerships (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Combined Statements of Operations of the Local Partnerships | 2017 2016 REVENUE Rental $ 1,380,099 $ 2,227,795 Interest and other 35,090 121,318 TOTAL REVENUE 1,415,189 2,349,113 EXPENSES Administrative 215,732 279,499 Payroll 161,618 303,714 Utilities 197,457 409,131 Operating and maintenance 195,659 473,314 Taxes and insurance 138,041 196,083 Financial 165,585 258,378 Depreciation and amortization 452,802 563,241 TOTAL EXPENSES 1,526,894 2,483,360 NET LOSS $ (111,705) $ (134,247) NET LOSS ATTRIBUTABLE TO American Tax Credit Trust, Series I $ -- $ -- General partners and other limited partners (includes $112,218 and $180,177 of Trust losses in excess of investment and specially allocated income of $1,631 and $47,273) (111,705) (134,247) $ (111,705) $ (134,247) |
7. Taxable Income_ Reconciliati
7. Taxable Income: Reconciliation of Financial Statement Net Income to the Tax Return Income (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Reconciliation of Financial Statement Net Income to the Tax Return Income | 2018 2017 Financial statement net income for the years ended March 30, 2018 and 2017 $ 827,932 $ 1,227,862 Add (less) net transactions occurring between January 1, 2016 and March 30, 2016 -- (306,378) 306,378 January 1, 2017 and March 30, 2017 (21,683) 21,683 January 1, 2018 and March 30, 2018 15,942 -- Adjusted financial statement net income for the years ended December 31, 2017 and 2016 822,191 943,167 Management Fees deductible for tax purposes when paid (741,762) 63,326 Equity in loss of investment in local partnerships (20,239) (110,243) Gain on sale of limited partner interests/local partnership properties 163,007 (147,589) Other differences 23 124 Tax return income for the years ended December 31, 2017 and 2016 $ 223,220 $ 748,785 |
7. Taxable Income_ Differences
7. Taxable Income: Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes | 2017 2016 Investment in local partnerships - financial reporting $ -- $ -- Investment in local partnerships - tax (604,610) (747,378) $ 604,610 $ 747,378 |
2. Capital Contributions (Detai
2. Capital Contributions (Details) - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 |
Details | ||
Units of beneficial ownership interest outstanding | 18,654 | 18,654 |
Beneficial Owners' Contributions in Connection with the Trust Offering | $ 18,654,000 | $ 18,654,000 |
Organization and Offering Costs incurred in connection with the Trust offering | 2,330,819 | 2,330,819 |
Organization Costs Capitalized in Connection with the Trust Offering | 75,000 | 75,000 |
Syndication Costs Charged to the Beneficial Owners' Equity in Connection with the Trust Offering | 2,255,819 | 2,255,819 |
Manager Contribution in Connection with the Trust Offering | $ 100 | $ 100 |
3. Cash and Cash Equivalents (D
3. Cash and Cash Equivalents (Details) - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 | Mar. 30, 2016 |
Details | |||
Cash and cash equivalents | $ 7,523 | $ 22,904 | $ 9,514 |
Maximum insured at each institution | $ 250,000 |
4. Investment in Pemberwick F28
4. Investment in Pemberwick Fund (Details) | May 31, 2018$ / shares | Mar. 30, 2018USD ($)$ / shares | Mar. 30, 2017USD ($)$ / shares |
Details | |||
Weighted Average Duration of Pemberwick's assets in years | 3.18 | ||
Pemberwick Net Asset Value | $ / shares | $ 9.99 | $ 9.98 | $ 10.03 |
Investment in Pemberwick Fund - a short duration bond fund | $ 1,694,731 | $ 1,314,600 | |
Unrealized loss reflected as accumulated other comprehensive loss | 12,356 | ||
Aggregate interest revenue from investment in Pemberwick | $ 93,511 |
4. Investment in Pemberwick F29
4. Investment in Pemberwick Fund: Advisory Fee (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
Details | ||
Advisory Fee | $ 2,508 | $ 1,837 |
5. Investment in Local Partne30
5. Investment in Local Partnerships (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
Capital contributions in the aggregate | $ 14,837,956 | |
Proceeds in connection with sale of limited partner interests/local partnership properties | 900,000 | $ 1,331,798 |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 900,000 | 1,331,798 |
Creative Choice Homes VII, Ltd. | ||
Proceeds in connection with sale of limited partner interests/local partnership properties | 900,000 | |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | $ 900,000 | |
ACP Housing Associates, L.P. | ||
Proceeds in connection with sale of limited partner interests/local partnership properties | 1,331,798 | |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | $ 1,331,798 |
5. Investment in Local Partne31
5. Investment in Local Partnerships: Equity in loss of investment in local partnerships (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details | ||
Excess Losses Applied to Other Partners' Capital | $ 112,218 | $ 180,177 |
5. Investment in Local Partne32
5. Investment in Local Partnerships: Combined Balance Sheets of the Local Partnerships (Details) - Combined Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Cash | $ 75,844 | $ 179,344 |
Rents receivable | 5,065 | 28,960 |
Escrow deposits and reserves | 386,784 | 1,296,653 |
Land | 179,799 | 179,799 |
Buildings and Improvements, net | 3,464,656 | 6,037,801 |
Other assets | 82,650 | 105,387 |
Total assets | 4,194,798 | 7,827,944 |
Accounts payable and accrued expenses | 11,899 | 39,284 |
Due to related parties | 56,474 | 861,622 |
Mortgages and notes payable | 4,609,748 | 6,236,502 |
Accrued interest | 324,377 | 2,075,697 |
Other liabilities | 36,264 | 53,034 |
Total liabilities | 5,038,762 | 9,266,139 |
American Tax Credit Trust, Series I Capital contributions, net of distributions | 1,405,544 | 3,775,145 |
American Tax Credit Trust, Series I Cumulative loss | (1,197,744) | (3,273,345) |
Total American Tax Credit Trust, Series I | 207,800 | 501,800 |
General partners and other limited partners Capital contributions, net of distributions | 100 | (5,897) |
General partners and other limited partners Cumulative loss | (1,051,864) | (1,934,098) |
Total General partners and other limited partners | (1,051,764) | (1,939,995) |
Total Equity (Deficit) | (843,964) | (1,438,195) |
Total Liabilities & Equity (Deficit) | $ 4,194,798 | $ 7,827,944 |
5. Investment in Local Partne33
5. Investment in Local Partnerships: Combined Statements of Operations of the Local Partnerships (Details) - Combined Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Rental | $ 1,380,099 | $ 2,227,795 |
Interest and other | 35,090 | 121,318 |
TOTAL REVENUE | 1,415,189 | 2,349,113 |
Administrative | 215,732 | 279,499 |
Payroll | 161,618 | 303,714 |
Utilities | 197,457 | 409,131 |
Operating and maintenance | 195,659 | 473,314 |
Taxes and insurance | 138,041 | 196,083 |
Financial | 165,585 | 258,378 |
Depreciation and amortization | 452,802 | 563,241 |
TOTAL EXPENSES | 1,526,894 | 2,483,360 |
Net Loss | (111,705) | (134,247) |
Net loss attributable to general partners and other limited partners (includes $112,218 and $180,177 of Trust losses in excess of investment and specially allocated income of $1,631 and $47,273) | $ (111,705) | $ (134,247) |
6. Transactions With Manager 34
6. Transactions With Manager and Affiliates: Management Fees - Affiliate (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
Details | ||
Management fee - affiliate | $ 41,425 | $ 65,709 |
6. Transactions With Manager 35
6. Transactions With Manager and Affiliates: Unpaid Management Fees (Details) - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 |
Details | ||
Unpaid Management Fees | $ 8,434 | $ 456,082 |
7. Taxable Income_ Reconcilia36
7. Taxable Income: Reconciliation of Financial Statement Net Income to the Tax Return Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 30, 2018 | Mar. 30, 2017 | Mar. 30, 2016 | Mar. 30, 2018 | Dec. 31, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | |
Details | |||||||
NET INCOME | $ 827,932 | $ 1,227,862 | |||||
Add (less) net transactions occurring between Jan 1 and Mar 30 | $ 15,942 | $ 21,683 | $ 306,378 | ||||
Adjusted financial statement net income (loss) for the years ended December 31, 2017 and 2016 | $ 822,191 | $ 943,167 | |||||
Management Fees deductible for tax purposes when paid | (741,762) | 63,326 | |||||
Equity in loss of investment in local partnerships | (20,239) | (110,243) | |||||
Gain on sale of limited partner interests/local partnership properties | 163,007 | (147,589) | |||||
Other differences | 23 | 124 | |||||
Tax return income for the years ended December 31, 2017 and 2016 | $ 223,220 | $ 748,785 |
7. Taxable Income_ Difference37
7. Taxable Income: Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Investment in local partnerships - Tax | $ (604,610) | $ (747,378) |
Differences between the investment in local partnerships for financial reporting and tax purposes | $ 604,610 | $ 747,378 |