UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended ~~December~~June 3130, ~~2016~~2017

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

For the transition period from ______ to ______

Commission File Number 033-89968

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)

(303) 927-5000

Registrant’s telephone number, including area code

(Former name, former address and former fiscal year, if changed since last report)

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 ☐ No

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 ☐ No

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 the definitions of “large accelerated filer”, “accelerated filer”, ~~and~~ “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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

If emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Table of Contents

		PageNumbers
Part I
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statement of Changes in Partners’ (Deficit) Capital	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1715
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	1917
Item 4.	Controls and Procedures	1917
Part II
Item 1.	Legal Proceedings	2118
Item 1A.	Risk Factors	2118
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2118
Item 3.	Defaults Upon Senior Securities	2118
Item 4.	Mine Safety Disclosures	2118
Item 5.	Other Information	2118
Item 6.	Exhibits	2118
Signatures		2219

Table of Contents

Item 1. Financial Statements.

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

	December 31,		March 31,
	June 30,		March 31,
	2016		2016
	2017		2017
	(Unaudited)		(Audited)
ASSETS
Operating assets
Property and equipment - (at cost, net of accumulated depreciation of $0 and $7,946,808, respectively)	$	—	$	181,152
Cash and cash equivalents	$	1,896,994	$	1,841,212
Cash and cash equivalents		2,092,918		867,364
Cash held in escrow		—		82,119
Cash held in escrow		82,119		622,020
Due from local general partners and affiliates (Note 2)		—		56,111
Other assets		10,~~945~~944		8010,~~560~~944
Total operating assets		21,~~185~~907,~~982~~938		1,~~751~~990,~~096~~386
Assets from discontinued operations (Note 6)
Property and equipment - (at cost, net of accumulated depreciation of $2,284,169 and $0, respectively)		51,133		—
Property and equipment - (at cost, net of accumulated depreciation of $0 and $2,284,169, respectively)		—		51,133
Other assets held for sale		~~417,355~~—		—429,411
Total assets from discontinued operations		~~468,488~~—		—480,544
Total assets	$	21,~~654~~907,~~470~~938	$	12,~~751~~470,~~096~~930
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Operating liabilities
Mortgage notes payable (net of deferred costs of $0 and $102,389, respectively)	$	—	$	4,776,876
Accounts payable	$	74,375	$	63,619
Accounts payable		42,287		124,790
Due to general partners and affiliates		2,774		—
Accrued interest payable		—		63,220
Total operating liabilities		77,149		63,619
Security deposits payable		—		147,226
Due to local general partners and affiliates (Note 2)		—		607,082
Due to general partners and affiliates (Note 2)		108,596		85,547
Total operating liabilities		150,883		5,804,741
Liabilities from discontinued operations (Note 6)
Mortgage notes payable (net of deferred costs of $33,299 and $0, respectively)		1,519,584		—
Mortgage notes payable (net of deferred costs of $0 and $32,299, respectively)		—		1,527,076
Other liabilities held for sale		~~283,213~~—		—304,035
Total liabilities from discontinued operations		~~1,802,797~~—		—1,831,111
Total liabilities		177,~~953,680~~149		51,~~804~~894,~~741~~730
Commitments and contingencies
Partners’ capital (deficit)
Limited partners (45,844 BACs issued and outstanding)		12,~~025~~198,~~110~~680		(3901,~~812,073)~~928
General partner		(~~379~~367,~~745~~891)		(~~428~~380,~~605~~989)
Independence Tax Credit Plus L.P. IV total		~~645~~1,~~365~~830,789		(4520,~~240,678)~~939
Noncontrolling interests		~~55,425~~—		~~187~~55,~~033~~261
Total partners’ capital (deficit)		~~700~~1,~~790~~830,789		(4576,~~053,645)~~200
Total liabilities and partners’ capital (deficit)	$	21,~~654~~907,~~470~~938	$	12,~~751~~470,~~096~~930

See accompanying notes to condensed consolidated financial statements.

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended				~~Nine Months Ended~~
	December 31,				December 31,
	June 30,
	2016		2015*		2016*		2015*
	2017		2016*
Revenues
Total revenues	$	—	$	—
Other	$	—	$	200	$	—	$	250
Expenses
Total revenues		—		200		—		250
General and administrative		37,444		91,773
Expenses
General and administrative-related parties		58,536		63,645
General and administrative		182,645		77,885		399,166		197,695
Total expenses		95,980		155,418
General and administrative-related parties (Note 2)		93,922		81,013		220,327		252,940
Loss from operations		(95,980)		(155,418)
Total expenses		276,566		158,898		619,493		450,635
Income from discontinued operations (including gain on sale of property) (Note 4)		1,350,569		48,675
Loss from operations		(276,566)		(158,698)		(619,493)		(450,385)
Net loss		1,254,589		(106,743)
Income (loss) from discontinued operations (including gain on sale of property) (Note 4)		10,307		(45,891)		5,373,928		10,705,203
Less: net loss (income) attributable to noncontrolling interests from discontinued operations		55,261		(205)
Net (loss) income		(266,259)		(204,589)		4,754,435		10,254,818
Net income (loss) attributable to Independence Tax Credit Plus L.P. IV	$	1,309,850	$	(106,948)
Less: net (income) loss attributable to noncontrolling interests from discontinued operations		(110)		(10,966)		131,608		(3,661,887)
Loss from operations – limited partners	$	(95,020)	$	(153,864)
Net (income) loss attributable to noncontrolling interests		(110)		(10,966)		131,608		(3,661,887)
Income from discontinued operations – limited partners		1,391,772		47,985
Net (loss) income attributable to Independence Tax Credit Plus L.P. IV	$	(266,369)	$	(215,555)	$	4,886,043	$	6,592,931
Net income (loss) – limited partners	$	1,296,752	$	(105,879)
Loss from operations – limited partners	$	(273,800)	$	(157,111)	$	(613,298)	$	(445,881)
Number of BACs outstanding		45,844		45,844
Income (loss) from discontinued operations – limited partners		10,095		(56,288)		5,450,481		6,972,883
Loss from operations per weighted average BAC	$	(2.07)	$	(3.36)
Net (loss) income – limited partners	$	(263,705)	$	(213,399)	$	4,837,183	$	6,527,002
Income from discontinued operations per weighted average BAC		30.36		1.05
Number of BACs outstanding		45,844		45,844		45,844		45,844
Net income (loss) per weighted average BAC	$	28.29	$	(2.31)
Loss from operations per weighted average BAC	$	(5.97)	$	(3.43)	$	(13.38)	$	(9.73)
Income (loss) from discontinued operations per weighted average BAC		0.22		(1.23)		118.89		152.11
Net (loss) income per weighted average BAC	$	(5.75)	$	(4.64)	$	105.51	$	142.38

* Reclassified for comparative purposes.

See accompanying notes to condensed consolidated financial statements.

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INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Condensed Consolidated Statement of Changes in Partners’ (Deficit) Capital

(Unaudited)

			Limited		General		Noncontrolling
	Total		Partners		Partner		Interests
Partners’ (deficit) capital – April 1, 2016	$	(4,053,645)	$	(3,812,073)	$	(428,605)	$	187,033
Partners’ (deficit) capital – March 31, 2017	$	576,200	$	901,928	$	(380,989)	$	55,261
Net (loss) income		4,754,435		4,837,183		48,860		(131,608)
Net income (loss)		1,254,589		1,296,752		13,098		(55,261)
Partners’ (deficit) capital – December 31, 2016	$	700,790	$	1,025,110	$	(379,745)	$	55,425
Partners’ capital (deficit) – June 30, 2017	$	1,830,789	$	2,198,680	$	(367,891)	$	-

See accompanying notes to condensed consolidated financial statements.

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INDEPENDENCE TAX CREDIT PLUS L.P. IV

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended
	Three Months Ended
	December 31,
	June 30,
	2016		2015
	2017		2016
Cash flows from operating activities:
Net income	$	4,754,435	$	10,254,818
Net income (loss)	$	1,254,589	$	(106,743)
Adjustments to reconcile net income to net cash used in operating activities:
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		~~5,710~~847		~~137~~2,~~621~~406
Gain on sale of property		(5,247,186)		(10,752,464)
Amortization of debt issuance costs		288		1,170
Gain on sale of property		(1,496,361)		—
Changes in assets and liabilities:
Decrease (increase) in cash held in escrow		697		(50,836)
Decrease in cash held in escrow		7,532		4,763
Decrease in due from local general partners and affiliates		—		1,278
(Increase) decrease in other assets		(71,669)		24,191
(Increase) decrease in other assets		(156,103)		42,183
Increase (decrease) in accounts payable		1,495		(10,903)
(Decrease) increase in accounts payable		(56,764)		19,659
Increase in accrued interest payable		—		2,428
Increase (decrease) in accrued interest payable		7,782		(42,146)
Increase (decrease) increase in security deposit payable		1,000		(3,045)
Increase in security deposit payable		988		12,442
Increase in due to local general partners and affiliates		—		23,055
Increase (decrease) in due to general partner and affiliates		102,061		(2,137,039)
Decrease in due from general partner and affiliates		13,165		—
Total adjustments		(5,342,815)		(12,769,302)
Decrease in due to general partner and affiliates		2,774		69,532
Net cash used in operating activities		(588,380)		(2,514,484)
Total adjustments		(1,540,929)		113,597
Net cash (used in) provided by operating activities		(286,340)		6,854
Cash flows from investing activities:
Decrease (increase) in cash held in escrow		4,267		(9,852)
Increase (decrease) in cash held in escrow		73,572		(10,941)
Acquisition of property and equipment		—		(67,915)
Increase in due to local general partners and affiliates		22,468		—
Proceeds from sale of property		2,120,988		10,100,000
Net cash provided by (used in) investing activities		96,040		(10,941)
Costs paid relating to sale of property		—		(3,189,916)
Net advances from local general partners and affiliates		86,438		109,487
Net cash provided by investing activities		2,211,693		6,941,804
Cash flows from financing activities:
Repayments of mortgage notes		(~~132~~20,~~665~~462)		(~~147~~40,~~965~~052)
Distributions to noncontrolling interests		—		(4,091,448)
Net cash used in financing activities		(20,462)		(40,052)
Net cash used in financing activities		(132,665)		(4,239,413)
Net decrease in cash and cash equivalents		(210,762)		(44,139)
Net increase in cash and cash equivalents		1,490,648		187,907
Cash and cash equivalents at beginning of year		2,107,756		867,364
Cash and cash equivalents at beginning of period		867,364		706,652
Cash and cash equivalents at end of year	$	1,896,994	$	823,225
Cash and cash equivalents at end of period	$	2,358,012	$	894,559
Summarized below are the components of the gain on sale of property:
Proceeds from sale of property	$	(2,120,988)	$	(10,100,000)
Property and equipment, net of accumulated depreciation	$	50,590	$	—
Costs paid relating to sale of property		—		3,189,916
Deferred costs		15,116		—
Property and equipment, net of accumulated depreciation		127,847		946,193
Other assets		119,137		—
Deferred costs		65,552		25,767
Cash held in escrow		143,938		—
Other assets		217,938		113,530
Accounts payable		(2,807)		—
Cash held in escrow		390,453		189,405
Mortgage payable		(1,506,903)		—
Accounts payable		(15,522)		(113,545)
Accrued interest		(56,839)		—
Mortgage payable		(3,193,718)		(4,418,807)
Security deposits		(15,391)		—
Accrued interest		(9,223)		(19,349)
Due to local general partners and affiliates		(243,202)		—
Security deposits		(132,247)		(36,249)
Due to local general partners and affiliates		(498,266)		(373,144)
Due to general partners and affiliates		(79,012)		(136,181)
Interest rate swap		—		(20,000)

See accompanying notes to condensed consolidated financial statements.

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

NOTE 1 – Summary of Significant Accounting Policies

Basis of Presentation

The condensed consolidated financial statements, as of ~~December~~June 3130, ~~2016~~ 2017, include the accounts of Independence Tax Credit Plus L.P. IV (the “Partnership”) and two other limited partnerships (“subsidiary partnerships”, “subsidiaries” or “Local Partnerships”) owning affordable apartment complexes (“Properties”) that are eligible for the low-income housing tax credits. As The ~~of December 31, 2016, the~~ Partnership ~~has~~sold anits ~~ownership~~last ~~interest~~remaining ininvestment ~~only one~~on ~~remaining~~June ~~investment~~26, 2017. 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 April 15, 2015, Alden Torch Financial LLC, a newly formed Delaware limited 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 interests in CAHA. 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 each of the subsidiary partnerships (each “Local General Partner”) and to approve certain major operating and financial decisions, the Partnership has a controlling financial interest in the subsidiary partnerships.

For financial reporting purposes, the Partnership’s fiscal quarter ends ~~December 31st.~~June 30. The remaining Local Partership’s fiscal quarter ends ~~September 30th~~March 31. Accounts of the remaining Local Partnership have been adjusted for intercompany transactions from ~~October 1st~~April 1st through ~~December~~June ~~31st~~30th. The Partnership’s fiscal quarter ends three months after the remaining Local Partnership in order to allow adequate time for the subsidiary’s financial statements to be prepared and consolidated. All intercompany accounts and transactions with the remaining Local Partnership have been eliminated in consolidation.

The net loss (income) ~~loss~~ attributable to noncontrolling interests from discontinued operations amounted to approximately ~~$(110)~~ ~~and~~ $~~(11~~55,~~000)~~261 and ~~$132,000~~ ~~and~~ $(~~3,662,000~~205) for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2016~~2017 and ~~2015~~2016, respectively. The Partnership’s investment in each subsidiary is equal to the respective subsidiary’s partners’ equity less noncontrolling interest capital, if any.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed pursuant to such regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended March 31, ~~2016~~2017.

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. In the opinion of the General Partner of the Partnership, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the condensed consolidated financial position of the Partnership as of ~~December~~June 3130, ~~2016~~2017 and the results of their operations and their cash flows for the ~~nine~~three months ended ~~December~~June 3130, ~~2016~~2017 and ~~2015~~2016. However, the operating results and cash flows for the ~~nine~~three months ended ~~December~~June 3130, ~~2016~~2017 may not be indicative of the results for the entire year.

Recently Issued Accounting Pronouncements

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. We have adopted the guidance in ASU 2015-03 as

Table of Contents

INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

~~Accounting~~of ~~Pronouncements~~April ~~Adopted~~1, in2016 and it has been applied retroactively for all periods presented. This update did not have a material impact on the ~~Current~~presentation ~~Year~~of the Partnership’s financial position.

In ~~April~~March ~~2015~~of 2016, the ~~FASB~~Financial Accounting Standards Board issued Accounting ~~Standard~~Standards Update ~~2015~~ASU No. 2016-0309, “Compensation – Stock Compensation: ~~Simplifying~~Improvements ~~the~~to ~~Presentation~~Employee ofShared ~~Debt~~Based ~~Issuance~~Payment ~~Costs.~~Accounting: ~~This~~Topic ~~update~~718” ~~requires~~(“ASU ~~capitalized~~2016-09”). ~~debt~~ASU ~~issuance~~2016-09 ~~costs~~simplifies toseveral beaspects ~~presented~~of ashow acompanies ~~reduction~~account tofor ~~the~~share-based ~~carrying~~compensation, ~~value~~including ofthe ~~debt~~accounting ~~instead~~for ofincome ~~being~~taxes, ~~classified~~forfeitures, asand astatutory ~~deferred~~tax ~~charge~~withholding requirements, as ~~currently~~well ~~required.~~as Weclassification ~~have~~in ~~adopted~~ the ~~guidance~~statements inof cash flows. ASU ~~2015~~2016-0309 asis ofaffective ~~April~~for 1,annual ~~2016~~periods ~~and~~beginning itafter ~~has~~December ~~been~~15, ~~applied~~2016 ~~retroactively~~and ~~for~~early ~~all~~adoption ~~periods~~is ~~presented~~permitted. ~~This~~The ~~update~~new guidance did not have aan ~~material~~ impact on the ~~presentation of the~~ Partnership’s condensed consolidated financial ~~position~~statements.

Recently Issued Accounting Pronouncements

In March of 2016, the Financial Accounting Standards Board issued Accounting Standards Update ASU No. 2016-09, “Compensation – Stock Compensation: Improvements to Employee Shared Based Payment Accounting: Topic 718” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of how companies account for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statements of cash flows. ASU 2016-09 is affective for annual periods beginning after December 15, 2016 and early adoption is permitted. The new guidance does not have an impact on the Partnership’s condensed consolidated financial statements.

In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02 “Leases – Topic 842” (“ASU 2016-02”). ASU 2016-02 requires recognition of lease assets and lease liabilities by lessees for all leases greather than one year in duration and classified as operating leases under previous GAAP. ASU 2016.02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. The new guidance will not have an impact on the Partnership’s condensed consolidated financial statements.

In February 2015, the Financial Accounting Standards Board issued Accounting Standard Update 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 ~~has~~did not ~~had~~have an impact on the Partnership’s condensed consolidated financial statements.

In May 14, 2014, FASB and 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 and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard is effective for the Partnership for the fiscal year beginning April 1, 2018 and the effects of the standard on the Partnership’s condensed consolidated financial statements are not known at this time.

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 ~~has~~did not ~~had~~have an impact on the Partnership’s consolidated financial statements.

Use of Estimates

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INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

Use of Estimates

NOTE 2 – Related Party Transactions

A)Related Party Expenses

An affiliate of the General Partner, Independence SLP IV L.P., ~~has~~ had a 0.01% interest as a special limited partner in each of the Local Partnerships.

The costs incurred to related parties from operations for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2016~~2017 and ~~2015~~2016 were as follows:

	Three Months Ended				~~Nine Months Ended~~
	December 31,				December 31,
	June 30,
	2016		2015*		2016		2015*
	2017		2016*
Partnership management fees (a)	$	5,~~797~~800	$	24,~~501~~500	$	~~53,912~~	$	~~84,479~~
Expense reimbursement (b)		8852,~~125~~736		5639,~~512~~145		~~166,415~~		~~168,461~~
Local administrative fee (c)		—		—		—		—
Total general and administrative-General Partners	$	58,536	$	63,645
Total general and administrative-General Partners	$	93,922	$	81,013	$	220,327	$	252,940

*Reclassified for comparative purposes.

The costs incurred to related parties from discontinued operations for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2016~~2017 and ~~2015~~2016 were as follows:

Three Months Ended

~~Nine Months Ended~~

December 31,

June 30,

2016

2015*

2016

2015*

2017

2016*

Local administrative fee (c)

—150,187

~~134~~3,~~982~~157

~~6,317~~

~~139,982~~

Total general and administrative-General Partner

—150,187

~~134~~3,~~982~~157

~~6,317~~

~~139,982~~

Property management fees incurred to affiliates of the subsidiary partnerships' general partners

6,249

~~117~~22,~~022~~973

~~50,873~~

~~247,173~~

Total general and administrative-related parties

6156,~~249~~436

~~252~~26,~~004~~130

~~57,190~~

~~387,155~~

*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 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. Partnership management fees owed to the General Partner amounting to approximately $— and $— were accrued and unpaid as of June 30, 2017 and March 31, 2017, 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.

(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

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INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

~~(a) The General Partner~~ is ~~entitled~~limited toby ~~receive a partnership management fee, after payment of all Partnership expenses, which together with~~ the ~~annual~~provisions ~~local administrative fees will not exceed a maximum~~ of ~~0.5% per annum of invested assets (as defined in~~ the Partnership Agreement),. ~~for~~Another ~~administering~~affiliate ~~the affairs~~ of the ~~Partnership. Subject to the foregoing limitation, the partnership management fee will be determined by the~~ General Partner inperforms ~~its~~asset ~~sole~~monitoring ~~discretion~~for ~~based upon its review of~~ the Partnership~~’s investments~~. ~~Unpaid~~These ~~partnership~~services ~~management~~include ~~fees~~site ~~for~~visits ~~any year are deferred without interest~~ and ~~will~~evaluations ~~be payable out~~ of ~~sales or refinancing proceeds only to~~ the ~~extent~~subsidiary ofpartnerships’ ~~available~~performance. ~~funds~~Expense ~~after~~reimbursements ~~payments~~and onasset ~~all~~monitoring ~~Partnership~~fees ~~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 $42,~~000~~400 and $~~12,000~~0 were accrued and unpaid as of ~~December~~June 3130, ~~2016~~2017 and March 31, ~~2016~~2017, respectively. ~~Current~~The ~~year~~General ~~partnership~~Partner ~~management~~does ~~fees~~not ~~may~~intend beto ~~paid~~demand ~~out~~payment of ~~operating~~the ~~reserves~~deferred orpayables ~~refinancing~~beyond ~~and~~the ~~sales~~Partnership’s ~~proceeds.~~ability ~~However,~~to ~~the~~pay ~~General~~them. ~~Partner~~The ~~cannot~~Partnership ~~demand~~anticipates ~~payment~~that ofthese ~~the~~will ~~deferred~~be ~~fees~~paid, ~~beyond~~if ~~the~~at ~~Partnership’s~~all, ~~ability~~from toworking ~~pay~~capital ~~them~~reserves.

(bc) ~~The~~Independence ~~Partnership~~SLP ~~reimburses~~IV ~~the General Partner and its affiliates for actual Partnership operating expenses incurred by the General Partner and its affiliates on the Partnership’s behalf~~L.P., ~~The~~(“SLP”) ~~amount~~a ofspecial ~~reimbursement from the Partnership is~~ limited bypartner ~~the provisions~~ of the ~~Partnership~~subsidiary ~~Agreement.~~partnerships, ~~Another~~is ~~affiliate~~entitled ofto ~~the~~receive ~~General~~a ~~Partner~~local ~~performs~~administrative ~~asset~~fee ~~monitoring~~of ~~for~~up ~~the~~to ~~Partnership.~~$5,000 ~~These~~per ~~services~~year ~~include~~from ~~site~~each ~~visits and evaluations of the~~ subsidiary ~~partnerships’ performance~~partnership. ~~Expense~~Local ~~reimbursements~~administrative ~~and asset monitoring~~ fees owed to ~~the~~Independence ~~General~~SLP ~~Partner~~IV ~~and~~L.P. ~~its affiliates~~ amounting to ~~approximately~~ $~~105,000~~— and $0— were accrued and unpaid as of ~~December~~June 3130, ~~2016~~2017 and March 31, ~~2016~~2017, respectively. The ~~General~~Partnership ~~Partner~~sold ~~does~~its ~~not~~last ~~intend~~remaining toinvestment ~~demand~~on ~~payment~~June of26, 2017, at the ~~deferred~~closing ~~payables~~date ~~beyond~~it ~~the~~was ~~Partnership’s~~determined ~~ability~~that tothe ~~pay~~Local ~~them.~~partnership ~~The~~owed ~~Partnership~~$150,187 ~~anticipates~~of ~~that~~SLP ~~these~~fees ~~will~~which bewere ~~paid~~not accrued, ifthese atfees ~~all,~~were ~~from~~paid ~~working~~on ~~capital~~the ~~reserves~~closing ordate ~~future~~out ~~sales~~of sale 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 $0 and $73,000 were accrued and unpaid as of December 31, 2016 and March 31, 2016, respectively.

As of December 31, 2016 and March 31, 2016, the Partnership owed approximately $0 and $1,000, respectively, to the General Partner for expenses it paid on its behalf.

B)Due to/from Local General Partners and Affiliates

The amounts due to Local General Partners and affiliates from ~~operating~~discontinued ~~liabilities~~operations consist of the following, which are reported as a component of other liabilities held for sale in the accompanying condensed consolidated balance sheet:

	December 31,		March 31,
	June 30,		March 31,
	2016		2016
	2017		2017
Development fee payable	$	—	$	481,597
Operating advances		—		220,734
Operating advances		—		125,485
	$	—	$	220,734
	$	—	$	607,082

The amounts due to Local General Partners and affiliates from discontinued operations consist of the following, which are reported as a component of other liaiblities held for sale in the accompanying condensed consolidated balance sheets.

	December 31,		March 31,
	2016		2016
Operating advances		195,254		—
	$	195,254	$	—

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INDEPENDENCE TAX CREDIT PLUS L.P. IV AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements

December 31, 2016

(Unaudited)

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 Partneship’s cash and cash equivalents include cash on hand and deposits in banks. Due to their short term nature, the carrying amounts reported in the condensed consolidated balance sheets approximate fair value.

Accounts Payable and Other Liabilities

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

Mortgage Notes Payable

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.
Level 3:		Unobservable inputs that reflect the Partnership’s own assumptions.

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. The following are financial instruments for which the Partnership’s estimate of fair value differs from the carrying amounts:

	At December 31, 2016				At March 31, 2016
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
LIABILITIES:
Mortgage notes	$	1,552,883	$	1,374,034	$	4,879,265	$	3,794,072

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INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

~~have~~but ~~been~~discusses ~~securitized~~valuation intechniques, ~~the~~such ~~past.~~as Tothe ~~assist~~market inapproach ~~valuing~~(comparable ~~these~~market ~~notes~~prices), the ~~Partnership~~income ~~held~~approach ~~separate~~(present ~~discussions~~value ~~with~~of ~~various~~future ~~third~~income ~~party~~or ~~investment~~cash ~~banks~~flow), ~~who~~and ~~are~~the ~~leaders~~cost inapproach (cost to replace the ~~municipal~~service ~~bond~~capacity ~~business~~of an asset or replacement cost). ~~The~~This ~~discussions~~standard ~~produced~~provides ~~assumptions~~for ~~that~~a ~~were~~fair ~~based~~value onhierarchy ~~market~~that ~~conditions~~prioritizes asthe ~~well~~inputs asto ~~the~~valuation ~~credit~~techniques ~~quality~~used ofto ~~the~~measure ~~underlying~~fair ~~property~~value ~~partnerships,~~into ~~which~~three ~~held~~broad ~~the~~levels. The ~~mortgage~~following ~~notes,~~is toa ~~determine~~brief ~~what~~description ~~discount~~of ~~rates~~those tothree ~~utilize.~~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.

Level 3:		Unobservable inputs that reflect the Partnership’s own assumptions.


	At June 30, 2017				At March 31, 2017
	(Unaudited)				(Audited)
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value

LIABILITIES:
Mortgage notes	$	—	$	—	$	1,544,366	$	1,360,695

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. The Partnership has not been active in the tender option bond market, through which these bonds have been securitized in the past. 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.

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 – Sale of Properties

The Partnership ~~has developed a plan to dispose of its last remaining investment. It is anticipated that this process will take from six to twelve months. Through December 31, 2016, the Partnership has~~ sold its limited partnership interest in nine Local Partnerships and the property and the related assets and liabilities of four Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its last remaining investment ~~or the amount of proceeds which may be received. However, based~~ on ~~the~~June ~~historical operating results of the Local Partnerships and the current economic conditions~~26, ~~the proceeds from such sales received by the Partnership will not be sufficient to return to the limited partners their original investments~~2017. All gains and losses on sales are included in discontinued operations.

On ~~September~~June 2126, ~~2016~~2017, the ~~Partnership~~property ~~sold~~and ~~its~~the ~~limited~~related ~~partnership~~assets ~~interest~~and inliaiblities ~~Bakery~~for ~~Village~~Fawcett ~~Urban~~Street ~~Renewal~~Limited ~~Associates,~~Partnership ~~L.P.~~ (“~~Bakery Village~~Fawcett”) were sold to an ~~affiliate~~unaffiliated ofthird ~~the~~party ~~Local General Partner~~ for a sales price of ~~approximately~~ $2,~~200~~125,000. The ~~sale~~Partnership ~~resulted~~received in$0 as a ~~gain~~distribution offrom ~~approximately~~this ~~$5,247,000~~sale ~~resulting~~after ~~from~~ the ~~write-off~~repayment of the ~~deficit~~mortgages, ~~basis~~other inliaiblities ~~the~~and ~~Local~~closing ~~Partnership~~costs ~~plus~~of ~~the~~approximately ~~cash~~$2,125,000. ~~recived~~The bysale ~~the~~resulted ~~Partnership,~~on a gain of approximately $1.496.000 which was recorded during the quarter ended ~~September~~June 30, ~~2016~~2017. SLP fees owed but not accrued in the amount of approximately $150,000 were paid out of sale proceeds.

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 $1,515,000.11

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.

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 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.

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INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

~~NOTE~~On 5September –21, ~~Assets~~2016, ~~Held~~the Partnership sold its limited partnership interest in Bakery Village Urban Renewal Associates, L.P. (“Bakery Village”) to an affiliate of the Local General Partner for ~~Sale~~a sales price of approximately $2,200,000. The sale resulted in a gain of approximately $5,247,000 resulting from the write-off of the deficit basis in the Local Partnership plus the cash recived by the Partnership, which was recorded during the quarter ended September 30, 2016.

OnNOTE ~~September~~5 ~~13,~~– ~~2016 Fawcett~~Discontinued Street Limited Partnership (“Fawcett”) entered into a sale agreement with Shelter Resources Inc., an unnafiliated third party purchaser, to sell its property and the related assets and liabilities for a sale price of $2,125,000. The sale is contingent on the fulfillment of due diligence and financing obligations by buyer and seller on or before the closing date. It is anticipated that this process will take from six to twelve months. The sale is expected to result in a gain of approximately $3,500,000.Operations

~~NOTE~~As 6of –June ~~Discontinued~~30, ~~Operations~~2017, there were no assets classified as discontinued operations. The following table summarizes the financial position of Fawcett because it has been classified as assets held for sale as of March 31, 2017. (See Note 4).

The following table summarizes the financial position of Fawcett because it has been classified as assets held for sale (See Note 5). As of March 31, 2016, there were no assets classified as discontinued operations.


	June 30,		March 31,
	2017		2017*
Assets
Property and equipment - (at cost, net of accumulated depreciation of $0 and $2,284,169, respectively)	$	—	$	51,133
Cash and cash equivalents		—		266,544
Cash held in escrow		—		142,923
Other assets		—		19,944
Total assets	$	—	$	480,544

Liabilities
Mortgage notes payable (net of deferred costs of $0 and $32,299, respectively)	$	—	$	1,527,076
Accounts payable		—		12,071
Accrued interest payable		—		56,839
Security deposits payable		—		14,391
Due to local general partners and affiliates		—		220,734
Total liabilities	$	—	$	1,831,111

	December 31,		March 31,
	2016		2016
Assets
Property and equipment - (at cost, net of accumulated depreciation of $2,284,169 and $0, respectively)	$	51,133	$	—
Cash and cash equivalents		265,094		—
Cash held in escrow		144,484		—
Other assets		7,777		—
Total assets	$	468,488	$	—
Liabilities
Mortgage notes payable (net of deferred costs of $32,299 and $0, respectively)		1,519,584		—
Accounts payable		10,213		—
Accrued interest payable		61,779		—
Security deposits payable		15,967		—
Due to local general partners and affiliates (Note 2)		195,254		—
Total liabilities	$	1,802,797	$	—

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INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

The following table summarizes the results of operations of the Local Partnerships that are classified as discontinued operations. For the ~~nine~~three months ended ~~December~~June 3130, ~~2016~~2017, Fawcett ~~was classified as assets held for sale and Bakery Village~~ which was sold ~~during~~in ~~the~~June ~~quarter~~2017 ~~ended September 30, 2016~~ was classified as discontinued operations. In ~~For~~order ~~the~~to ~~three~~present ~~and~~comparable ~~nine~~results to the three months ended ~~December~~June 3130, ~~2015~~ 2016, Bakery ~~First~~Village ~~African Kanisa,~~ which was sold in ~~July~~September ~~2015,~~2016 ~~KSD Village~~ and ~~Kaneohe, which were sold in June 2015, Bakery Village and~~ Fawcett Street, ~~in order to present comparable results to the three and nine months ended December 31, 2016,~~ were classified as discontinued operations in the condensed consolidated financial statements.

Condensed Consolidated Statements of Discontinued Operations:

	Three Months Ended				~~Nine Months Ended~~
	December 31,				December 31,
	June 30,
	2016		2015*		2016		2015*
	2017		2016*
Revenues
Rental income	$	98,~~853~~249	$	~~406~~408,~~106~~138	$	~~918,563~~	$	~~1,829,622~~
Other		21,~~770~~512		1922,~~497~~267		~~42,331~~		~~60,625~~
Gain on sale of property (Note 4)		—		196,256		5,247,186		10,752,464
Gain on sale of property		1,496,363		—
Total revenue		~~101~~1,~~623~~596,124		~~621~~430,~~859~~405		~~6,208,080~~		~~12,642,711~~
Expenses
General and administrative		1222,~~485~~749		98129,~~377~~603		~~240,836~~		~~460,049~~
General and administrative-related parties (Note 2)		6,249		252,004		57,190		387,155
General and administrative-related parties		156,436		26,130
Repairs and maintenance		2532,~~774~~980		9074,~~531~~394		~~191,626~~		~~365,978~~
Operating and other		2616,~~256~~523		4358,~~505~~955		~~142,369~~		~~217,437~~
Real estate taxes		—		2526,~~135~~043		~~52,408~~		~~75,374~~
Insurance		4,~~080~~636		20,~~157~~133		~~43,221~~		~~74,150~~
Interest		1511,~~338~~386		3844,~~175~~068		~~100,792~~		~~219,744~~
Depreciation and amortization		~~1,134~~845		992,~~866~~406		~~5,710~~		~~137,621~~
Total expenses		91245,~~316~~555		~~667~~381,~~750~~732		~~834,152~~		~~1,937,508~~
Income (loss) from discontinued operations		10,307		(45,891)		5,373,928		10,705,203
Income from discontinued operations		1,350,569		48,673
Noncontrolling interest in (income) loss of subsidiaries from discontinued operations		(110)		(10,966)		131,608		(3,661,887)
Noncontrolling interest in loss (income) of subsidiaries from discontinued operations		55,261		(205)
Income (loss) from discontinued operations – Independence Tax Credit Plus L.P. IV	$	10,197	$	(56,857)	$	5,505,536	$	7,043,316
Income from discontinued operations – Independence Tax Credit Plus L.P. IV	$	1,405,830	$	48,468
Income (loss) from discontinued operations – limited partners	$	10,095	$	(56,288)	$	5,450,481	$	6,972,885
Income from discontinued operations – limited partners	$	1,391,772	$	47,982
Number of BACs outstanding		45,844		45,844		~~45,844~~		~~45,844~~
Income (loss) from discontinued operations per weighted average BAC	$	0.22	$	(1.23)	$	118.89	$	152.11
Income from discontinued operations per weighted average BAC	$	30.36	$	1.05

*Reclassified for comparative purpose.

1413

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INDEPENDENCE TAX CREDIT PLUS L.P. IV
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

~~December~~June 3130, ~~2016~~2017

(Unaudited)

Cash Flows from Discontinued Operations:

	Nine Months Ended
	Three Months Ended
	December 31,
	June 30,
	2016		2015 *
	2017		2016*
Net cash (used in) provided by operating activities	$	(~~576~~472,~~963~~207)	$	749,~~822,638~~673
Net cash provided by investing activities	$	568,085	$	692,212
Net cash provided by (used in) investing activities	$	226,123	$	12,114
Net cash used in financing activities	$	(~~163~~20,~~113~~461)	$	(838,~~490,209~~882)

*Reclassified for comparative purposes.

NOTE 7 – Commitments and Contingencies

a) Uninsured Cash and Cash Equivalents

The Partnership maintains its 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 times, the balances exceed the FDIC insurance limit.

b) ~~Cash~~Property ~~Distributions~~Management Fees

~~Cash~~Property ~~distributions~~management ~~from~~fees incurred by the Local Partnerships amounted to approximately $6,000 and $23,000 for the ~~Partnership~~three months ~~are~~ended ~~restricted~~June 30, 2017 byand ~~the~~2016, ~~provisions~~respectively. Of ofthese fees, approximately $6,000 and $23,000 were incurred to the ~~respective~~Local ~~agreements~~General ofPartners ~~limited~~and ~~partnership~~are ofrelated to discontinued opreations for the ~~Local~~three ~~Partnerships~~months ended June 30, 2017 and 2016, respectively.

c) ~~Property~~Subsequent ~~Management Fees~~Events

~~Property~~The ~~management~~Partnership ~~fees~~evaluated ~~incurred~~all bysubsequent ~~the~~events ~~Local~~from ~~Partnerships~~the ~~amounted to~~date ~~approximately $6,000~~of ~~and $117,000 and $51,000 and $260,000~~ the ~~three~~condensed ~~and~~consolidated ~~nine~~balance ~~months~~sheet ~~ended~~through ~~December 31, 2016~~the ~~and~~issuance ~~2015,~~date ~~respectively. Of~~of these ~~fees,~~financial ~~approximately $6,000~~statements and ~~$117,000 and~~determined ~~$51,000~~that ~~and~~there ~~$247,000~~ were ~~incurred~~no toevents ~~the~~or ~~Local~~transactions ~~General~~occurring ~~Partners~~during ~~for~~ the ~~three~~subsequent ~~and nine~~event ~~months~~reporting ~~ended~~period ~~December 31, 2016 and 2015, respectively, all of~~ which ~~related~~require torecognition ~~discontinued~~or ~~operations~~disclosure ~~for~~in the ~~three~~condensed ~~and~~consolidated ~~nine~~financial ~~months~~statements ~~ended~~other ~~December~~than ~~31,~~the ~~2016 and 2015 respectively.~~following:

~~d) Other~~On June 26, 2017, the Partnership sold its last remaining investment. At this time, the amount of reserves to be set aside for the payment of accrued operating expenses and liquidation expenses has not yet been determined. There can be no assurance that there will be any remaining funds available for distributions to BAC holders.

The Partnership is subject to risks incidental to potential losses arising from the management and ownership of real estate. The Partnership can also be affected by poor economic conditions generally. There are also substantial risks associated with owning properties receiving government assistance, for example the possibility that Congress may not appropriate funds to enable the U.S. Department of Housing and Urban Development (“HUD”) to make rental assistance payments. HUD also restricts annual cash distributions to partners based on operating results and a percentage of the owners’ equity contribution. The Partnership cannot sell or substantially liquidate its investment in its last remaining subsidiary partnership during the period that the subsidy agreement is in existence without HUD’s approval. Furthermore there may not be market demand for apartments at full market rents when the rental assistance contract expires.14

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INDEPENDENCE TAX CREDIT PLUS L.P. IV AND SUBSIDIARIESNotes to Condensed Consolidated Financial Statements

December 31, 2016

(Unaudited)

The Partnership and BACs holders began to recognize Tax Credits with respect to a Property when the Credit Period for such Property commenced (generally ten years from the date of investment or, if later, the date the Property is leased to qualified tenants). Because of the time required for the acquisition, completion and rent-up of Properties, 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, 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 remaining Local Partnership has completed its Compliance Period.

e) Subsequent Events

The Partnership evaluated all subsequent events from the date of the condensed consolidated balance sheet through the issuance date of these financial statements and determined that there were no events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the condensed consolidated financial statements.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Liquidity and Capital Resources

The Partnership originally invested all of its net proceeds in fourteen Local Partnerships ~~of which, approximately $82,000 remains to be paid to the last remaining Local Partnership (including approximately $82,000 being held in escrow)~~. The Partnership has ~~developed~~sold aits ~~plan~~last toremaining ~~dispose~~investments ofon ~~its~~June ~~last~~26, ~~remaining investment~~2017. Through ~~December~~June 3130, ~~2016~~2017, the Partnership has sold its limited partnership interests in nine Local Partnerships and the property and the related assets and liabilities of ~~four~~five Local Partnerships have been sold. ~~There~~ All ~~can~~gains beand nolosses ~~assurance as to when the Partnership will dispose of its last remaining investment or the amount of proceeds which may be received. However, based~~ on ~~the~~sales ~~historical~~are ~~operating~~included ~~results~~in ofdiscontinued ~~the Local Partnerships and the current economic conditions, the proceeds from such sale received by the Partnership will not be sufficient to return to the limited partners their original investments~~operations. All gains and losses ~~on sales~~ are included in discontinued operations.

Liquidation of the Partnership in accordance with Section 8.1(ii) of the Limited Partnership Agreement requires the Partnership to dissolve 150 days following the sale of the Partnership’s last remaining investment. Following dissolution, the General Partner will cause the Partnership to liquidate as soon thereafter as possible at which time the remaining assets (i.e. cash) of the Partnership will be used to first pay any remaining liabilities of the Partnership and the costs of liquidation with the remaining balance, if any, distributed to the General Partner and the BACs holders in accordance with the Partnership Agreement. Dissolution is expected to take place on or about November 27, 2017, with the liquidation and termination of the Partnership to follow shortly thereafter. At this time, the amount of reserves to be set aside for the payment of accrued operating expenses and liquidation expenses has not yet been determined. There can be no assurance that there will be any remaining funds available for distributions to BACs holders.

Short-Term

The Partnership’s primary sources of funds include: (i) working capital reserves; (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 ~~nine~~three months ended ~~December~~June 3130, ~~2016~~2017 and ~~2015~~2016, there were no distributions from operations of the Local Partnerships. Inor ~~addition, during the nine months ended December 31, 2016 and 2015,~~ distributions to the ~~Partnership~~Partenrship from ~~sales~~sale proceeds ~~amounted to approximately $2,121,000 and $2,825,000, respectively~~. The Partnership does not anticipate providing cash distributions to BACs holders in circumstances other than refinancing or sales.

During the ~~nine~~three months ended ~~December~~June 3130, ~~2016~~2017, cash and cash equivalents of the Partnership ~~and~~decreased ~~its consolidated Local Partnership increased~~ approximately $1211,~~491,~~000. This ~~increase~~decrease was due to ~~proceeds~~cash ~~from~~used ~~the~~in ~~sale~~operating ofactivities ~~a property~~ of approximately ($2286,~~121,~~000), and ~~net~~repayment ~~advances~~of ~~from~~mortgage ~~local~~notes ~~general partners and affiliates~~ of approximately ($8720,000), ~~and~~ which exceeded a decrease in cash held in escrow relating to investing activities of approximately ($474,000), ~~which~~ ~~exceeded~~net ~~cash~~repayments ~~used~~from inlocal ~~operating~~general ~~activities~~partners ~~of approximately ($588,000)~~ and ~~repayment~~affiliates of ~~mortgage notes of~~ approximately ($~~133~~23,000). Included in the adjustments to reconcile the net loss to net cash used in operating activities is depreciation and amortization in the amount of approximately ($~~5,700~~800).

Total expenses from operations for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2016~~2017 and ~~2015~~2016, excluding depreciation and amortization, interest and general and administrative-related parties, totaled ~~$182,644~~ ~~and~~ $7737,~~885~~444 and ~~$399,166~~ ~~and~~ $~~197~~91,~~695~~773, respectively.

Accounts payable from operations as of ~~December~~June 3130, ~~2016~~2017 and March 31, ~~2016~~2017 were $4274,~~287~~376 and $~~124~~63,~~790~~619, respectively. Accounts payable 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. Accounts payable from discontinued operations as of June 30, 2017 and March 31, 2017 was $— and $12,071, respectively. Accrued interest payable from discontinued operations as of ~~December~~June 3130, ~~2016~~2017 and March 31, ~~2016~~2017 was $— and $6356,~~220~~839, respectively. Such amount represents the accrued interest on all mortgage loans, which ~~include~~included primary and secondary loans. Certain secondary loans ~~have~~ had provisions such that interest iswas accrued but not payable until a future date. In addition, the last remaining Local Partnership’s mortgage note iswas collateralized by the land and buildings of the Local Partnership, and ~~are~~was without further recourse to the Partnership. ~~The maximum loss the Partnership would incur is its net investment in the last remaining Local Partnership.~~

The Partnership has unconsolidated cash reserves of approximately $21,~~093~~897,000 at ~~December~~June 3130, ~~2016~~2017. 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.

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Long-Term

Partnership management fees owed to the General Partner amounting to approximately $~~4,000~~— and $~~12,000~~— were accrued and unpaid as of ~~December~~June 3130, ~~2016~~2017 and March 31, ~~2016~~2017, respectively, and are included in the line item Due to general partners 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 to those owed to the General Partner and its affiliates.

All other payables are expected to be paid, if at all, from working capital reserves. See Note 2 in Item 1 for further discussion of amounts due to the General Partner and its affiliates. The General Partner does not anticipate making any future advances of operating funds to the last remaining Local Partnership 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 its last remaining Local Partnership.

Since the maximum loss the Partnership would be liable for is its net investment in its last remaining subsidiary partnership, the resolution of any existing contingencies is not anticipated to impact future liquidity or the financial condition of the Partnership in a material way.

Except as described above, management is not aware of any trends or events, commitments or uncertainties, which have not otherwise been disclosed that will or are likely to impact liquidity in a material way. Management believes the only impact would be from laws that have not yet been adopted. The Partnership had originally invested the proceeds of its Offering in 14 Local Partnerships, all of which had their Tax Credits fully in place during the Credit Periods. As of December 31, 2012, all the Local Partnerships have completed their Credit Periods.

Results of Operations

The ~~Partnership’s~~following is a summary of the results of operations for the ~~three~~Partnership ~~and~~for ~~nine~~the three months ended ~~December~~June 3130, ~~2016~~2017 and ~~2015~~2016, respectively, ~~consisted~~excluding ~~primarily of~~ the results of ~~the Partnership’s investment in Local Partnerships. The following discussion excludes the Partnership’s results of~~ its discontinued operations, which are not reflected ~~below~~in the following discussion.

General and administrative-related parties’ expenses ~~increased~~decreased approximately $125,000 ~~and decreased $33,000~~ for the three and ~~nine~~three months ended ~~December~~June 3130, ~~2016~~2017, as compared to the corresponding periods ended ~~December~~June 3130, ~~2015~~2016, primarily due to an overall decrease in ~~overhead expense reimbursements and~~ partnership management fees resulting from the sale of properties at the Partnership level.

General and administrative for non-related parties’ expenses ~~increased~~decreased approximately $~~105~~54,000 ~~and $201,000~~a for the three ~~and six~~ months ended ~~December 31~~June 30, ~~2016~~ 2017, as compared to the corresponding periods ended ~~December 31~~June 30, ~~2015~~ 2016, primarily due to ana ~~increase~~decrease in legal expenses at the Partnership level.

Off-Balance Sheet Arrangements

The Partnership has no off-balance sheet arrangements.

Fair Value Measurements

See Note 3 in Item 1 for methods and assumptions 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.

Critical Accounting Policies and Estimates

The preparation of condensed consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of certain accounting estimates considered critical by the Partnership. The summary should be read in conjunction with the more complete discussion of the Partnership’s accounting policies included in Item 8, Note 2 to the consolidated financial statements in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2017.

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expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of certain accounting estimates considered critical by the Partnership. The summary should be read in conjunction with the more complete discussion of the Partnership’s accounting policies included in Item 8, Note 2 to the consolidated financial statements in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2016.

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 as of December 31, 2016.16

~~During~~Table ~~the nine months ended December 31, 2016, the Partnership has not recorded any loss on impairment~~ of ~~assets. Through December 31, 2016, the Partnership has recorded approximately $35,686,000 as an aggregate loss on impairment of property.~~Contents

fair market value based on comparative sales) when the Property is considered to be impaired and the depreciated cost exceeds estimated fair value.

During the three months ended June 30, 2017, the Partnership has not recorded any loss on impairment of assets. Through June 30, 2017, the Partnership has recorded approximately $35,686,000 as an aggregate loss on impairment of property.

Revenue Recognition

Rental income is earned primarily 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 it is 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.

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’s year end is December 31.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Not applicable.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures. The President (Principal Executive Officer) and Chief Financial 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.

19 (b) Changes in Internal Controls over Financial Reporting. During the period ended June 30, 2017, 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.

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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) Changes in Internal Controls over Financial Reporting. During the period ended December 31, 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.

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PART II. OTHER INFORMATION

Item 1.	Legal Proceedings. – None

Item 1A.	Risk Factors. – No changes

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds. – None

Item 3.	Defaults upon Senior Securities. – None

Item 4.	Mine Safety Disclosures. – None

Item 5.	Other Information. – None

Item 6.	Exhibits.

	(4)	Form of Amended and Restated Agreement of Limited Partnership of the Partnership (attached to the Prospectus as Exhibit A)*

	(10A)	Form of Subscription Agreement (attached to the Prospectus as Exhibit B)*

	(10B)	Form of Escrow Agreement between the Partnership and the Escrow Agent**

	(10C)	Form of Purchase and Sales Agreement pertaining to the Partnership’s acquisition of Local Partnership Interests**

	(10D)	Form of Amended and Restated Agreement of Limited Partnership of Local Partnerships**

	(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 Quarterly Report on Form 10-Q 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.

*Incorporated herein by reference to the final Prospectus as filed pursuant to Rule 424 under the Securities Act of 1933.

**Filed as an exhibit to the Registration Statement on Form S-11 of the Partnership (File No. 33-89968) and incorporated herein by reference thereto.

+Filed herewith.

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SIGNATURES

Pursuant to the requirements 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

Date:	~~February~~August 1410, 2017	By:	/s/ Ivyl T. Boyce
			Ivyl Boyce
			Chief Financial Officer
Date:	~~February~~August 1410, 2017	By:	/s/ Alan T. Fair
			Alan T. Fair
			President (Principal Executive Officer)
			President and Chief Executive Officer

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