SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
Commission File Number 33-89968
INDEPENDENCE TAX CREDIT PLUS L.P. IV
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3809869
- ----------------------------- -----------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
625 Madison Avenue, New York, New York 10022
- --------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-5333
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
June 30, March 31,
1996 1996
------------ -------------
<S> <C> <C>
Property and equipment at cost, net of accumulated depreciation
of $51,513 and $22,951, respectively $ 4,214,060 $ 2,657,976
Cash and cash equivalents 8,822,880 8,484,832
Investments available for sale 16,300,000 11,502,412
Cash held in escrow 1,446,498 3,000,000
Deferred costs, net of accumulated amortization
of $9,342 and $5,921 respectively 1,975,815 1,700,358
Other assets 151,492 260,114
----------- -----------
Total assets $32,910,745 $27,605,692
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Construction loan payable $ 2,039,174 $ 2,039,174
Accounts payable and other liabilities 91,786 106,084
Due to local general partners and affiliates 332,487 311,987
Due to general partner and affiliates 353,972 288,599
----------- -----------
Total liabilities 2,817,419 2,745,844
----------- -----------
Minority interest 320,741 321,081
----------- -----------
Partners' capital:
Limited partners (100,000 BACs authorized;
33,069 and 27,333 issued and outstanding, respectively) 29,768,683 24,536,153
General partner 3,902 2,614
----------- -----------
Total partners' capital 29,772,585 24,538,767
----------- -----------
Total liabilities and partners' capital $32,910,745 $27,605,692
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
-2-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
For the three months ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Revenues
Rental income $ 48,359
Other income (principally interest on capital contributions) 239,000
--------
Total revenues 287,359
Expenses
General and administrative 46,386
General and administrative-related parties (Note 2) 39,146
Repairs and maintenance 3,071
Operating and other 12,255
Insurance 10,423
Interest 15,657
Depreciation and amortization 31,983
--------
Total expenses 158,921
--------
Net income before minority interest 128,438
Minority interest in loss of subsidiary partnership 340
--------
Net income $128,778
========
Net income per limited partnership interest $127,490
========
Weighted average number of BACs outstanding 31,551
========
Net income per weighted average BAC $ 4.04
========
</TABLE>
See accompanying notes to consolidated financial statements.
-3-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
Total Limited Partners General Partner
----------- ---------------- ---------------
<S> <C> <C> <C>
Partners' capital - April 1, 1996 $24,538,767 $24,536,153 $2,614
Capital contributions 5,736,000 5,736,000 0
Distributions 0 0 0
Offering costs (630,960) (630,960) 0
Net income 128,778 127,490 1,288
----------- ----------- ------
Partners' capital - June 30, 1996 $29,772,585 $29,768,683 $3,902
=========== =========== ======
</TABLE>
See accompanying notes to consolidated financial statements
-4-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
STATEMENT OF CASH FLOWS
INCREASE IN CASH AND CASH EQUIVALENTS
For the Three Months Ended June 30, 1996
(Unaudited)
Cash flows from operating activities:
Net income $ 128,778
----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 31,983
Minority interest in loss of subsidiary properties (340)
Decrease in other assets 108,622
Decrease in accounts payable and other liabilities (14,298)
Increase in local general partners and affiliates 20,500
Increase in due to general partner and affiliates 31,060
----------
Total adjustments 177,527
----------
Net cash provided by operating activities 306,305
----------
Cash flows used in investing activities:
Acquisition of property and equipment (1,410,065)
Decrease in cash held in escrow 1,553,502
Increase in investments available for sale (4,797,588)
Increase in deferred costs (453,459)
----------
Net cash used in investing activities (5,107,610)
----------
Cash flows provided by financing activities:
Increase in offering costs (630,960)
Increase in due to general partner and affiliates 34,313
Capital contributions received 5,736,000
----------
Net cash provided by financing activities 5,139,353
----------
Net increase in cash and cash equivalents 338,048
Cash and cash equivalents at beginning of period 8,484,832
----------
Cash and cash equivalents at end of period $8,822,880
==========
Supplemental disclosures of noncash investing activities:
Capitalization of deferred acquisition costs $ 174,581
==========
See accompanying notes to consolidated financial statements.
-5-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
NOTE 1 - General
Independence Tax Credit Plus L.P. IV (a Delaware limited
partnership) (the "Partnership") was organized on February 22, 1995, and
commenced the public offering on July 6, 1995. The general partner of the
Partnership is Related Independence L.L.C., a Delaware limited liability company
(the "General Partner").
The Partnership's business is to invest in other partnerships
("Local Partnerships", "subsidiaries" or "subsidiary partnerships") owning
apartment complexes that are eligible for the low-income housing tax credit
("Housing Tax Credit") enacted in the Tax Reform Act of 1986, some of which
complexes may also be eligible for the historic rehabilitation tax credit
("Historic Tax Credit"; together with Housing Tax Credits, "Tax Credits").
The Partnership has invested in three Local Partnerships as of
June 30, 1996, two of which have not been consolidated and are shown on the
balance sheet as property and equipment. In the future the Partnership
anticipates acquiring interests of approximately 99% on subsidiary partnerships.
Through the rights of the Partnership and/or an affiliate of the General
Partner, which affiliate has a contractual obligation to act on behalf of the
Partnership, to remove the general partner of the susidiary local partnerships
and to approve certain major operating and financial decisions, the Partnership
has a controlling financial interest in the subsidiary local partnerships.
The Partnership is authorized to issue a total of 100,000
($100,000,000) Beneficial Assignment Certificates ("BACs") which have been
registered with the Securities and Exchange Commission for sale to the public.
Each BAC represents all of the economic and virtually all of the ownership
rights attributable to a limited partnership interest. The solicitation for the
subscription of BACs, was terminated as of May 22, 1996. As of June 30, 1996 and
March 31, 1996 the Partnership raised a total of $33,069,000 and $27,333,000
representing 33,069 and 27,333 BACs, respectively, not including $12,785,000
being held by United States Trust Company of New York as escrow agent for the
Partnership, as of August 13, 1996.
The terms of the Amended and Restated Agreement of Limited
Partnership of the Partnership ("Partnership Agreement") provide, among other
things, that, net profits or losses and distributions of cash flow are, in
general, allocated 99% to the limited partners and BACs holders and 1% to the
General Partner.
The Partnership's fiscal quarter ends June 30. All subsidiaries
have fiscal quarters ending March 31. Accounts of the subsidiaries have been
adjusted for intercompany transactions from April 1 through June 30.
All intercompany accounts and transactions with the subsidiary
partnerships have been eliminated in consolidation.
Increases (decreases) in the capitalization of consolidated
subsidiaries attributable to minority interest arises from cash contributions
and cash distributions to the minority interest partners.
Losses attributable to minority interest which exceed the minority
interests' investment in a subsidiary have been charged to the Partnership. Such
losses aggregated $61 for the three months ended June 30, 1996. The
Partnership's investment in each subsidiary is equal to the respective
subsidiary's partners' equity less minority interest capital, if any. In
consolidation, all subsidiary partnership losses are included in the
Partnership's capital account except for losses allocated to minority interest
capital.
In March 1995, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long-Lived Asset and for Long-Lived Assets to Be Disposed
Of". Under SFAS No. 121, the Partnership is required to review long-lived assets
and certain identifiable intangibles for impairment whenever events or changes
in circumstances indicate that the book value of an asset may not be
recoverable. An impairment loss should be recognized whenever the review
demonstrates that the book value of a long-lived asset is not recoverable.
Effective April 1, 1996, the Partnership adopted SFAS No.
-6-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
NOTE 1 - General(continued)
121, consistent with the required adoption period.
Property and equipment are carried at the lower of depreciated
cost or estimated amounts recoverable through future operations and ultimate
disposition of the property. Cost includes the purchase price, acquisition fees
and expenses, and any other costs incurred in acquiring the properties. As
required by SFAS 121, a provision for loss on impairment of assets is recorded
when estimated amounts recoverable through future operations and sale of the
property on an undiscounted basis are below depreciated cost. However,
depreciated cost, adjusted for such reductions in value, if any, may be greater
than the fair value. Property investments themselves are reduced to estimated
fair value (generally using discounted cash flows) when the property is
considered to be impaired and the depreciated cost exceeds estimated fair value.
Through June 30, 1996, the Partnership has not recorded any provisions for loss
in impairment of assets or reduction to estimated fair value.
Certain information and note disclosure normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted or condensed. These condensed financial statements
should be read in conjunction with the financial statements and notes thereto
included in Partnership's Annual Report on Form 10-K for the period ended March
31, 1996.
The books and records of the Partnership are maintained on the
accrual basis of accounting in accordance with generally accepted accounting
principles. In the opinion of the General Partners of the Partnership, the
accompanying unaudited financial statements contain all adjustments (consisting
only of normal recurring adjustments) necessary to present fairly the financial
position of the Partnership as of June 30, 1996 and the results of operations
and cash flows for the three months ended June 30, 1996. However, the operating
results for the three months ended June 30, 1996 may not be indicative of the
results for the year.
NOTE 2 - Related Party Transactions
An affiliate of the General Partner has a .01% interest as a
special limited partner, in each of the Local Partnerships.
The General Partner and its affiliates perform services for the
Partnership. The costs incurred for the three months ended June 30, 1996 are as
follows:
A) Acquisition Fees and Expenses
The General Partner is entitled to a consulting and monitoring
fee equal to 6.0% of the gross proceeds of the offering paid upon investor
closings, for its services in connection with assisting the Local Partnerships
in acquiring apartment complexes and supervising the construction of the
complexes. Such fees will be capitalized as a cost of the investments upon
closing of subsidiary partnership acquisitions. As of June 30, 1996 and March
31, 1996, $1,984,140 and $1,639,980, respectively, of such costs have been
incurred, of which $244,885 and $0 have been capitalized.
B) Public Offering Costs
Costs incurred to organize the Partnership and certain costs
of offering the BACs including but not limited to legal, accounting and
registration fees are considered organization and offering expenses. These costs
-7-
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
NOTE 2 - Related Party Transactions (continued)
have been capitalized. Related Equities Corporation (the "Dealer Manger") is
entitled to a non-accountable organization and offering expense allowance equal
to 2.5% of Gross Proceeds, in consideration of which it is obligated to pay all
such expenses up to the amount of such allowance. The Partnership is obligated
to pay all such expenses that are in excess of 2.5% of Gross Proceeds and up to
3.5% of Gross Proceeds, and the Dealer Manager is responsible for all such
expenses in excess of 3.5% of Gross Proceeds. As of June 30, 1996 and March 31,
1996, offering costs totalled $1,107,415 and $906,665, respectively, and along
with selling commissions (see Note 2C) are charged directly to limited partners'
capital.
C) Selling Commissions and Fees
The Partnership has paid up to 7.5% of the aggregate purchase
price of BACs sold, without regard to quantity discounts, to Related Equities
Corporation. To the extent other broker/dealers sold the interests such amounts
were fully reallowed to the other broker/dealers. As of June 30, 1996 and March
31, 1996, $2,480,175 and $2,049,975, respectively, was paid or incurred to
Related Equities Corporation and then fully reallowed to other unaffiliated
broker/dealers.
D) Other Related Party Expenses
The costs incurred to related parties for the three months
ended June 30, 1996 were as follows:
Partnership management fees (a) $18,445
Expense reimbursement (b) 17,606
Property management fees (c) 3,095
-------
$39,146
=======
(a) The General Partner is entitled to receive a partnership
management fee, after payment of all Partnership expenses, which together with
the annual local administrative fees will not exceed a maximum of 0.5% per annum
of invested assets (as defined in the Partnership Agreement), for administering
the affairs of the Partnership. Subject to the foregoing limitation, the
partnership management fee will be determined by the General Partner in its sole
discretion based upon its review of the Partnership's investments. Unpaid
partnership management fees for any year will be accrued without interest and
will be payable only to the extent of available funds after the Partnership has
made distributions to the limited partners of sale or refinancing proceeds equal
to their original capital contributions plus a 10% priority return thereon (to
the extent not theretofore paid out of cash flow).
(b) The Partnership reimbuses the General partners and their
affiliates for actual Partnership operating expenses incurred by the General
Partners and their affiliates on the Parntership's behalf. The amount of
reimbursement from the Partnershiup is limited by the provisions of the
Partnership Agreement. Another affiliate of the Genreal Partners performs asset
monitoring for the Parntership. These service include site visits and
evaluations of the subsidiary partnerships' performance.
(c) Property management fees incurred by Local Partnerships
amounted to $3,095 for the three months ended June 30, 1996, all of which was
incurred to affiliates of the subsidiary partnerships' General Partner.
-8-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The Partnership's primary source of funds is the proceeds of its
offering. Other sources of funds include interest earned on such proceeds which
will be invested in tax-exempt money market instruments pending acquisition of
Local Partnerships and a working capital reserve in the original amount of 2.5%
of gross equity raised. The solicitation for the subscriptions of BACs was
terminated as of May 22, 1996. The Partnership has received $33,069,000 in gross
proceeds for BACs pursuant to a public offering, not including $12,785,000 being
held by United States Trust Company of New York as escrow agent for the
Partnership as of August 13, 1996 resulting in net proceeds available for
investment of approximately $26,290,000 after volume discounts, payment of sales
commissions, acquisition fees and expenses, organization and offering expenses
and establishment of a working capital reserve.
As of June 30, 1996, the Partnership has invested approximately
$4,108,000 (including approximately $902,000 classified as a loan repayable from
sale/refinancing proceeds in accordance with the Contribution Agreement and not
including acquisition fees of approximately $245,000) of net proceeds in three
Local Partnerships of which approximately $2,777,000 remains to be paid to the
Local Partnerships (including approximately $1,446,000 being held in escrow) as
certain benchmarks, such as occupancy level, must be attained prior to the
release of the funds. Two of the Local Partnerships were acquired during the
three months ended June 30, 1996 for a combined purchase price of approximately
$3,177,000 (not including acquisition fees of $175,000) of which approximately
$1,846,000 remains to be paid. The Partnership has approximately $22,182,000
available for future investments. During the three months ended June 30, 1996,
approximately $1,331,000 was paid to Local Partnerships, (none of which was
released from escrow). An additional $1,446,000 was placed into escrow for
purchase price payments during the three months ended June 30, 1996. The
Partnership will be acquiring additional properties, and the Partnership may be
required to fund potential purchase price adjustments based on tax credit
adjustor clauses. There were no such adjustments during the three months ended
June 30, 1996.
During the three months ended June 30, 1996, the Partnership
raised $5,736,000 in capital contributions, of which $4,560,000 was available
for investment in Local Partnerships. These funds were used to acquire two Local
Partnerships for a combined purchase price of approximately $3,177,000 (not
including acquisition fees) of which approximately $1,846,000 remains to be
paid. These activities, together with cash provided by operating activities
($306,000) and a decrease in cash held for purchase price payments ($1,554,000)
which exceeded acquisitions of property and equipment ($1,410,000), an increase
in investments available for sale ($4,798,000), an increase in deferred costs
($453,000) and an increase in offering costs ($631,000) produced a net increase
of $338,000 in Partnership cash since March 31, 1996. Included in the
adjustments to reconcile the net income to cash flow from operations is
depreciation and amortization in the amount of $32,000.
A working capital reserve of approximately $827,000 has been
established from the Partnership's funds available for investment, which
includes amounts which may be required for potential purchase price adjustments
based on tax credit adjustor clauses. At June 30, 1996 and March 31, 1996 none
of this reserve was used. The General Partners believe that these reserves, plus
any cash distributions received from the operations of the Local Partnerships
will be sufficient to fund the Partnership's ongoing operations for the
foreseeable future.
The property owned by one of the Local Partnerships in which the
Partnership has invested has been in operations and has maintained stable
occupancy since 1990.
The Partnership has negotiated development deficit guarantees with
the two other the Local Partnerships in which it has invested. The Local General
Partners and/or affiliates have agreed to fund development deficits through the
breakeven dates of each of the two Local Partnerships.
The Partnership has negotiated Operating Deficit Guaranty
Agreements with the two other Local Partnerships by which the general partners
of the Local Partnerships and/or affiliates have agreed to fund operating
deficits for a specified period of time. The terms of the Operating Deficit
Guaranty Agreements vary for each of these Local Partnerships, with maximum
dollar amounts to be funded for a specified period of time, generally three
years, commencing on the break-even date. The gross amount of the Operating
Deficit Guarantees aggregates approximately $447,000 as of June 30, 1996.
-9-
<PAGE>
The Partnership has also negotiated rent-up guaranty agreements in
which the Local General Partners agreed to pay a liquidated damage if
predetermined occupancy rates are not achieved.
The development deficit, operating deficit and the rent-up
guaranty agreements were negotiated to protect the Partnership's interest in the
Local Partnerships and to provide incentive to the Local General Partners to
generate positive cash flow.
The Partnership and BACs holders will begin to recognize Housing
Tax Credits with respect to a property when the credit period for such property
commences. Because of the time required for the acquisition, completion and
rent-up of properties, it is expected that the amount of Tax Credits per BAC
will gradually increase over the first three years of the Partnership. Housing
Tax Credits not recognized in the first three years will be recognized in the
11th through 13th years.
The Partnership's investment as a limited partner in the Local
Partnerships is subject to the risks of potential losses arising from management
and ownership of improved real estate. The Partnership's investments also could
be adversely affected by poor economic conditions generally, which could
increase vacancy levels and rental payment defaults and by increased operating
expenses, any or all of which could threaten the financial viability of one or
more of the Local Partnerships.
Management is not aware of any trends or events, commitments or
uncertainties, which have not otherwise been disclosed that will or are likely
to impact liquidity in a material way. Management believes the only impact would
be from laws that have not yet been adopted. The portfolio is diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However, the geographic diversions
of the portfolio may not protect against a general downturn in the national
economy. The Partnership has fully invested the proceeds of its offering in
three Local Partnerships, all of which fully have their tax credits in place.
The tax credits are attached to the project for a period of ten years, and are
transferable with the property during the remainder of the ten year period. If
trends in the real estate market warranted the sale of a property, the remaining
tax credits would transfer to the new owner; thereby adding significant value to
the property on the market, which are not included in the financial statement
carrying amount.
Results of Operations
In March 1995, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long-Lived Asset and for Long-Lived Assets to Be Disposed
Of". Under SFAS No. 121, the Partnership is required to review long-lived assets
and certain identifiable intangibles for impairment whenever events or changes
in circumstances indicate that the book value of an asset may not be
recoverable. An impairment loss should be recognized whenever the review
demonstrates that the book value of a long-lived asset is not recoverable.
Effective April 1, 1996, the Partnership adopted SFAS No. 121, consistent with
the required adoption period.
Property and equipment are carried at the lower of depreciated
cost or estimated amounts recoverable through future operations and ultimate
disposition of the property. Cost includes the purchase price, acquisition fees
and expenses, and any other costs incurred in acquiring the properties. As
required by SFAS 121, a provision for loss on impairment of assets is recorded
when estimated amounts recoverable through future operations and sale of the
property on an undiscounted basis are below depreciated cost. However,
depreciated cost, adjusted for such reductions in value, if any, may be greater
than the fair value. Property investments themselves are reduced to estimated
fair value (generally using discounted cash flows) when the property is
considered to be impaired and the depreciated cost exceeds estimate fair value.
Through June 30, 1996, the Partnership has not recorded any provisions for loss
in impairment of assets or reduction to estimated fair value.
As of June 30, 1996 and 1995, the Partnership had acquired an
interest in three and zero Local
-10-
<PAGE>
Partnerships, one of which was consolidated, at June 30, 1996. The Partnership
intends to utilize the net proceeds of the offering to acquire additional
interests in Local Partnerships.
The Partnership's results of operations for the three months ended
June 30, 1996 consisted primarily of (1) approximately $239,000 of tax-exempt
interest income earned on funds not currently invested in Local Partnerships and
(2) the results of the Partnership's investment in one of three and zero
consolidated Local Partnerships, respectively.
The results of operations for the three months ended June 30, 1996
are not reflective of future operations due to the continued acquisition and
rent up of properties. In addition, interest income will continue to decrease in
future periods since a substantial portion of the proceeds from the Offering
will be invested in Local Partnerships. For the three months ended June 30, 1996
there was one consolidated Local Partnership, whose property was completed in a
previous fiscal year but was in various stages of rent up.
-11-
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
<TABLE>
<S> <C> <C>
(a) Exhibits
(4) Form of Amended and Restated Agreement of Limited Partnership of the Partnership
(attached to the Prospectus as Exhibit A)*
(10A) Form of Subscription Agreement (attached to the Prospectus as Exhibit B)*
(10B) Form of Escrow Agreement between the Partnership and the Escrow Agent**
(10C) Form of Purchase and Sales Agreement pertaining to the Partnership's acquisition
of Local Partnership Interests**
(10D) Form of Amended and Restated Agreement of Limited Partnership of Local
Partnerships**
(27) Financial Data Schedule (filed herewith)
* Incorporated herein by reference to the final
Prospectus as filed pursuant to Rule 424 under
the Securities Act of 1933.
** Filed as an exhibit to the Registration Statement on Form S-11 of the Partnership
(File No. 33-89968) and incorporated herein by reference thereto.
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter.
</TABLE>
-12-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
INDEPENDENCE TAX CREDIT PLUS L.P. IV
-------------------------------------
(Registrant)
By: RELATED INDEPENDENCE L.L.C.,
a General Partner
Date: August 13, 1996 By: /s/Alan P. Hirmes
---------------------
Alan P. Hirmes,
Senior Vice President
Date: August 13, 1996 By: /s/Lawrence J. Lipton
---------------------
Lawrence J. Lipton,
Treasurer
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains
summary financial
information extracted from
the financial statements
for Independence Tax Credit
Plus L.P. IV and is
qualified in its entirety
by reference to such
financial statements
</LEGEND>
<CIK> 0000940329
<NAME> Independence Tax Credit Plus L.P. IV
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 25,122,880
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,573,805
<PP&E> 4,265,573
<DEPRECIATION> 51,513
<TOTAL-ASSETS> 32,910,745
<CURRENT-LIABILITIES> 778,245
<BONDS> 2,039,174
0
0
<COMMON> 0
<OTHER-SE> 30,093,326
<TOTAL-LIABILITY-AND-EQUITY> 32,910,745
<SALES> 0
<TOTAL-REVENUES> 287,359
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 143,264
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,657
<INCOME-PRETAX> 128,438
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 128,438
<EPS-PRIMARY> 4.04
<EPS-DILUTED> 0
</TABLE>
