7. Taxable Income

12 Months Ended

Mar. 30, 2016

7. Taxable Income

A reconciliation of the financial statement net income of the Partnership for the years ended March 30, 2016 and 2015 to the tax return income for the years ended December 31, 2015 and 2014 is as follows:

	2016	2015

Financial statement net income for the years ended March 30, 2016 and 2015	$ 176,387	$ 4,518,605

Add (less) net transactions occurring between
January 1, 2014 to March 30, 2014	--	107,781
January 1, 2015 to March 30, 2015	1,084,878	(1,084,878)
January 1, 2016 to March 30, 2016	22,217	--

Adjusted financial statement net income for the years ended December 31, 2015 and 2014	1,283,482	3,541,508

Management Fees and Administration Fees deductible for tax purposes when paid	(4,051)	2,196

Gain on sale of limited partner interests/local partnership properties	737,723	4,310,061

Equity in income (loss) of investment in local partnerships	(79,858)	5,286,662

Nondeductible flow-through expenses	6,343	--

Other income from local partnerships	--	(86,456)

Other differences	(1,096)	784

Tax return income for the years ended December 31, 2015 and 2014	$ 1,942,543	$ 13,054,755

The differences between investment in local partnerships for financial reporting and tax purposes as of December 31, 2015 and 2014 are as follows:

	2015	2014

Investment in local partnerships - financial reporting	$ --	$ --
Investment in local partnerships - tax	(8,975,477)	(9,619,371)

	$ 8,975,477	$ 9,619,371

Payable to general partner and affiliate in the accompanying balance sheets represents accrued Management Fees and Administration Fees, which are not deductible for tax purposes until paid pursuant to IRC Section 267.

AMERICAN TAX CREDIT PROPERTIES II L P 10-K