Boston Capital Tax Credit Fund IV

[ICNTR]

Has anyone had experience with these types of funds? We did one back in 97 and, other than a small annual tax savings, it really seems stagnate. I called Boston Capital and they mentioned that our series of properties was trying to be sold but really couldn't describe when that might happen or how any distributions may be made.

I just hate loose ends. This has been hanging out there for years doing not much more than holding up our tax filings with delayed K1s. Should I brace for some type of scammy resolution or is this a reputable business with hopes of a pleasant ending?

[MooreBonds]

Quote:

Originally Posted by ICNTR Has anyone had experience with these types of funds? We did one back in 97 and, other than a small annual tax savings, it really seems stagnate. I called Boston Capital and they mentioned that our series of properties was trying to be sold but really couldn't describe when that might happen or how any distributions may be made. I just hate loose ends. This has been hanging out there for years doing not much more than holding up our tax filings with delayed K1s. Should I brace for some type of scammy resolution or is this a reputable business with hopes of a pleasant ending?

While no one is perfect, and real estate is always local...if they originated your 97 fund back in 1997, and between then and now, they are having trouble liquidating at a decent gain (and your cash flow from 97 until now was marginal), I'd have serious doubts about handing over anything to them to try it again.

I have a small position ($5k) in a private REIT with AEI, bought back in around 2006. It's performed marginally adequate, averaging about 5% distributions per year, and starting to increase slightly as rent increases start kicking in after 5 years on most leases.

Would I do it again? While I firmly believe in lots of diversification (including real estate), I most likely wouldn't do it in that format, given that these private real estate partnerships seem to be set up to benefit the Managing Partners the most (by far), and leave a modest amount of scraps for the General Partners (you) to make it tolerable.

Unless I had a $5MM portfolio, and wanted to diversify $10k-$25k into a small venture like that.

[ICNTR]

Thanks for the response. My stagnate comment might have been misleading. I never really expected returns along the way. It was designed as a 12 to 15 year tax credit wit distribution after that, if/when they sell the properties. I'm not holding my breath for a big distribution. Too many managers and others in line to get money before it trickles to me.

We did this on the advice of a advisor when we were young and naive. We lived and learned though so I am really just ready to close the book on a questionable decision. I was hoping someone may have dealt with Boston Capital or one of these tax credit funds that resulted in a happy or at least not sham-like ending.

[ICNTR]

Just noticed you are in St. Louis. Ironic since this same Cape Girardeau advisor set us up with some energy LLPs through a St. Louis investment group. That did not work out well at all! Court cases, etc to the point where we were glad when it wrapped up without costing us more than our investment. Guess that is why I am leery of this Boston Capital thing that he also got us into. I just chalk it up to a fairly expensive life lesson.

[PaunchyPirate]

Quote:

Originally Posted by ICNTR Thanks for the response. My stagnate comment might have been misleading. I never really expected returns along the way. It was designed as a 12 to 15 year tax credit wit distribution after that, if/when they sell the properties. I'm not holding my breath for a big distribution. Too many managers and others in line to get money before it trickles to me. We did this on the advice of a advisor when we were young and naive. We lived and learned though so I am really just ready to close the book on a questionable decision. I was hoping someone may have dealt with Boston Capital or one of these tax credit funds that resulted in a happy or at least not sham-like ending.

I'm in pretty much exactly the same boat as you are with the same exact fund. Every few months I check to see if anything is happening on the path toward liquidating this, but so far have not found anything concrete in that direction. It's mostly an annoyance investment that forces me to wait till late in the tax season to file. I don't think the tax savings that it offered has added up to the investment at this point after many years. I've actually forgotten when I made my investment, but it's been about 10 years, I suppose. I sure hope it reaches its end-of-life soon, as it's one of the few "odd" investments that I have left out there from my days with a financial advisor salesperson.

[ICNTR]

Yep. Same here. pls let me know if you make any progress towards a resolution. I'll do the same.

[BluesWannabe]

Another guy in the boat... waiting... stagnating...

I was sold this investment back in 1996... I was young and stupid, but this is one of those investments that are never bought, they are always sold.

I would sell, even at pennies on the dollar, but I have no idea how to figure out my basis...