~~UNITED STATES~~ ~~SECURITIES~~ Table ~~AND~~of ~~EXCHANGE COMMISSION~~Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

þ ☑ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2016 ~~2015~~

¨ ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0033-~~17015~~89968

INDEPENDENCE TAX CREDIT PLUS L.P. IV

(Exact name of registrant as specified in its charter)


Delaware		13-3809869
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1225 17th Street, Denver, Colorado		80202
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (303) 927-5000

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Limited Partnership Interests and Beneficial Assignment Certificates

(Title of Class)

~~Indicate~~ Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ ☐ No þ ☑

~~Indicate~~ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ ☐ No þ ☑

~~Indicate~~ 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 þ ☑ No ¨ ☐

~~Indicate~~ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ ☑ No ¨ ☐

~~Indicate~~ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ ☑

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨☐ Accelerated filer ¨☐ Non-accelerated filer ¨☐ (Do not check if a smaller reporting company) Smaller reporting company þ☑

~~Indicate~~ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ ☐ No þ ☑

The approximate aggregate book value of the voting and non-voting common equity held by non-affiliates of the Registrant as of September 30, ~~2014~~2015 was $(213,~~279~~688,000), based on Limited Partner equity as of such date.

DOCUMENTS INCORPORATED BY REFERENCE

None

Table of Contents


		Page Number

Part I
Item 1.	Business	3
Item 1A.	Risk Factors	5
Item 1B.	Unresolved Staff Comments	5
Item 2.	Properties	6
Item 3.	Legal Proceedings	8
Item 4.	Mine Safety Disclosures	8

Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	9
Item 6.	Selected Financial Data	10
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	15
Item 8.	Financial Statements and Supplementary Data	16
	Consolidated Balance Sheets	20
	Consolidated Statements of Operations	21
	Consolidated Statements of Changes in Partners’ (Deficit) Equity	22
	Consolidated Statements of Cash Flows	23
	Notes to Consolidated Financial Statements	24
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	39
Item 9A.	Controls and Procedures	39
Item 9B.	Other Information	39

Part III
Item 10.	Director, Executive Officers, and Corporate Governance	40
Item 11.	Executive Compensation	41
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	41
Item 13.	Certain Relationships and Related Transactions, and Directors Independence	42
Item 14.	Principal Accountant Fees and Services	42

Part IV
Item 15.	Exhibits, Financial Statement Schedules	43

Signatures		45

-2-

Table of Contents

PART I

Item 1. Business.

General

Independence Tax Credit Plus L.P. IV (the “Partnership”) is a limited partnership which was formed under the laws of the State of Delaware on February 22, 1995. The general partner of the Partnership is Related Independence L.L.C., a Delaware limited liability company (the “General Partner”). Centerline Holding Company (“Centerline”) was the ultimate parent of Centerline Affordable Housing Advisors LLC (“CAHA”), the sole member of the Manager of the General Partner. On June 12, 2013, Centerline and an affiliate of Hunt Companies, Inc. (“Hunt”) entered into an agreement and plan of merger. On November 14, 2013, the shareholders of Centerline approved the acquisition of Centerline by an affiliate of Hunt. On April 15, 2015, Alden Torch Financial LLC, a newly formed Delaware limited liability company (“ATF”), became the indirect owner of 100% of the equity interests in Centerline. Since April 15, 2015, ATF has been the ultimate parent and indirect owner of 100% of the equity interest in CAHA. ~~Prior to April~~ ~~15, 2015, Hunt had been the ultimate majority equity owner of CAHA.~~

On July 6, 1995, the Partnership commenced a public offering (the "Offering") of Beneficial Assignment Certificates ("BACs") representing assignments of limited partnership interests in the Partnership ("Limited Partnership Interests"). The Partnership received $45,844,000 of gross proceeds from the Offering (the "Gross Proceeds") from 2,759 investors ("BACs holders"). The Offering was terminated on May 22, 1996.

The Partnership’s initial business was to invest in other partnerships (“Local Partnerships”, “subsidiaries” or “subsidiary partnerships”) owning leveraged apartment complexes (“Apartment Complexes” or “Properties”) that are eligible for the low-income housing tax credit (“Tax Credit”) enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. As of March 31, ~~2015~~2016, the Partnership had originally invested approximately $37,555,000 (not including acquisition fees of approximately $1,771,000) of the net proceeds of the Offering in fourteen Local Partnerships of which approximately $~~148~~82,000 remains to be paid to the Local Partnerships (including approximately $~~123~~82,000 being held in escrow) as certain benchmarks, such as occupancy level, are attained prior to the release of the funds. The Partnership does not intend to acquire interests in additional Local Partnerships, but the Partnership may be required to fund potential purchase price adjustments based on tax credit adjustor clauses. The Partnership is currently invested in ~~five~~two Local Partnerships. The Partnership’s investment in each Local Partnership represents from 98.99% to 99.89%. See Item 2, Properties, below.

The Partnership ishas ~~currently~~developed ~~in the process of developing~~ a plan to dispose of ~~all~~its oftwo ~~its~~remaining investments. It is anticipated that this process will take afrom ~~number~~12 ofto ~~years.~~24 months. During the fiscal year ended March 31, ~~2015~~2016, the Partnership sold its limited partnership interest in two Local Partnerships and property and related assets and liabilities in one Local Partnership. Through March 31, ~~2015~~2016, the Partnership has sold its limited partnership interest in ~~six~~eight Local Partnerships, and the property and the related assets and liabilities of ~~three~~four Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its remaining investments or the amount of proceeds which may be received. However, based on the historical operating results of the Local Partnerships and the current economic conditions, including changes in tax laws, it is unlikely that the proceeds from such sales received by the Partnership will be sufficient to return to the limited partners their original investments.

The investment objectives of the Partnership are described below:

Entitle qualified BACs holders to Tax Credits over the period of the Partnership’s entitlement to claim Tax Credits (for each Property, generally ten years from the date of investment or, if later, the date the Property is leased to qualified tenants; referred to herein as the “Credit Period”) with respect to each Apartment Complex.

Preserve and protect the Partnership’s capital.

Participate in any capital appreciation in the value of the Properties and provide distributions of Sale or Refinancing Proceeds upon the disposition of the Properties.

Allocate passive losses to individual BACs holders to offset passive income that they may realize from rental real estate investments and other passive activities, and allocate passive losses to corporate BACs holders to offset business income.

~~One of the Partnership’s objectives~~ ~~is to entitle qualified BACs holders to Tax Credits over the Credit Period. Each of the Local Partnerships in which the Partnership~~ has acquired an interest has been allocated by the relevant state credit agencies the authority to recognize Tax Credits during the Credit Period provided that the Local Partnership satisfies the rent restriction, minimum set -aside and other requirements for recognition of the Tax Credits at all times during such period. Once a Local Partnership has become eligible to recognize Tax Credits, it may lose such eligibility and suffer an event of “recapture” if its Property fails to remain in compliance with the Tax Credit requirements during the 153-~~year period commencing at the beginning of the Credit Period (“Compliance~~ ~~Period”). As of December 31, 2012, all the Local Partnerships had completed their Credit Periods. However, each Local Partnership~~ must continue to comply with the Tax Credit requirements until the end of the Compliance Period in order to avoid recapture of the Tax Credits. The Compliance Periods will continue through December 31, 2017 with respect to the Properties depending upon when the Compliance Period commenced.

~~A loss on impairment of assets is recorded~~ ~~when management estimates amounts recoverable through future operations and sale of the Property on an undiscounted basis are below~~ ~~depreciated~~ Table cost. At that time the Property investments themselves are reduced to estimated fair value (using the fair market value based on comparative sales). During the year ended March 31, 2015, the Partnership did not record any loss on impairment of ~~assets or reduction to estimated value. Through March 31, 2015, the Partnership has recorded approximately $35,686,000 as an~~Contents ~~aggregate loss on impairment of assets.~~

One of the Partnership’s objectives is to entitle qualified BACs holders to Tax Credits over the Credit Period. Each of the Local Partnerships in which the Partnership has acquired an interest has been allocated by the relevant state credit agencies the authority to recognize Tax Credits during the Credit Period provided that the Local Partnership satisfies the rent restriction, minimum set-aside and other requirements for recognition of the Tax Credits at all times during such period. Once a Local Partnership has become eligible to recognize Tax Credits, it may lose such eligibility and suffer an event of “recapture” if its Property fails to remain in compliance with the Tax Credit requirements during the 15-year period commencing at the beginning of the Credit Period (“Compliance Period”). As of December 31, 2012, all the Local Partnerships had completed their Credit Periods. However, each Local Partnership must continue to comply with the Tax Credit requirements until the end of the Compliance Period in order to avoid recapture of the Tax Credits. The Compliance Periods for the two remaining properties ended December 31, 2010 for Fawcett Street L.P and December 31, 2012 for Bakery Village Urban Renewal Associates L.P.

A loss on impairment of assets is recorded when management estimates amounts recoverable through future operations and sale of the Property on an undiscounted basis are below depreciated cost. At that time the Property investments themselves are reduced to estimated fair value (using the fair market value based on comparative sales). During the year ended March 31, 2016, the Partnership did not record any loss on impairment of assets or reduction to estimated value. Through March 31, 2016, the Partnership has recorded approximately $35,686,000 as an aggregate loss on impairment of assets.

There can be no assurance that the Partnership will achieve its investment objectives, as described above, and it is unlikely that the Partnership will meet objectives 2 and 3, also as noted above.

- 2 -

The Partnership is subject to the risks incidental to potential losses arising from the management and ownership of improved real estate and poor economic conditions.

Sale of Underlying Local Partnerships

The Partnership ishas ~~currently~~developed ~~in the process of developing~~ a plan to dispose of ~~all~~its oftwo ~~its~~remaining investments. It is anticipated that this process will take afrom ~~number~~12 ofto ~~years.~~24 months. During the fiscal year ended March 31, ~~2015~~2016, the Partnership sold its limited partnership interest in two Local Partnerships. and property and related assets and liabilities in one Local Partnership. Through March 31, ~~2015~~2016, the Partnership has sold its limited partnership interest in ~~six~~eight Local Partnerships, and the property and the related assets and liabilities of ~~three~~four Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its remaining investments or the amount of proceeds which may be received. However, based on the historical operating results of the Local Partnerships and the current economic conditions, it is unlikely that the proceeds from such sales received by the Partnership will be sufficient to return to the limited partners their original investments. All gains and losses on sales are included in discontinued operations.

On July 27, 2015, the Partnership sold its limited partnership interest in First African Kanisa Apartments (“First African”) to an affiliate of the Local General Partner for a sales price of $1. The sale resulted in a gain of approximately $1,603,000 resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of the sale, which was recorded during the quarter ended September 30, 2015. An adjustment to the gain of approximately $88,000 was recorded during the quarter ended March 31, 2016 resulting in an overall gain of $1,515,000.

On June 15, 2015, the property and the related assets and liabilities of Kaneohe Limited Partnership (“Kaneohe”) were sold to an unaffiliated third party purchaser for a sales price of $10,100,000. The Partnership received $2,893,000 as a distribution from this sale after the repayment of the mortgages, other liabilities and closing costs of approximately $7,207,000. The sale resulted in a gain of approximately $4,587,000 which was recorded during the quarter ended June 30, 2015. An adjustment to the gain of approximately $4,073,000 was recorded during the quarter ended September 30, 2015 due to a distribution from this sale in the form of a Security Agreement to the Local General Partner in the amount

-4-

Table of Contents

of $4,069,000. Additional adjustments to the gain of approximately $1,000 and $196,000 were recorded during the quarter ended March 31, 2016 and December 31, 2015, respectively resulting in an overall gain of $8,857,000.

On November 5, 2014, the Partnership sold its limited partnership interest in Figueroa Senior Housing Limited Partnership (“Figueroa”) to an unaffiliated third party purchaser for a sales price of $480,000. The sale resulted in a gain of approximately $4,336,000 resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of the sale, which was recorded during the quarter ended December 31, 2014. In addition, the sale resulted in a noncash distribution to the general partner of the Local Partnership of approximately $474,000 as a result of the write-off of a receivable from the local general partner. An adjustment to the gain of approximately $441,000 was recorded during the quarter ended March 31, 2015, resulting in an overall gain of approximately $4,777,000.

On November 5, 2014, the Partnership sold its limited partnership interest in NNPHI Senior Housing Limited Partnership (“Normandie”) to an unaffiliated third party purchaser for a sales price of $447,000. The sale resulted in a gain of approximately $6,697,000 resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of the sale, which was recorded during the quarter ended December 31, 2014. An adjustment to the gain of approximately $57,000 was recorded during the quarter ended March 31, 2015, resulting in an overall gain of approximately $6,754,000.

On October 4, 2013, the property and the related assets and liabilities of Guymon Housing Partners, L.P. (“Guymon”) were sold to an affiliate of the Local General Partner for a sales price of $2,200,000. The Partnership received $188,875 as a distribution from this sale after the repayment of the mortgages, other liabilities, closing costs and distributions to other partners of approximately $2,011,000. The sale resulted in a gain of approximately $166,000 which was recorded during the quarter ended December 31, 2013. An adjustment to the gain of approximately $653,000 was recorded during the quarter ended March 31, 2014. An additional adjustment to the gain of approximately $24,000 was recorded during the quarter ended December 31, 2014 due to a final cash distribution sent to the Partnership from Guymon, resulting in an overall gain of approximately $843,000.

Segments

The Partnership operates in one segment, which is the investment in multi-family residential property. Financial information about this segment is set forth in Item 8 herein.

Competition

The real estate business is highly competitive and substantially all of the properties acquired by the Partnership are expected to have active competition from similar properties in their respective vicinities. In addition, various other limited partnerships may, in the future, be formed by the General Partner and/or its affiliates to engage in businesses which may be competitive with the Partnership.

Employees

The Partnership does not have any direct employees. All services are performed for the Partnership by the General Partner and its affiliates. The General Partner receives compensation in connection with such activities as set forth in Items 11 and 13. In addition, the Partnership reimburses the General Partner and certain of its affiliates for expenses incurred in connection with the performance by their employees of services for the Partnership in accordance with the Partnership’s Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”).

Item 1A. Risk Factors.

Not applicable.

Item 1B. Unresolved Staff Comments.

Not applicable.

- 3 5-

Table of Contents

Item 2. Properties.

The Partnership’s investment in each of the remaining ~~five~~two Local Partnerships represents 98.99% or 99.89% of the partnership interests in each Local Partnership. 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 Local General Partner and to approve certain major operating and financial decisions, the Partnership has a controlling financial interest in all of the Local Partnerships in which it has invested. Set forth below is a schedule of the Local Partnerships including certain information concerning their respective Apartment Complexes (the “Local Partnership Schedule”). Further information concerning the Local Partnerships and their properties, including any encumbrances affecting the properties, may be found in Item 15, Schedule III.

- 4 6-

Table of Contents

Local Partnership Schedule

Name and Location		Percentage of Units Occupied at May 1,
(Number of Units)	Date Acquired	~~2015~~2016		2015		2014		2013		~~2013~~2012			~~2012~~			~~2011~~
BX-8A Team Associates, L.P. Bronx, NY (41)	October 1995			(b)				(b)				(b)			(b)			(b)
BX-8A Team Associates, L.P.
Westminster Park Plaza (a California Limited Partnership) Los Angeles, CA (130)	June 1996			(a)				(a)				(a)			(a)			(a)
Bronx, NY (41)	October 1995	(b)		(b)		(b)		(b)		(b)
Fawcett Street Limited Partnership Tacoma, WA (60)	June 1996		97	%			97	%			95	%		98	%		98	%
Westminster Park Plaza
Figueroa Senior Housing Limited Partnership Los Angeles, CA (66)	November 1996			(g)			89	%			97	%		97	%		96	%
(a California Limited Partnership)
NNPHI Senior Housing Limited Partnership Los Angeles, CA (75)	December 1996			(g)			92	%			98	%		96	%		82	%
Los Angeles, CA (130)	June 1996	(a)		(a)		(a)		(a)		(a)
Belmont/McBride Apartments Limited Partnership Paterson, NJ (42)	January 1997			(d)				(d)				(d)		76	%		74	%
Fawcett Street Limited Partnership
Sojourner Douglass, L.P. Paterson, NJ (20)	February 1997			(c)				(c)				(c)			(c)		85	%
Tacoma, WA (60)	June 1996	98	%	97	%	97	%	95	%	98	%
New Zion Apartments Limited Partnership Shreveport, LA (100)	October 1997			(e)				(e)				(e)		100	%		94	%
Figueroa Senior Housing Limited Partnership
Bakery Village Urban Renewal Associates, L.P. Montclair, NJ (125)	December 1997		96	%			96	%			100	%		100	%		98	%
Los Angeles, CA (66)	November 1996	(g)		(g)		89	%	97	%	97	%
Marlton Housing Partnership, L.P. (a Pennsylvania limited partnership) Philadelphia, PA (25)	May 1998			(d)				(d)				(d)		100	%		100	%
NNPHI Senior Housing Limited Partnership
GP Kaneohe Limited Partnership Kaneohe, HI (44)	July 1999		98	%			98	%			98	%		98	%		100	%
Los Angeles, CA (75)	December 1996	(g)		(g)		92	%	98	%	96	%
KSD Village Apartments, Phase II, Ltd. Danville, KY (16)	July 1999		88	%			94	%			88	%		69	%		88	%
Belmont/McBride Apartments Limited Partnership
Kanisa Apartments, Ltd. Fayette County, KY (59)	October 1999		95	%			98	%			88	%		83	%		95	%
Paterson, NJ (42)	January 1997	(d)		(d)		(d)		(d)		76	%
Guymon Housing Partners, L.P. Guymon, OK (92)	December 1999			(f)				(f)			100	%		86	%		100	%
Sojourner Douglass, L.P.
Paterson, NJ (20)	February 1997	(c)		(c)		(c)		(c)		(c)
New Zion Apartments Limited Partnership
Shreveport, LA (100)	October 1997	(e)		(e)		(e)		(e)		100	%
Bakery Village Urban Renewal Associates, L.P.
Montclair, NJ (125)	December 1997	98	%	96	%	96	%	100	%	100	%
Marlton Housing Partnership, L.P.
(a Pennsylvania limited partnership)
Philadelphia, PA (25)	May 1998	(d)		(d)		(d)		(d)		100	%
GP Kaneohe Limited Partnership
Kaneohe, HI (44)	July 1999	(i)		98	%	98	%	98	%	98	%
KSD Village Apartments, Phase II, Ltd.
Danville, KY (16)	July 1999	(h)		88	%	94	%	88	%	69	%
Kanisa Apartments, Ltd.
Fayette County, KY (59)	October 1999	(j)		95	%	98	%	88	%	83	%
Guymon Housing Partners, L.P.
Guymon, OK (92)	December 1999	(f)		(f)		(f)		100	%	86	%

(a)

The property and the related assets and liabilities were sold during the fiscal year ended March 31, 2008 (see Note 10 in Item 8).

(b)

The Partnership’s limited partnership interest was sold during the fiscal year ended March 31, 2009 (see Note 10 in Item 8).

-7-

Table of Contents

(c)

The Partnership’s limited partnership interest was sold during the fiscal year ended March 31, 2012 (see Note 10 in Item 8).

(d)

The Partnership’s limited partnership interest was sold during the fiscal year ended March 31, 2013 (see Note 10 in Item 8).

(e)

The property and the related assets and liabilities were sold during the fiscal year ended March 31, 2013 (see Note 10 in Item 8).

(f)

The property and the related assets and liabilities were sold during the fiscal year ended March 31, 2014 (see Note 10 in Item 8).

(g)

The Partnership’s limited partnership interest was sold during the fiscal year ended March 31, 2015 (see Note 10 in Item 8).

(h)

The Partnership’s limited partnership interest was sold during the fiscal year ended March 31, 2016 (see Note 10 in Item 8).

(i)

The property and the related assets and liabilities were sold during the fiscal year ended March 31, 2016 (see Note 10 in Item 8).

(j)

The Partnership’s limited partnership interest was sold during the fiscal year ended March 31, 2016 (see Note 10 in Item 8).

Leases are generally for periods not greater than one to two years and no tenant occupies more than 10% of the total rentable square footage in any single Apartment Complex.

Management continuously reviews the physical state of the properties and suggests to the Local General Partners budget improvements which are generally funded from cash flow from operations or release of replacement reserve escrows.

Management periodically reviews the insurance coverage of the properties and believes such coverage is adequate.

See Item 1, Business, above for the general competitive conditions to which the Properties described above are subject.

Real estate taxes are calculated using rates and assessed valuations determined by the township or city in which the Property is located. Such taxes have approximated less than 1% of the aggregate cost of the Properties as shown in Schedule III included herein.

- 5 -

Tax Credits with respect to a given Apartment Complex were available for a ten-year period that commenced when the Property was rented to qualified tenants. However, the annual Tax Credits available in the year in which the Apartment Complex was placed in service were prorated based upon the months remaining in the year. The amount of the annual Tax Credit not available in the first year was available in the eleventh year. In certain cases, the Partnership acquired its interest in a Local Partnership after the Local Partnership had placed its Apartment Complex in service. In these cases, the Partnership was allocated Tax Credits only beginning in the month following the month in which it acquired its interest and Tax Credits allocated in any prior period were not available to the Partnership.

Item 3. Legal Proceedings.

None.

Item 4. Mine Safety Disclosures

Not applicable.

- 6 8-

Table of Contents

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

As of March 31, ~~2015~~2016, the Partnership had issued and outstanding 45,844 Limited Partnership Interests, each representing a $1,000 capital contribution to the Partnership, or an aggregate capital contribution of $45,844,000. All of the issued and outstanding Limited Partnership Interests have been issued to Independence Assignor Inc. (the “Assignor Limited Partner”), which has in turn issued 45,844 BACs to the purchasers thereof for an aggregate purchase price of $45,844,000. Each BAC represents all of the economic and virtually all of the ownership rights attributable to a Limited Partnership Interest held by the Assignor Limited Partner. BACs may be converted into Limited Partnership Interests at no cost to the holder (other than the payment of transfer costs not to exceed $100), but Limited Partnership Interests so acquired are not thereafter convertible into BACs.

Neither the BACs nor the Limited Partnership Interests are traded on any established trading market. The Partnership does not intend to include the BACs for quotation on NASDAQ or for listing on any national or regional stock exchange or any other established securities market. The Revenue Act of 1987 contained provisions which have an adverse impact on investors in “publicly traded partnerships.” Accordingly, the General Partner has imposed limited restrictions on the transferability of the BACs and the Limited Partnership Interests in secondary market transactions. Implementation of the restrictions should prevent a public trading market from developing and may adversely affect the ability of an investor to liquidate his or her investment quickly. It is expected that such procedures will remain in effect until such time, if ever, as further revision of the Revenue Act of 1987 may permit the Partnership to lessen the scope of the restrictions.

As of May 1912, ~~2015~~2016, the Partnership has 2,~~506~~508 registered holders of an aggregate of 45,844 BACs.

All of the Partnership’s general partnership interests, representing an aggregate capital contribution of $1,000, are held by the General Partner.

The Partnership has made no distributions to the BACs holders from inception through March 31, ~~2015~~2016. There are no material legal restrictions in the Partnership Agreement on the ability of the Partnership to make distributions. However, the Partnership does not anticipate providing cash distributions to its BACs holders other than from net refinancing or sales proceeds.

Transfer Procedures

The Partnership from time to time receives requests by unit holders and others to transfer BACs and/or limited partnership interests. Such requests may occur in connection with tender offers for the Partnership’s units. Such requests implicate the Partnership’s policies and procedures concerning transfers generally and tender offers in particular, which were adopted by the Partnership pursuant to the terms of its Partnership Agreement, to ensure compliance with applicable law, avoid adverse tax consequences for the Partnership and its investors, and preserve the Partnership’s advantageous tax status.

The Partnership relies on a 2% safe harbor established by an Internal Revenue Service (“IRS”) regulation to avoid being characterized as a “publicly-traded partnership” that is taxed as a corporation.

A brief summary of certain of the Partnership’s key policies, practices and requirements with respect to transfers and tender offers is as follows:

No transfer (whether for substitution, assignment or otherwise) is effective or binding on the Partnership unless and until it is approved by the General Partner.

No transfer will be approved unless the transferor and transferee submit complete and properly executed forms of the Partnership’s own transfer documentation. The Partnership does not accept forms of transfer documentation other than its own and does not accept signatures made by power of attorney in lieu of original signatures by each of the transferors and transferees.

-9-

Table of Contents

The Partnership will not approve transfers that in the cumulative aggregate for any tax year exceed the IRS 2% safe harbor, unless a financially responsible person provides the Partnership and its partners with (i) an indemnity (in form and substance in all ways acceptable to the General Partner) for all liability (including, without limitation, any adverse tax consequences) arising from or relating to exceeding the 2% safe harbor and (ii) a legal opinion (in form and substance in all ways acceptable to the General Partner) that there will be no adverse tax consequences to the Partnership and its partners from exceeding the 2% safe harbor.

In order to avoid the undesirable situation of one or more tender offers consuming the entire safe harbor limitation early in the tax year and leaving the Partnership’s remaining investors with no liquidity opportunity for the rest of that tax year, the Partnership restricts the cumulative aggregate total of transfers made pursuant to all tender offers to 1.5% of its outstanding units in each tax year, unless a financially responsible person conducting such tender offer provides the Partnership with an acceptable indemnity and legal opinion of the type described above. At the end of each tax year, the General Partner, in its discretion, may allow the cumulative total number of transfers (including those by tender offer) to reach the 2% safe harbor limit.

The Partnership requires that all tender offers for its units be conducted in accordance with all applicable law including, without limitation, the federal securities laws.

The foregoing is solely a summary of the Partnership’s policies, requirements and practices with respect to transfers and tender offers. More complete information, including a copy of the Partnership’s transfer documentation package, may be obtained from the Partnership.

Item 6. Selected Financial Data.

Not applicable.

- 7 10-

Table of Contents

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Liquidity and Capital Resources

The Partnership originally invested approximately $37,555,000 (not including acquisition fees of approximately $1,771,000) of the net proceeds of the Offering in fourteen Local Partnerships, of which approximately $~~148~~82,000 remains to be paid to the Local Partnerships (including approximately $~~123~~82,000 being held in escrow) as certain benchmarks, such as occupancy level, are attained prior to the release of the funds. The Partnership does not anticipate acquiring additional properties, but the Partnership may be required to fund potential purchase price adjustments based on tax credit adjustor clauses.

The Partnership ishas ~~currently~~developed ~~in the process of developing~~ a plan to dispose of ~~all~~its oftwo ~~its~~remaining investments. It is anticipated that this process will continue to take afrom ~~number~~12 ~~of years.~~to 24 months. During the fiscal year ended March 31, ~~2015~~2016, the Partnership sold its limited partnership interest in two Local Partnerships, and the property and the related assets and liabilities in one Local Partnership. Through March 31, ~~2015~~2016, the Partnership has sold its limited partnership interest in ~~six~~eight Local Partnerships, and the property and the related assets and liabilities of ~~three~~four Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its remaining investments or the amount of proceeds which may be received. However, based on the historical operating results of the Local Partnerships and the current economic conditions, it is unlikely that the proceeds from such sales received by the Partnership will be sufficient to return to the limited partners their original investments.

Short-Term

The Partnership’s primary sources of funds include: (i) working capital reserves, exclusive of the Local Partnership working capital; (ii) interest earned on the working capital reserves; (iii) cash distributions from operations of the Local Partnerships; and (iv) sales and/or refinance proceeds and distributions. Such funds, although minimal (other than possible sales and/or refinance proceeds and distributions), are available to meet the obligations of the Partnership. During the years ended March 31, ~~2015~~2016 and ~~2014~~2015, distributions from operations of the Local Partnerships amounted to approximately $~~21,000~~0 and $21,000, respectively. In addition, during the years ended March 31, ~~2015~~ 2016 and ~~2014~~2015, distributions tofrom the ~~Partnership~~Local Partnerships from sales proceeds amounted to approximately $~~952~~2,893,000 and $~~189~~952,000, respectively. The Partnership does not anticipate providing cash distributions to BACs holders in circumstances other than refinancing or sales.

For the year ended March 31, ~~2015~~2016, cash and cash equivalents of the Partnership and its consolidated Local Partnerships ~~decreased~~increased approximately $~~370~~161,000. This ~~decrease~~ increase was ~~primarily~~ due to ~~acquisition~~proceeds offrom ~~property~~sale ~~and~~of ~~equipment~~properties (of $4910,~~000)~~100,000 ~~repayment~~and ofa ~~mortgage~~decrease ~~notes~~in ~~($274,000),~~cash ~~repayments~~held in escrow relating to ~~local general~~investing ~~partners~~activities ~~and~~of ~~affiliates~~approximately ($119,~~011,~~000), ~~net~~which ~~distributions~~exceeded tocash ~~noncontrolling~~used ~~interests~~in operating activities of approximately ($272,429,000), ancosts ~~increase~~paid inrelating ~~cash~~to ~~held in~~sales ~~escrow~~of ~~relating~~property toof ~~investing~~approximately ~~activities~~ ($553,190,000), ~~which~~repayment ~~exceeded~~of ~~cash~~mortgage ~~provided~~notes byof ~~operating~~approximately ~~activities~~ ($70182,000), ~~proceeds~~acquisitions ~~from sale~~of property and equipment of ~~properties~~approximately ($~~952~~66,000), and adistributions ~~decrease~~to innoncontrolling ~~deferred~~interests ~~costs~~of ~~related~~approximately ~~to financing activities~~ ($244,091,000). Included in the adjustments to reconcile the net ~~loss~~income to net cash (used in) provided by operating activities is depreciation and amortization in the amount of approximately ( $~~109~~141,000), ~~gain~~and ona ~~sales~~payment of ~~properties~~deferred ofasset ~~approximately~~management ~~($11,555,000),~~fees ~~forgiveness~~to ofthe ~~debt ($296,000),~~ general partner~~’s contribution~~ ~~$843,000~~ and aaffiliates ~~change in fair value~~ of ~~interest rate swap of~~ approximately ($242,100,000).

Total expenses from operations for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, excluding depreciation and amortization, interest, and general and administrative – related parties, ~~loss on impairment of assets and change in fair value of an interest rate swap,~~ totaled $1,~~974~~437,~~026~~751 and $1,~~928~~363,~~862~~431, respectively.

Accounts payable and other liabilities arising from operations totaled $~~201~~124,~~875~~790 and $~~392~~201,~~721~~875 as of March 31, ~~2015~~2016 and ~~2014~~2015, respectively. Accounts payable and other liabilities are short term liabilities which are expected to be paid from operating cash flows, working capital balances at the Local Partnership level, Local General Partner advances and, in certain circumstances, advances from the Partnership. Accrued interest payable arising from operations as of March 31, ~~2015~~2016 and ~~2014~~2015 was $~~130~~63,~~061~~220 and $4130,~~626~~061,~~937,~~ respectively. Accrued interest payable represents the accrued interest on all mortgage loans, which include primary and secondary loans. Certain secondary loans have provisions such that interest is accrued but not payable until a future date. The Partnership anticipates the payment of accrued interest on the secondary loans (which make up the majority of the accrued interest payable amount and which has been accumulating since the Partnership’s investment in the respective Local Partnerships) will be made from future refinancings or sales proceeds of the respective Local Partnerships. Furthermore, each Local Partnership’s mortgage notes are collateralized by the land and buildings of the respective Local Partnership, and are without further recourse to the Partnership. The maximum loss the Partnership would incur is its net investment in the respective Local Partnership.

~~The~~ ~~Partnership has unconsolidated cash reserves of approximately $487,000~~ ~~at March 31, 2015. Such amount is considered sufficient to cover the Partnership’s day to day operating expenses, excluding~~ -11- ~~fees to the General Partner, for at least the next fiscal year.~~

~~At March 31, 2015, the Partnership’s~~ ~~liabilities exceeded assets by $10,308,898 and for the year ended March 31, 2015, the Partnership recognized net income of $11,240,313,~~ ~~including~~ Table ~~gain on sale~~ of ~~properties of $11,555,138. However, because 1) the provisions of the secondary loans defer the payment~~Contents ~~of accrued interest of the respective Local Partnerships and will be made from future refinancing or sales proceeds of the respective~~ Local Partnerships, 2) the General Partner continues to defer the payment of fees as discussed below and in Note 8 to the Financial Statements in Item 8, and 3) the Partnership has sufficient unconsolidated working capital reserves to cover the Partnership’s day to day operating expenses, the Partnership (and the applicable Local Partnerships) believes it has sufficient liquidity and ability to generate cash and to meet existing and known or reasonably likely future cash requirements over both the short and long term.

and buildings of the respective Local Partnership, and are without further recourse to the Partnership. The maximum loss the Partnership would incur is its net investment in the respective Local Partnership.

At March 31, 2016, the Partnership’s liabilities exceeded assets by $4,053,645 and for the year ended March 31, 2016, the Partnership recognized net income of $10,210,520, including gain on sale of properties of $10,604,339. However, because 1) the provisions of the secondary loans defer the payment of accrued interest of the respective Local Partnerships and will be made from future refinancing or sales proceeds of the respective Local Partnerships, 2) the General Partner continues to defer (pending the Partnership’s receipt of sales and refinancing proceeds) the payment of fees as discussed below and in Note 8 to the Financial Statements in Item 8, and 3) the Partnership has sufficient unconsolidated working capital reserves to cover the Partnership’s day to day operating expenses, the Partnership (and the applicable Local Partnerships) believes it has sufficient liquidity and ability to generate cash and to meet existing and known or reasonably likely future cash requirements over both the short and long term.

Long-Term

Partnership management fees owed to the General Partner amounting to approximately $212,~~296,~~000 and $2,~~719~~296,000 were accrued and unpaid as of March 31, ~~2015~~2016 and ~~2014~~2015, respectively, and are included in the line item Due to general partner and affiliates in the consolidated balance sheets. Unpaid partnership management fees for any year are to be deferred without interest and will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all Partnership liabilities have been made other than those owed to the General Partner and its affiliates.

- 8 -

All other payables are expected to be paid, if at all, from working capital and cash reserves. The General Partner does not anticipate making any future advances of operating funds to any of the Local Partnerships in which the Partnership has invested. Even if a situation arose where the General Partner and its affiliates needed to but were not able to make operating advances in the future due to lack of funds, the only impact on the Partnership would be that it would lose its investment in that particular Local Partnership. The Partnership’s ability to continue its operations would not be affected.

The Partnership’s liquidity considerations are discussed in Note 12a in Item 8.

Since the maximum loss the Partnership would be liable for is its net investment in the respective subsidiary partnerships, the resolution of any existing contingencies is not anticipated to impact future liquidity or financial condition of the Partnership in a material way. However, the Partnership’s loss of its investment in a Local Partnership may result in recapture of Tax Credits if the investment is lost before expiration of the Compliance Period.

The Local Partnerships are impacted by inflation in several ways. Inflation allows for increases in rental rates generally to reflect the impact of higher operating and replacement costs. Furthermore, inflation generally does not impact the fixed long-term financing under which real property investments were purchased. Inflation also affects the Local Partnerships adversely by increasing operating costs, such as fuel, utilities, and labor. Since revenues from sales of assets are driven by market conditions, inflation has little impact on sales. However, continued inflation may result in appreciated values of the Local Partnership’s apartment complexes over a period of time as rental revenues and replacement costs continue to increase.

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. Of ~~The~~the ~~portfolio~~remaining two properties one is ~~diversified~~located byin ~~the~~New ~~location~~Jersey ofwhile the ~~Properties~~other ~~around~~is ~~the~~located ~~United~~in ~~States~~Washington, so that if one area of the country is experiencing downturns in the economy, the ~~remaining~~other ~~Properties~~Property in the portfolio may be experiencing upswings. However, the geographic diversification of the portfolio may not protect against a general downturn in the national economy. As of December 31, 2012, all the Local Partnerships had completed their Credit Periods. The Compliance Periods ~~will~~for ~~continue~~the totwo ~~expire~~remaining ~~through~~ properties ended December 31, ~~2017~~2010 ~~with~~for ~~respect~~Fawcett toStreet ~~the~~L.P ~~remaining~~and ~~properties~~December ~~depending~~31, on2012 ~~when~~for ~~the~~Bakery ~~Compliance~~Village ~~Period~~Urban ~~commenced~~Renewal Associates L.P.

-12-

Table of Contents

Sale of Underlying Properties/Local Partnership Interests

For a discussion of the sale of properties in which the Partnership owns direct and indirect interests, see Note 10 in Item 8.

Discontinued Operations

The Partnership ishas ~~currently~~developed ~~in the process of developing~~ a plan to dispose of ~~all~~its oftwo ~~its~~remaining investments. Any dispositions would meet the criteria established for recognition as a discontinued operation under ASC 360, Property, Plant and Equipment (“ASC 360”), which specifically requires that such amounts must differentiate a component of a business comprised of operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes, from the rest of the entity. There are no assets classified as property and equipment-held for sale at March 31, ~~2015~~2016.

Off-Balance Sheet Arrangements

The Partnership has no off-balance sheet arrangements.

Critical Accounting Policies

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Set forth below is a summary of the accounting policies that management believes are critical to the preparation of the consolidated financial statements.

Property and Equipment

Property and equipment to be held and used are carried at cost which includes the purchase price, acquisition fees and expenses, construction period interest and any other costs incurred in acquiring the Properties. The cost of property and equipment is depreciated over their estimated useful lives using accelerated and straight-line methods. Expenditures for repairs and maintenance are charged to expense as incurred; major renewals and betterments are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the assets and accumulated depreciation accounts and the profit or loss on such disposition is reflected in earnings. The Partnership complies with ASC 360, Property, Plant and Equipment. A loss on impairment of assets is recorded when management estimates amounts recoverable through future operations and sale of the Property on an undiscounted basis are below depreciated cost. At that time, Property investments themselves are reduced to estimated fair value (using the fair market value based on comparative sales) when the Property is considered to be impaired and the depreciated cost exceeds estimated fair value.

At the time management commits to a plan to dispose of a specific asset, said asset is adjusted to the lower of carrying amount or fair value less costs to sell. These assets are classified as property and equipment-held for sale and are not depreciated. Property and equipment that are held for sale are included in discontinued operations. There are no assets classified as property and equipment-held for sale at March 31, ~~2015~~ 2016.

During the year ended March 31, ~~2015~~2016, the Partnership did not record any loss on impairment of assets or reduction to estimated value. Through March 31, ~~2015~~2016, the Partnership has recorded approximately $35,686,000 as an aggregate loss on impairment of assets.

- 9 -

Fair Value Measurements

The estimated fair value of mortgage notes payable and the interest rate swap have been determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

-13-

Table of Contents

Fair value for the mortgage notes have been estimated using Level 3 inputs. Fair value for the interest rate swap has been estimated using Level 2 inputs. The carrying amount of accounts payable and other liabilities and other assets approximates fair value due to their short-term nature. For further discussion, please see Note 3, Item 8.

Revenue Recognition

Rental income is earned under standard residential operating leases and is typically due the first day of each month, but can vary by property due to the terms of the tenant leases. Rental income is recognized when earned and charged to tenants’ accounts receivable if not received by the due date. If rental payments are received in advance of the due date, revenue is deferred until earned. Rental subsidies are recognized as rental income during the month in which they are earned.

Other revenues are recorded when earned and consist of the following items: interest income earned on cash and cash equivalent balances and cash held in escrow balances, income from forfeited security deposits, late charges, laundry and vending income and other rental related items (see Item 8, Note 2e).

Related Parties

Under the terms of the Partnership Agreement, the Partnership has entered into certain arrangements with the General Partner and its affiliates, which provide for compensation to be paid to the General Partner and its affiliates. Such arrangements include (but are not limited to) agreements to pay annual Partnership management fees, nonrecurring acquisition fees, a nonaccountable acquisition expense allowance, an accountable expense reimbursement and subordinated disposition fees to the General Partner and/or its affiliates. In addition, the General Partner is entitled to a subordinated interest in cash from sales or refinancings and a 1% interest in net income, net loss, distributions of adjusted cash from operations and cash from sales or refinancings. Certain members and officers of the General Partner receive compensation from the General Partner and its affiliates for services performed for various affiliated entities which may include services performed for the Partnership. The maximum annual partnership management fee paid to the General Partner is 0.5% of invested assets. See Note 8 in Item 8, which is incorporated herein by reference.

Income Taxes

The Partnership is not required to provide for, or pay, any federal income taxes. Net income or loss generated by the Partnership is passed through to the partners and is required to be reported by them. The Partnership may be subject to state and local taxes in jurisdictions in which it operates. For income tax purposes, the Partnership has a fiscal year ending December 31.

Results of Operations

The following is a summary of the results of operations of the Partnership for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, respectively, excluding the results of its discontinued operations which are not reflected in the following discussion (see Item 8, Note 11).

The net income ~~(loss)~~ for the years ended March 31, ~~2015~~2016 and ~~2014~~2015 totaled $1110,~~240~~210,~~313~~520 and ($211,~~708~~240,~~982)~~313, respectively.

~~2015~~ 2016 vs. ~~2014~~2015

Rental income increased approximately 31% for the year ended March 31, ~~2015~~2016 as compared to the ~~corresponding~~year ~~period~~ ended March 31, ~~2014~~2015, primarily due to ~~decreases~~an inincrease ~~vacancies and decreases~~ in ~~rent~~occupancy ~~concessions as well as rental rate increases~~ at ~~several~~one Local ~~Partnerships~~Partnership.

~~Other~~ Total ~~income decreased approximately $38~~expenses,~~000 for~~ ~~the~~excluding ~~year~~general ~~ended~~and ~~March~~administrative-related 31parties, ~~2015~~general asand ~~compared~~administrative tonon-related ~~the~~parties, ~~corresponding~~repairs ~~period~~and ~~in 2014~~maintenance, ~~primarily~~operating ~~due~~expenses toand ~~forgiveness~~depreciation ~~of management fees payable at one Local Partnership in the prior year~~ and ~~income~~amortization, ~~recognized~~remained atfairly ~~the~~consistent ~~Partnership~~with ~~level~~a ~~from~~decrease ~~nonrefundable~~of ~~deposits~~less ~~retained by~~than ~~the~~2% ~~Partnership~~for in the ~~prior~~ year asended aMarch ~~result~~31, of2016 aas ~~contract~~compared ~~being~~with ~~no longer in effect for~~ the ~~sale~~year ofended ~~its~~March ~~limited~~31, ~~partnership interests in two Local Partnerships~~2015.

~~Total~~ General and administrative-related parties’ expenses decreased approximately $53,000 ~~excluding~~for ~~general~~the ~~and~~year ~~administrative, repairs~~ended ~~and~~March ~~maintenance~~31, ~~depreciation~~2016, ~~and~~as ~~amortization,~~compared ~~loss~~to onthe ~~impairment~~year ofended ~~asset~~March ~~and~~31, ~~change~~2015, inprimarily ~~fair~~due ~~value~~to ofa ~~interest~~decrease ~~rate~~in ~~swap, remained~~local ~~fairly~~administrative ~~consistent~~fees ~~with~~at one Local Partnership, and a decrease ofin ~~less~~asset ~~than~~management 4%fees ~~for~~due to the ~~year~~sale ~~ended~~of ~~March~~properties ~~31,~~offset ~~2015~~by asan ~~compared~~increase ~~with~~in ~~the~~expense ~~corresponding period~~reimbursement ~~ended~~due ~~March~~to ~~31,~~an ~~2014~~increase in overhead expense allocation from CAHA at the Partnership level.

~~General and administrative expenses increased~~ ~~approximately $54,000 for the year ended March 31, 2015, as compared to the corresponding period ended March 31, 2014, primarily~~ ~~due to increase in salaries and benefits at two Local Partnerships, increase in professional fees at a third Local Partnership~~ -14- ~~and an increase in legal fees at the Partnership level.~~

~~Change~~ Table ~~in fair value~~ of ~~interest rate swap~~Contents ~~decreased approximately $1,000 for the year ended March 31, 2015 as compared to the corresponding period in 2014, primarily due~~ ~~to the change in interest rates.~~

~~Depreciation~~General and ~~amortization~~administrative ~~decreased~~ non-related parties’ expenses increased approximately $~~123~~17,000 for the year ended March 31, ~~2015~~2016, as compared to the ~~corresponding~~year ~~period~~ ended March 31, ~~2014~~2015, primarily due to ~~impairment~~an ofincrease ~~property~~in ~~and~~tax ~~equipment~~preparation inexpenses, ~~the~~audit ~~year~~fees ~~ended~~expenses, ~~March~~investor ~~31,~~relations’ ~~2014~~services expenses at ~~two~~the ~~Local~~Partnership ~~Partnerships~~level.

- Operating 10and -other expenses increased approximately $37,000 for the year ended March 31, 2016, as compared to the year ended March 31, 2015, primarily due to an overall increase in utility expenses at the two remaining Local Partnerships.

~~Loss~~ Repairs onand ~~impairment~~maintenance ofexpenses ~~fixed~~increased ~~assets amounted to~~ approximately $~~0 and $2~~11,~~406,~~000 for the ~~years~~year ended March 31, ~~2015~~2016, ~~and~~as ~~2014,~~compared ~~respectively.~~to Atthe year ended March 31, 2015, ~~cumulative~~primarily ~~impairment loss~~due ~~was~~to ~~approximately~~an ~~$35~~increase in major repairs expenses,~~686,000.~~ ~~See~~turnover ~~Note~~expenses 3and elevator maintenance expense at one Local Partnership offset by a decrease in ~~Item~~painting 8and ~~for~~decorating ~~detailed~~expense, ~~discussion~~laundry onfacility ~~impairments~~repairs and maintenance expense at a second Local Partnership.

During the year ended March 31, 2016, the Partnership has not recorded any loss on impairment of assets. Through March 31, 2016, the Partnership has recorded approximately $35,686,000 as an aggregate loss on impairment of property.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

Not applicable.

- 11 15-

Table of Contents

Item 8. Financial Statements and Supplementary Data.

		Sequential Page
		SequentialPage
(a) 1.	Consolidated Financial Statements
	Reports of Independent Registered Public Accounting Firms	~~13-~~17-19
	Consolidated Balance Sheets at March 31, 2015 and 2014	18
	Consolidated Balance Sheets at March 31, 2016 and 2015	20
	Consolidated Statements of Operations for the Years Ended March 31, 2015 and 2014	19
	Consolidated Statements of Operations for the Years Ended March 31, 2016 and 2015	21
	Consolidated Statements of Changes in Partners’ (Deficit) Capital for the Years Ended March 31, 2015 and 2014	20
	Consolidated Statements of Changes in Partners’ (Deficit) Capital for the Years Ended March 31, 2016 and 2015	22
	Consolidated Statements of Cash Flows for the Years Ended March 31, 2015 and 2014	21
	Consolidated Statements of Cash Flows for the Years Ended March 31, 2016 and 2015	23
	Notes to Consolidated Financial Statements	2224

- 12 16-

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners

Independence Tax Credit Plus L.P. IV and Subsidiaries

(A Delaware Limited Partnership)

We have audited the accompanying consolidated balance sheets of Independence Tax Credit Plus L.P. IV and Subsidiaries (A Delaware Limited Partnership) as of March 31, ~~2015~~2016 and ~~2014~~ 2015, and the related consolidated statements of operations, changes in partners’ (deficit) capital, and cash flows for the years ended March 31, ~~2015~~2016 and ~~2014~~2015 (the ~~2014~~2015 and ~~2013~~2014 Fiscal Years). Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We did not audit the financial statements for one ~~and three~~ subsidiary ~~partnerships~~partnership whose income (losses) aggregated $~~140~~229,~~825~~395 and ($~~845~~140,~~457)~~825 for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, and whose assets constituted 2142% and 4221% of the Partnership’s assets at March 31, ~~2015~~2016 and ~~2014~~2015, respectively, represented in the accompanying consolidated financial statements. The financial statements for ~~these~~this ~~one and three~~ subsidiary ~~partnerships~~partnership ~~were~~was audited by ~~other~~another ~~auditors~~auditor whose ~~reports~~ report thereon ~~have~~has been furnished to us and our opinion expressed herein, insofar as it relates to the amounts included for ~~these~~ this subsidiary ~~partnerships~~partnership is based solely upon the ~~reports~~report of the other auditors.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, based upon our audits, and the ~~reports~~report of the other auditors referred to above, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Independence Tax Credit Plus L.P. IV and Subsidiaries as of March 31, ~~2015~~ 2016 and ~~2014~~2015, and the results of their operations and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

~~As discussed in Note 12(b), the consolidated~~ financial statements include the financial statements of two subsidiary partnerships with significant uncertainties. The financial statements of these subsidiary partnerships were prepared assuming that they will continue as going concerns. These two subsidiary partnerships’ net losses aggregated $22,856 and $23,122 (2014 and 2013 Fiscal Years) and their assets aggregated $266,392 and $270,799 at March 31, 2015 and 2014, respectively. Management’ /s/ ~~plans~~RAICH inENDE ~~regard~~MALTER to& ~~these matters are also described in Note 12(b)~~CO. ~~The accompanying consolidated financial statements do not include any adjustments that might result from the outcome~~LLP ~~of these uncertainties.~~

~~/s/~~ RAICH ENDE & MALTER & CO. LLP

RAICH ENDE & MALTER CO. LLP

New York, New York

June 29, ~~2015~~2016

- 13 17-

~~[LETTERHEAD~~ Table OFof ~~CLIFFORD R. BENN, CPA]~~Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

General partner

Figueroa Senior Housing Limited Partnership

Los Angeles, California

I have audited the accompanying balance sheet of Figueroa Senior Housing Limited Partnership, at December 31,2013, and the related statements of loss, changes in partners' capital, and cash-flow for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with standards of the Public Company Accounting Oversight Board, used in the United States of America. Those standards require that I plan and. perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Opinion

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Figueroa Senior Housing Limited Partnership on December 31, 2013, and the results of its operations and its cash-flow for the year then ended in accordance with accounting principles generally accepted in the United States of America.

/s/ Clifford R. Benn. CPA

March 5, 2014, except with respect to the matter discussed in note 12 as to which the date is May 2, 2014.

Torrance, California

- 14 -

[LETTERHEAD OF CLIFFORD R. BENN, CPA]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

General partner

NNPHI Senior Housing Limited Partnership

Los Angeles, California

I have audited the accompanying balance sheet of NNPHI Senior Housing Limited Partnership, at December 31,2013, and the related statements of loss, changes in partners' capital, and cash-flow for the year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with standards of the Public Company Accounting Oversight Board, used in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment 'of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Opinion

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of NNPHI Senior Housing Limited Partnership on December 31, 2013, and the results of its operations and its cash-flow for the year then ended in accordance with accounting principles generally accepted in the United States of America.

/s/ Clifford Benn, CPA

February 24, 2014

Torrance, California

- 15 -

[Letterhead of COHNREZNICK, LLP]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners

Bakery Village Urban Renewal Associates, L.P.

We have audited the accompanying financial statements of Bakery Village Urban Renewal Associates, L.P., which comprise the balance sheet as of December 31, ~~2014~~2015, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bakery Village Urban Renewal Associates, L.P. as of December 31, ~~2014~~2015, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

/s/ COHNREZNICK LLP

Baltimore, Maryland

~~April~~ March 101, ~~2015~~2016

- 16 18-

Table of Contents

[Letterhead of COHNREZNICK, LLP]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners

Bakery Village Urban Renewal Associates, L.P.

We have audited the accompanying financial statements of Bakery Village Urban Renewal Associates, L.P., which comprise the balance sheet as of December 31, ~~2013~~2014, and the related statements of operations, changes in partners' equity (deficit) and cash flows for the year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Auditor's Responsibility

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bakery Village Urban Renewal Associates, L.P. as of December 31, ~~2013~~2014, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

/s/ COHNREZNICK LLP

Baltimore, Maryland

~~February~~ April 2810, ~~2014~~2015

- 17 19-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31,
	2015				2014
	2016			2015
ASSETS
Operating assets
Property and equipment, at cost, less accumulated depreciation (Notes 2 and 4)	$	1181,~~089,909~~152		$	$1,089,909	~~1,374,070~~
Cash and cash equivalents (Notes 2, 3 and 12 )		~~706~~867,~~652~~364			706,652	~~1,076,241~~
Cash held in escrow (Notes 2, 3 and 5)		~~784~~622,~~111~~020			784,111	~~1,068,337~~
Deferred costs – less accumulated amortization (Notes 2 and 6)		~~240~~102,~~291~~389			240,291	~~298,813~~
Due from local general partners and affiliates		~~5,795~~—			5,795	~~670,998~~
Other assets		~~245~~80,~~594~~560			245,594	~~307,060~~
Total assets	$	31,~~072~~853,~~352~~485		$	$3,072,352	~~4,795,519~~
LIABILITIES AND PARTNERS’ (DEFICIT) CAPITAL
Operating liabilities
Mortgage notes payable (Notes 3 and 7)	$	94,~~475~~879,~~089~~265		$	$9,475,089	~~16,456,014~~
Accounts payable and other liabilities		~~201~~124,~~875~~790			201,875	~~392,721~~
Accrued interest		130,061				4,626,937
Accrued interest payable		63,220			130,061
Security deposits payable		~~169~~147,~~508~~226			169,508	~~220,634~~
Interest rate swap		~~20,000~~—			20,000	~~44,000~~
Due to local general partners and affiliates (Note 8)		840,182				1,851,647
Due to local general partners and affiliates (Note 2 and 8)		607,082			840,182
Due to general partner and affiliates (Note 8)		2,544,535				3,094,505
Due to general partners and affiliates (Note 2 and 8)		85,547			2,544,535
Total liabilities		135,~~381~~907,~~250~~130			13,381,250	~~26,686,458~~
Commitments and contingencies (Notes 8 and 12)
Partners’ (deficit) capital
Limited partners (100,000 BACs authorized; 45,844 issued and outstanding)		(103,~~428~~812,~~532~~073)	)		(10,428,532)	~~(21,079,183~~	)
General partners		(495,438	)			(603,021	)
General partner		(428,605)			(495,438)
Independence Tax Credit Plus L.P. IV total		(104,~~923~~240,~~970~~678)	)		(10,923,970)	~~(21,682,204~~	)
Noncontrolling interests		~~615~~187,~~072~~033			615,072	~~(208,735~~	)
Total partners’ (deficit) capital		(104,~~308~~053,~~898~~645)	)		(10,308,898)	~~(21,890,939~~	)
Total liabilities and partners’ (deficit) capital	$	31,~~072~~853,~~352~~485		$	$3,072,352	~~4,795,519~~

See accompanying notes to consolidated financial statements.

- 18 20-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Years Ended March 31
	Years Ended March 31,
	2015				2014*
	2016			2015*
Operations:
Revenues
Rental income	$	21,~~777~~626,~~867~~745		$	$1,605,597	~~2,699,537~~
Other		9275,~~081~~964			79,790	~~130,037~~
Total revenues		21,~~869~~702,~~948~~709			1,685,387	~~2,829,574~~
Expenses
General and administrative		~~899~~672,~~934~~720			655,918	~~845,256~~
General and administrative-related parties (Note 8)		~~719~~413,~~179~~994			467,011	~~677,571~~
Repairs and maintenance		~~478~~376,~~645~~272			365,443	~~476,261~~
Operating and other		~~398~~226,~~916~~914			190,359	~~422,963~~
Real estate taxes		9089,~~689~~665			90,239	~~87,628~~
Insurance		~~105~~72,~~840~~180			61,472	~~96,754~~
Interest		~~428~~170,~~717~~390			185,600	~~462,597~~
Change in fair value of interest rate swap (Note 3)		(24,000	)			(25,000	)
Depreciation and amortization		14,303			14,301
Depreciation and amortization		106,384				229,333
Total expenses		2,036,438			2,030,343
Loss on impairment of assets (Note 4)		-				2,406,000
Loss from operations		(333,729)			(344,956)
Total expenses		3,204,304				5,679,363
Income from discontinued operations		10,544,249			11,585,267
Loss from operations		(334,356	)			(2,849,789	)
Net income		10,210,520			11,240,313
Income from discontinued operations		11,574,669				140,807
Net (income) loss attributable to noncontrolling interests from operations		(181)			(376)
Net income (loss)		11,240,313				(2,708,982	)
Net (income) loss attributable to noncontrolling interests from discontinued operations		(3,527,047)			(481,703)
Net (income) loss attributable to noncontrolling interests from operations		(865	)			8,414
Net (income) loss attributable to noncontrolling interests		(3,527,228)			(482,079)
Net (income) loss attributable to noncontrolling interests from discontinued operations		(481,214	)			703,577
Net income attributable to Independence Tax Credit Plus L.P. IV	$	6,683,292		$	10,758,234
Net (income) loss attributable to noncontrolling interests		(482,079	)			711,991
Loss from operations – limited partners		(330,571)			(341,880)
Net income (loss) attributable to Independence Tax Credit Plus L.P. IV	$	10,758,234			$	(1,996,991	)
Income from discontinued operations – limited partners		6,947,030			10,992,528
Loss from operations – limited partners	$	(331,869	)		$	(2,812,961	)
Net income – limited partners	$	6,616,459		$	10,650,651
Income from discontinued operations – limited partners		10,982,520				835,940
Number of BACs outstanding		45,844			45,844
Net income (loss) – limited partners	$	10,650,651			$	(1,977,021	)
Loss from operations- limited partners- per weighted average BAC	$	(7.21)		$	(7.46)
Number of BACs outstanding		45,844				45,844
Income from discontinued operations- limited partners- per weighted average BAC		151.54			239.78
Loss from operations- limited partners- per weighted average BAC	$	(7.24	)		$	(61.36	)
Net income - limited partners- per weighted average BAC	$	144.33		$	232.32
Income from discontinued operations- limited partners- per weighted average BAC		239.56				18.24
Net income (loss) - limited partners- per weighted average BAC	$	232.32			$	(43.12	)

* Reclassified for comparative purposes.

See accompanying notes to consolidated financial statements.

- 19 21-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ (DEFICIT) CAPITAL

YEARS ENDED MARCH 31, ~~2015~~2016 AND ~~2014~~2015

				Limited	~~Limited~~		General		~~General~~	Noncontrolling		~~Noncontrolling~~
	Total			Partners	~~Partners~~		Partner		~~Partners~~	Interests		~~Interests~~
Partners' (deficit) capital – April 1, 2013	$	(18,880,008	)		$	(19,102,162	)		$	(583,051	)	$	805,205
Partners’ (deficit) capital – April 1, 2014	$	(21,890,939)		$	(21,079,183)		$	(603,021)		$	(208,735)
Net loss		(2,708,982	)			(1,977,021	)			(19,970	)		(711,991	)
Net income		11,240,313			10,650,651			107,583			482,079
Distributions		(~~301~~501,~~949~~062)	)		—	-		—		-	(501,062)		~~(301,949~~	)
Partners' (deficit) capital – March 31, 2014		(21,890,939	)			(21,079,183	)			(603,021	)		(208,735	)
Contributions- write-off of related party debt		842,790			—			—			842,790
Net income		11,240,313				10,650,651				107,583			482,079
Partners’ (deficit) capital – March 31, 2015	$	(10,308,898)		$	(10,428,532)		$	(495,438)		$	615,072
Distributions		(501,062	)			-				-			(501,062	)
Net income		10,210,520			6,616,459			66,833			3,527,228
Contributions- write-off of related party debt		842,790				-				-			842,790
Distributions		(4,091,448)			—			—			(4,091,448)
Partners' (deficit) capital – March 31, 2015	$	(10,308,898	)		$	(10,428,532	)		$	(495,438	)	$	615,072
Contributions- write-off of related party debt		136,181			—			—			136,181
Partners’ (deficit) capital – March 31, 2016	$	(4,053,645)		$	(3,812,073)		$	(428,605)		$	187,033

See accompanying notes to consolidated financial statements.

- 20 22-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years Ended March 31
	Years Ended March 31,
	2015				2014
	2016			2015
Cash flows from operating activities:
Net income (loss)	$	11,240,313			$	(2,708,982	)
Net income	$	10,210,520		$	11,240,313
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Gain on sale of properties		(11,555,138	)			(819,451	)
Depreciation and amortization		141,263			108,954
Forgiveness of debt		(296,360	)			-
Gain on sale of property		(10,604,339)			(11,555,138)
General Partner's contribution		842,790				-
Forgiveness of debt		—			(296,360)
Depreciation and amortization		108,954				313,735
Local General Partner's contribution		—			842,790
Loss on impairment of assets		-				2,406,000
Interest rate swap		—			(24,000)
Interest rate swap		(24,000	)			(25,000	)
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:
Increase in cash held in escrow		(31,211)			(31,143)
Increase in accounts payable		7,480				94,482
Increase in due from local general partners and affiliates		427			207,405
Increase in security deposit payable		1,210				11,382
Decrease in other assets		29,853			2,357
Increase in accrued interest payable		26,583				284,417
Increase in accounts payable		33,101			7,480
(Increase) decrease in cash held in escrow		(31,143	)			85,307
Increase in accrued interest payable		2,411			26,583
Decrease (increase) in other assets		2,357				(117,402	)
Increase in security deposit payable		13,916			1,210
Decrease (increase) in due from general partner and affiliates		207,405				(8,915	)
Increase (decrease) in due to local general partners and affiliates		96,261			(180)
Increase in due to local general partners and affiliates		(180	)			(4,457	)
Decrease in due to general partner and affiliates		(2,320,806)			(459,994)
(Decrease) increase in due to general partner and affiliates		(459,994	)			242,907
Total adjustments		(12,639,124)			(11,170,036)
Total adjustments		(11,170,036	)			2,463,005
Net cash (used in) provided by operating activities		(2,428,604)			70,277
Net cash provided by (used in) operating activities		70,277				(245,977	)
Cash flows from investing activities:
Cash flows from investing activities:
Decrease (increase) in cash held in escrow		18,872			(55,410)
Proceeds from sale of properties		951,747				2,200,000
Acquisition of property and equipment		(66,498)			(48,619)
Costs related to sale of property		-				(1,347,894	)
Proceeds from sale of property		10,100,000			951,747
Acquisition of property and equipment		(48,619	)			(93,333	)
Costs paid relating to sale of property		(3,189,917)			—
(Increase) decrease in cash held in escrow		(55,410	)			13,611
Net repayments (advances) to local general partners and affiliates		—			(1,011,285)
Net (repayments) advances to local general partners and affiliates		(1,011,285	)			4,084
Net cash provided by (used in) investing activities		6,862,457			(163,567)
Net cash (used in) provided by investing activities		(163,567	)			776,468
Cash flows from financing activities:
Cash flows from financing activities:
Repayments of mortgage notes		(181,693)			(273,709)
Principal payments of mortgage notes		(273,709	)			(255,793	)
Distributions to noncontrolling interests		(4,091,448)			(26,939)
Decrease (increase) in deferred costs		24,349				(13,949	)
Increase in deferred costs		—			24,349
Distributions to noncontrolling interests		(26,939	)			(301,949	)
Net cash used in financing activities		(4,273,141)			(276,299)
Net cash used in financing activities		(276,299	)			(571,691	)
Net increase (decrease) in cash and cash equivalents		160,712			(369,589)
Net decrease in cash and cash equivalents		(369,589	)			(41,200	)
Cash and cash equivalents at beginning of period		706,652			1,076,241
Cash and cash equivalents at beginning of year		1,076,241				1,117,441
Cash and cash equivalents at end of period	$	867,364		$	706,652
Cash and cash equivalents at end of year	$	706,652			$	1,076,241
Supplemental disclosure of cash flows information:
Supplemental disclosure of cash flows information:
Cash paid during the year for interest	$	282,674		$	664,663
Cash paid during the year for interest	$	664,663			$	569,731
Summarized below are the components of the gain on sale of property:
Summarized below are the components of the gain on sale of properties:
Proceeds from sale of property	$	(10,100,000)		$	(951,747)
Proceeds from sale of properties – net	$	(951,747	)		$	(852,106	)
Costs paid relating to sale of property		3,189,917			—
Property and equipment, net of accumulated depreciation		~~251~~946,~~317~~193			251,317	~~1,301,913~~
Deferred costs		625,~~682~~701			6,682	-
Other assets		59135,~~109~~180			59,109	~~60,171~~
Cash held in escrow		~~370~~174,~~779~~430			370,779	~~132,464~~
Accounts payable and other liabilities		(~~198~~110,~~326~~193)	)		(198,326)	~~(11,048~~	)
Mortgage payable		(64,~~410~~414,~~856~~131)	)		(6,410,856)	~~(1,390,829~~	)
Accrued interest		(469,~~523,459~~244)	)		(4,523,459)	~~(7,796~~	)
Due to local general partners and affiliates		(19,325	)			-
Security deposits		(36,198)			(52,336)
Due to general partners and affiliates		387,147				-
Due to local general partners and affiliates		(323,993)			(19,325)
Security deposits		(52,336	)			(52,220	)
Due to general partners and affiliates		(138,182)			387,147
Capital contributions- General Partner		(474,123	)			-
Interest rate swap		(20,000)			—
Capital contributions (distributions)		136,181			(474,123)

See accompanying notes to consolidated financial statements.

- 21 23-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

NOTE 1 – General

Independence Tax Credit Plus L.P. IV (a Delaware limited partnership) (the “Partnership”) was organized on February 22, 1995 and commenced its 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”). Centerline Holding Company (“Centerline”) was the ultimate parent of Centerline Affordable Housing Advisors LLC (“CAHA”), the sole member of the Manager of the General Partner. On June 12, 2013, Centerline and an affiliate of Hunt Companies, Inc. (“Hunt”) entered into an agreement and plan of merger. On November 14, 2013, the shareholders of Centerline approved the acquisition of Centerline by an affiliate of Hunt. On April 15, 2015, Alden Torch Financial LLC, a newly formed limited liability company (“ATF”), became the indirect owner of 100% of the equity interests in Centerline. Since April 15, 2015, ATF has been the ultimate parent and indirect owner of 100% of the equity interest in CAHA. ~~Prior~~ ~~to April 15, 2015, Hunt had been the ultimate majority equity owner of CAHA.~~

The Partnership’s business is primarily to invest in other partnerships (“Local Partnerships,” “subsidiaries” or “subsidiary partnerships”) owning leveraged apartment complexes (“Apartment Complexes” or “Properties”) that are eligible for the low-income housing tax credit (“Tax Credit”) enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. Qualified Beneficial Assignment Certificates (“BACs”) holders were entitled to Tax Credits over the period of the Partnership’s entitlement to claim Tax Credits (for each Property, generally ten years from the date of investment or, if later, the date the Property was placed in service; referred to herein as the “Credit Period”) with respect to each Apartment Complex.

The Partnership had originally acquired limited partnership interests in fourteen subsidiary partnerships, all of which have been, or were, consolidated. The Partnership does not anticipate acquiring limited partnership interests in additional subsidiary partnerships. The Partnership’s investments in Local Partnerships represent from 98.99% to 99.89% interests.

The Partnership was 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 Partnership had raised a total of $45,844,000 representing 45,844 BACs.

NOTE 2 – Summary of Significant Accounting Policies

a) Basis of Accounting

For financial reporting purposes, the Partnership’s fiscal year ends on March 31. All subsidiaries have fiscal years ending December 31. Accounts of the subsidiaries have been adjusted for intercompany transactions from January 1 through March 31. The Partnership’s fiscal year ends March 31 in order to allow adequate time for the subsidiaries’ financial statements to be prepared and consolidated. The books and records of the Partnership are maintained on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

b) Basis of Consolidation

The consolidated financial statements include the accounts of the Partnership and its ~~seven~~five and ~~eight~~seven subsidiary partnerships for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, respectively, in which the Partnership is a limited partner. 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 subsidiary local partnerships (the “Local General Partner”) and to approve certain major operating and financial decisions, the Partnership has a controlling financial interest in the subsidiary partnerships. All intercompany accounts and transactions with the subsidiary partnerships have been eliminated in consolidation.

( Income) ~~loss~~ attributable to noncontrolling interests amounted to approximately ($~~482~~3,~~100)~~527,000 and $~~712~~482,000 for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, respectively. The Partnership’s investment in each subsidiary is equal to the respective subsidiary’s partners’ equity less noncontrolling interest capital, if any.

-24-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2016 AND 2015

c) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, cash in banks, and investments in short-term highly liquid investments purchased with original maturities of three months or less.

d) Cash Held in Escrow

Cash held in escrow represent reserves established pursuant to the debt agreements as described in Note 5, as well as deposits that are required by statutory law to be segregated.

- 22 -

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015 AND 2014

e) Property and Equipment

Property and equipment to be held and used are carried at cost which includes the purchase price, acquisition fees and expenses, construction period interest and any other costs incurred in acquiring the properties. The cost of property and equipment is depreciated over their estimated useful lives using accelerated and straight-line methods. Expenditures for repairs and maintenance are charged to expense as incurred; major renewals and betterments are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the assets and accumulated depreciation accounts and the profit or loss on such disposition is reflected in earnings. The determination of asset impairment is a two-step process. First, management estimates amounts recoverable through future operations and sale of the property on an undiscounted basis. If such estimates are below depreciated cost, management estimates fair value (using the fair market value based on comparative sales). The property is considered to be impaired when the depreciated cost exceeds estimated fair value.

f) Revenue Recognition

Rental income is earned under standard residential operating leases and is typically due the first day of each month, but can vary by property due to the terms of the tenant leases. Rental income is recognized when earned and charged to tenants’ accounts receivable if not received by the due date. Rental payments received in advance of the due date are deferred until earned. Rental subsidies are recognized as rental income during the month in which they are earned.

Other revenues are recorded when earned and consist of the following items: Interest income earned on cash and cash equivalent balances and cash held in escrow balances, income from forfeited security deposits, late charges, laundry and vending income and other rental related items.

g) Income Taxes

The Partnership is not a tax paying entity for income tax purposes and, accordingly, no provision has been made for income taxes. The Partnership may be subject to state and local taxes in jurisdictions in which it operates.

The Partnership has no material liability for unrecognized tax benefits and no material change to the beginning partners’ capital of the Partnership. As of and during the year ended March 31, ~~2015~~2016, the Partnership did not have a liability for any unrecognized tax benefits or related interest and penalties.

Income tax returns for the years prior to ~~2011~~2012 are no longer subject to examination by tax authorities.

-25-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2016 AND 2015

h) Mortgage Financing and Offering Costs

Costs incurred in connection with obtaining permanent mortgage financing are capitalized and amortized over the lives of the related mortgage notes. Costs incurred to sell BACs, including brokerage fees and the nonaccountable expense allowance, are considered selling and offering expenses. These costs are charged directly to limited partners’ capital.

i) Deferred Costs

Deferred costs and fees incurred in connection with the purchase of interests in certain subsidiary partnerships have been capitalized as property costs and are being amortized over the lives of the related properties.

j) Loss Contingencies

The Partnership records loss contingencies as a charge to income when information becomes available which indicates that it is probable that an asset has been impaired or a liability has been incurred as of the date of the consolidated financial statements and the amount of loss can be reasonably estimated.

k) Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

l) Recently Issued Accounting Pronouncements

In May 2015, the FASB issued Accounting Standards Update No. 2015-07 ("ASU 2015-07") regarding ASC Topic 820 "Fair Value Measurement: Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." The amendments in ASU 2015-07 remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also limit certain disclosures to investments for which the entity has elected to measure at fair value using the net asset value per share practical expedient. The amendments in ASU 2015-07 are effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The amendments should be applied retrospectively by removing from the fair value hierarchy any investments for which fair value is measured using the net asset value per share practical expedient. The Partnership does not expect ASU 2015-07 to have a material impact on its consolidated financial statements.

In April 2015, the FASB issued Accounting Standard Update 2015-03: Simplifying the Presentation of Debt Issuance Costs. This update requires capitalized debt issuance costs to be presented as a reduction to the carrying value of debt instead of being classified as a deferred charge, as currently required. This update is effective for the Partnership for all annual and interim periods beginning after December 15, 2015 and is required to be applied retroactively for all periods presented. This update will not have a material impact on the presentation of the Partnership’s financial position.

In February 2015, the Financial Accounting Standards Board issued (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the consolidation Analysis. The ASU modifies existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) certain investment funds. These changes are expected to limit the number of consolidation models and place more emphasis on risk of loss when determining a controlling financial interest. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and early adoption is permitted. The new guidance will not have an impact on the Partnership’s consolidated financial statements.

- 23 26-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

In April 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08 “Reporting Discontinued Operations and Disclosures of Disposal of Components of an Entity.” ASU 2014-08 provides narrower definition of discontinued operations than under existing accounting principles generally accepted in the United States of America (“GAAP”). The standard update requires that only disposal of components of an entity (or group of components) that represent a strategic shift that has or will have a major effect on the reporting entity’s operations are reported in the financial statements as discontinued operations. The standard also provides guidance on the financial statement presentation and disclosures of discontinued operations. The ASU is effective prospectively for disposals (or classifications of business as held-for-sale) or components of an entity that occur in an annual or interim periods beginning after December 15, 2014.

In May 2014, FASB and the IASB issued a new joint revenue recognition standard that supersedes nearly all US GAAP guidance on revenue recognition. The core principal of the standard is that revenue recognition should depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard is effective for the Partnership for the fiscal year beginning April 1, 2017 and the effects of the standard on the Partnership’s consolidated financial statements are not known at this time. The new guidance will not have an impact on the Partnership’s consolidated financial statements.

In August 2014, FASB issued ASU No 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. This standard update provides guidance about management’s responsibility to evaluate whether there is a substantial doubt about an entity’s ability to continue as going concern and to provide related footnote disclosure. The new guidance is effective for all annual and interim periods ending after December 16, 2016. The new guidance will not have an impact on the Partnership’s consolidated financial statements.

NOTE 3 – Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments (all of which are held for nontrading purposes) for which it is practicable to estimate that value:

Cash and Cash Equivalents and Cash Held in Escrow

The carrying amount approximates fair value.

Accounts Payable and Other Liabilities

The carrying amounts approximate fair value due to their short-term nature.

Mortgage Notes Payable, Accrued Interest and Interest Rate Swap Agreement

The Partnership has categorized the fair value of financial assets and liabilities based upon the fair value hierarchy specified by ASC Topic 820, Fair Value Measurements (“ASC 820”). This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). This standard provides for a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:


Level 1:	Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. -27-

~~Level~~ Table 3:of ~~Unobservable inputs that reflect the Partnership’s own assumptions.~~Contents

The estimated fair value of mortgage notes payable has been determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

- 24 -

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

At March 31, 2015

At March 31, 2014

Level 2:

Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Carrying

Level 3:

Unobservable inputs that reflect the Partnership’s own assumptions.

Amount

Fair Value

Amount

Fair Value

LIABILITIES:

Mortgage notes

9,475,089

8,224,499

16,456,014

9,463,292


	At March 31, 2016				At March 31, 2015
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value

LIABILITIES:
Mortgage notes	$	4,879,265	$	3,794,072	$	9,475,089	$	8,224,499

For the mortgage notes, fair value is estimated using Level 3 inputs and calculated using present value cash flow models based on a discount rate. It was determined that the Tender Option Bond market, through which these bonds have been securitized in the past, continued to see a dramatic slowdown with limited liquidity and significantly reduced transaction levels. To assist in valuing these notes, the Partnership held separate discussions with various third party investment banks who are leaders in the municipal bond business. The discussions produced assumptions that were based on market conditions as well as the credit quality of the underlying property partnerships, which held the mortgage notes, to determine what discount rates to utilize.

Interest Rate Swap Agreement

For the interest rate swap, in the absence of readily determinable fair values, the fair value is estimated by the Partnership with the assistance of valuations obtained from the Bank of Hawaii (the “Bank”), at which the swap transaction is held. The interest rate swap is valued based on the Bank’s estimate of the net present value of the expected cash flows from each transaction subject to the interest rate swap using relevant mid-market data inputs and based on the assumption of no unusual market conditions or forced liquidation. The preceding method described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Partnership believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

On August 24, 2010, GP Kaneohe Limited Partnership (“Kaneohe”), a subsidiary partnership, entered into an interest rate swap agreement with the Bank as a prerequisite for obtaining refinancing on its original mortgage note payable in the amount of $2,297,000. The agreement provides a fixed rate of interest on the notional amount, as provided in the agreement, in exchange for the variable rate. The swap contract became effective September 1, 2010. The following are the terms under the swap:

Fixed swap – initial notional amount	$	3,050,000
Fixed swap – current notional amount		2,831,600
Fixed rate		4.65	%
Variable rate at December 31, 2014		3.75	%
Termination date		September 1, 2015

Fair value for the interest rate swap is estimated using Level 2 inputs. At March 31, 2015 and 2014, the fair value of the interest rate swap was a reduction of the mortgage note liability of approximately $20,000 and $44,000, respectively.

Derivative instruments not meeting the criteria for hedge accounting (or for which an entity elects not to apply hedge accounting to the derivative in the event that the criteria are met) are recorded at fair value with any change in fair value reflected in the statement of operations in the period of change.

Due to General Partner and Affiliates and Due to/from Local General Partners and Affiliates

Management believes it is not practical to estimate the fair value of due to General Partner and affiliates and due to/from Local General Partners and affiliates because market information on such obligations is not currently available.

NOTE 4 – Property and Equipment

The components of property and equipment from operations and their estimated useful lives are as follows:

	March 31,								Estimated Useful Lives
							Estimated
	2015				2014				(Years)
	March 31,						Useful Lives
Land	$	557,512			$	1,564,276				-
	2016			2015			(Years)
Building and improvements		10,678,538				15,569,023				27.5-40
Land	$	449,082		$	557,512			-
Furniture and fixtures		882,840				1,042,330				3-10
Building and improvements		7,046,127			10,678,538		27.5	-	40
		12,118,890				18,175,629
Furniture and fixtures		632,751			882,840		3	-	10
Less: Accumulated depreciation		(11,028,981	)			(16,801,559	)
		8,127,960			12,118,890
	$	1,089,909			$	1,374,070
Less: Accumulated depreciation		(7,946,808)			(11,028,981)
	$	181,152		$	1,089,909

- Depreciation 25expense -for the years ended March 31, 2016 and 2015 amounted to $8,410 and $8,408, respectively.

-28-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

Depreciation ~~expense~~expenses for the discontinued property and equipment for the years ended March 31, ~~2015~~2016 and ~~2014~~2015 amounted to $7920,~~295~~652 and $~~196~~73,~~012~~055, respectively. During the year ended March 31, 2016, there was a decrease in accumulated depreciation on dispositions in the amount of $3,111,235.

Depreciation expenses for the discontinued property and equipment for the years ended March 31, 2015 and 2014 amounted to $2,168 and $83,928, respectively. During the year ended March 31, 2015, there was a decrease in accumulated depreciation on dispositions in the amount of $5,854,041.

Impairments

During the years ended March 31, ~~2015~~2016 and ~~2014~~ 2015, the Partnership performed a fair value analysis on all of its investments. Impairment of assets is a two-step process. First, management estimated amounts recoverable through future operations and sale of the Property on an undiscounted basis. If such estimates were below depreciated cost, Property investments themselves were reduced to estimated fair value (using the fair market value based on comparative sales). Each Local Partnership must continue to comply with its Tax Credit requirements until the end of the Compliance Period in order to avoid recapture of the Tax Credits. Therefore, a 5-year cash flow projection was used, as this period is indicative of the average holding period left on the remaining investments. Based on this analysis, the Partnership did not record any loss on impairment of assets or a reduction to estimated value for the year ended March 31, ~~2015~~2016. Impairments have been estimated using Level 3 inputs.

~~Impairments~~ During ~~from~~the ~~operations~~year ~~recorded~~ended ~~for~~ March 31, 2016, the ~~year~~Partnership ~~ended~~has not recorded any loss on impairment of assets. Through March 31, ~~2014~~2016, ~~are~~the Partnership has recorded approximately $35,686,000 as ~~follows:~~an aggregate loss on impairment of property.

Bakery Village Urban Renewal Associates, L.P	$	1,736,000
GP Kaneohe Limited Partnership		670,000
	$	2,406,000

NOTE 5 – Cash Held in Escrow

Cash held in escrow from operations consists of the following:

	March 31,
	2015			2014
	2016		2015
Purchase price payments*	$	~~123~~82,~~250~~119	$	$123,250	~~123,250~~
Real estate taxes, insurance and other		~~143~~155,~~997~~289		143,997	~~128,628~~
Reserve for replacements		~~345~~237,~~828~~386		345,828	~~585,733~~
Tenant security deposits		~~171~~147,~~036~~226		171,036	~~230,726~~
	$	784,111		$	1,068,337
Total cash held in escrow	$	622,020	$	784,111

* Represents amounts to be paid to seller upon meeting specified rental achievement criteria.

NOTE 6 – Deferred Costs

The components of deferred costs and their periods of amortization from operating assets are as follows:

	March 31,
	2015				2014				Period
	2016			2015			Period
Financing costs	$	~~463~~207,~~342~~356		$	$463,342	~~590,065~~	10	through	~~10 through~~ 50 ~~years~~	years
Less: Accumulated amortization		(~~223~~104,~~051~~967)	)		(223,051)	~~(291,252~~	)
	$	240,291			$	298,813
Total deferred costs	$	102,389		$	240,291

- Amortization 26expense -for the years ended March 31, 2016 and 2015 amounted to $5,893 and $5,893, respectively. Amortization expense for each of the next five years will approximate $6,000.

-29-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

Amortization expense from discontinued operations for the years ended March 31, ~~2015~~2016 and ~~2014~~2015 amounted to $27106,~~089~~308 and $3321,~~321~~598, respectively. ~~Amortization~~During ~~expense~~the ~~for~~year ~~each~~ended ofMarch ~~the~~31, ~~next~~2016, ~~five~~there ~~years~~was ~~will approximate~~a ~~$27,000.~~decrease ~~Deferred~~in deferred costs of $~~112~~255,~~476~~986 and ~~related~~ accumulated amortization of $88230,~~126~~285, ~~were~~related ~~written~~to ~~off~~sales ~~during~~of ~~the~~properties. ~~year~~ ~~ended March 31, 2015.~~

Amortization expense from discontinued operations for the years ended March 31, 2015 and 2014 amounted to $402 and $475, respectively. During the year ended March 31, 2015, there was a decrease in deferred costs of $14,247 and accumulated amortization of $7,566, related to sales of properties.

NOTE 7 – Mortgage Notes Payable

The mortgage loans from operations are payable in aggregate monthly installments of approximately $5430,000 including principal and interest with rates varying from 0% to 8.13% per annum and have maturity dates ranging from ~~2020~~2026 through 2046. The loans are collateralized by the land and buildings of the subsidiary partnerships and the assignment of certain subsidiary partnerships’ rents and leases, and are without further recourse. Certain obligations are guaranteed by affiliates of the general partner.

Accrued interest payable from operations amounted to approximately $63,220 and $130,061 as of March 31, 2016 and 2015, respectively. Interest accrues on all mortgage loans, which include primary and secondary loans. Certain secondary loans have provisions such that interest is accrued but not payable until a future date. The Partnership anticipates the payment of accrued interest on the secondary loans (which make up the majority of the accrued interest payable amount and which have been accumulating since the Partnership’s investment in the respective Local Partnership) will be made from future refinancings or sales proceeds of the respective Local Partnership or through assumption by the buyer upon sale of the Partnership’s interest in the respective Local Partnership. In addition, each Local Partnership’s mortgage notes are collateralized by the land and buildings of the respective Local Partnership, and are without further recourse to the Partnership.

The mortgage agreements generally require monthly deposits to replacement reserves. Monthly deposits of approximately $4,600 from operations were made to escrow accounts for real estate taxes, hazard and mortgage insurance and other expenses (Note 5).

Annual principal payments on the permanent debt requirements for mortgage notes payable from operations for each of the next five calendar years and thereafter are as follows:

Years Ending December 31,	Amount
2015	$	248,358
2016	$	186,036
2016		248,806
2017		194,595
2017		261,742
2018		203,752
2018		275,628
2019		213,553
2019		296,482
2020		224,045
Thereafter		83,~~144~~857,~~073~~284
	$	94,~~475~~879,~~089~~265

Accrued interest payable from operations amounted to approximately $130,000 and $4,627,000 as of March 31, 2015 and 2014, respectively. Interest accrues on all mortgage loans, which include primary and secondary loans. Certain secondary loans have provisions such that interest is accrued but not payable until a future date. The Partnership anticipates the payment of accrued interest on the secondary loans (which make up the majority of the accrued interest payable amount and which have been accumulating since the Partnership’s investment in the respective Local Partnership) will be made from future refinancings or sales proceeds of the respective Local Partnership or through assumption by the buyer upon sale of the Partnership’s interest in the respective Local Partnership. In addition, each Local Partnership’s mortgage notes are collateralized by the land and buildings of the respective Local Partnership, and are without further recourse to the Partnership.

The mortgage agreements generally require monthly deposits to replacement reserves. Monthly deposits of approximately $10,000 from operations were made to escrow accounts for real estate taxes, hazard and mortgage insurance and other expenses (Note 5).

NOTE 8 – Related Party Transactions

An affiliate of the General Partner has a 0.01% interest as a special limited partner in each of the Local Partnerships.

Pursuant to the Partnership Agreement and the Local Partnership Agreements, the General Partner, the Local General Partners and their respective affiliates receive their pro-rata share of profits, losses and tax credits.

- 27 30-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

A) Related Party Expenses

Expenses incurred to related parties from operations for the years ended March 31, ~~2015~~2016 and ~~2014~~2015 were as follows:

	Years Ended March 31,
	2015			2014*
	2016		2015*
Partnership management fees (a)	$	~~160~~108,~~000~~979	$	$160,000	~~182,000~~
Expense reimbursement (b)		~~150~~196,~~926~~717		150,926	~~188,946~~
Local administrative fees (c)		76,391			20,441
Local administrative fee (c)		12,033		60,662
Total general and administrative - General Partner		387,317			391,387
Total general and administrative-General Partners		317,729		371,588
Property management fees incurred to affiliates of the subsidiary partnerships’ general partners		~~331~~96,~~862~~265		95,423	~~286,184~~
Total general and administrative-related parties	$	~~719~~413,~~179~~994	$	$467,011	~~677,571~~

* *Reclassifed for comparative purposes.

Expenses incurred to related parties from discontinued operations for the years ended March 31, ~~2015~~2016 and ~~2014~~2015 were as follows:

	Years Ended March 31,
	2015			2014*
	2016		2015*
Local administrative fees (c)	$	4,250		$	11,300
Local administrative fee (c)	$	2,500	$	19,979
Total general and administrative – General Partner		4,250			11,300
Total general and administrative-General Partner		2,500		19,979
Property management fees incurred to affiliates of the subsidiary partnerships’ general partners		-			30,922
Property management fees incurred to affiliates of the subsidiary partnerships' general partners		182,189		236,439
Total general and administrative-related parties	$	4184,~~250~~689	$	$256,418	~~42,222~~

* Reclassified for comparative purposes.

(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 are accrued without interest and will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all Partnership liabilities have been made other than those owed to the General Partner and its affiliates. Partnership management fees owed to the General Partner amounting to approximately $212,~~296,~~000 and $2,~~719~~296,000 were accrued and unpaid as of March 31, ~~2015~~2016 and ~~2014~~2015, respectively. Current year partnership management fees may be paid out of operating reserves or refinancing and sales proceeds. However, the General Partner cannot demand payment of the deferred fees beyond the Partnership’s ability to pay them. During the year ended March 3, 2016, the Partnership paid approximately $2,373,000 of deferred management fees to the General Partner from sale proceeds.

(b) The Partnership reimburses the General Partner and its affiliates for actual Partnership operating expenses incurred by the General Partner and its affiliates on the Partnership’s behalf. The amount of reimbursement from the Partnership is limited by the provisions of the Partnership Agreement. Another affiliate of the General Partner performs asset monitoring for the Partnership. These services include site visits and evaluations of the subsidiary partnerships’ performance. Expense reimbursements and asset monitoring fees owed to the General Partner and its affiliates amounting to approximately $~~51,000~~0 and $8351,000 were accrued and unpaid as of March 31, ~~2015~~2016 and ~~2014~~2015, respectively. The General Partner does not intend to demand payment of the deferred payables beyond the Partnership’s ability to ~~pay them. The Partnership anticipates that these will be paid, if at all, from working capital reserves or future sales proceeds.~~

(c) Independence SLP IV L.P., a special limited partner of the subsidiary partnerships, is entitled to receive a local administrative fee of up to $5,000 per year from each subsidiary partnership. Local administrative fees owed to Independence SLP IV L.P. amounting to $197,000 and $291,000 were accrued and unpaid as of March -31~~, 2015 and 2014, respectively. These fees have been deferred in certain cases and the Partnership anticipates that they will be paid, if at all, from working capital reserves or future sales proceeds.~~-

As Table of ~~March 31, 2015 and 2014, the Partnership~~Contents ~~owed $1,000 and $1,000, respectively, to the General Partner for expenses it paid on the Partnership’s behalf.~~

- 28 -

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

pay them. The Partnership anticipates that these will be paid, if at all, from working capital reserves or future sales proceeds.

(c)

Independence SLP IV L.P., a special limited partner of the subsidiary partnerships, is entitled to receive a local administrative fee of up to $5,000 per year from each subsidiary partnership. Local administrative fees owed to Independence SLP IV L.P. amounting to $73,000 and $197,000 were accrued and unpaid as of March 31, 2016 and 2015, respectively. These fees have been deferred in certain cases and the Partnership anticipates that they will be paid, if at all, from working capital reserves or future sales proceeds. During the year ended March 31, 2016, accrued administrative fees owed to Independence SLP IV L.P. from two Local Partnerships were forgiven. These fees amounted to $136,181, and are included as contributions - write-off of related party debt in the consolidated statements of changes in partners’ (deficit) capital.

As of March 31, 2016 and 2015, the Partnership owed $1,000 and $1,000, respectively, to the General Partner for expenses it paid on the Partnership’s behalf.

B) Due to/from Local General Partners and Affiliates

Due to Local General Partners and affiliates from operating liabilities consists of the following:

	March 31,
	2015			2014
	2016		2015
Development fee payable	$	481,597	$	$481,597	~~1,467,646~~
Consulting fee payable		~~50,000~~—		50,000	~~50,000~~
Operating advances		~~308~~125,~~585~~485		308,585	~~333,821~~
Management and other fees		-—		—	~~180~~
	$	~~840~~607,~~182~~082	$	$840,182	~~1,851,647~~

Due from Local General Partners and affiliates from operating liabilities consists of the following:

	March 31,
	2015			2014
	2016		2015
Local general partner receivable	$	5,795		$	670,998
Local general partner loan receivable	$	—	$	5,795

~~NOTE 9 – Taxable Net Loss~~ -32-

A Table ~~reconciliation~~ of ~~the consolidated financial~~Contents ~~statement net loss to the income tax loss for the Partnership and its consolidated subsidiaries follows:~~

	Years Ended March 31,
	2015			2014
Net loss attributable to Independence Tax Credit Plus L.P. IV	$	10,758,234		$	(1,996,991	)
Differences between depreciation and amortization expense for financial reporting purposes and income tax purposes		(1,377,755	)		(928,776	)
Differences resulting from Partnership having a different fiscal year for tax and financial reporting purposes		12,762			(10,639	)
Tax exempt interest income		(28	)		(19	)
Differences between gain on sale of properties for financial reporting purposes and gain on sale for income tax purposes		(6,658,410	)		(1,362,973	)
Provision for loss on impairment		-			2,406,000
Other, including accruals for financial reporting purposes not deductible for tax purposes until paid		27,493			(357,905	)
Net income (loss) per income tax return	$	2,762,296		$	(2,251,303	)

No provision for income taxes related to the operations of the Partnership has been included in the accompanying consolidated financial statements because, as a partnership, it is not subject to federal or material state income taxes and the tax effect of its activities accrues to the BACs holders. Net income for financial statement purposes may differ significantly from taxable income reportable to BACs holders as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under its Partnership Agreement. In the event of an examination of the Partnership’s tax return, the tax liability of the partners could be changed if an adjustment in the Partnership’s income is ultimately sustained by the taxing authorities. At March 31, 2015, the tax basis net assets exceeded the financial statement net assets by approximately $13,100,000 due to depreciation differences, impairments of property and equipment, and related party accruals.

- 29 -

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

NOTE 9 – Taxable Net Income

A reconciliation of the consolidated financial statement net loss to the income tax income for the Partnership and its consolidated subsidiaries follows:


	Years Ended March 31,
	2016		2015

Net income attributable to Independence Tax Credit Plus L.P. IV	$	6,683,292	$	10,758,234

Differences between depreciation and amortization expense for financial reporting purposes and income tax purposes		(876,364)		(1,377,755)

Differences resulting from Partnership having a different fiscal year for tax and financial reporting purposes		708		12,762

Tax exempt interest income		(18)		(28)

Difference between gain on sale for financial reporting purposes and gain on sale for income tax purposes		(4,843,016)		(6,658,410)

Other, including accruals for financial reporting purposes not deductible for tax purposes until paid		1,373,131		27,493

Net income (loss) per income tax return	$	2,337,733	$	2,762,296

No provision for income taxes related to the operations of the Partnership has been included in the accompanying consolidated financial statements because, as a partnership, it is not subject to federal or material state income taxes and the tax effect of its activities accrues to the BACs holders. Net income for financial statement purposes may differ significantly from taxable income reportable to BACs holders as a result of differences between the tax bases and financial reporting bases of assets and liabilities and the taxable income allocation requirements under its Partnership Agreement. In the event of an examination of the Partnership’s tax return, the tax liability of the partners could be changed if an adjustment in the Partnership’s income is ultimately sustained by the taxing authorities. At March 31, 2016, the tax basis net assets exceeded the financial statement net assets by approximately $8,000,000 due to depreciation differences, impairments of property and equipment, and related party accruals.

NOTE 10 – Sale of Properties

The Partnership ishas ~~currently~~developed ~~in the process of developing~~ a plan to dispose of ~~all~~its oftwo ~~its~~remaining investments. It is anticipated that this process will take afrom ~~number~~12 ofto ~~years.~~24 months. During the fiscal year ended March 31, ~~2015~~2016, the Partnership sold its limited partnership interest in two Local Partnerships. and the property and related assets and liabilities in one Local Partnership. Through March 31, ~~2015~~2016, the Partnership has sold its limited partnership interest in ~~six~~eight Local Partnerships, and the property and the related assets and liabilities of ~~three~~four Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its remaining investments or the amount of proceeds which may be received. However, based on the historical operating results of the Local Partnerships and the current economic conditions, it is unlikely that the proceeds from such sales received by the Partnership will be sufficient to return to the limited partners their original investments. All gains and losses on sales are included in discontinued operations.

-33-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2016 AND 2015

resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of the sale, which was recorded during the quarter ended September 30, 2015. An adjustment to the gain of approximately $88,000 was recorded during the quarter ended March 31, 2016 resulting in an overall gain of $1,515,000. During the year ended March 31, 2016, accrued administrative fees owed to Independence SLP IV L.P. from two Local Partnerships were forgiven. These fees amounted to $77,807, and are included as contributions write-off of related party debt in the consolidated statements of changes in partners’ (deficit) capital.

On June 1, 2015, the Partnership sold its limited partnership interest in KSD Village Apartments Phase II, Ltd. (“KSD Village”) to an unaffiliated third party purchaser for a sales price of $1. The sale resulted in a gain of approximately $293,000 resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of the sale, which was recorded during the quarter ended June 30, 2015. An adjustment to the gain of approximately $61,000 was recorded during the quarter ended March 31, 2016 resulting in an overall gain of $232,000. During the year ended March 31, 2016, accrued administrative fees owed to Independence SLP IV L.P. from two Local Partnerships were forgiven. These fees amounted to $58,374, and are included as contributions write-off of related party debt in the consolidated statements of changes in partners’ (deficit) capital.

On November 5, 2014, the Partnership sold its limited partnership interest in Figueroa Senior Housing Limited Partnership (“Figueroa”) to an unaffiliated third party purchaser for a sales price of $480,000. The sale resulted in a gain of approximately $4,336,000 resulting from the write-off of the deficit basis in the Local Partnership of the same amount at the date of the sale, which was recorded during the quarter ended December 31, 2014. In addition, the sale resulted in a noncash distribution to the local General Partner of approximately $474,000 as a result of the write-off of a receivable from the local General Partner. An adjustment to the gain of approximately $441,000 was recorded during the quarter ended March 31, 2015, resulting in an overall gain of approximately $4,777,000.

-34-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2016 AND 2015

NOTE 11 – Discontinued Operations

The following table summarizes the results of operations of the Local Partnerships that are classified as discontinued operations. For the year ended March 31, ~~2015~~2016, ~~Figueroa~~ Kaneohe, KSD Village and ~~Normandie~~First African, which were sold during the year ended March 31, ~~2015~~2016, were classified as discontinued operations in the consolidated financial statements. For the year ended March 31, ~~2014~~2015, ~~Guymon~~Figueroa and Normandie, which ~~was~~were sold during the year ended March 31, ~~2014~~2015, and ~~Figueroa~~ Kaneohe, KSD Village and ~~Normandie~~First African, in order to present comparable results to the year ended March 31, 2015, were classified as discontinued operations in the consolidated financial statements.

- 30 35-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

Consolidated Statements of Discontinued Operations:

	Years Ended March 31,
	2015				2014 *
	2016			2015*
Revenues
Rental income	$	~~618~~643,~~052~~590		$	$1,790,322	~~1,326,718~~
Other		~~300~~4,~~179~~832			312,470	~~4,438~~
Gain on sale of properties (Note 10)		11,555,138				819,451
Gain on sale of property (Note 10)		10,604,339			11,555,138
Total revenues		12,473,369				2,150,607
Total revenue		11,252,761			13,657,930
Expenses
General and administrative		~~322~~138,~~728~~181			566,744	~~920,798~~
General and administrative-related parties (Note 8)		4,250				42,222
General and administrative-related parties (Note 2 and 8)		184,689			256,418
Repairs and maintenance		~~124~~49,~~177~~571			237,379	~~186,748~~
Operating and other		~~103~~97,~~761~~278			312,320	~~269,709~~
Taxes		10,422				21,758
Real estate taxes		—			10,872
Insurance		3523,~~341~~097			79,709	~~66,205~~
Interest		~~295~~88,~~451~~736			514,568	~~417,957~~
Depreciation and amortization		2126,~~570~~960			94,653	~~84,403~~
Total expenses		~~898~~708,~~700~~512			2,072,663	~~2,009,800~~
Income from discontinued operations	$	11,574,669			$	140,807
Income (loss) from discontinued operations	$	10,544,249		$	11,585,267
Noncontrolling interest in loss (income) of subsidiaries from discontinued operations		(481,214	)			703,577
Noncontrolling interest in income of subsidiaries from discontinued operations		(3,527,047)			(481,703)
Income from discontinued operations – Independence Tax Credit Plus LP IV	$	11,093,455			$	844,384
Income (loss) from discontinued operations – Independence Tax Credit Plus L.P. IV	$	7,017,202		$	11,103,564
Income from discontinued operations – limited partners	$	10,982,520			$	835,940
Income (loss) from discontinued operations – limited partners	$	6,947,030		$	10,992,528
Number of BACs outstanding		45,844			45,844	~~45,844~~
Income from discontinued operations – limited partners- per weighted average BAC	$	~~239~~151.5654		$	$239.78	~~18.24~~

* Reclassified for comparative purposes.

Cash flows from discontinued operations:

	Years Ended March 31,
	2015				2014 *
	2016			2015 *
Net cash provided by operating activities	$	284,632			$	1,158,034
Net cash (used in) provided by operating activities	$	(84,403)		$	8,501,305
Net cash (used in) provided by investing activities	$	(32,117	)		$	3,170,035
Net cash provided by (used in) investing activities	$	225,007		$	(1,273,120)
Net cash used in financing activities	$	(~~329~~176,~~617~~044)	)	$	$(7,314,797)	~~(4,351,239~~	)
* Reclassified for comparative purposes.

~~NOTE~~ *Reclassified 12for –comparative ~~Commitments and Contingencies~~purposes.

~~a) Liquidity~~ -36-

~~At March 31, 2015, the Partnership’s~~ ~~liabilities exceeded assets by $10,308,898 and for the year ended March 31, 2015, the Partnership recognized net income of $11,240,313,~~ ~~including~~ Table ~~gain on sale~~ of ~~properties of $11,555,138. These factors raise substantial doubt about the Partnership’s ability~~Contents ~~to continue as a going concern. As discussed in Note 8, partnership management fees of approximately $2,296,000 will be payable~~ out of sales or refinancing proceeds only to the extent of available funds after payments of all other Partnership liabilities have been made other than those owed to the General Partner and its affiliates. As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership’s ability to pay them.

- 31 -

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, ~~2015~~2016 AND ~~2014~~2015

~~All~~NOTE of12 ~~the~~– ~~mortgage~~Commitments ~~payable balance of $9,475,089~~ and ~~the accrued interest payable balance of $130,061 is of a nonrecourse nature and secured by the respective properties.~~Contingencies The Partnership is currently in the process of developing a plan to dispose of all of its investments. Historically, the mortgage notes and accrued interest thereon have been assumed by the buyer in instances of sales of the Partnership’s interest or have been paid off from sales proceeds in instances of sales of the property. In most instances when the Partnership’s interest was sold and liabilities were assumed, the Partnership recognized a gain from the sale. The Partnership owns the limited partner interest in all its investments, and as such has no financial responsibility to fund operating losses incurred by the Local Partnerships. The maximum loss the Partnership would incur is its net investment in the respective Local Partnerships and the potential recapture of the Tax Credits if the investment is lost before the expiration of the Compliance Period. Dispositions of any investment in a Local Partnership are not anticipated to impact the future results of liquidity or financial condition of the Partnership.

~~The Partnership has unconsolidated cash~~ ~~reserves of approximately $487,000 at March 31, 2015. Such amount is considered sufficient to cover the Partnership’s day~~ a) Liquidity to day operating expenses, excluding fees to the General Partner, for at least the next fiscal year. The Partnership’s operating expenses, excluding the Local Partnerships’ expenses and related party expenses amounted to approximately $192,000 for the year ended March 31, 2015.

At March 31, 2016, the Partnership’s liabilities exceeded assets by approximately $4,054,000 and for the year ended March 31, 2016, the Partnership recognized net income of approximately $10,210,000, including gain on sale of properties of approximately $10,604,000. These factors raise substantial doubt about the Partnership’s ability to continue as a going concern. As discussed in Note 8, partnership management fees of approximately $12,000 will be payable out of sales or refinancing proceeds only to the extent of available funds after payments of all other Partnership liabilities have been made other than those owed to the General Partner and its affiliates. As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership’s ability to pay them.

All of the mortgage payable balance of $4,879,265 and the accrued interest payable balance of $63,220 is of a nonrecourse nature and secured by the respective properties. The Partnership is currently in the process of developing a plan to dispose of all of its investments. Historically, the mortgage notes and accrued interest thereon have been assumed by the buyer in instances of sales of the Partnership’s interest or have been paid off from sales proceeds in instances of sales of the property. In most instances when the Partnership’s interest was sold and liabilities were assumed, the Partnership recognized a gain from the sale. The Partnership owns the limited partner interest in all its investments, and as such has no financial responsibility to fund operating losses incurred by the Local Partnerships. The maximum loss the Partnership would incur is its net investment in the respective Local Partnerships and the potential recapture of the Tax Credits if the investment is lost before the expiration of the Compliance Period. Dispositions of any investment in a Local Partnership are not anticipated to impact the future results of liquidity or financial condition of the Partnership.

The Partnership has unconsolidated cash reserves of approximately $515,000 at March 31, 2016. Such amount is considered sufficient to cover the Partnership’s day to day operating expenses, excluding fees to the General Partner, for at least the next fiscal year. The Partnership’s operating expenses, excluding the Local Partnerships’ expenses and related party expenses amounted to approximately $246,000 for the year ended March 31, 2016.

Management believes the above mitigating factors enable the Partnership to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

b) Subsidiary ~~Partnerships~~Partnership – Going Concerns and Uncertainties

KSD Village Apartments, Phase II, Ltd. (“KSD II”)

The financial statements for the year ended December 31, 2014 for KSD II were prepared in conformity with accounting principles generally accepted in the United States of America, which contemplated continuation of KSD II as a going concern. In prior years and in 2014, KSD II experienced financial difficulty because revenues are not sufficient to meet obligations. Operations have been financed in part by withholding management fee payments and operating reimbursements payable to the management agent, withholding monthly deposits to the reserve for replacements and operating loans from affiliates of the general partner. The Partnership’s investment in KSD II has been written down to zero through prior year losses.

Kanisa Apartments, Ltd. (“First African”)

The financial statements for the period ended July 27, 2015 and for the year ended December 31, 2014 for First African were prepared in conformity with accounting principles generally accepted in the United States of America, which contemplated continuation of First African as a going concern. In prior years and in ~~2014~~2015, First African experienced financial difficulty because revenues are not sufficient to meet obligations. Operations have been financed in part by withholding mortgage payments under deferred payment agreements, operating loans from affiliates of the general partner, and withholding management fees and operating reimbursements payable to the management agent. The Partnership’s ~~investment~~sold inits ~~First~~limited ~~African~~partnership ~~has~~interest ~~been written~~in ~~down~~First toAfrican ~~zero~~on ~~through~~July ~~prior~~27, ~~year losses~~2015.

c) Uninsured Cash and Cash Equivalents

The Partnership and its subsidiary partnerships maintain their cash and cash equivalents in various banks. The accounts at each bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per entity per institution. At March 31, ~~2015~~2016, uninsured cash and cash equivalents amounted to approximately $~~270~~265,000.

-37-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2016 AND 2015

d) Cash Distributions

Cash distributions from the Local Partnerships to the Partnership are restricted by the provisions of the respective agreements of limited partnership of the Local Partnerships ~~and/or the U~~.~~S. Department of Housing and Urban Development.~~

e) Leases

Certain subsidiary partnerships have land lease arrangements whereby they are obligated to pay $1 per annum through June 2054.

f) Property Management Fees

Property management fees incurred by the Local Partnerships amounted to $~~417~~290,~~158~~793 and $~~452~~417,~~489~~158 for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, respectively. Of these fees $~~331~~278,~~862~~ 454 and $~~317~~331,~~106~~862 were incurred to the Local General Partners for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, respectively, which include $0182,189 and $30236,~~922~~439 of fees relating to discontinued operations for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, respectively.

- 32 -

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015 AND 2014

g) Other

The Partnership is subject to the risks incidental to potential losses arising from the management and ownership of improved real estate and poor economic conditions. ~~The~~ ~~Partnership~~Of ~~can~~the ~~also~~remaining betwo ~~affected~~properties byone ~~poor~~is ~~economic~~located ~~conditions~~in ~~generally;~~New ~~however,~~Jersey nowhile ~~more than 33% of~~ the ~~properties~~other ~~are~~is located in ~~any single state~~Washington. There are also substantial risks associated with owning properties receiving government assistance; for example, the possibility that Congress may not appropriate funds to enable HUD to make rental assistance payments. HUD also restricts annual cash distributions to partners based on operating results and a percentage of the owner’s equity contribution. The Partnership cannot sell or substantially liquidate its investments in subsidiary partnerships during the period that the subsidy agreements are in existence without HUD’s approval. Furthermore, there may not be market demand for apartments at full market rents when the rental assistance contracts expire.

The Partnership and BACs holders began to recognize Tax Credits with respect to a Property when the Credit Period for such Property commenced. The Credit Period generally runs for ten years from the date it commenced with respect to each eligible Property. Because of the time required for the acquisition, completion and rent-up of Properties, as expected, the amount of Tax Credits per BAC gradually increased over the first three years of the Partnership. Tax Credits not recognized in the first three years were recognized in the 11th through 13th years. As of December 31, 2013, all the Local Partnerships had completed their Credit Periods. However, each Local Partnership must continue to comply with the Tax Credit requirements until the end of the Compliance Period in order to avoid recapture of the Tax Credits. The Compliance Periods will continue through December 31, 2017 with respect to the Properties depending upon when the Compliance Period commenced.

h) Subsequent Events

We evaluated all subsequent events from the consolidated balance sheet date through the issuance date of this report and determined that there were no events or transactions occurring during this subsequent event reporting period, which require recognition or disclosure in the consolidated financial ~~statements~~ ~~other than the following:~~statements.

~~On April 15, 2015, Hunt Companies Inc.’s~~ ~~(‘Hunt”) equity interest in its Affordable Housing Asset Management Platform (“Platform’) (including all~~ ~~assets previously relating to Centerline Holding Company) were acquired by Alden Torch Financial, LLC, a newly formed Delaware~~ -38- ~~limited company (“ATF”). ATF is controlled by the Platform’s management team, which holds a majority interest~~ in ATF, and Bear Creek Asset Management LLC, an unaffiliated private equity investment firm, holds a minority interest in ATF. Hunt had been the ultimate majority equity owner of Centerline Affordable Housing Advisors LLC (“CAHA”), the sole member of the Manager of the General Partner. Since April 15, 2015, ATF has been the ultimate parent and indirect owner of 100% of the equity interests in CAHA.

~~On June 1, 2015, the Partnership sold its~~ ~~limited partnership interest in KSD Village Apartments, Phase II, Ltd. (“KSD Village”) to an affiliate of the Local~~ ~~General~~ Table ~~Partner for a sales price~~ of ~~$1. The Partnership received $1 as distributions and the sale will result in a gain of approximately~~Contents ~~$300,000 which will be recognized on the Partnership’s Form 10-Q for the quarter ending June 30, 2015.~~

- 33 -

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures. The Principal Executive Officer and Principal Accounting Officer of Related Independence L.L.C, the general partner of the Partnership, have evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of the end of the period covered by this report. Based on such evaluation, such officers have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures are effective.

(b) Management’s Report on Internal Control over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). In evaluating the Partnership’s internal control over financial reporting, management has adopted the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring organizations of the Treadway Commission (the “COSO Framework”). Under the supervision and with the participation of our management, including the President and Principal Executive Officer and Chief Financial Officer of the General Partner, the Partnership conducted an evaluation of the effectiveness of its internal control over financial reporting as of March 31, ~~2015~~2016. The Partnership’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. However, because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on management’s evaluation under the COSO Framework, it has concluded that the Partnership’s internal control over financial reporting, was, as of March 31, ~~2015~~2016, (1) effective at the Partnership level, in that they provide reasonable assurance that information required to be disclosed by the Partnership in the reports it files or submits under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (2) ineffective at the subsidiary level due to certain control deficiencies. Management will attempt to cause the Local General Partner’s to remedy such deficiencies; however, the General Partner does not have control over the internal controls at the subsidiary level. Management believes they have sufficient controls at the Partnership level to mitigate these deficiencies, and such deficiencies do not have a material impact on the consolidated financial statements.

(c) Changes in Internal Controls over Financial Reporting. During the period ended March 31, ~~2015~~2016, there were no changes in the Partnership’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

Item 9B. Other Information.

Not applicable.

- 34 39-

Table of Contents

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

The Partnership has no directors or executive officers. The Partnership’s affairs are managed and controlled by Related Independence LLC (“RILLC”), a Delaware limited liability company (“the General Partner”), which was managed by an affiliate of Centerline Holdings Company (“Centerline”). Centerline was the ultimate parent of Centerline Affordable Housing Advisors LLC (“CAHA”), the sole member of the Manager of the General Partner. On June 12, 2013, Centerline and an affiliate of Hunt Companies, Inc. (“Hunt”) entered into an agreement and plan of merger. On November 14, 2013, the shareholders of Centerline approved the acquisition of Centerline by an affiliate of Hunt. On April 15, 2015, Alden Torch Financial LLC, a newly formed Delaware limited liability company (“ATF”), became the indirect owner of 100% of the equity interests in Centerline. Since April 15, 2015, ATF has been the ultimate parent and indirect owner of 100% of the equity interest in CAHA. ~~Prior to April 15, 2015, Hunt had been the ultimate majority equity owner of CAHA~~. The Partnership has not adopted a separate code of ethics because the Partnership has no directors or executive officers. However, ATF which controls the General Partner has adopted a code of ethics. To obtain a copy free of charge of ATF’s code of ethics, send a written request to: Alden Torch Financial Attn: Legal Department-Code of Ethics, 1225 17th Street, Suite 1400, Denver CO 80202.

Certain information concerning the executive officers of the General Partner is set forth below.


Name		Position

Mark B. Hattier		Chief Financial Officer
Alan T. Fair		President (Principal Executive Officer)

MARK B. HATTIER, is the Chief Financial Officer of RILLC and isAlden ~~also~~Torch Financial LLC. Prior to joining ATF Mr. Hattier was a Senior Managing Director of HCP Pacific Asset Management, LLC. Mr. Hattier has over 2425 years of experience in the structured finance and affordable housing industries. Prior to joining Hunt, Mr. Hattier was a Vice President of various subsidiaries of Capmark Financial Group Inc. From 2007 - 2012, Mr. Hattier was responsible for the negotiation with counterparties in the restructuring and settlement of claims and liabilities related to Capmark’s low-income housing tax credit (“LIHTC”) transactions. Mr. Hattier structured and supervised the sale of Capmark’s LIHTC business assets and the resolution of “total return swap” and other derivatives claims. From 1999 – 2007, Mr. Hattier managed Capmark’s proprietary tax-exempt bond and related derivatives portfolios, which included a substantial sub-portfolio of affordable housing bonds. From 1989 – 1993 and 1993 – 1999, Mr. Hattier was a Vice President , in the municipal finance departments of investment banks Howard, Weil, Labouisse, Friedrichs Inc. and Stephens Inc., respectively. Mr. Hattier’s focus was structured finance and asset backed finance. Mr. Hattier received his A.B. in Economics from Harvard College. Mr. Hattier earned and maintains the designations “Chartered Financial Analyst” and “Financial Risk Manager.”

ALAN T. FAIR is the President (Principal Executive Officer) of RILLC and isChief ~~also a President of Hunt Capital Partners, LLC and an~~ Executive ~~Director~~Officer of ~~HCP Pacific Asset Management LLC~~ATF. Mr. Fair has over 2526 years of experience in the affordable housing industry including underwriting, structuring, and placement of affordable multifamily housing debt, both tax exempt and taxable. Prior to forming ATF, Mr. Fair was President of Hunt Capital Partners, LLC, and Executive Director of HCP Pacific Asset Management LLC. Mr. Fair consulted to the multifamily industry, and was a Senior Vice President with AIMCO between 2007 and 2008. From 1996 through 2007, Mr. Fair was Senior Vice President Finance and Senior Managing Director of Sun America Affordable Housing Partners Inc. He was responsible for the development of credit and debt structures for both taxable and tax-exempt financed tax credit properties and the coordinating of the underwriting and financing process. During his time at Sun America Mr. Fair was involved in the origination of over 1,000 tax credit partnerships, $5 billion of debt relating to tax credit partnerships (in excess of $5 billion in equity raised) and over 100,000 units of affordable housing. Previously from 1991-1996, Mr. Fair was Senior Vice President for First Interstate Bank responsible for all multifamily housing capital market activities. From 1983 to 1991, Mr. Fair worked for Kemper Securities Group as a Vice President in Investment Banking, and prior thereto as a staff attorney. Mr. Fair is a graduate of Michigan State University and received his J.D. degree from the University of Denver College of Law. He is a member of the State Bar in Colorado.

-40-

Table of Contents

Item 11. Executive Compensation.

The Partnership has no officers or directors. The Partnership does not pay or accrue any fees, salaries or other forms of compensation to members or officers of the General Partner for their services. However, under the terms of the Partnership Agreement, the Partnership has entered into certain arrangements with the General Partner and its affiliates, which provide for compensation to be paid to the General Partner and its affiliates. Such arrangements include (but are not limited to) agreements to pay annual partnership management fees, nonrecurring acquisition fees, a nonaccountable acquisition expense allowance, an accountable expense reimbursement and subordinated disposition fees to the General Partner and/or its affiliates. In addition, the General Partner is entitled to a subordinated interest in cash from sales or refinancings and a 1% interest in net income, net loss, distributions of adjusted cash from operations and cash from sales or refinancings. Certain members and officers of the General Partner receive compensation from the General Partner and its affiliates for services performed for various affiliated entities which may include services performed for the Partnership. The maximum annual partnership management fee paid to the General Partner is 0.5% of invested assets. See Note 8 in Item 8 above, which is incorporated herein by reference.

Tabular information concerning salaries, bonuses and other types of compensation payable to executive officers has not been included in this annual report. As noted above, the Partnership has no executive officers. The levels of compensation payable to the General Partner and/or its affiliates is limited by the terms of the Partnership Agreement and may not be increased therefrom on a discretionary basis.

- 35 -

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Title of Class	Name and Address of Beneficial Ownership	Amount and Nature of Beneficial Ownership		Percentage of Class
	Name and Address of	Amount and Nature of			Percentage
General Partnership Interest in the Partnership	Related Independence L.L.C. 1225 17th Street Denver, Colorado 80202	$1,000 capital contribution – directly owned			100	%
Title of Class	Beneficial Ownership	Beneficial Ownership			of Class
General Partnership Interest in the Partnership	Related Independence L.L.C.	$	1,000 capital contribution –		100	%
	1225 17th Street		directly owned
	Denver, Colorado 80202

Independence SLP IV L.P., a limited partnership whose general partner is the General Partner of the Partnership and which acts as the special limited partner of each Local Partnership, holds a .01% limited partnership interest in the Local Partnerships. See Note 8 in Item 8 above, which information is incorporated herein by reference thereto.

Except as set forth below no person is known by the Partnership to be the beneficial owner of more than five percent of the Limited Partnership Interests and/or BACs; and neither the General Partner nor any officer of the General Partner beneficially owns any Limited Partnership Interests or BACs. The following table sets forth the number of BACs beneficially owned as of June 24, ~~2015~~2016 by (i) each BACs holder known to the Partnership to be a beneficial owner of more than 5% of the BACs, (ii) each executive officer of the General Partner of RILLC and (iii) the directors and executive ~~officers of the general partner of RILLC as a group. Unless otherwise noted, all BACs are owned directly with sole voting and dispositive powers.~~

	Amount and Nature of
Name of Beneficial Owner (1)	Beneficial Ownership			Percentage of Class
Lehigh Tax Credit Partners, Inc.		2,868.06	(2)		6.3	%
J. Michael Fried		2,868.06	(2)(3)		6.3	%
Alan P. Hirmes		2,868.06	(2)(3)		6.3	%
Stuart J. Boesky		2,868.06	(2)(3)		6.3	%
Stephen M. Ross		2,868.06	(2)(3)		6.3	%
Marc D. Schnitzer		2,868.06	(2)(3)		6.3	%
Mark B. Hattier		-			-
Alan T. Fair		-			-
All executive officers of the general partner of the Related General Partner as a group (two persons)		-			-

-41-

Table of Contents

officers of the general partner of RILLC as a group. Unless otherwise noted, all BACs are owned directly with sole voting and dispositive powers.


	Amount and Nature of		Percentage
Name of Beneficial Owner (1)	Beneficial Ownership		of Class

Lehigh Tax Credit Partners, Inc.	2,868.06	(2)	6.3	%
J. Michael Fried	2,868.06	(2)(3)	6.3	%
Alan P. Hirmes	2,868.06	(2)(3)	6.3	%
Stuart J. Boesky	2,868.06	(2)(3)	6.3	%
Stephen M. Ross	2,868.06	(2)(3)	6.3	%
Marc D. Schnitzer	2,868.06	(2)(3)	6.3	%
Mark B. Hattier	-			-
Alan T. Fair	-			-

All executive officers of the general partner of the Related
General Partner as a group (two persons)	-			-

(1)

The address for each of the persons in the table is 1225 17th Street, Denver Colorado 80202.

(2)

As set forth in Schedule 13D filed by Lehigh Tax Credit Partners III L.L.C. and Lehigh Tax Credit Partners, Inc. (the “Managing Member”) on January 25, 1999 with the Securities and Exchange Commission.

(3)

Only owns an economic interest in the Managing Member.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The Partnership has and will continue to have certain relationships with the General Partner and its affiliates, as discussed in Item 11 and also Note 8 in Item 8 above, which are incorporated herein by reference thereto. However, there have been no direct financial transactions between the Partnership and the members and officers of the General Partner.

Item 14. Principal Accountant Fees and Services.

Audit Fees

~~The~~ The aggregate fees billed by Raich Ende Malter & Co LLP for professional services rendered for the audit of the Partnership’s annual consolidated financial statements for the years ended March 31, ~~2015~~ 2016 and ~~2014~~2015 and for the reviews of the financial information included in the Partnership’s quarterly reports on Form 10-Q for those years were $88,000 and $7388,000, respectively.

Audit Related Fees

None.

Tax Fees

None.

- 36 -

All Other Fees

None.

The Partnership is not required to have, and does not have, a stand-alone audit committee.

- 37 42-

Table of Contents

PART IV

Item 15.	Exhibits, Financial Statement Schedules.
		Sequential Page
		SequentialPage
(a) 1.	Financial Statements
	Reports of Independent Registered Public Accounting Firms	~~13-~~17-19
	Consolidated Balance Sheets at March 31, 2015 and 2014	18
	Consolidated Balance Sheets at March 31, 2016 and 2015	20
	Consolidated Statements of Operations for the years ended March 31, 2015 and 2014	19
	Consolidated Statements of Operations for the years ended March 31, 2016 and 2015	21
	Consolidated Statements of Changes in Partners’ (Deficit) Capital for the years ended March 31, 2015 and 2014	20
	Consolidated Statements of Changes in Partners’ (Deficit) Capital for the years ended March 31, 2016 and 2015	22
	Consolidated Statements of Cash Flows for the years ended March 31, 2015 and 2014	21
	Consolidated Statements of Cash Flows for the years ended March 31, 2016 and 2015	23
	Notes to Consolidated Financial Statements	2224
(a) 2.	Condensed Financial Statement Schedules
	Report of Independent Registered Public Accounting Firm on Supplementary Information	4247
	Schedule I - Condensed Financial Information of Registrant	4348
	Schedule III - Real Estate and Accumulated Depreciation	4651
	All other schedules have been omitted because they are not required or because the required information is contained in the consolidated financial statements or notes thereto.
(a) 3.	Exhibits
(3A)	Agreement of Limited Partnership of Independence Tax Credit Plus L.P. IV as adopted on February 22, 1995*
(3B)	Form of Amended and Restated Agreement of Limited Partnership of Independence Tax Credit Plus L.P. IV, attached to the Prospectus as Exhibit A**
(3C)	Certificate of Limited Partnership of Independence Tax Credit Plus L.P. IV as filed on February 22, 1995*
(10A)	Form of Subscription Agreement attached to the Prospectus as Exhibit B**
(10B)	Escrow Agreement between Independence Tax Credit Plus L.P. IV and Bankers Trust Company*
(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*
(21)	Subsidiaries of the Registrant	3944
(31.1)+	Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)
(31.2)+	Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)
(32.1)+	Certification Pursuant to Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350)
(32.2)+	Certification Pursuant to Section 1350 of Title 18 of the United States Code (18 U.S.C. 1350)
(101)+	The following items from this Year End Report on Form 10-K formatted in Extensible Business Reporting Language: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statement of Operations (unaudited), (iii) Consolidated Statement of Changes in Partner's (Deficit) Capital (unaudited), (iv) Consolidated Statement of Cash Flows (unaudited), and (v) Notes to the Consolidated Financial Statements.

(101.INS) +	XBRL Instance Document
(101.SCH) +	XBRL Taxonomy Schema Linkbase Document
(101.CAL) +	XBRL Taxonomy Calculation Linkbase Document
(101.DEF) +	XBRL Taxonomy Definition Linkbase Document
(101.LAB) +	XBRL Taxonomy Labels Linkbase Document
(101.PRE) +	XBRL Taxonomy Presentation Linkbase Document

+Filed herewith.

~~+ Filed herewith.~~ * Incorporated herein as an exhibit by reference to exhibits filed with Post-Effective Amendment No. 4 to the Registration Statement on Form S-11 {Registration No. 33-89968} ** Incorporated herein as an exhibit by reference to exhibits filed with Post-Effective Amendment No. 8 to the Registration Statement on Form S-11 {Registration No. 33-89968}

**Incorporated herein as an exhibit by reference to exhibits filed with Post-Effective 38Amendment No. 8 to the Registration Statement on Form S-11 {Registration No. 33-89968}

-43-

Table of Contents

PART IV

Item 15.	Exhibits, Financial Statement Schedules (continued).
(c)	Subsidiaries of the Registrant (Exhibit 21)	Jurisdiction ~~of Organization~~ofOrganization
	Fawcett Street Limited Partnership	WA
	Bakery Village Urban Renewal Associates, L.P.	NJ
	GP Kaneohe Limited Partnership	HI
	KSD Village Apartments, Phase II, Ltd.	KY
	Kanisa Apartments, Ltd.	KY
(d)	Not applicable

- 39 44-

Table of Contents

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., General Partner By: CENTERLINE MANAGER LLC, Manager By: CENTERLINE AFFORDABLE HOUSING ADVISORS LLC, Sole Member By: CENTERLINE CAPITAL GROUP LLC, Sole Member


		By:	RELATED INDEPENDENCE L.L.C.,
			General Partner

		By:	CENTERLINE MANAGER LLC,
			Manager

		By:	CENTERLINE AFFORDABLE HOUSING ADVISORS LLC, Sole Member
		By:	CENTERLINE CAPITAL GROUP LLC,
			Sole Member

Date:	June 29, 2016			By:	/s/ Mark B. Hattier
					Mark B. Hattier
					Chief Financial Officer

Date:	June 29, 2016			By:	/s/ Alan T. Fair
					Alan T. Fair
					President (Principal Executive Officer)

Date:	June 29, 2015	By:	/s/ Mark B. Hattier
			Mark B. Hattier
			Chief Financial Officer
Date:	June 29, 2015	By:	/s/ Alan T. Fair
			Alan T. Fair
			President (Principal Executive Officer)

-45-

- Table 40of -Contents

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature	Title	Date
/s/ Mark B. Hattier	Chief Financial Officer of Centerline Capital Group LLC	June 29, ~~2015~~2016
Mark B. Hattier
/s/ Alan T. Fair	President (Principal Executive Officer) of Centerline Capital Group LLC	June 29, ~~2015~~2016
Alan T. Fair

-4146-

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC

ACCOUNTING FIRM ON SUPPLEMENTARY INFORMATION

To the Partners

Independence Tax Credit Plus L.P. IV and Subsidiaries

In connection with our audits of the consolidated financial statements of Independence Tax Credit Plus L.P. IV and Subsidiaries (A Delaware Limited Partnership) included in this Form 10-K as presented in our opinion dated June 29, ~~2015~~2016 on page 13, and based on the reports of other auditors, we have also audited supporting Schedule I for the ~~2014~~2016 and ~~2013~~2015 Fiscal Years and Schedule III at March 31, ~~2015~~2016. In our opinion, and based on the reports of the other auditors, these schedules present fairly, when read in conjunction with the related consolidated financial statements, the financial data required to be set forth therein.

~~As discussed in Note 12(b), the consolidated~~ financial statements include the financial statements of two subsidiary partnerships with significant uncertainties. The financial statements of these subsidiary partnerships were prepared assuming that they will continue as going concerns. These two subsidiary partnerships’ net losses aggregated $22,856 and $23,122 (2014 and 2013 Fiscal Years) and their assets aggregated $266,392 and $270,799 at March 31, 2015 and 2014, respectively. Management’ /s/ ~~plans~~RAICH inENDE ~~regard~~MALTER to& ~~these matters are also described in Item 8, Note 12(b)~~CO. ~~The accompanying consolidated financial statements do not include any adjustments that might result from the~~LLP ~~outcome of these uncertainties.~~

~~/s/~~ RAICH ENDE & MALTER & CO. LLP

RAICH ENDE & MALTER CO. LLP

New York, New York

June 29, ~~2015~~2016

-4247-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

SCHEDULE I

CONDENSED SCHEDULE OF FINANCIAL INFORMATION OF REGISTRANT

(Not Including Consolidated Subsidiary Partnerships)

CONDENSED BALANCE SHEETS

	March 31,
	2015				2014
	2016			2015
ASSETS
Cash and cash equivalents	$	~~512~~515,~~164~~178		$	$512,164	~~492,878~~
Cash held in escrow		~~123~~82,~~250~~119			123,250	~~123,250~~
Other assets		1610,~~886~~942			16,886	~~10,942~~
Total assets	$	~~652~~608,~~300~~239		$	$652,300	~~627,070~~
LIABILITIES AND PARTNERS' DEFICIT
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Due to general partner and affiliates	$	212,~~347,692~~852		$	$2,347,692	~~2,803,327~~
Other liabilities		6661,~~420~~750			66,420	~~55,000~~
Total liabilities		274,~~414,112~~602			2,414,112	~~2,858,327~~
Partners’ deficit		(1,761,812	)			(2,231,257	)
Partners’ capital (deficit)		533,637			(1,761,812)
Total liabilities and partners’ deficit	$	652,300			$	627,070
Total liabilities and partners’ capital (deficit)	$	608,239		$	652,300

See Report of Independent Registered Public Accounting Firm’s ~~Report~~ on Supplementary Information.

-4348-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

SCHEDULE I

CONDENSED SCHEDULE OF FINANCIAL INFORMATION OF REGISTRANT

(Not Including Consolidated Subsidiary Partnerships)

CONDENSED STATEMENTS OF OPERATIONS

	Years Ended March 31,
	2015				2014
	2016			2015
Revenues
Other income	$	50300		$	$50	~~20,200~~
Expenses
Administrative and management		~~192~~246,~~457~~293			192,457	~~183,381~~
Administrative and management-related parties		~~310~~305,~~925~~695			310,925	~~370,946~~
Total expenses		~~503~~551,~~382~~988			503,382	~~554,327~~
Loss from operations		(~~503~~551,~~332~~688)	)		(503,332)	~~(534,127~~	)
Gain on sale of investments in subsidiary partnerships		112,~~085~~742,~~881~~986			11,085,881	~~284,623~~
Equity in loss of subsidiary partnerships *		(112,~~051~~788,~~994~~920)	)		(11,051,994)	~~(74,555~~	)
Net loss	$	(469,445	)		$	(324,059	)
Distribution income from subsidiary partnership		2,893,071			—
Net income (loss)	$	2,295,449		$	(469,445)

See Report of Independent Registered Public Accounting Firm’s ~~Report~~ on Supplementary Information.

* Includes suspended prior year losses of investments in accordance with equity method of accounting, amounting to ($104,~~600~~738,~~583~~944) and ($710,~~825~~600,583) for the years ended March 31, ~~2015~~2016 and ~~2014~~2015, respectively.

-4449-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

SCHEDULE I

CONDENSED SCHEDULE OF FINANCIAL INFORMATION OF REGISTRANT

(Not Including Consolidated Subsidiary Partnerships)

CONDENSED STATEMENTS OF CASH FLOWS

	Years Ended March 31,
	2015				2014
	2016			2015
Cash flows from operating activities:
Net loss	$	(469,445	)		$	(324,059	)
Net income (loss)	$	2,295,449		$	(469,445)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Equity in loss on subsidiary partnerships		112,~~051~~788,~~994~~920			11,051,994	~~74,555~~
Gain on sale of investments in subsidiary partnerships		(112,~~085~~742,~~881~~986)	)		(11,085,881)	~~(284,623~~	)
Increase in other assets		(5,981	)			-
Distribution income from subsidiary partnership		(2,893,071)			—
(Decrease) increase in due to general partner and affiliates		(455,635	)			222,466
Changes in operating assets and liabilities:
Increase in other liabilities		11,420				6,004
Increase in other assets		5,944			(5,981)
Net cash used in operating activities		(953,528	)			(305,657	)
Decrease in due to general partner and affiliates		(2,334,840)			(455,635)
Cash flows from investing activities:
(Decrease) increase in other liabilities		(9,473)			11,420
Proceeds from sales of investments in subsidiary partnerships		951,747				-
Net cash used in operating activities		(2,890,057)			(953,528)
Net cash provided by investing activities		951,747				-
Cash flows from investing activities:
Cash flows from financing activities:
Proceeds from sales of investments in subsidiary partnerships		—			951,747
Distributions from subsidiary partnerships		21,067				210,068
Net cash provided by investing activities		—			951,747
Net cash provided by financing activities		21,067				210,068
Cash flows from financing activities:
Net increase (decrease) in cash and cash equivalents		19,286				(95,589	)
Distributions from subsidiary partnerships		2,893,071			21,067
Cash and cash equivalents, beginning of year		492,878				588,467
Net cash provided by financing activities		2,893,071			21,067
Cash and cash equivalents, end of year	$	512,164			$	492,878
Net increase in cash and cash equivalents		3,014			19,286
Cash and cash equivalents, beginning of year		512,164			492,878
Cash and cash equivalents, end of year	$	515,178		$	512,164

See Report of Independent Registered Public Accounting Firm~~’s Report~~ on Supplementary Information.

-4550-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

SCHEDULE III

CONSOLIDATED SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION

Partnership Property Pledged as Collateral

MARCH 31, ~~2015~~2016

			Initial Cost to Partnership	~~Initial Cost to Partnership~~							Gross Amount at which Carried at Close of Period				~~Gross Amount at which Carried at Close of Period~~
									Cost		~~Cost~~														Life on which					~~Life on which~~
									Capitalized		~~Capitalized~~														Depreciation in					~~Depreciation in~~
									Subsequent to		~~Subsequent to~~														Latest Income			~~Year of~~		~~Latest Income~~
						Buildings and		~~Buildings and~~	Acquisition:		~~Acquisition:~~			Buildings and					~~Buildings and~~	Accumulated		Year of		Date	~~Accumulated~~Statements is			~~Construction/~~	~~Date~~	~~Statements is~~
Description	Encumbrances		Land	~~Land~~		Improvements		~~Improvements~~	Improvements		~~Improvements~~Land			Improvements	~~Land~~		Total		~~Improvements~~	Depreciation*		~~Total~~Construction/Renovation		Acquired	Depreciation*Computed			~~Renovation~~	~~Acquired~~	~~Computed~~
Apartment Complexes
Fawcett Street Limited Partnership
Tacoma, WA		1,~~618~~587,~~542~~986		390,654	~~390,654~~		4,247,465		~~4,247,465~~	(2,389,992)		(2396,~~283,088~~383	)		1,851,744	~~396,383~~		2,248,127		~~1,958,648~~$	2,282,537	1996 - 97	~~2,355,031~~	June 1996	$27.5 years	~~2,280,365~~		~~1996-97~~	~~June 1996~~	~~27.5 years~~
Figueroa Senior Housing Limited Partnership
Bakery Village Urban Renewal Associates, L.P.
Los Angeles, CA		-			279,000				4,978,250			(2,401,979	)			291,377				2,563,894			2,855,271			2,847,867		1996-97	Nov. 1996	27.5 years
Montclair, NJ		3,291,279		50,000			14,912,416			(9,082,583)		52,699			5,827,134			5,879,833			5,664,272	1997 - 98		Dec. 1997	27.5 years
NNPHI Senior Housing Limited Partnership
GP Kaneohe Limited Partnership
Los Angeles, CA		-			709,657				6,135,419			(3,703,726	)			715,387				2,425,963			3,141,350			3,004,005		1996-97	Dec. 1996	27.5 years
Kaneohe, HI		-		-			3,306,828			(3,306,215)		—			21,191,144			21,191,144			1,427,804	1999 - 00		Jul - 99	7 - 40 years
Bakery Village Urban Renewal Associates, L.P.
KSD Village Apartments, Phase II Ltd.
Montclair, NJ		3,428,254			50,000				14,912,416			(8,991,998	)			52,699				5,917,719			5,970,418			5,658,034		1997-98	Dec. 1997	27.5 years
Danville, KY		-		-			887,539			(886,926)		—			270,722			270,722			348,710	1999 - 00		Jul - 99	10 - 40 years
GP Kaneohe Limited Partnership
Kanisa Apartments Ltd.
Kaneohe, HI		2,831,600			-				3,306,828			(1,115,071	)			613				2,191,144			2,191,757			1,407,694		1999-00	Jul-99	7-40 years
Fayette County, KY		-		106,592			4,846,543			(4,845,926)		107,205			1,223,145			1,223,141			1,334,184	1998 - 99		Oct. 1999	5 - 40 years
KSD Village Apartments, Phase II Ltd.
Less: discontinued operations and dispositions (a)		-		(106,592)			(9,040,910)			9,039,067		(107,205)			(22,685,011)			(22,685,007)			(3,110,698)
Danville, KY		285,023			-				887,539			(616,204	)			612				270,722			271,334			348,710		1999-00	Jul-99	10-40 years
	$	4,879,265	$	440,654		$	19,159,881		$	(11,472,575)	$	449,082		$	7,678,878		$	8,127,960		$	7,946,809
Kanisa Apartments Ltd.
Fayette County, KY		1,311,670			106,592				4,846,543			(3,622,787	)			107,205				1,223,145			1,330,350			1,334,184		1998-99	Oct. 1999	5-40 years
Less: discontinued operations and dispositions (a)		-			(988,657	)			(11,113,669	)		6,105,705				(1,006,764	)			(4,989,857	)		(5,996,621	)		(5,851,872	)
	$	9,475,089		$	547,246			$	28,200,791		$	(16,629,148	)		$	557,512			$	11,561,378		$	12,118,890		$	11,028,987

(a) The property and the related assets and liabilities were sold during the fiscal year ended March 31, ~~2015~~2016.

* Depreciation is computed using primarily the straight-line method over the estimated useful lives determined by the Partnership at the date of acquisition.

See Report of Independent Registered Public Accounting Firm~~’s Report~~ on Supplementary Information.

-4651-

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

SCHEDULE III

CONSOLIDATED SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION

Partnership Property Pledged as Collateral

MARCH 31, ~~2015~~2016

(continued)

	Cost of Property and Equipment						Accumulated Depreciation		~~Accumulated Depreciation~~
	Years Ended March 31,
	2015				2014				2015			2014
	2016			2015			2016			2015
Balance at beginning of year	$	1812,~~175~~118,~~629~~890		$	$18,175,629	~~24,325,174~~	$	11,028,981	$	~~16,801,559~~$	16,801,559	$	~~19,056,586~~
(Adjustment to) additions during year:
Land, building and improvements		4846,~~619~~171			48,619	~~93,333~~		-		-	-		-
Discontinued operations, dispositions and impairments		(64,~~105~~037,~~358~~101)	)		(6,105,358)	~~(6,242,878~~	)	(3,111,235)		~~(5,854,041~~	(5,854,041)		~~(2,534,967~~	)
Depreciation expense		-			-	-		29,062		~~81,463~~	81,463		~~279,940~~
Balance at close of year	$	128,~~118~~127,~~890~~960		$	$12,118,890	~~18,175,629~~	$	7,946,808	$	~~11,028,981~~$	11,028,981	$	~~16,801,559~~

At the time the Local Partnerships were acquired by Independence Tax Credit Plus L.P. IV, the entire purchase price paid by Independence Tax Credit Plus L.P. IV was pushed down to the Local Partnerships as property and equipment with an offsetting credit to capital.

See Report of Independent Registered Public Accounting Firm’s ~~Report~~ on Supplementary Information.

-4752-

Filing Compare · INDEPENDENCE TAX CREDIT PLUS LP IV