National Equity Fund, Inc. National Equity Fund, Inc.

Extraordinary things happen when you have great partners
Since 1987, National Equity Fund® has invested more than $13 billion revitalizing neighborhoods,
fostering economic growth and creating affordable sustainable housing.

Tax Return Notes

Engagement Letter

All Partnerships are required to submit the Tax Return Engagement letter.

Draft Tax Return

For certain Partnerships, the draft tax return is required; However, NEF Asset Manager approval is NOT required.  Therefore, the Partnership should proceed with issuing the final tax return by the submission deadline.^

For certain Partnerships, the draft tax return is required AND NEF Asset Manager approval of the draft tax return is also required prior to issuing the final tax return.^ 

Final Tax Return

All Partnerships are required to submit a final tax return by the submission deadline.

General Tax Return Notes

  • Reportable Entities - Certain Partnerships have investors (direct and/or indirect) that are reportable entities and should be included on Schedule B-1 and/or Schedule M-3 of the partnership tax return.^
  • Schedule K-1 - Line 15 credits should be reported on either 15B or 15D depending on the date the building was placed in service unless section 42(j)5 (Certain Partnerships Treated as the Taxpayer) applies.
  • Disposition of LP Interest - If the NEF Limited Partner disposed of its interest in the Partnership during the fiscal year, the tax return should include a K-1 for the NEF Limited Partner with the “Final K-1” checkbox marked. The NEF Limited Partner K-1 must also reflect the wind up of operations as indicated by 0% ending partner share and $0 ending capital account balance.
  • First Year Credit Calculation - If the Partnership will claim its first year of tax credits, please upload the detailed credit calculation as a “Tax Work Paper” via the CPA Portal.
  • Federal Tax Depreciation Schedule  - Please attach this schedule to the tax return.
  • GAAP to Tax Reconciliation - If the NEF Partner’s tax capital account is presented on a GAAP basis, please upload a GAAP to Tax Reconciliation via the CPA Portal as a “Tax Work Paper”.
  • Minimum Gain Analysis - Please upload a completed copy of the CPA’s Minimum Gain Analysis as a “Tax Work Paper” via the CPA Portal.

Please see Submission Deadlines to ensure the Partnership meets its submission deadlines for tax returns and required tax work papers. All submissions should be uploaded via the NEF CPA Portal.

^ Please see the Reporting Requirements spreadsheet on the LP Confirmations & Reports page to determine reporting requirements.

Key Contacts

Questions?

If you have questions regarding the documents on the website or have any problems downloading or viewing them, please email the Project Accounting Department.