SUMMARY OF DISPOSITION ACTIVITIES (Tables)

6 Months Ended

Sep. 30, 2012

SUMMARY OF DISPOSITION ACTIVITIES [Abstract]

Gateway at one time held investments in 133 Project Partnerships (39 in Series 7, 43 in Series 8, 24 in Series 9, 15 in Series 10, and 12 in Series 11). As of September 30, 2012, Gateway has sold its interest in 77 Project Partnerships (24 in Series 7, 30 in Series 8, 14 in Series 9, 5 in Series 10 and 4 in Series 11). A summary of the sale transactions for the Project Partnerships disposed during the current fiscal year-to-date and the previous fiscal year are summarized below.

Fiscal Year 2013 Disposition Activity:

Series 7

Transaction				Net Proceeds		Gain on		Deferred Gain
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal		on Disposal
August 2012	Brookshollow Apartments L.P.	$	719	$	0.07	$	719	$	-
August 2012	Brookstone Apartments L.P.		95,725		9.21		95,725		-
September 2012	Washington Apartments L.P.		895		0.09		-		895
						$	96,444	$	895

The net proceeds per LP unit from the sales of Brookshollow Apartments L.P. and Brookstone Apartments L.P. are a component of the Distribution Payable on the Balance Sheet as of September 30, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 7 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

In accordance with GAAP, although the sale of Washington Apartments L.P. was consummated on or prior to September 30, 2012, the gain on the sale is being deferred on the Balance Sheet and not recognized on the Statement of Operations until the period that the sale proceeds are received. Gateway recorded a receivable for the proceeds from this sale totaling $895 which is included in Receivable - Other on the Balance Sheet. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 7 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled. The deferred gain of $895 will be recognized on the Statement of Operations during the period in which the proceeds are received.

Series 8

Transaction				Net Proceeds		Gain on		Deferred Gain
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal		on Disposal
April 2012	Lovingston Ridge L.P.	$	68,688	$	6.88	$	68,688	$	-
June 2012	Deerpoint Limited		5,029		0.50		5,029		-
June 2012	Fox Ridge II Limited		29,845		2.99		29,845		-
July 2012	Aurora Seniors L.P.		20,416		2.05		20,416		-
July 2012	Baxter Springs Seniors L.P.		11,421		1.15		11,421		-
July 2012	Galena Seniors L.P.		17,024		1.71		17,024		-
July 2012	Purdy Apartments L.P.		12,734		1.28		12,734		-
August 2012	Brooks Lane Apartments L.P.		22,592		2.26		22,592		-
August 2012	Brooks Run Apartments L.P.		719		0.07		719		-
August 2012	Brooksfield Apartments L.P.		10,284		1.03		10,284		-
August 2012	Brookspoint Apartments L.P.		19,274		1.93		19,274		-
September 2012	Antlers Properties L.P.		26,574		2.66		26,574		-
September 2012	Antlers Properties II L.P.		65,006		6.51		65,006		-
September 2012	Concordia Senior Housing L.P.		65,006		6.51		65,006		-
September 2012	Holdenville Properties L.P.		65,006		6.51		65,006		-
September 2012	Kirksville Senior Apartments L.P.		65,006		6.51		65,006		-
September 2012	Lakeshore II Limited		28,642		2.87		-		28,642
September 2012	Meadow View Apartments L.P		3,140		0.32		-		3,141
September 2012	Meadowview Apartments Limited		78,836		7.90		78,836		-
September 2012	Mountainburg Properties L.P.		65,006		6.51		65,006		-
September 2012	Sheridan Apartments L.P		5,336		0.54		-		5,336
September 2012	Timber Ridge Apartments Limited		19,043		1.91		-		19,043
September 2012	Wetumka Properties L.P.		65,006		6.51		58,562		6,444
						$	707,028	$	62,606

The net proceeds per LP unit from the sales of Lovingston Ridge L.P., Deerpoint Limited, Fox Ridge II Limited, Aurora Seniors L.P., Baxter Springs Seniors L.P., Galena Seniors L.P., Purdy Apartments L.P., Brooks Lane Apartments L.P., Brooks Run Apartments L.P., Brooksfield Apartments L.P., Brookspoint L.P., Antlers Properties L.P., Antlers Properties II L.P., Concordia Senior Housing L.P., Holdenville Properties L.P., Kirksville Senior Apartments L.P., Meadowview Apartments Limited, Mountainburg Properties L.P and a portion of Wetumka Properties L.P. are a component of the Distribution Payable on the Balance Sheet as of September 30, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 8 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

In accordance with GAAP, although the sales of Lakeshore II Limited, Meadow View Apartments L.P., Sheridan Apartments L.P., Timber Ridge Apartments Limited and a portion of Wetumka Properties L.P. were consummated on or prior to September 30, 2012, the gain on the sale is being deferred on the Balance Sheet and not recognized on the Statement of Operations until the period that the sale proceeds are received. Gateway recorded a receivable for the proceeds from this sale totaling $62,606 which is included in Receivable - Other on the Balance Sheet. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 8 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled. The deferred gain of $62,606 will be recognized on the Statement of Operations during the period in which the proceeds are received.

Series 9

Transaction				Net Proceeds		Gain on		Deferred Gain
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal		on Disposal
July 2012	Marionville Seniors L.P.	$	15,680	$	2.51	$	15,680	$	-
September 2012	Abernathy Properties L.P.		65,006		10.40		-		65,006
September 2012	Boxwood Place Properties L.P.		65,006		10.40		-		65,006
September 2012	Centreville Housing Limited		19,042		3.05		-		19,042
September 2012	Cornell Apartments II L.P.		11,853		1.90		-		11,853
September 2012	Elm Creek L.P.		6,875		1.10		-		6,875
September 2012	Jay Properties II L.P.		65,006		10.40		-		65,006
September 2012	Lamar Properties II L.P.		65,006		10.40		-		65,006
September 2012	Skyview Apartments L.P.		28,642		4.58		-		28,642
						$	15,680	$	326,436

The net proceeds per LP unit from the sale of Marionville Seniors L.P. is a component of the Distribution Payable on the Balance Sheet as of September 30, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 9 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

In accordance with GAAP, although the sales of Abernathy Properties L.P, Boxwood Place Properties L.P., Centreville Housing Limited, Cornell Apartments II L.P., Elm Creek L.P., Jay Properties II L.P., Lamar Properties II L.P. and Skyview Apartments L.P. were consummated on or prior to September 30, 2012, the gain on the sale is being deferred on the Balance Sheet and not recognized on the Statement of Operations until the period that the sale proceeds are received. Gateway recorded a receivable for the proceeds from this sale totaling $326,436 which is included in Receivable - Other on the Balance Sheet. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 9 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled. The deferred gain of $326,436 will be recognized on the Statement of Operations during the period in which the proceeds are received.

Series 10

Transaction				Net Proceeds		Gain on		Deferred Gain
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal		on Disposal
	Gain deferred at March 31, 2012	$	-	$	-	$	15,743	$	-
September 2012	Stigler Properties L.P.		53,942		10.70		-		53,942
September 2012	Tecumseh Place L.P		2,234		0.44		-		2,234
						$	15,743	$	56,176

The Gain on Disposal from the sale of Courtyard Apartments Phase II was deferred as of March 31, 2012 and is a component of Gain on Sale of Project Partnerships for the three months ended September 30, 2012. The net proceeds per LP unit from this sale is a component of the Distribution Payable on the Balance Sheet as of September 30, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 10 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

In accordance with GAAP, although the sales of Stigler Properties L.P. and Tecumseh Place L.P. were consummated on or prior to September 30, 2012, the gain on the sale is being deferred on the Balance Sheet and not recognized on the Statement of Operations until the period that the sale proceeds are received. Gateway recorded a receivable for the proceeds from this sale totaling $56,176 which is included in Receivable - Other on the Balance Sheet. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 10 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled. The deferred gain of $56,176 will be recognized on the Statement of Operations during the period in which the proceeds are received.

Fiscal Year 2012 Disposition Activity:

Series 7

Transaction				Net Proceeds		Gain on
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal
April 2011	Blue Ridge Elderly Housing	$	32,675	$	3.14	$	32,675
April 2011	Lakeland II		23,875		2.30		23,875
April 2011	Meadow Run Apartments		38,275		3.68		38,275
April 2011	Mount Vernon Rental Housing		19,074		1.83		19,074
August 2011	Cavalry Crossing Apartments		4,977		0.48		4,977
December 2011	Nottingham Apartments		7,468		0.72		7,468
December 2011	Vardaman Manor		9,417		0.91		9,417
	Other, net (see below)		-		-		2,000
						$	137,761

The net proceeds per LP unit from the sale of Blue Ridge Elderly Housing, Lakeland II, Meadow Run Apartments, Mount Vernon Rental Housing, Cavalry Crossing Apartments, Nottingham Apartments and Vardaman Manor are a component of the Distribution Payable on the Balance Sheet as of March 31, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 7 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $2,000 resulting from the true-up of certain legal and other sale transaction closing expenses arising from Project Partnership sale transactions which closed in the prior fiscal year. This amount, less the applicable state tax withholding, will be distributed to the Series 7 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

Series 8

Transaction				Net Proceeds		Gain on
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal
April 2011	Cottondale Rental Housing	$	19,875	$	1.99	$	19,875
December 2011	Arbor Gate Apartments		10,018		1.00		10,018
December 2011	Lincoln Apartments		15,955		1.60		15,955
December 2011	Elderly Housing of Pontotoc		14,217		1.42		14,217
						$	60,065

The net proceeds per LP unit from the sale of Cottondale Rental Housing, Arbor Gate Apartments, Lincoln Apartments and Elderly Housing of Pontotoc are a component of the Distribution Payable on the Balance Sheet as of March 31, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 8 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

Series 9

Transaction				Net Proceeds		Gain on
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal
April 2011	Arbor Trace Apartments Phase I	$	19,075	$	3.05	$	19,075
April 2011	Arbor Trace Apartments Phase II		33,474		5.35		33,474
August 2011	Sycamore Landing		4,169		0.67		4,169
						$	56,718

The net proceeds per LP unit from the sale of Arbor Trace Apartments Phase I, Arbor Trace Apartments Phase II and Sycamore Landing are a component of the Distribution Payable on the Balance Sheet as of March 31, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 9 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

Series 10

Transaction				Net Proceeds		Gain on		Deferred Gain
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal		on Disposal
September 2011	Peachtree Apartments	$	26,145	$	5.18	$	26,145	$	-
March 2012	Courtyard Apartments Phase II		15,743		3.13		-		15,743
						$	26,145	$	15,743

The net proceeds per LP unit from the sale of Peachtree Apartments is a component of the Distribution Payable on the Balance Sheet as of March 31, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 10 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

In accordance with GAAP, although the sale of Courtyard Apartments Phase II was consummated on or prior to March 31, 2012, the gain on the sale is being deferred on the Balance Sheet and not recognized on the Statement of Operations until the period that the sale proceeds are received. Gateway recorded a receivable for the proceeds from this sale totaling $15,743 which is included in Receivable - Other on the Balance Sheet. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 10 Assignees in a subsequent period at such time that state withholding tax liabilities have been settled. The deferred gain of $15,743 will be recognized on the Statement of Operations during the period in which the proceeds are received.

Series 11

Transaction				Net Proceeds		Gain on
Month / Year	Project Partnership	Net Proceeds		Per LP Unit		Disposal
August 2011	Parsons Village	$	2,681	$	0.52	$	2,681
September 2011	Mountain Oak Apartments		5,324		1.04		5,324
September 2011	Warsaw Manor Apartments		89,765		17.51		89,765
	Other, net (see below)		-		-		2,000
						$	99,770

The net proceeds per LP unit from the sale of Parsons Village, Mountain Oak Apartments and Warsaw Manor Apartments are a component of the Distribution Payable on the Balance Sheet as of March 31, 2012. These net proceeds, less the applicable state tax withholding, will be distributed to the Series 11 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

Gateway recognized an additional gain on sale of Project Partnerships in the amount of $2,000 resulting from the true-up of certain legal and other sale transaction closing expenses arising from Project Partnership sale transactions which closed in the prior fiscal year. This amount, less the applicable state tax withholding, will be distributed to the Series 11 Limited Partners in a subsequent period at such time that state withholding tax liabilities have been settled.

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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GATEWAY TAX CREDIT FUND III LTD 10-Q