2017 Schedule K 1 Instruc on Booklet. Boston Capital. One Boston Place, Boston MA Tel

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1 2017 Schedule K 1 Instruc on Booklet Boston Capital One Boston Place, Boston MA Tel Dear Investor, It is our pleasure to provide you with the 2017 Schedule K 1 Instruc on Booklet, designed to guide you through the process of repor ng your Boston Capital Investment on your 2017 federal tax return. HOW TO USE YOUR SCHEDULE K 1 The step by step instruc ons will help you record your investment by transferring tax informa on from your ACTUAL Schedule K 1 (indicated by numbered Blue Arrows ) to the appropriate IRS form (indicated by the corresponding Black Arrows ). A copy of the sample Schedule K 1 has been reproduced on each page for illustra ve purposes. Please note that if you have more than one Boston Capital Investment, you should sum all corresponding line items before proceeding. Please note that the Federal Schedule K 1 u lizes codes to iden fy many of the items reported. Please refer to page 2 of your Schedule K 1 as well as the Addi onal Informa on Statement and Footnotes page to determine the classifica on and proper repor ng of any line item indica ng a code. This tax guide illustrates the flow of informa on from a sample Schedule K 1 to the various tax forms. The numbers used in this presenta on are hypothe cal only, and are not your actual investment results. Your actual results are provided on your personal Schedule K 1, and must be used to complete your tax return. Because tax repor ng and filing requirements vary from state to state, we suggest you consult the appropriate state agency or your tax advisor if you have ques ons regarding this informa on and your own state tax situa on. While we have tried to present this informa on clearly and concisely, it should not be construed as legal or tax advice from Boston Capital or the Partnership (Fund).

2 ENTER ON FORM Need Tax Forms? Print them directly at OR visit the IRS website Sample Schedule K-1 Form Remember: You must use informa on from your actual Schedule K 1 to complete your tax return. The sample Schedule K 1 above should be used only as a guide. PAGE 2

3 Sample Schedule K-1 ENTER ON FORMS 3800 and 8582-CR 2a 2a 2b Write the amount(s) shown in Box 15(a) and /or (b) of your schedule K 1 on Form 3800, Part III Line 1d. If you are an individual, Estate or Trust, also transfer this amount to Form 8582 CR (front), Line 3a ( ) Please note you must complete Part III of Form 3800 before comple ng Parts I and II. Transfer the total credits calculated on Form 3800 Part III, line 2, to Form 3800 Part I, Line 2. You must complete Parts I, IV and V of Form 8582 CR. There are two calcula ons needed to complete Form 8582 CR, Line 6 and 35. These calcula ons are included on Page 5 for your convenience. Transfer the amount calculated from Form 8582 CR (back), Line 37 to Form 3800, Part I, Line 3. Complete Form 3800 in accordance with the Form 3800 instruc ons to determine your allowable credit. NOTE: As noted above, you must complete Part III of Form 3800 before comple ng Parts I and II. In addi on, if you have more than one Boston Capital Investment with tax credits, you must complete a separate Part III for each investment, as well as a consolidated Part III combining the amounts from each investment. Please be sure to read and follow the instruc ons to Form 3800 before comple ng it. Form 8582-CR (Front) Form 3800, Page 3 (Part III) 2b Form 3800, Page 1 (Part I & II) Form 8582-CR (Back) See Calcula on on page 5 of this Instruc on Booklet PAGE 3

4 ENTER ON SCHEDULE B COMPLETE FORM a 3b 3c On Schedule B Part I, Line 1 (Form 1040), write the name of your investment as shown in Part I, Box B of your Schedule K 1. On Schedule B Part I, Line 1 (Form 1040), write the amount shown in Box 5 of your Schedule K 1. NOTE: If you invest in more than one Partnership, you must list the name and the amount of interest from each Partnership. On Schedule B Part I, Line 4 (Form 1040), write the total interest from this and other investments. 4a 4b Transfer the total amount from Schedule B, Line 4 to Form 1040, Line 8a. Transfer your General Business Credit Amount reflected in Part II, Line 38 of Form 3800 (calculated in step 2), to Form 1040, Line 54, and check the Box labeled Form Schedule B Sample Schedule K-1 3c 3a 3b Form 1040 (Front) Form 3800, Page 2 (Part II) Form 1040 (Back) 4b Form 1040 (Back) PAGE 4

5 Calcula on for Form 8582 CR Lines 6 and 35 LINE 6: To Compute Tax on Net Passive Income (If you are unsure if your income is classified as passive income, please consult a professional tax advisor.) A. Taxable Income including net passive income (Form 1040, Line 43) B. Tax on line A. Use the Tax Table, Tax Computa on Worksheet or appropriate method you used to figure your tax. C. Taxable Income without net passive income D. Tax on Line C. Use the Tax Table, Tax Computa on Worksheet or appropriate method you used to figure your tax. E. Subtract Line D from line B and enter the result on line 6 of Form 8582 CR A. C. B. D. E. LINE 35 A. Taxable Income (Form 1040, Line 43) A. B. Tax on line A. Use the Tax Table, Tax Computa on Worksheet or appropriate method you used to figure your tax. B. C. Enter $25,000 ($12,500 if married filing separate and you and your spouse lived apart at all mes during the year) D. Enter Amount, if any, from line 10 of Form 8582 E. Enter amount, if any, from line 14 of Form 8582 C. D. E. F. Subtract lines D and E from line C G. Subtract line F from line A F. G. H. Tax on line G. Use the Tax Table, Tax Computa on Worksheet or appropriate method you used to figure your tax. I. Subtract line H from line B J. Add lines 16 and 30 of Form 8582 CR and enter result K. Subtract line J from line I. Tax a ributable to the remaining special allowance. Enter the result on line 35 of Form 8582 CR H. I. J. K. If you are encountering problems using a computerized program to calculate your tax credit usage, please consult the so ware company regarding their program s ability to calculate the Low Income Housing Tax Credit before calling Boston Capital. PAGE 5

6 One Boston Place, Boston MA Tel