**Exhibit 13**

 

FINANCIALSTATEMENTS AND

INDEPENDENTAUDITORS’ REPORT

 

BOSTONCAPITAL TAX CREDIT FUND II

LIMITEDPARTNERSHIP -

SERIES7, 9 THROUGH 12, AND 14

 

MARCH 31,2010 AND 2009

 

----

 

BostonCapital Tax Credit Fund Limited Partnership II

Series 7,9 through 12, and 14

 

TABLEOF CONTENTS

 
| ** **                                                 | ** ** | **PAGE** |
|------------------------------------------------------------|------------|----------|
|                                                       |       |     |
| REPORT OF INDEPENDENT  REGISTERED PUBLIC ACCOUNTING FIRM   |       | F-2      |
|                                                       |       |     |
| FINANCIAL STATEMENTS                                       |       |     |
|                                                       |       |     |
| BALANCE SHEETS                                             |       | F-3      |
|                                                       |       |     |
| STATEMENTS OF OPERATIONS                                   |       | F-10     |
|                                                       |       |     |
| STATEMENTS OF CHANGES IN  PARTNERS’ CAPITAL (DEFICIT) |       | F-17     |
|                                                       |       |     |
| STATEMENTS OF CASH FLOWS                                   |       | F-21     |
|                                                       |       |     |
| NOTES TO FINANCIAL  STATEMENTS                             |       | F-28     |

 

Schedules not listed areomitted because of the absence of the conditions under which they are requiredor because the information is included in the financial statements or the notesthereto.

 

----

 

REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Tothe Partners

BostonCapital Tax Credit Fund II Limited Partnership

 

Wehave audited the accompanying balance sheets of Boston Capital Tax Credit FundII Limited Partnership, including Boston Capital Tax Credit Fund II LimitedPartnership - Series 7, Series 9 through 12, and Series 14, intotal and for each series, as of March 31, 2010 and 2009, and the relatedstatements of operations, changes in partners’ capital (deficit) and cash flowsfor the total partnership and for each of the series for each of the years inthe two-year period ended March 31, 2010. These financial statements arethe responsibility of the partnership’s management.  Our responsibility is to express an opinionon these financial statements based on our audits.  We did not audit the financial statements ofcertain operating limited partnerships which investments represent $0 and $0 ofthe total partnership assets as of March 31, 2010 and 2009, respectively,and $0 and $71,858 of the total partnership loss for the years ended March 31,2010 and 2009, respectively; of the assets for Series 7 as of March 31,2010 and 2009, $0 and $0, respectively, and of the loss for Series 7 forthe years ended March 31, 2010 and 2009, $0 and $0, respectively; of theassets for Series 9 as of March 31, 2010 and 2009, $0 and $0,respectively, and of the loss for Series 9 for the years ended March 31,2010 and 2008, $0 and $0, respectively; of the assets for Series 10 as of March 31,2010 and 2009, $0 and $0, respectively, and of the loss for Series 10 forthe years ended March 31, 2010 and 2009, $0 and $0, respectively; of theassets for Series 11 as of March 31, 2010 and 2009, $0 and $0,respectively, and of the loss for Series 11 for the years ended March 31,2010 and 2009, $0 and $0, respectively; of the assets for Series 12 as of March 31,2010 and 2009, $0 and $0, respectively, and of the loss for Series 12 forthe years ended March 31, 2010 and 2009, $0 and $0, respectively; and ofthe assets for Series 14 as of March 31, 2010 and 2009, $0 and $0,respectively, and of the loss for Series 14 for the years ended March 31,2010 and 2009, $0 and $71,858, respectively. Those statements were audited by other auditors, whose reports have beenfurnished to us, and our opinion, insofar as it relates to those operatinglimited partnerships, is based solely on the reports of the other auditors.

 

We conducted our audits in accordance with the standards of the PublicCompany Accounting Oversight Board (United States).  Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. The partnership has determined that it is not required to have, nor werewe engaged to perform, an audit of its internal control over financialreporting.  Our audit includedconsideration of internal control over financial reporting as a basis fordesigning audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of thepartnership’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financialstatements.  An audit also includesassessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation.  We believe that our audits and the reports ofthe other auditors provide a reasonable basis for our opinion.

 

Inour opinion, based on our audits and the reports of the other auditors, thefinancial statements referred to above present fairly, in all materialrespects, the financial position of Boston Capital Tax Credit Fund II L.P. - Series 7,Series 9 through 12, and Series 14, in total and for each series, asof March 31, 2010 and 2009, and the results of its operations and its cashflows for the total partnership and for each of the series for each of theyears in the two-year period ended March 31, 2010, in conformity withaccounting principles generally accepted in the United States of America.

 

 

**/s/ Reznick Group, P.C.**

REZNICKGROUP, P.C.

 

Bethesda, Maryland

June 29, 2010

 

F-2

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS

 

March 31, 2010 and 2009

 
| ** **                                                                                                                                                                                                                | ** ** | **Total**   | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|------------|
| ** **                                                                                                                                                                                                                | ** ** | **2010**    | ** ** | **2009** | ** ** |
| ASSETS                                                                                                                                                                                                                    |       |        |       |   |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                              |       |        |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                 |       | $           | 1,418,207  |   | $ | 1,228,984 |   |
| Deferred acquisition costs, net of accumulated  amortization                                                                                                                                                              |       | —      |       | — |   |
| Other                                                                                                                                                                                                                     |       | 5,100       |       | — |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | $           | 1,423,307  |   | $ | 1,228,984 |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)                                                                                                                                                                         |       |        |       |   |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
| LIABILITIES                                                                                                                                                                                                               |       |        |       |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                     |       | $           | 136,100    |   | $ | 7,510 |   |
| Accounts payable - affiliates                                                                                                                                                                                             |       | 21,764,225  |       | 24,162,071 |   |
| Capital contributions payable                                                                                                                                                                                             |       | 169,974     |       | 169,997 |   |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | 22,070,299  |       | 24,339,578 |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                          |       |        |       |   |   |
| Assignor limited partner                                                                                                                                                                                                  |       |        |       |   |   |
| Units of limited partnership interest consisting  of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated  value, 18,678,688 issued and outstanding to the assignees at March 31,  2010 and 2009 |       | —      |       | — |   |
| Limited partners                                                                                                                                                                                                          |       |        |       |   |   |
| Units of beneficial interest of the limited  partnership interest of the assignor limited partner, 18,678,688 issued and outstanding  at March 31, 2010 and 2009                                                     |       | (19,059,586 | )          | (21,326,450 | ) |
| General partner                                                                                                                                                                                                           |       | (1,587,406  | )          | (1,784,144 | ) |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | (20,646,992 | )          | (23,110,594 | ) |
|                                                                                                                                                                                                                      |       |        |       |   |   |
|                                                                                                                                                                                                                      |       | $           | 1,423,307  |   | $ | 1,228,984 |   |

 

(continued)

 

F-3

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2010 and 2009

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 7** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2010**          | ** ** | **2009** | ** ** |
| ASSETS                                                                                                                                                                                                                   |       |              |       |   |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |              |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | $                 | —     |   | $ | 59,368 |   |
| Deferred acquisition costs, net of accumulated  amortization                                                                                                                                                             |       | —            |       | — |   |
| Other                                                                                                                                                                                                                    |       | —            |       | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | —     |   | $ | 59,368 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)                                                                                                                                                                        |       |              |       |   |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |              |       |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                    |       | $                 | —     |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | —            |       | 215,293 |   |
| Capital contributions payable                                                                                                                                                                                            |       | —            |       | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | —            |       | 215,293 |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |              |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |              |       |   |   |
| Units of limited partnership interest consisting  of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated  value, 1,036,100 issued and outstanding to the assignees at March 31,  2010 and 2009 |       | —            |       | — |   |
| Limited partners                                                                                                                                                                                                         |       |              |       |   |   |
| Units of beneficial interest of the limited  partnership interest of the assignor limited partner, 1,036,100 issued and outstanding  at March 31, 2010 and 2009                                                     |       | (84,506           | )          | (66,770 | ) |
| General partner                                                                                                                                                                                                          |       | 84,506            |       | (89,155 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | —            |       | (155,925 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | —     |   | $ | 59,368 |   |

 

(continued)

 

F-4

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2010 and 2009

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 9** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2010**          | ** ** | **2009** | ** ** |
| ASSETS                                                                                                                                                                                                                   |       |              |       |   |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |              |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | $                 | 115,148    |   | $ | 212,194 |   |
| Deferred acquisition costs, net of accumulated  amortization                                                                                                                                                             |       | —            |       | — |   |
| Other                                                                                                                                                                                                                    |       | —            |       | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | 115,148    |   | $ | 212,194 |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)                                                                                                                                                                        |       |              |       |   |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |              |       |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                    |       | $                 | —     |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 6,386,247         |       | 6,245,606 |   |
| Capital contributions payable                                                                                                                                                                                            |       | —            |       | — |   |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | 6,386,247         |       | 6,245,606 |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |              |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |              |       |   |   |
| Units of limited partnership interest consisting  of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated  value, 4,178,029 issued and outstanding to the assignees at March 31,  2010 and 2009 |       | —            |       | — |   |
| Limited partners                                                                                                                                                                                                         |       |              |       |   |   |
| Units of beneficial interest of the limited  partnership interest of the assignor limited partner, 4,178,029 issued and outstanding  at March 31, 2010 and 2009                                                     |       | (5,873,550        | )          | (5,638,240 | ) |
| General partner                                                                                                                                                                                                          |       | (397,549          | )          | (395,172 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | (6,271,099        | )          | (6,033,412 | ) |
|                                                                                                                                                                                                                     |       |              |       |   |   |
|                                                                                                                                                                                                                     |       | $                 | 115,148    |   | $ | 212,194 |   |

 

(continued)

 

F-5

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2010 and 2009

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 10** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2010**           | ** ** | **2009** | ** ** |
| ASSETS                                                                                                                                                                                                                   |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | $                  | 186,720    |   | $ | 120,636 |   |
| Deferred acquisition costs, net of accumulated  amortization                                                                                                                                                             |       | —             |       | — |   |
| Other                                                                                                                                                                                                                    |       | —             |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 186,720    |   | $ | 120,636 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)                                                                                                                                                                        |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |               |       |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                    |       | $                  | 30,000     |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 2,163,727          |       | 2,936,241 |   |
| Capital contributions payable                                                                                                                                                                                            |       | —             |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | 2,193,727          |       | 2,936,241 |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |               |       |   |   |
| Units of limited partnership interest consisting of  20,000,000 authorized beneficial assignee certificates (BAC), $10 stated  value, 2,428,925 issued and outstanding to the assignees at March 31,  2010 and 2009 |       | —             |       | — |   |
| Limited partners                                                                                                                                                                                                         |       |               |       |   |   |
| Units of beneficial interest of the limited  partnership interest of the assignor limited partner, 2,428,925 issued and outstanding  at March 31, 2010 and 2009                                                     |       | (1,792,024         | )          | (2,592,536 | ) |
| General partner                                                                                                                                                                                                          |       | (214,983           | )          | (223,069 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | (2,007,007         | )          | (2,815,605 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 186,720    |   | $ | 120,636 |   |

 

(continued)

 

F-6

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2010 and 2009

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 11** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2010**           | ** ** | **2009** | ** ** |
| ASSETS                                                                                                                                                                                                                   |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | $                  | 603,898    |   | $ | 246,366 |   |
| Deferred acquisition costs, net of accumulated  amortization                                                                                                                                                             |       | —             |       | — |   |
| Other                                                                                                                                                                                                                    |       | —             |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 603,898    |   | $ | 246,366 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)                                                                                                                                                                        |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |               |       |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                    |       | $                  | 46,000     |   | $ | 10 |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 2,436,423          |       | 2,824,763 |   |
| Capital contributions payable                                                                                                                                                                                            |       | —             |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | 2,482,423          |       | 2,824,773 |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |               |       |   |   |
| Units of limited partnership interest consisting  of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated  value, 2,489,599 issued and outstanding to the assignees at March 31,  2010 and 2009 |       | —             |       | — |   |
| Limited partners                                                                                                                                                                                                         |       |               |       |   |   |
| Units of beneficial interest of the limited partnership  interest of the assignor limited partner, 2,489,599 issued and outstanding at  March 31, 2010 and 2009                                                     |       | (1,645,055         | )          | (2,337,938 | ) |
| General partner                                                                                                                                                                                                          |       | (233,470           | )          | (240,469 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | (1,878,525         | )          | (2,578,407 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 603,898    |   | $ | 246,366 |   |

 

(continued)

 

F-7

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2010 and 2009

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 12** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2010**           | ** ** | **2009** | ** ** |
| ASSETS                                                                                                                                                                                                                   |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | $                  | 120,857    |   | $ | 144,823 |   |
| Deferred acquisition costs, net of accumulated  amortization                                                                                                                                                             |       | —             |       | — |   |
| Other                                                                                                                                                                                                                    |       | —             |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 120,857    |   | $ | 144,823 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)                                                                                                                                                                        |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |               |       |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                    |       | $                  | 7,500      |   | $ | 7,500 |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 3,915,374          |       | 3,765,206 |   |
| Capital contributions payable                                                                                                                                                                                            |       | 9,241              |       | 9,241 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | 3,932,115          |       | 3,781,947 |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |               |       |   |   |
| Units of limited partnership interest consisting  of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated  value, 2,972,795 issued and outstanding to the assignees at March 31,  2010 and 2009 |       | —             |       | — |   |
| Limited partners                                                                                                                                                                                                         |       |               |       |   |   |
| Units of beneficial interest of the limited  partnership interest of the assignor limited partner, 2,972,795 issued and outstanding  at March 31, 2010 and 2009                                                     |       | (3,522,015         | )          | (3,349,622 | ) |
| General partner                                                                                                                                                                                                          |       | (289,243           | )          | (287,502 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | (3,811,258         | )          | (3,637,124 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 120,857    |   | $ | 144,823 |   |

 

(continued)

 

F-8

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

BALANCE SHEETS - CONTINUED

 

March 31, 2010 and 2009

 
| ** **                                                                                                                                                                                                               | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                                                                                                                                               | ** ** | **2010**           | ** ** | **2009** | ** ** |
| ASSETS                                                                                                                                                                                                                   |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| OTHER ASSETS                                                                                                                                                                                                             |       |               |       |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |       | $                  | 391,584    |   | $ | 445,597 |   |
| Deferred acquisition costs, net of accumulated  amortization                                                                                                                                                             |       | —             |       | — |   |
| Other                                                                                                                                                                                                                    |       | 5,100              |       | — |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 396,684    |   | $ | 445,597 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)                                                                                                                                                                        |       |               |       |   |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
| LIABILITIES                                                                                                                                                                                                              |       |               |       |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                    |       | $                  | 52,600     |   | $ | — |   |
| Accounts payable - affiliates                                                                                                                                                                                            |       | 6,862,454          |       | 8,174,962 |   |
| Capital contributions payable                                                                                                                                                                                            |       | 160,733            |       | 160,756 |   |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | 7,075,787          |       | 8,335,718 |   |
| PARTNERS’ CAPITAL (DEFICIT)                                                                                                                                                                                         |       |               |       |   |   |
| Assignor limited partner                                                                                                                                                                                                 |       |               |       |   |   |
| Units of limited partnership interest consisting  of 20,000,000 authorized beneficial assignee certificates (BAC), $10 stated  value, 5,573,240 issued and outstanding to the assignees at March 31,  2010 and 2009 |       | —             |       | — |   |
| Limited partners                                                                                                                                                                                                         |       |               |       |   |   |
| Units of beneficial interest of the limited  partnership interest of the assignor limited partner, 5,573,240 issued and outstanding  at March 31, 2010 and 2009                                                     |       | (6,142,436         | )          | (7,341,344 | ) |
| General partner                                                                                                                                                                                                          |       | (536,667           | )          | (548,777 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | (6,679,103         | )          | (7,890,121 | ) |
|                                                                                                                                                                                                                     |       |               |       |   |   |
|                                                                                                                                                                                                                     |       | $                  | 396,684    |   | $ | 445,597 |   |

 

See notes to financial statements

 

F-9

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS

 

Years ended March 31, 2010 and 2009

 
| ** **                                          | ** ** | **Total** | ** ** |
|-----------------------------------------------------|------------|-----------|------------|
| ** **                                          | ** ** | **2010**  | ** ** | **2009** | ** ** |
| Income                                              |       |      |       |   |   |
| Interest income                                     |       | $         | 5,501      |   | $ | 16,061 |   |
| Miscellaneous income                                |       | 136,238   |       | 74,795 |   |
|                                                |       |      |       |   |   |
|                                                |       | 141,739   |       | 90,856 |   |
|                                                |       |      |       |   |   |
| Share of income from operating limited partnerships |       | 3,286,871 |       | 2,802,461 |   |
|                                                |       |      |       |   |   |
| Expenses                                            |       |      |       |   |   |
| Professional fees                                   |       | 196,428   |       | 266,353 |   |
| Partnership management fee                          |       | 793,585   |       | 943,338 |   |
| Amortization                                        |       | —    |       | 34,790 |   |
| Impairment loss                                     |       | —    |       | 2,164,675 |   |
| General and administrative expenses                 |       | 148,835   |       | 174,768 |   |
|                                                |       |      |       |   |   |
|                                                |       | 1,138,848 |       | 3,583,924 |   |
|                                                |       |      |       |   |   |
| NET INCOME (LOSS)                                   |       | $         | 2,289,762  |   | $ | (690,607 | ) |
|                                                |       |      |       |   |   |
| Net income (loss) allocated to general partner      |       | $         | 22,898     |   | $ | (6,905 | ) |
|                                                |       |      |       |   |   |
| Net income (loss) allocated to assignees            |       | $         | 2,266,864  |   | $ | (683,702 | ) |
|                                                |       |      |       |   |   |
| Net income (loss) per BAC                           |       | $         | 0.12       |   | $ | (0.04 | ) |

 

(continued)

 

F-10

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                          | ** ** | **Series 7** | ** ** |
|-----------------------------------------------------|------------|-------------------|------------|
| ** **                                          | ** ** | **2010**          | ** ** | **2009** | ** ** |
| Income                                              |       |              |       |   |   |
| Interest income                                     |       | $                 | 110        |   | $ | 1,685 |   |
| Miscellaneous income                                |       | —            |       | 1,469 |   |
|                                                |       |              |       |   |   |
| Total income                                        |       | 110               |       | 3,154 |   |
|                                                |       |              |       |   |   |
| Share of income from operating limited partnerships |       | —            |       | 57,760 |   |
|                                                |       |              |       |   |   |
| Expenses                                            |       |              |       |   |   |
| Professional fees                                   |       | 9,964             |       | 17,861 |   |
| Partnership management fee                          |       | —            |       | 4,158 |   |
| Amortization                                        |       | —            |       | — |   |
| Impairment loss                                     |       | —            |       | — |   |
| General and administrative expenses                 |       | 8,061             |       | 11,973 |   |
|                                                |       |              |       |   |   |
|                                                |       | 18,025            |       | 33,992 |   |
|                                                |       |              |       |   |   |
| NET INCOME (LOSS)                                   |       | $                 | (17,915    | ) | $ | 26,922 |   |
|                                                |       |              |       |   |   |
| Net income (loss) allocated to general partner      |       | $                 | (179       | ) | $ | 269 |   |
|                                                |       |              |       |   |   |
| Net income (loss) allocated to assignees            |       | $                 | (17,736    | ) | $ | 26,653 |   |
|                                                |       |              |       |   |   |
| Net income (loss) per BAC                           |       | $                 | (0.02      | ) | $ | 0.03 |   |

 

(continued)

 

F-11

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                          | ** ** | **Series 9** | ** ** |
|-----------------------------------------------------|------------|-------------------|------------|
| ** **                                          | ** ** | **2010**          | ** ** | **2009** | ** ** |
| Income                                              |       |              |       |   |   |
| Interest income                                     |       | $                 | 595        |   | $ | 2,315 |   |
| Miscellaneous income                                |       | 2,418             |       | 1,369 |   |
|                                                |       |              |       |   |   |
| Total income                                        |       | 3,013             |       | 3,684 |   |
|                                                |       |              |       |   |   |
| Share of income from operating limited partnerships |       | 21,750            |       | 374,556 |   |
|                                                |       |              |       |   |   |
| Expenses                                            |       |              |       |   |   |
| Professional fees                                   |       | 35,038            |       | 43,399 |   |
| Partnership management fee                          |       | 200,169           |       | 140,850 |   |
| Amortization                                        |       | —            |       | 387 |   |
| Impairment loss                                     |       | —            |       | 5,217 |   |
| General and administrative expenses                 |       | 27,243            |       | 54,500 |   |
|                                                |       |              |       |   |   |
|                                                |       | 262,450           |       | 244,353 |   |
|                                                |       |              |       |   |   |
| NET INCOME (LOSS)                                   |       | $                 | (237,687   | ) | $ | 133,887 |   |
|                                                |       |              |       |   |   |
| Net income (loss) allocated to general partner      |       | $                 | (2,377     | ) | $ | 1,339 |   |
|                                                |       |              |       |   |   |
| Net income (loss) allocated to assignees            |       | $                 | (235,310   | ) | $ | 132,548 |   |
|                                                |       |              |       |   |   |
| Net income (loss) per BAC                           |       | $                 | (0.06      | ) | $ | 0.03 |   |

 

(continued)

 

F-12

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                          | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------|------------|--------------------|------------|
| ** **                                          | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Income                                              |       |               |       |   |   |
| Interest income                                     |       | $                  | 817        |   | $ | 2,067 |   |
| Miscellaneous income                                |       | 77,595             |       | 52,245 |   |
|                                                |       |               |       |   |   |
| Total income                                        |       | 78,412             |       | 54,312 |   |
|                                                |       |               |       |   |   |
| Share of income from operating limited partnerships |       | 857,039            |       | 64,931 |   |
|                                                |       |               |       |   |   |
| Expenses                                            |       |               |       |   |   |
| Professional fees                                   |       | 27,097             |       | 40,153 |   |
| Partnership management fee                          |       | 78,404             |       | 104,725 |   |
| Amortization                                        |       | —             |       | 2,060 |   |
| Impairment loss                                     |       | —             |       | 136,419 |   |
| General and administrative expenses                 |       | 21,352             |       | 20,408 |   |
|                                                |       |               |       |   |   |
|                                                |       | 126,853            |       | 303,765 |   |
|                                                |       |               |       |   |   |
| NET INCOME (LOSS)                                   |       | $                  | 808,598    |   | $ | (184,522 | ) |
|                                                |       |               |       |   |   |
| Net income (loss) allocated to general partner      |       | $                  | 8,086      |   | $ | (1,845 | ) |
|                                                |       |               |       |   |   |
| Net income (loss) allocated to assignees            |       | $                  | 800,512    |   | $ | (182,677 | ) |
|                                                |       |               |       |   |   |
| Net income (loss) per BAC                           |       | $                  | 0.33       |   | $ | (0.08 | ) |

 

(continued)

 

F-13

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                           | ** ** | **Series 11** | ** ** |
|------------------------------------------------------|------------|--------------------|------------|
| ** **                                           | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Income                                               |       |               |       |   |   |
| Interest income                                      |       | $                  | 1,131      |   | $ | 2,135 |   |
| Miscellaneous income                                 |       | 10,536             |       | 211 |   |
|                                                 |       |               |       |   |   |
| Total income                                         |       | 11,667             |       | 2,346 |   |
|                                                 |       |               |       |   |   |
| Share of income from operating limited  partnerships |       | 878,930            |       | 310,801 |   |
|                                                 |       |               |       |   |   |
| Expenses                                             |       |               |       |   |   |
| Professional fees                                    |       | 30,403             |       | 37,462 |   |
| Partnership management fee                           |       | 140,155            |       | 167,516 |   |
| Amortization                                         |       | —             |       | 1,515 |   |
| Impairment loss                                      |       | —             |       | 1,070,008 |   |
| General and administrative expenses                  |       | 20,157             |       | 20,891 |   |
|                                                 |       |               |       |   |   |
|                                                 |       | 190,715            |       | 1,297,392 |   |
|                                                 |       |               |       |   |   |
| NET INCOME (LOSS)                                    |       | $                  | 699,882    |   | $ | (984,245 | ) |
|                                                 |       |               |       |   |   |
| Net income (loss) allocated to general partner       |       | $                  | 6,999      |   | $ | (9,842 | ) |
|                                                 |       |               |       |   |   |
| Net income (loss) allocated to assignees             |       | $                  | 692,883    |   | $ | (974,403 | ) |
|                                                 |       |               |       |   |   |
| Net income (loss) per BAC                            |       | $                  | 0.28       |   | $ | (0.39 | ) |

 

(continued)

 

F-14

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                          | ** ** | **Series 12** | ** ** |
|-----------------------------------------------------|------------|--------------------|------------|
| ** **                                          | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Income                                              |       |               |       |   |   |
| Interest income                                     |       | $                  | 534        |   | $ | 1,769 |   |
| Miscellaneous income                                |       | 15,329             |       | 7,168 |   |
|                                                |       |               |       |   |   |
| Total income                                        |       | 15,863             |       | 8,937 |   |
|                                                |       |               |       |   |   |
| Share of income from operating limited partnerships |       | —             |       | 737,990 |   |
|                                                |       |               |       |   |   |
| Expenses                                            |       |               |       |   |   |
| Professional fees                                   |       | 34,384             |       | 48,555 |   |
| Partnership management fee                          |       | 130,245            |       | 107,414 |   |
| Amortization                                        |       | —             |       | 9,323 |   |
| Impairment loss                                     |       | —             |       | 125,870 |   |
| General and administrative expenses                 |       | 25,368             |       | 23,590 |   |
|                                                |       |               |       |   |   |
|                                                |       | 189,997            |       | 314,752 |   |
|                                                |       |               |       |   |   |
| NET INCOME (LOSS)                                   |       | $                  | (174,134   | ) | $ | 432,175 |   |
|                                                |       |               |       |   |   |
| Net income (loss) allocated to general partner      |       | $                  | (1,741     | ) | $ | 4,322 |   |
|                                                |       |               |       |   |   |
| Net income (loss) allocated to assignees            |       | $                  | (172,393   | ) | $ | 427,853 |   |
|                                                |       |               |       |   |   |
| Net income (loss) per BAC                           |       | $                  | (0.06      | ) | $ | 0.14 |   |

 

(continued)

 

F-15

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF OPERATIONS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                          | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------|------------|--------------------|------------|
| ** **                                          | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Income                                              |       |               |       |   |   |
| Interest income                                     |       | $                  | 2,314      |   | $ | 6,090 |   |
| Miscellaneous income                                |       | 30,360             |       | 12,333 |   |
|                                                |       |               |       |   |   |
| Total income                                        |       | 32,674             |       | 18,423 |   |
|                                                |       |               |       |   |   |
| Share of income from operating limited partnerships |       | 1,529,152          |       | 1,256,423 |   |
|                                                |       |               |       |   |   |
| Expenses                                            |       |               |       |   |   |
| Professional fees                                   |       | 59,542             |       | 78,923 |   |
| Partnership management fee                          |       | 244,612            |       | 418,675 |   |
| Amortization                                        |       | —             |       | 21,505 |   |
| Impairment loss                                     |       | —             |       | 827,161 |   |
| General and administrative expenses                 |       | 46,654             |       | 43,406 |   |
|                                                |       |               |       |   |   |
|                                                |       | 350,808            |       | 1,389,670 |   |
|                                                |       |               |       |   |   |
| NET INCOME (LOSS)                                   |       | $                  | 1,211,018  |   | $ | (114,824 | ) |
|                                                |       |               |       |   |   |
| Net income (loss) allocated to general partner      |       | $                  | 12,110     |   | $ | (1,148 | ) |
|                                                |       |               |       |   |   |
| Net income (loss) allocated to assignees            |       | $                  | 1,198,908  |   | $ | (113,676 | ) |
|                                                |       |               |       |   |   |
| Net income (loss) per BAC                           |       | $                  | 0.22       |   | $ | (0.02 | ) |

 

Seenotes to financial statements

 

F-16

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) 

 

Years ended March 31, 2010 and 2009

 
| **Total**                                             | ** ** | **Assignees** | ** **  | **General  partner** | ** ** | **Total**   | ** ** |
|-------------------------------------------------------|------------|---------------|-------------|----------------------|------------|-------------|------------|
| ** **                                            | ** ** | ** **    | ** **  | ** **           | ** ** | ** **  | ** ** |
| Partners’ capital (deficit), March 31, 2008 |       | (20,642,748   | )           | (1,777,239           | )          | (22,419,987 | )          |
|                                                  |       |          |        |                 |       |        |       |
| Net income (loss)                                     |       | (683,702      | )           | (6,905               | )          | (690,607    | )          |
|                                                  |       |          |        |                 |       |        |       |
| Partners’ capital (deficit), March 31, 2009 |       | (21,326,450   | )           | (1,784,144           | )          | (23,110,594 | )          |
|                                                  |       |          |        |                 |       |        |       |
| Net income (loss)                                     |       | 2,266,864     |        | 22,898               |       | 2,289,762   |       |
|                                                  |       |          |        |                 |       |        |       |
| Contributions                                         |       | —        |        | 173,840              |       | 173,840     |       |
|                                                  |       |          |        |                 |       |        |       |
| Partners’ capital (deficit), March 31, 2010 |       | $             | (19,059,586 | )                    | $          | (1,587,406  | )          | $ | (20,646,992 | ) |
|                                                       |            |               |             |                      |            |             |            |  |  |  |

 

(continued)

 

F-17

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL(DEFICIT) - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| **Series 7**                                     | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total** | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|-----------|------------|
|                                                  |       |          |       |                 |       |      |       |
| Partners’ capital (deficit), March 31, 2008 |       | (93,423       | )          | (89,424              | )          | (182,847  | )          |
|                                                  |       |          |       |                 |       |      |       |
| Net income (loss)                                     |       | 26,653        |       | 269                  |       | 26,922    |       |
|                                                  |       |          |       |                 |       |      |       |
| Partners’ capital (deficit), March 31, 2009 |       | (66,770       | )          | (89,155              | )          | (155,925  | )          |
|                                                  |       |          |       |                 |       |      |       |
| Net income (loss)                                     |       | (17,736       | )          | (179                 | )          | (17,915   | )          |
|                                                  |       |          |       |                 |       |      |       |
| Contributions                                         |       | —        |       | 173,840              |       | 173,840   |       |
|                                                  |       |          |       |                 |       |      |       |
| Partners’ capital (deficit), March 31, 2010 |       | $             | (84,506    | )                    | $          | 84,506    |       | $ | — |   |
|                                                       |            |               |            |                      |            |           |            |  |  |  |

 
| **Series 9**                                     | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | (5,770,788    | )          | (396,511             | )          | (6,167,299 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 132,548       |       | 1,339                |       | 133,887    |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2009 |       | (5,638,240    | )          | (395,172             | )          | (6,033,412 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (235,310      | )          | (2,377               | )          | (237,687   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Contributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2010 |       | $             | (5,873,550 | )                    | $          | (397,549   | )          | $ | (6,271,099 | ) |
|                                                       |            |               |            |                      |            |            |            |  |  |  |

 

(continued)

 

F-18

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL(DEFICIT) - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| **Series 10**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | (2,409,859    | )          | (221,224             | )          | (2,631,083 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (182,677      | )          | (1,845               | )          | (184,522   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2009 |       | (2,592,536    | )          | (223,069             | )          | (2,815,605 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 800,512       |       | 8,086                |       | 808,598    |       |
|                                                  |       |          |       |                 |       |       |       |
| Contributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2010 |       | $             | (1,792,024 | )                    | $          | (214,983   | )          | $ | (2,007,007 | ) |
|                                                  |       |          |       |                 |       |       |       |
|                                                       |            |               |            |                      |            |            |            |  |  |  |

 
| **Series 11**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | (1,363,535    | )          | (230,627             | )          | (1,594,162 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (974,403      | )          | (9,842               | )          | (984,245   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2009 |       | (2,337,938    | )          | (240,469             | )          | (2,578,407 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 692,883       |       | 6,999                |       | 699,882    |       |
|                                                  |       |          |       |                 |       |       |       |
| Contributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2010 |       | $             | (1,645,055 | )                    | $          | (233,470   | )          | $ | (1,878,525 | ) |
|                                                       |            |               |            |                      |            |            |            |  |  |  |

 

(continued)

 

F-19

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED 

 

Years ended March 31, 2010 and 2009

 
| **Series 12**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | (3,777,475    | )          | (291,824             | )          | (4,069,299 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 427,853       |       | 4,322                |       | 432,175    |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2009 |       | (3,349,622    | )          | (287,502             | )          | (3,637,124 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (172,393      | )          | (1,741               | )          | (174,134   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Contributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2010 |       | $             | (3,522,015 | )                    | $          | (289,243   | )          | $ | (3,811,258 | ) |
|                                                       |            |               |            |                      |            |            |            |  |  |  |

 
| **Series 14**                                    | ** ** | **Assignees** | ** ** | **General  partner** | ** ** | **Total**  | ** ** |
|-------------------------------------------------------|------------|---------------|------------|----------------------|------------|------------|------------|
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2008 |       | (7,227,668    | )          | (547,629             | )          | (7,775,297 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | (113,676      | )          | (1,148               | )          | (114,824   | )          |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2009 |       | (7,341,344    | )          | (548,777             | )          | (7,890,121 | )          |
|                                                  |       |          |       |                 |       |       |       |
| Net income (loss)                                     |       | 1,198,908     |       | 12,110               |       | 1,211,018  |       |
|                                                  |       |          |       |                 |       |       |       |
| Contributions                                         |       | —        |       | —               |       | —     |       |
|                                                  |       |          |       |                 |       |       |       |
| Partners’ capital (deficit), March 31, 2010 |       | $             | (6,142,436 | )                    | $          | (536,667   | )          | $ | (6,679,103 | ) |
|                                                       |            |               |            |                      |            |            |            |  |  |  |

 

See notes to financial statements

 

F-20

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS

 

Years ended March 31, 2010 and 2009

 
| ** **                                                                                         | ** ** | **Total**  | ** ** |
|----------------------------------------------------------------------------------------------------|------------|------------|------------|
| ** **                                                                                         | ** ** | **2010**   | ** ** | **2009** | ** ** |
| Cash flows from operating activities                                                               |       |       |       |   |   |
| Net income (loss)                                                                                  |       | $          | 2,289,762  |   | $ | (690,607 | ) |
| Adjustments to reconcile net income (loss) to net  cash provided by (used in) operating activities |       |       |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —     |       | 40,601 |   |
| Share of income from operating limited partnerships                                                |       | (3,286,871 | )          | (2,802,461 | ) |
| Impairment loss                                                                                    |       | —     |       | 2,164,675 |   |
| Amortization                                                                                       |       | —     |       | 34,790 |   |
| Changes in assets and liabilities                                                                  |       |       |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 128,590    |       | (3,159 | ) |
| Accounts payable - affiliates                                                                      |       | (2,224,006 | )          | (1,659,547 | ) |
| Other assets                                                                                       |       | (5,100     | )          | — |   |
|                                                                                               |       |       |       |   |   |
| Net cash provided by (used in) operating  activities                                               |       | (3,097,625 | )          | (2,915,708 | ) |
|                                                                                               |       |       |       |   |   |
| Cash flows from investing activities                                                               |       |       |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | (23        | )          | — |   |
| Proceeds from disposition of operating limited  partnerships                                       |       | 3,286,871  |       | 3,059,415 |   |
|                                                                                               |       |       |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 3,286,848  |       | 3,059,415 |   |
|                                                                                               |       |       |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                              |       | 189,223    |       | 143,707 |   |
|                                                                                               |       |       |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 1,228,984  |       | 1,085,277 |   |
|                                                                                               |       |       |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $          | 1,418,207  |   | $ | 1,228,984 |   |
|                                                                                               |       |       |       |   |   |
| Supplemental schedule of noncash investing and financing  activities:                              |       |       |       |   |   |
| The Partnership has applied accounts payable as a  general partner capital contribution.           |       | $          | 173,840    |   | $ | — |   |

 

(continued)

 

F-21

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                                                                         | ** ** | **Series 7** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                         | ** ** | **2010**          | ** ** | **2009** | ** ** |
| Cash flows from operating activities                                                               |       |              |       |   |   |
| Net income (loss)                                                                                  |       | $                 | (17,915    | ) | $ | 26,922 |   |
| Adjustments to reconcile net income (loss) to net  cash provided by (used in) operating activities |       |              |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —            |       | — |   |
| Share of income from operating limited partnerships                                                |       | —            |       | (57,760 | ) |
| Impairment loss                                                                                    |       | —            |       | — |   |
| Amortization                                                                                       |       | —            |       | — |   |
| Changes in assets and liabilities                                                                  |       |              |       |   |   |
| Accounts payable and accrued expenses                                                              |       | —            |       | (381 | ) |
| Accounts payable - affiliates                                                                      |       | (41,453           | )          | (124,739 | ) |
| Other assets                                                                                       |       | —            |       | — |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) operating  activities                                               |       | (59,368           | )          | (155,958 | ) |
|                                                                                               |       |              |       |   |   |
| Cash flows from investing activities                                                               |       |              |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | —            |       | — |   |
| Proceeds from disposition of operating limited  partnerships                                       |       | —            |       | 57,760 |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | —            |       | 57,760 |   |
|                                                                                               |       |              |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                              |       | (59,368           | )          | (98,198 | ) |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 59,368            |       | 157,566 |   |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                 | —     |   | $ | 59,368 |   |
|                                                                                               |       |              |       |   |   |
| Supplemental schedule of noncash investing and financing  activities:                              |       |              |       |   |   |
| The Partnership has applied accounts payable as a  general partner capital contribution.           |       | $                 | 173,840    |   | $ | — |   |

 

(continued)

 

F-22

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                                                                         | ** ** | **Series 9** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|-------------------|------------|
| ** **                                                                                         | ** ** | **2010**          | ** ** | **2009** | ** ** |
| Cash flows from operating activities                                                               |       |              |       |   |   |
| Net income (loss)                                                                                  |       | $                 | (237,687   | ) | $ | 133,887 |   |
| Adjustments to reconcile net income (loss) to net  cash provided by (used in) operating activities |       |              |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —            |       | — |   |
| Share of income from operating limited partnerships                                                |       | (21,750           | )          | (374,556 | ) |
| Impairment loss                                                                                    |       | —            |       | 5,217 |   |
| Amortization                                                                                       |       | —            |       | 387 |   |
| Changes in assets and liabilities                                                                  |       |              |       |   |   |
| Accounts payable and accrued expenses                                                              |       | —            |       | (381 | ) |
| Accounts payable - affiliates                                                                      |       | 140,641           |       | (90,675 | ) |
| Other assets                                                                                       |       | —            |       | — |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) operating  activities                                               |       | (118,796          | )          | (326,121 | ) |
|                                                                                               |       |              |       |   |   |
| Cash flows from investing activities                                                               |       |              |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | —            |       | — |   |
| Proceeds from disposition of operating limited  partnerships                                       |       | 21,750            |       | 388,694 |   |
|                                                                                               |       |              |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 21,750            |       | 388,694 |   |
|                                                                                               |       |              |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                              |       | (97,046           | )          | 62,573 |   |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 212,194           |       | 149,621 |   |
|                                                                                               |       |              |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                 | 115,148    |   | $ | 212,194 |   |
|                                                                                               |       |              |       |   |   |
| Supplemental schedule of noncash investing and financing  activities:                              |       |              |       |   |   |
| The Partnership has applied accounts payable as a  general partner capital contribution.           |       | $                 | —     |   | $ | — |   |

 

(continued)

 

F-23

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                                                                         | ** ** | **Series 10** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                         | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Cash flows from operating activities                                                               |       |               |       |   |   |
| Net income (loss)                                                                                  |       | $                  | 808,598    |   | $ | (184,522 | ) |
| Adjustments to reconcile net income (loss) to net  cash provided by (used in) operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —             |       | 9,108 |   |
| Share of income from operating limited partnerships                                                |       | (857,039           | )          | (64,931 | ) |
| Impairment loss                                                                                    |       | —             |       | 136,419 |   |
| Amortization                                                                                       |       | —             |       | 2,060 |   |
| Changes in assets and liabilities                                                                  |       |               |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 30,000             |       | (381 | ) |
| Accounts payable - affiliates                                                                      |       | (772,514           | )          | (3,211 | ) |
| Other assets                                                                                       |       | —             |       | — |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) operating  activities                                               |       | (790,955           | )          | (105,458 | ) |
|                                                                                               |       |               |       |   |   |
| Cash flows from investing activities                                                               |       |               |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | —             |       | — |   |
| Proceeds from disposition of operating limited  partnerships                                       |       | 857,039            |       | 73,720 |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 857,039            |       | 73,720 |   |
|                                                                                               |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                              |       | 66,084             |       | (31,738 | ) |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 120,636            |       | 152,374 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                  | 186,720    |   | $ | 120,636 |   |
|                                                                                               |       |               |       |   |   |
| Supplemental schedule of noncash investing and financing  activities:                              |       |               |       |   |   |
| The Partnership has applied accounts payable as a  general partner capital contribution.           |       | $                  | —     |   | $ | — |   |

 

(continued)

 

F-24

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                                                                         | ** ** | **Series 11** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                         | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Cash flows from operating activities                                                               |       |               |       |   |   |
| Net income (loss)                                                                                  |       | $                  | 699,882    |   | $ | (984,245 | ) |
| Adjustments to reconcile net income (loss) to net  cash provided by (used in) operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —             |       | 10,269 |   |
| Share of income from operating limited partnerships                                                |       | (878,930           | )          | (310,801 | ) |
| Impairment loss                                                                                    |       | —             |       | 1,070,008 |   |
| Amortization                                                                                       |       | —             |       | 1,515 |   |
| Changes in assets and liabilities                                                                  |       |               |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 45,990             |       | (401 | ) |
| Accounts payable - affiliates                                                                      |       | (388,340           | )          | (113,383 | ) |
| Other assets                                                                                       |       | —             |       | — |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) operating  activities                                               |       | (521,398           | )          | (327,038 | ) |
|                                                                                               |       |               |       |   |   |
| Cash flows from investing activities                                                               |       |               |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | —             |       | — |   |
| Proceeds from disposition of operating limited  partnerships                                       |       | 878,930            |       | 423,633 |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 878,930            |       | 423,633 |   |
|                                                                                               |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                              |       | 357,532            |       | 96,595 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 246,366            |       | 149,771 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                  | 603,898    |   | $ | 246,366 |   |
|                                                                                               |       |               |       |   |   |
| Supplemental schedule of noncash investing and financing  activities:                              |       |               |       |   |   |
| The Partnership has applied accounts payable as a  general partner capital contribution.           |       | $                  | —     |   | $ | — |   |

 

(continued)

 

F-25

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                                                                         | ** ** | **Series 12** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                         | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Cash flows from operating activities                                                               |       |               |       |   |   |
| Net income (loss)                                                                                  |       | $                  | (174,134   | ) | $ | 432,175 |   |
| Adjustments to reconcile net income (loss) to net  cash provided by (used in) operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —             |       | — |   |
| Share of income from operating limited partnerships                                                |       | —             |       | (737,990 | ) |
| Impairment loss                                                                                    |       | —             |       | 125,870 |   |
| Amortization                                                                                       |       | —             |       | 9,323 |   |
| Changes in assets and liabilities                                                                  |       |               |       |   |   |
| Accounts payable and accrued expenses                                                              |       | —             |       | (401 | ) |
| Accounts payable - affiliates                                                                      |       | 150,168            |       | (527,221 | ) |
| Other assets                                                                                       |       | —             |       | — |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) operating  activities                                               |       | (23,966            | )          | (698,244 | ) |
|                                                                                               |       |               |       |   |   |
| Cash flows from investing activities                                                               |       |               |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | —             |       | — |   |
| Proceeds from disposition of operating limited  partnerships                                       |       | —             |       | 737,990 |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | —             |       | 737,990 |   |
|                                                                                               |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                              |       | (23,966            | )          | 39,746 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 144,823            |       | 105,077 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                  | 120,857    |   | $ | 144,823 |   |
|                                                                                               |       |               |       |   |   |
| Supplemental schedule of noncash investing and financing  activities:                              |       |               |       |   |   |
| The Partnership has applied accounts payable as a  general partner capital contribution.           |       | $                  | —     |   | $ | — |   |

 

(continued)

 

F-26

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

STATEMENTS OF CASH FLOWS - CONTINUED

 

Years ended March 31, 2010 and 2009

 
| ** **                                                                                         | ** ** | **Series 14** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|--------------------|------------|
| ** **                                                                                         | ** ** | **2010**           | ** ** | **2009** | ** ** |
| Cash flows from operating activities                                                               |       |               |       |   |   |
| Net income (loss)                                                                                  |       | $                  | 1,211,018  |   | $ | (114,824 | ) |
| Adjustments to reconcile net income (loss) to net  cash provided by (used in) operating activities |       |               |       |   |   |
| Distributions from operating limited partnerships                                                  |       | —             |       | 21,224 |   |
| Share of income from operating limited partnerships                                                |       | (1,529,152         | )          | (1,256,423 | ) |
| Impairment loss                                                                                    |       | —             |       | 827,161 |   |
| Amortization                                                                                       |       | —             |       | 21,505 |   |
| Changes in assets and liabilities                                                                  |       |               |       |   |   |
| Accounts payable and accrued expenses                                                              |       | 52,600             |       | (1,214 | ) |
| Accounts payable - affiliates                                                                      |       | (1,312,508         | )          | (800,318 | ) |
| Other assets                                                                                       |       | (5,100             | )          | — |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) operating  activities                                               |       | (1,583,142         | )          | (1,302,889 | ) |
|                                                                                               |       |               |       |   |   |
| Cash flows from investing activities                                                               |       |               |       |   |   |
| Capital contributions paid to operating limited partnerships                                       |       | (23                | )          | — |   |
| Proceeds from disposition of operating limited  partnerships                                       |       | 1,529,152          |       | 1,377,618 |   |
|                                                                                               |       |               |       |   |   |
| Net cash provided by (used in) investing activities                                                |       | 1,529,129          |       | 1,377,618 |   |
|                                                                                               |       |               |       |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                              |       | (54,013            | )          | 74,729 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, beginning                                                               |       | 445,597            |       | 370,868 |   |
|                                                                                               |       |               |       |   |   |
| Cash and cash equivalents, end                                                                     |       | $                  | 391,584    |   | $ | 445,597 |   |
|                                                                                               |       |               |       |   |   |
| Supplemental schedule of noncash investing and financing  activities:                              |       |               |       |   |   |
| The Partnership has applied accounts payable as a  general partner capital contribution.           |       | $                  | —     |   | $ | — |   |

 

See notes to financial statements

 

F-27

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7, 9 through 12,and 14

 

NOTES TO FINANCIALSTATEMENTS

 

March 31, 2010 and 2009

 

NOTEA - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

BostonCapital Tax Credit Fund II Limited Partnership (the “Partnership” or “Fund”)was formed under the laws of the State of Delaware on June 28, 1989, forthe purpose of acquiring, holding and disposing of limited partnershipinterests in operating limited partnerships which were to acquire, develop,rehabilitate, operate and own newly constructed, existing or rehabilitatedlow-income apartment complexes which qualify for the Low-Income Housing TaxCredit established by the Tax Reform Act of 1986.  Accordingly, the apartment complexes arerestricted as to rent charges and operating methods.  Certain of the apartment complexes alsoqualified for the Historic Rehabilitation Tax Credit for their rehabilitationof a certified historic structure and are subject to the provisions of theInternal Revenue Code relating to the Rehabilitation Investment Credit.  The general partner of the Partnership isBoston Capital Associates II Limited Partnership and the limited partner isBCTC Assignor Corp. II (the “assignor limited partner”).

 

Pursuantto the Securities Act of 1933, the Partnership filed a Form S-11Registration Statement with the Securities and Exchange Commission, effectiveOctober 25, 1989, which covered the offering (the “Public Offering”) ofthe Partnership’s beneficial assignee certificates (“BACs”) representingassignments of units of the beneficial interest of the limited partnershipinterest of the assignor limited partner. The Partnership registered 20,000,000 BACs at $10 per BAC for sale tothe public in six series.  BACs sold inbulk over $100,000 were offered to investors at a reduced cost per BAC.  The Partnership is no longer selling any BACsrelated to any series.  The final closingin Series 14 was January 27, 1992.

 

TheBACs issued and outstanding in each series at March 31, 2010 and 2009 areas follows:

 
| ** **     | ** ** | **2010**   | ** ** | **2009**   | ** ** |
|----------------|------------|------------|------------|------------|------------|
| Series  7 |       | 1,036,100  |       | 1,036,100  |       |
| Series  9 |       | 4,178,029  |       | 4,178,029  |       |
| Series 10 |       | 2,428,925  |       | 2,428,925  |       |
| Series 11 |       | 2,489,599  |       | 2,489,599  |       |
| Series 12 |       | 2,972,795  |       | 2,972,795  |       |
| Series 14 |       | 5,573,240  |       | 5,573,240  |       |
|           |       | 18,678,688 |       | 18,678,688 |       |

 

Inaccordance with the limited partnership agreement, profits, losses, and cashflow (subject to certain priority allocations and distributions) and taxcredits are allocated 99% to the assignees and 1% to the general partner.

 

F-28

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7, 9 through 12,and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEA - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments in Operating Limited Partnerships

 

After the investment account is reduced to zero, receivables due fromthe operating limited partnerships are decreased by the funds’ share of lossesand, accordingly a valuation allowance is recorded against thereceivables.  Accordingly, thePartnership recorded a valuation allowance as follows:

 
| ** **     | ** ** | **2010** | ** ** | **2009** | ** ** |
|----------------|------------|----------|------------|----------|------------|
| Series  7 |       | $        | —     |     | $          | — |   |
| Series  9 |       | 30,198   |       | 30,198   |       |
| Series 10 |       | 5,443    |       | 7,664    |       |
| Series 11 |       | 72,890   |       | 76,475   |       |
| Series 12 |       | 86,870   |       | 86,870   |       |
| Series 14 |       | 16,744   |       | 38,356   |       |
|           |       | $        | 212,145    |     | $          | 239,563 |   |

 

The Partnership reviews its investment in operating limitedpartnerships for impairment whenever events or changes in circumstancesindicate that the carrying amount of such investments may not be recoverable.  Recoverability is measured by a comparison ofthe carrying amount of the investment to the future net undiscounted cash flowsexpected to be generated by the operating limited partnerships including the low-incomehousing tax credits and the residual value upon sale or disposition of theequity interest in the operating limited partnerships.  If the investmentis considered to be impaired, the impairment to be recognized is measured atthe amount by which the carrying amount of the investment exceeds the fairvalue of such investment.  ThePartnership also evaluates its intangibles for impairment in connection withits investments in operating limited partnerships.  During the years ended March 31, 2010and 2009, the Partnership recorded an impairment loss of $0 and $2,164,675,respectively.

 

Capital contributions to operating limited partnerships are adjusted bytax credit adjusters.  Tax creditadjusters are defined as adjustments to operating limited partnership capitalcontributions due to reductions in actual tax credits from those originallyprojected.  The Partnership records taxcredit adjusters as a reduction in investments in operating limitedpartnerships and capital contributions payable.

 

F-29

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7, 9 through 12,and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEA - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments in Operating Limited Partnerships (Continued)

 

The operating limited partnerships maintain their financial statementsbased on a calendar year and the Partnership utilizes a March 31 yearend.  The fund records losses and incomefrom the operating limited partnerships on a calendar year basis which is notmaterially different from losses and income generated if the operating limitedpartnerships utilized a March 31 year end.

 

The Partnership records capital contributions payable to the operatinglimited partnerships once there is a binding obligation to fund a specifiedamount.  The operating limitedpartnerships record capital contributions from the Partnership when received.

 

The Partnership records certain acquisition costs as an increase in itsinvestments in operating limited partnerships. Certain operating limited partnerships have not recorded the acquisitioncosts as a capital contribution from the Partnership.  These differences are shown as reconcilingitems in Note C.

 

In accordance with the accounting guidance for the consolidation ofvariable interest entities, the Partnership determines when it should includethe assets, liabilities, and activities of a variable interest entity (VIE) inits financial statements, and when it should disclose information about itsrelationship with a VIE. A VIE is a legal structure used to conduct activitiesor hold assets, which must be consolidated by a company if it is the primarybeneficiary because it absorbs the majority of the entity’s expected losses,the majority of the expected returns, or both. Based on this guidance, theoperating limited partnerships in which the Partnership invests meet thedefinition of a VIE.  However, managementdoes not consolidate the Partnership’s interests in these VIEs under thisguidance, as it is not considered to be the primary beneficiary.  The Partnership currently records the amountof its investment in these partnerships as an asset on its balance sheet,recognizes its share of partnership income or losses in the statements ofoperations, and discloses how it accounts for material types of theseinvestments in its financial statements.

 

The Partnership’s balance in investment in operating limitedpartnerships, plus the risk of recapture of tax credits previously recognized onthese investments, represents its maximum exposure to loss.  The Partnership’s exposure to loss on thesepartnerships is mitigated by the condition and financial performance of theunderlying properties as well as the strength of the local general partners andtheir guarantee against credit recapture.

 

F-30

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7,9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEA - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments in Operating Limited Partnerships (Continued)

 

Cash Equivalents

 

Cash equivalents include money market accounts having originalmaturities at date of acquisition of three months or less.  The carrying amounts approximate fair valuebecause of the short maturity of these instruments.

 

Deferred Acquisition Costs

 

Deferred acquisition costs were being amortized on the straight-linemethod starting April 1, 1995 over 27.5 years (330 months).

 

As of April 1, 1995, the Partnership reclassified certainunallocated acquisition costs included in the investments in operating limitedpartnerships to deferred acquisition costs. The amounts included $23,920, $94,634 and $47,968 for Series 9,Series 10 and Series 11, respectively.  As of March 31, 2009 an impairment lossof $469,681 was recorded and the deferred acquisition costs were written-off to$0.

 

Income Taxes

 

The Partnership has elected to be treated as a pass-through entity forincome tax purposes and, as such, is not subject to income taxes. Rather, allitems of taxable income, deductions and tax credits are passed through to andare reported by its owners on their respective income tax returns.  ThePartnership’s federal tax status as a pass-through entity is based on its legalstatus as a partnership. Accordingly, the Partnership is not required to takeany tax positions in order to qualify as a pass-through entity. The Partnershipis required to file and does file tax returns with the Internal Revenue Serviceand other taxing authorities. Accordingly, these financial statements do notreflect a provision for income taxes and the Partnership has no other taxpositions which must be considered for disclosure.

 

F-31

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7,9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEA - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Investments in Operating Limited Partnerships (Continued)

 

Fiscal Year

 

For financial reporting purposes the Partnership uses a March 31year end, whereas for income tax reporting purposes, the Partnership uses acalendar year.  The operating limitedpartnerships use a calendar year for both financial and income tax reporting.

 

Net Income (Loss) per Beneficial Assignee Certificate

 

Net income (loss) per beneficial assignee certificate is calculatedbased upon the weighted average number of units outstanding.  The weighted average number of unitsoutstanding in each series at March 31, 2010 and 2009 are as follows:

 
| ** **     | ** ** | **2010**   | ** ** | **2009**   | ** ** |
|----------------|------------|------------|------------|------------|------------|
| Series  7 |       | 1,036,100  |       | 1,036,100  |       |
| Series  9 |       | 4,178,029  |       | 4,178,029  |       |
| Series 10 |       | 2,428,925  |       | 2,428,925  |       |
| Series 11 |       | 2,489,599  |       | 2,489,599  |       |
| Series 12 |       | 2,972,795  |       | 2,972,795  |       |
| Series 14 |       | 5,573,240  |       | 5,573,240  |       |
| TOTAL          |       | 18,678,688 |       | 18,678,688 |       |

 

Use of Estimates

 

The preparation of financial statements in conformity with accountingprinciples generally accepted in the United States of America requiresmanagement to make estimates and assumptions that affect the reported amountsof assets and liabilities and disclosure of contingent assets and liabilitiesat the date of the financial statements and the reported amounts of revenue andexpenses during the reporting period. Actual results could differ from those estimates.

 

F-32

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7,9 through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEA - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Recent Accounting Changes

 

In May 2009, the FASB issued guidance regarding subsequent events,which was subsequently updated in February 2010. This guidance establishedgeneral standards of accounting for and disclosure of events that occur afterthe balance sheet date but before financial statements are issued or areavailable to be issued. In particular, this guidance sets forth the periodafter the balance sheet date during which management of a reporting entityshould evaluate events or transactions that may occur for potential recognitionor disclosure in the financial statements, the circumstances under which an entityshould recognize events or transactions occurring after the balance sheet datein its financial statements, and the disclosures that an entity should makeabout events or transactions that occurred after the balance sheet date. Thisguidance was effective for financial statements issued for fiscal years andinterim periods ending after June 15, 2009, and was therefore adopted bythe Partnership for the quarter ended**June 30,2009. The adoption did not have a significant impact on the subsequent events thatthe Partnership reports, either through recognition or disclosure, in thefinancial statements. In February 2010, the FASB amended its guidance onsubsequent events to remove the requirement to disclose the date through whichan entity has evaluated subsequent events, alleviating conflicts with currentSEC guidance. This amendment was effective immediately and therefore thePartnership did not include the disclosure in this Form 10-K.

 

In June 2009, the Financial Accounting Standards Board (FASB)issued an amendment to the accounting and disclosure requirements for theconsolidation of VIEs.  The amended guidance modifies the consolidationmodel to one based on control and economics, and replaces the currentquantitative primary beneficiary analysis with a qualitative analysis. Theprimary beneficiary of a VIE will be the entity that has (1) the power todirect the activities of the VIE that most significantly impact the VIE’seconomic performance and (2) the obligation to absorb losses or receivebenefits that could potentially be significant to the VIE.  If multipleunrelated parties share such power, as defined, no party will be required toconsolidate the VIE. Further, the amended guidance requires continualreconsideration of the primary beneficiary of a VIE and adds an additionalreconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures aroundVIEs.  This amendment is effective for fiscal years beginning after November 15,2009.  The adoption of this guidance on April 1, 2010 is not expectedto have a material effect on the Partnership’s financial statements.

 

In June 2009, the FASB issued the Accounting StandardsCodification (Codification).  Effective July 1, 2009, theCodification is the single source of authoritative accounting principlesrecognized by the FASB to be applied by non-governmental entities in thepreparation of financial statements in conformity with U.S. generally acceptedaccounting principles (GAAP).  The Codification is intended to reorganize,rather than change, existing GAAP.  Accordingly, all references tocurrently existing GAAP have been removed and have been replaced with plainEnglish explanations of the Partnership’s****accountingpolicies.  The adoption of the Codification did not have a material impacton the Partnership’s financial position or results of operations.

 

F-33

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7,9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEA - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Plan of Liquidation and Dissolution

 

On March 3, 2010, our General Partner recommended that the BACholders approve a plan of liquidation and dissolution for the Partnership, orthe “Plan.”  Pursuant to the Plan, theGeneral Partner would be able to, without further action by the BAC holders:

 

· Liquidate the assets and wind up the business of thePartnership;

· make liquidating distributions in cancellation ofthe BACs;

· dissolve the Partnership after the sale of all ofthe Partnership’s assets; and

· take, or causethe Partnership to take, such other acts and deeds and shall do, or cause the Partnershipto do, such other things, as are necessary or appropriate in connection withthe dissolution, winding up and liquidation of the Partnership, the terminationof the responsibilities and liabilities of the Partnership under applicablelaw, and the termination of the existence of the Partnership.

 

The adoption of the Plan is subject to the approval of the Plan by amajority of the BAC holders.  For a morecomplete discussion of the Plan, see the Partnership’s Definitive ProxyStatement on Schedule 14A, filed with the SEC on March 3, 2010.

 

NOTE B - RELATED PARTY TRANSACTIONS

 

During the years ended March 31, 2010 and 2009, the Partnershipentered into several transactions with various affiliates of the generalpartner, including Boston Capital Partners, Inc., Boston Capital HoldingsLimited Partnership and Boston Capital Asset Management Limited Partnership, asfollows:

 

Boston Capital Asset Management Limited Partnership is entitled to anannual partnership management fee based on .5% of the aggregate cost of allapartment complexes acquired by the operating limited partnerships, less theamount of certain partnership management and reporting fees paid or payable bythe operating limited partnerships.  Theaggregate cost is comprised of the capital contributions made by each series tothe operating limited partnerships and 99% of the permanent financing at theoperating limited partnership level.  Thefee is payable without interest as sufficient funds become available from salesor refinancing proceeds from operating limited partnerships.

 

F-34

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7, 9 through 12,and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

The annual partnership management fee charged to operations during theyears ended March 31, 2010 and 2009 are as follows:

 
| ** **     | ** ** | **2010** | ** ** | **2009** | ** ** |
|----------------|------------|----------|------------|----------|------------|
| Series  7 |       | $        | —     |     | $          | 5,268 |   |
| Series  9 |       | 220,641  |       | 259,325  |       |
| Series 10 |       | 107,486  |       | 121,789  |       |
| Series 11 |       | 191,121  |       | 211,617  |       |
| Series 12 |       | 150,168  |       | 172,779  |       |
| Series 14 |       | 450,150  |       | 524,682  |       |
| TOTAL          |       | $        | 1,119,566  |     | $          | 1,295,460 |   |

 

The reporting fees paid by the operating limited partnerships to thePartnership for the years ended March 31, 2010 and 2009 are as follows:

 
| ** **     | ** ** | **2010** | ** ** | **2009** | ** ** |
|----------------|------------|----------|------------|----------|------------|
| Series  7 |       | $        | —     |     | $          | 1,110 |   |
| Series  9 |       | 20,472   |       | 118,475  |       |
| Series 10 |       | 29,082   |       | 17,064   |       |
| Series 11 |       | 50,966   |       | 44,101   |       |
| Series 12 |       | 19,923   |       | 65,365   |       |
| Series 14 |       | 205,538  |       | 106,007  |       |
| TOTAL          |       | $        | 325,981    |     | $          | 352,122 |   |

 

F-35

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7, 9 through 12,and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

The partnership management fees paid by the Partnership for the yearsended March 31, 2010 and 2009 are as follows:

 
| ** **     | ** ** | **2010**  | ** ** | **2009**  | ** ** |
|----------------|------------|-----------|------------|-----------|------------|
| Series  7 |       | $         | —     |      | $          | 22,687 |   |
| Series  9 |       | 80,000    |       | 350,000   |       |
| Series 10 |       | 880,000   |       | 125,000   |       |
| Series 11 |       | 480,000   |       | 325,000   |       |
| Series 12 |       | —    |       | 700,000   |       |
| Series 14 |       | 1,590,000 |       | 1,325,000 |       |
| TOTAL          |       | $         | 3,030,000  |      | $          | 2,847,687 |   |

 

An affiliate of the general partner of the Partnership advanced fundsto pay some operating expenses of the Partnership, and to make advances and/orloans to operating limited partnerships. These advances are included inaccounts payable-affiliates. The total advances from the affiliate of thegeneral partner to the operating limited partnerships for the years ended March 31,2010 and 2009 are as follows:

 
| ** **     | ** ** | **2010** | ** ** | **2009** | ** ** |
|----------------|------------|----------|------------|----------|------------|
| Series  7 |       | $        | —     |     | $          | 215,293 |   |
| Series  9 |       | —   |       | —   |       |
| Series 10 |       | —   |       | —   |       |
| Series 11 |       | —   |       | 99,461   |       |
| Series 12 |       | 153,188  |       | 153,188  |       |
| Series 14 |       | —   |       | 172,658  |       |
| TOTAL          |       | $        | 153,188    |     | $          | 640,600 |   |

 

All payables to affiliates will be paid, without interest, fromavailable cash flow or the proceeds of sales or refinancing of thePartnership’s interests in operating limited partnerships.   During the year ended March 31, 2010,$41,453 from Series 7, $99,461 from Series 11, and $172,658 fromSeries 14 were paid to an affiliate of the general partner.   The remaining of $173,840 from Series 7has been forgiven. The general partner has recorded this amount as a capitalcontribution.

 

F-36

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7,9 through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

 

General and administrative expenses incurred by Boston CapitalPartners, Inc., Boston Capital Holdings Limited Partnership and BostonCapital Asset Management Limited Partnership (BCAMLP) during the years endedMarch 31, 2010 and 2009 charged to each series’ operations are as follows:

 
| ** **      | ** ** | **2010** | ** ** | **2009** | ** ** |
|-----------------|------------|----------|------------|----------|------------|
| Series   7 |       | $        | 5,075      |     | $          | 7,919 |   |
| Series   9 |       | 13,258   |       | 15,870   |       |
| Series 10  |       | 10,483   |       | 12,421   |       |
| Series 11  |       | 10,550   |       | 12,621   |       |
| Series 12  |       | 12,422   |       | 14,603   |       |
| Series 14  |       | 23,065   |       | 27,212   |       |
| TOTAL           |       | $        | 74,853     |     | $          | 90,646 |   |

 

Accounts payable - affiliates at March 31, 2010 and 2009 representsgeneral and administrative expenses, partnership management fees, and mayinclude advances which are payable to Boston Capital Holdings LimitedPartnership and Boston Capital Asset Management Limited Partnership.

 

F-37

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7,9 through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

 

At March 31, 2010 and 2009, the Partnership has limitedpartnership interests in operating limited partnerships which own operatingapartment complexes.  During the yearended March 31, 2010, the Partnership disposed of its operating limitedpartnership interest in two, two, three, and ten of the operating limitedpartnerships owned by Series 9, Series 10, Series 11, and Series 14,respectively. During the year ended March 31, 2009, the Partnershipdisposed of its operating limited partnership interest in three, six, four,five, seven, and twelve of the operating limited partnerships owned by Series 7,Series 9, Series 10, Series 11, Series 12 and Series 14,respectively.  The number of operatinglimited partnerships in which the Partnership has limited partnership interestsat March 31, 2010 and 2009 by series is as follows:

 
| ** **     | ** ** | **2010** | ** ** | **2009** | ** ** |
|----------------|------------|----------|------------|----------|------------|
| Series  7 |       | —   |       | —   |       |
| Series  9 |       | 24       |       | 26       |       |
| Series 10 |       | 16       |       | 18       |       |
| Series 11 |       | 17       |       | 20       |       |
| Series 12 |       | 26       |       | 26       |       |
| Series 14 |       | 53       |       | 63       |       |
| TOTAL          |       | 136      |       | 153      |       |

 

F-38

----

 

Boston Capital Tax CreditFund II Limited Partnership

Series 7,9 through 12, and 14

 

NOTES TO FINANCIALSTATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

Duringthe year ended March 31, 2010 the Partnership disposed of seventeen of theoperating limited partnerships.  Asummary of the dispositions by Series for March 31, 2010 is asfollows:

 
| ** **     | ** ** | **Operating**   | ** ** | **Sale of**     | ** ** | ** **        | ** ** | ** **         | ** ** |
|----------------|------------|-----------------|------------|-----------------|------------|-------------------|------------|--------------------|------------|
| ** **     | ** ** | **Partnership** | ** ** | **Underlying**  | ** ** | **Partnership**   | ** ** | ** **         | ** ** |
| ** **     | ** ** | **Interest**    | ** ** | **Operating**   | ** ** | **Proceeds from** | ** ** | **Gain/(Loss) on** | ** ** |
| ** **     | ** ** | **Transferred** | ** ** | **Partnership** | ** ** | **Disposition**   | ** ** | **Disposition**    | ** ** |
| Series  7 |       | —          |       | —          |       | $                 | —     |               | $          | — |   |
| Series  9 |       | 1               |       | 1               |       | 21,750            |       | 21,750             |       |
| Series 10 |       | 1               |       | 1               |       | 857,039           |       | 857,039            |       |
| Series 11 |       | —          |       | 3               |       | 878,930           |       | 878,930            |       |
| Series 12 |       | —          |       | —          |       | —            |       | —             |       |
| Series 14 |       | 8               |       | 2               |       | 1,529,152         |       | 1,529,152          |       |
| Total          |       | 10              |       | 7               |       | $                 | 3,286,871  |               | $          | 3,286,871 |   |

 

During the year ended March 31, 2009 the Partnership disposed ofthirty-seven of the operating limited partnerships.  A summary of the dispositions by Series forMarch 31, 2009 is as follows:

 
| ** **     | ** ** | **Operating**   | ** ** | **Sale of**     | ** ** | ** **        | ** ** | ** **         | ** ** |
|----------------|------------|-----------------|------------|-----------------|------------|-------------------|------------|--------------------|------------|
| ** **     | ** ** | **Partnership** | ** ** | **Underlying**  | ** ** | **Partnership**   | ** ** | ** **         | ** ** |
| ** **     | ** ** | **Interest**    | ** ** | **Operating**   | ** ** | **Proceeds from** | ** ** | **Gain/(Loss) on** | ** ** |
| ** **     | ** ** | **Transferred** | ** ** | **Partnership** | ** ** | **Disposition**   | ** ** | **Disposition**    | ** ** |
| Series  7 |       | —          |       | 3               |       | $                 | 57,760     |               | $          | 57,760 |   |
| Series  9 |       | —          |       | 6               |       | 388,694           |       | 388,694            |       |
| Series 10 |       | —          |       | 4               |       | 73,720            |       | 73,720             |       |
| Series 11 |       | —          |       | 5               |       | 423,633           |       | 423,633            |       |
| Series 12 |       | —          |       | 7               |       | 737,990           |       | 737,990            |       |
| Series 14 |       | —          |       | 12              |       | 1,377,618         |       | 1,394,678          |       |
| Total          |       | —          |       | 37              |       | $                 | 3,059,415  |               | $          | 3,076,475 |   |

 

F-39

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

 

Under the terms of the Partnership’s investments in each operatinglimited partnership, the Partnership is required to make capital contributionsto the operating limited partnerships. These contributions are payable in installments over several years uponeach operating limited partnership achieving specified levels of constructionor operations.

 

The contributions payable to operating limited partnerships at March 31,2010 and 2009 by series are as follows:

 
| ** **     | ** ** | **2010** | ** ** | **2009** | ** ** |
|----------------|------------|----------|------------|----------|------------|
| Series  7 |       | $        | —     |     | $          | — |   |
| Series  9 |       | —   |       | —   |       |
| Series 10 |       | —   |       | —   |       |
| Series 11 |       | —   |       | —   |       |
| Series 12 |       | 9,241    |       | 9,241    |       |
| Series 14 |       | 160,733  |       | 160,756  |       |
| TOTAL          |       | $        | 169,974    |     | $          | 169,997 |   |

 

F-40

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

ThePartnership’s investments in operating limited partnerships at March 31,2010 are summarized as follows:

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Total**   | ** **  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|-------------|
| Capital contributions paid and to be paid to  operating limited partnerships, net of tax credit adjusters                                                                                                                                                                                                                                                     |       | $           | 49,078,644  |   |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Acquisition costs of operating limited partnerships                                                                                                                                                                                                                                                                                                           |       | 6,007,654   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative distributions from operating limited  partnerships                                                                                                                                                                                                                                                                                                 |       | (765,362    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative impairment loss in investments in  operating limited partnerships                                                                                                                                                                                                                                                                                  |       | (6,150,022  | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative losses from operating limited  partnerships                                                                                                                                                                                                                                                                                                        |       | (48,170,914 | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Investments in operating limited partnerships per  balance sheets                                                                                                                                                                                                                                                                                             |       | —      |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The Partnership (has recorded) has not recorded  capital contributions to the operating limited partnerships during the year  ended March 31, 2010, which (have not) have been included in the  Partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2009 (see note A). |       | (139,775    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The Partnership has recorded acquisition costs at  March 31, 2010, which have not been recorded in the net assets of the  operating limited partnerships (see note A).                                                                                                                                                                                   |       | (596,891    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, which the operating  limited partnerships have not included in their capital as of  December 31, due to different year ends (see note A).                                                                                                               |       | 996,196     |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | (33,637,793 | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The Partnership has recorded low-income housing  tax credit adjusters not recorded by operating limited partnerships (see note  A).                                                                                                                                                                                                                           |       | 550,781     |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative impairment loss in investments in  operating limited partnerships                                                                                                                                                                                                                                                                                  |       | 6,150,022   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | 830,467     |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $           | (25,846,993 | ) |

 

F-41

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships atMarch 31, 2010 are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                      |       |              |       |              |       |               |       |
| Capital contributions paid and to be paid to  operating limited partnerships, net of tax credit adjusters |       | $                 | —     |              | $          | 8,137,530          |       | $ | 4,038,966 |   |
|                                                                                                      |       |              |       |              |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | —            |       | 1,154,369         |       | 451,024            |       |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative distributions from operating limited  partnerships                                             |       | —            |       | (28,246           | )          | (31,287            | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                              |       | —            |       | (369,919          | )          | (623,926           | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | —            |       | (8,893,734        | )          | (3,834,777         | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Investments in operating limited partnerships per  balance sheets                                         |       | —            |       | —            |       | —             |       |
|                                                                                                           |            |                   |            |                   |            |                    |            |  |  |  |

 

F-42

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The Partnership (has recorded) has not recorded  capital contributions to the operating limited partnerships during the year  ended March 31, 2010, which (have not) have been included in the  Partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2009 (see note A). |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The Partnership has recorded acquisition costs at  March 31, 2010, which have not been recorded in the net assets of the  operating limited partnerships (see note A).                                                                                                                                                                                   |       | —            |       | (135,615          | )          | (1,908             | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, which the operating  limited partnerships have not included in their capital as of  December 31, due to different year ends (see note A).                                                                                                               |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | —            |       | (8,534,370        | )          | (2,909,879         | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The Partnership has recorded low-income housing  tax credit adjusters not recorded by operating limited partnerships (see note  A).                                                                                                                                                                                                                           |       | —            |       | 43,771            |       | 24,277             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                                                                                                                                                                                                                                                                                  |       | —            |       | 369,919           |       | 623,926            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | —            |       | 296,122           |       | 146,891            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $                 | —     |              | $          | (7,960,173         | )          | $ | (2,116,693 | ) |
|                                                                                                                                                                                                                                                                                                                                                               |            |                   |            |                   |            |                    |            |  |  |  |

 

F-43

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships atMarch 31, 2010 are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                      |       |               |       |               |       |               |       |
| Capital contributions paid and to be paid to  operating limited partnerships, net of tax credit adjusters |       | $                  | 11,105,178 |               | $          | 6,938,916          |       | $ | 18,858,054 |   |
|                                                                                                      |       |               |       |               |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | 920,664            |       | 822,241            |       | 2,659,356          |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative distributions from operating limited  partnerships                                             |       | (420,782           | )          | (39,210            | )          | (245,837           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                              |       | (1,682,306         | )          | (613,495           | )          | (2,860,376         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | (9,922,754         | )          | (7,108,452         | )          | (18,411,197        | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Investments in operating limited partnerships per  balance sheets                                         |       | —             |       | —             |       | —             |       |
|                                                                                                           |            |                    |            |                    |            |                    |            |  |  |  |

 

F-44

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| The Partnership (has recorded) has not recorded  capital contributions to the operating limited partnerships during the year  ended March 31, 2010, which (have not) have been included in the  Partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2009 (see note A). |       | —             |       | —             |       | (139,775           | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| The Partnership has recorded acquisition costs at  March 31, 2010, which have not been recorded in the net assets of the  operating limited partnerships (see note A).                                                                                                                                                                                   |       | (6,867             | )          | (61,414            | )          | (391,087           | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, which the operating  limited partnerships have not included in their capital as of  December 31, due to different year ends (see note A).                                                                                                               |       | —             |       | 188,442            |       | 807,754            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | (4,150,927         | )          | (6,497,307         | )          | (11,545,310        | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| The Partnership has recorded low-income housing  tax credit adjusters not recorded by operating limited partnerships (see note  A).                                                                                                                                                                                                                           |       | 101,163            |       | 170,369            |       | 211,201            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                                                                                                                                                                                                                                                                                  |       | 1,682,306          |       | 613,495            |       | 2,860,376          |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | 484,502            |       | 57,113             |       | (154,161           | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $                  | (1,889,823 | )                  | $          | (5,529,302         | )          | $ | (8,351,002 | ) |
|                                                                                                                                                                                                                                                                                                                                                               |            |                    |            |                    |            |                    |            |  |  |  |

 

F-45

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships atMarch 31, 2009 are summarized as follows:

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Total**   | ** **  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------|-------------|
| Capital contributions paid and to be paid to  operating limited partnerships, net of tax credit adjusters                                                                                                                                                                                                                                                     |       | $           | 59,175,874  |   |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Acquisition costs of operating limited  partnerships                                                                                                                                                                                                                                                                                                          |       | 7,099,418   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative distributions from operating limited  partnerships                                                                                                                                                                                                                                                                                                 |       | (751,377    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative impairment loss in investments in operating  limited partnerships                                                                                                                                                                                                                                                                                  |       | (6,947,808  | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative losses from operating limited  partnerships                                                                                                                                                                                                                                                                                                        |       | (58,576,107 | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Investments in operating limited partnerships per  balance sheets                                                                                                                                                                                                                                                                                             |       | —      |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The Partnership (has recorded) has not recorded  capital contributions to the operating limited partnerships during the year  ended March 31, 2009, which (have not) have been included in the  Partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2008 (see note A). |       | (139,775    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The Partnership has recorded acquisition costs at  March 31, 2008, which have not been recorded in the net assets of the  operating limited partnerships (see note A).                                                                                                                                                                                   |       | (600,606    | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, which the operating  limited partnerships have not included in their capital as of  December 31, due to different year ends (see note A).                                                                                                               |       | 1,185,221   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | (35,116,787 | )           |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| The Partnership has recorded low-income housing  tax credit adjusters not recorded by operating limited partnerships (see note  A).                                                                                                                                                                                                                           |       | 601,936     |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Cumulative impairment loss in investments in  operating limited partnerships                                                                                                                                                                                                                                                                                  |       | 6,947,808   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | 1,304,811   |        |
|                                                                                                                                                                                                                                                                                                                                                          |       |        |        |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $           | (25,817,392 | ) |

 

F-46

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships atMarch 31, 2009 are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                      |       |              |       |              |       |               |       |
| Capital contributions paid and to be paid to  operating limited partnerships, net of tax credit adjusters |       | $                 | —     |              | $          | 10,205,671         |       | $ | 5,423,842 |   |
|                                                                                                      |       |              |       |              |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | —            |       | 1,216,608         |       | 662,741            |       |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative distributions from operating limited  partnerships                                             |       | —            |       | (28,246           | )          | (38,054            | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                              |       | —            |       | (369,919          | )          | (622,542           | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | —            |       | (11,024,114       | )          | (5,425,987         | )          |
|                                                                                                      |       |              |       |              |       |               |       |
| Investments in operating limited partnerships per  balance sheets                                         |       | —            |       | —            |       | —             |       |
|                                                                                                           |            |                   |            |                   |            |                    |            |  |  |  |

 

F-47

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The Partnership (has recorded) has not recorded  capital contributions to the operating limited partnerships during the year  ended March 31, 2009, which (have not) have been included in the  Partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2008 (see note A). |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The Partnership has recorded acquisition costs at  March 31, 2009, which have not been recorded in the net assets of the  operating limited partnerships (see note A).                                                                                                                                                                                   |       | —            |       | (134,259          | )          | (1,908             | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, which the operating  limited partnerships have not included in their capital as of  December 31, due to different year ends (see note A).                                                                                                               |       | —            |       | —            |       | —             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | —            |       | (8,848,327        | )          | (3,367,547         | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| The Partnership has recorded low-income housing  tax credit adjusters not recorded by operating limited partnerships (see note  A).                                                                                                                                                                                                                           |       | —            |       | 43,771            |       | 26,498             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                                                                                                                                                                                                                                                                                  |       | —            |       | 369,919           |       | 622,542            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | —            |       | 507,980           |       | 93,871             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |              |       |              |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $                 | —     |              | $          | (8,060,916         | )          | $ | (2,626,544 | ) |
|                                                                                                                                                                                                                                                                                                                                                               |            |                   |            |                   |            |                    |            |  |  |  |

 

F-48

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The Partnership’s investments in operating limited partnerships atMarch 31, 2009 are summarized as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                      |       |               |       |               |       |               |       |
| Capital contributions paid and to be paid to  operating limited partnerships, net of tax credit adjusters |       | $                  | 12,334,178 |               | $          | 6,938,916          |       | $ | 24,273,267 |   |
|                                                                                                      |       |               |       |               |       |               |       |
| Acquisition costs of operating limited  partnerships                                                      |       | 1,109,507          |       | 822,241            |       | 3,288,321          |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative distributions from operating limited  partnerships                                             |       | (420,782           | )          | (39,210            | )          | (225,085           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                              |       | (2,258,061         | )          | (657,455           | )          | (3,039,831         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships                                                    |       | (10,764,842        | )          | (7,064,492         | )          | (24,296,672        | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Investments in operating limited partnerships per  balance sheets                                         |       | —             |       | —             |       | —             |       |
|                                                                                                           |            |                    |            |                    |            |                    |            |  |  |  |

 

F-49

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 
| ** **                                                                                                                                                                                                                                                                                                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| The Partnership (has recorded) has not recorded  capital contributions to the operating limited partnerships during the year  ended March 31, 2009, which (have not) have been included in the  Partnerships’ capital account included in the operating limited partnerships’  financial statements as of December 31, 2008 (see note A). |       | —             |       | —             |       | (139,775           | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| The Partnership has recorded acquisition costs at  March 31, 2009, which have not been recorded in the net assets of the  operating limited partnerships (see note A).                                                                                                                                                                                   |       | (11,938            | )          | (61,414            | )          | (391,087           | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Cumulative losses from operating limited  partnerships for the three months ended March 31, which the operating  limited partnerships have not included in their capital as of  December 31, due to different year ends (see note A).                                                                                                               |       | —             |       | 194,516            |       | 990,705            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Equity in losses from operating limited  partnerships not recognizable under the equity method of accounting (see note  A).                                                                                                                                                                                                                                   |       | (4,081,996         | )          | (5,945,930         | )          | (12,872,987        | )          |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| The Partnership has recorded low-income housing  tax credit adjusters not recorded by operating limited partnerships (see note  A).                                                                                                                                                                                                                           |       | 101,163            |       | 170,369            |       | 260,135            |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Cumulative impairment loss in investments in  operating limited partnerships                                                                                                                                                                                                                                                                                  |       | 2,258,061          |       | 657,455            |       | 3,039,831          |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Other                                                                                                                                                                                                                                                                                                                                                         |       | 585,133            |       | 59,748             |       | 58,079             |       |
|                                                                                                                                                                                                                                                                                                                                                          |       |               |       |               |       |               |       |
| Equity per operating limited partnerships’  combined financial statements                                                                                                                                                                                                                                                                                |       | $                  | (1,149,577 | )                  | $          | (4,925,256         | )          | $ | (9,055,099 | ) |
|                                                                                                                                                                                                                                                                                                                                                               |            |                    |            |                    |            |                    |            |  |  |  |

 

F-50

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limited partnershipsin which Series 7, 9 through 12, and 14 hold an interest at December 31,2009 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 
| ** **                                                   | ** ** | **Total**   | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|--------------------------------------------------------------|------------|-------------|-------------|-------------------|------------|-------------------|------------|--------------------|------------|
| ASSETS                                                       |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Buildings and improvements, net of accumulated  depreciation |       | $           | 105,829,338 |              | $          | —            |       | $                  | 19,761,706 |   | $ | 11,157,029 |   |
| Land                                                         |       | 11,067,489  |        | —            |       | 2,058,491         |       | 988,347            |       |
| Other assets                                                 |       | 22,497,417  |        | —            |       | 3,537,846         |       | 2,733,911          |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 139,394,244 |              | $          | —            |       | $                  | 25,358,043 |   | $ | 14,879,287 |   |
|                                                         |       |        |        |              |       |              |       |               |       |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)            |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Mortgages and construction loans payable                     |       | $           | 152,949,308 |              | $          | —            |       | $                  | 31,582,972 |   | $ | 15,633,508 |   |
| Accounts payable and accrued expenses                        |       | 3,269,651   |        | —            |       | 573,256           |       | 172,330            |       |
| Other liabilities                                            |       | 8,330,416   |        | —            |       | 2,288,162         |       | 288,120            |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | 164,549,375 |        | —            |       | 34,444,390        |       | 16,093,958         |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |        |        |              |       |              |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (25,846,993 | )           | —            |       | (7,960,173        | )          | (2,116,693         | )          |
| Other partners                                               |       | 691,862     |        | —            |       | (1,126,174        | )          | 902,022            |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | (25,155,131 | )           | —            |       | (9,086,347        | )          | (1,214,671         | )          |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 139,394,244 |              | $          | —            |       | $                  | 25,358,043 |   | $ | 14,879,287 |   |

 

F-51

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limitedpartnerships in which Series 7, 9 through 12, and 14 hold an interest atDecember 31, 2009 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS -CONTINUED

 
| ** **                                                   | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| ASSETS                                                       |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Buildings and improvements, net of accumulated  depreciation |       | $                  | 16,808,306 |               | $          | 14,449,122         |       | $ | 43,653,175 |   |
| Land                                                         |       | 1,553,181          |       | 1,515,917          |       | 4,951,553          |       |
| Other assets                                                 |       | 4,323,980          |       | 3,386,026          |       | 8,515,654          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 22,685,467 |               | $          | 19,351,065         |       | $ | 57,120,382 |   |
|                                                         |       |               |       |               |       |               |       |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)            |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Mortgages and construction loans payable                     |       | $                  | 22,097,754 |               | $          | 23,048,671         |       | $ | 60,586,403 |   |
| Accounts payable and accrued expenses                        |       | 728,679            |       | 356,463            |       | 1,438,923          |       |
| Other liabilities                                            |       | 944,159            |       | 1,579,703          |       | 3,230,272          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | 23,770,592         |       | 24,984,837         |       | 65,255,598         |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |               |       |               |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (1,889,823         | )          | (5,529,302         | )          | (8,351,002         | )          |
| Other partners                                               |       | 804,698            |       | (104,470           | )          | 215,786            |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | (1,085,125         | )          | (5,633,772         | )          | (8,135,216         | )          |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 22,685,467 |               | $          | 19,351,065         |       | $ | 57,120,382 |   |

 

F-52

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limitedpartnerships in which Series 7, 9 through 12, and 14 hold an interest atDecember 31, 2008 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS

 
| ** **                                                   | ** ** | **Total**   | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|--------------------------------------------------------------|------------|-------------|-------------|-------------------|------------|-------------------|------------|--------------------|------------|
| ASSETS                                                       |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Buildings and improvements, net of accumulated  depreciation |       | $           | 126,484,495 |              | $          | —            |       | $                  | 22,657,293 |   | $ | 13,066,219 |   |
| Land                                                         |       | 12,633,065  |        | —            |       | 2,218,561         |       | 1,137,016          |       |
| Other assets                                                 |       | 25,105,089  |        | —            |       | 3,996,073         |       | 2,585,465          |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 164,222,649 |              | $          | —            |       | $                  | 28,871,927 |   | $ | 16,788,700 |   |
|                                                         |       |        |        |              |       |              |       |               |       |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)            |       |        |        |              |       |              |       |               |       |
|                                                         |       |        |        |              |       |              |       |               |       |
| Mortgages and construction loans payable                     |       | $           | 176,187,407 |              | $          | —            |       | $                  | 34,956,601 |   | $ | 17,897,599 |   |
| Accounts payable and accrued expenses                        |       | 4,081,626   |        | —            |       | 734,329           |       | 225,848            |       |
| Other liabilities                                            |       | 8,963,483   |        | —            |       | 2,362,456         |       | 351,397            |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | 189,232,516 |        | —            |       | 38,053,386        |       | 18,474,844         |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |        |        |              |       |              |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (25,817,392 | )           | —            |       | (8,060,916        | )          | (2,626,544         | )          |
| Other partners                                               |       | 807,525     |        | —            |       | (1,120,543        | )          | 940,400            |       |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | (25,009,867 | )           | —            |       | (9,181,459        | )          | (1,686,144         | )          |
|                                                         |       |        |        |              |       |              |       |               |       |
|                                                         |       | $           | 164,222,649 |              | $          | —            |       | $                  | 28,871,927 |   | $ | 16,788,700 |   |

 

F-53

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized balance sheets of the operating limitedpartnerships in which Series 7, 9 through 12, and 14 hold an interest atDecember 31, 2008 are as follows:

 

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

 
| ** **                                                   | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|--------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| ASSETS                                                       |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Buildings and improvements, net of accumulated  depreciation |       | $                  | 20,596,022 |               | $          | 15,326,101         |       | $ | 54,838,860 |   |
| Land                                                         |       | 1,892,618          |       | 1,542,860          |       | 5,842,010          |       |
| Other assets                                                 |       | 4,892,960          |       | 3,858,054          |       | 9,772,537          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 27,381,600 |               | $          | 20,727,015         |       | $ | 70,453,407 |   |
|                                                         |       |               |       |               |       |               |       |
| LIABILITIES AND PARTNERS’  CAPITAL (DEFICIT)            |       |               |       |               |       |               |       |
|                                                         |       |               |       |               |       |               |       |
| Mortgages and construction loans payable                     |       | $                  | 25,547,684 |               | $          | 23,681,578         |       | $ | 74,103,945 |   |
| Accounts payable and accrued expenses                        |       | 741,091            |       | 531,162            |       | 1,849,196          |       |
| Other liabilities                                            |       | 1,121,511          |       | 1,457,105          |       | 3,671,014          |       |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | 27,410,286         |       | 25,669,845         |       | 79,624,155         |       |
| PARTNERS’ CAPITAL (DEFICIT)                             |       |               |       |               |       |               |       |
| Boston Capital Tax Credit Fund II Limited  Partnership       |       | (1,149,577         | )          | (4,925,256         | )          | (9,055,099         | )          |
| Other partners                                               |       | 1,120,891          |       | (17,574            | )          | (115,649           | )          |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | (28,686            | )          | (4,942,830         | )          | (9,170,748         | )          |
|                                                         |       |               |       |               |       |               |       |
|                                                         |       | $                  | 27,381,600 |               | $          | 20,727,015         |       | $ | 70,453,407 |   |

 

F-54

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operatinglimited partnerships for the year ended December 31, 2009 in which Series 7,9 through 12, and 14 hold an interest as of December 31, 2009 are asfollows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2009

 
| ** **                                                                    | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Revenue                                                                       |       |       |       |              |       |              |       |               |       |
| Rental                                                                        |       | $          | 29,004,504 |              | $          | —            |       | $                  | 5,040,363  |   | $ | 2,862,301 |   |
| Interest and other                                                            |       | 1,124,092  |       | —            |       | 167,813           |       | 105,064            |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 30,128,596 |       | —            |       | 5,208,176         |       | 2,967,365          |       |
| Expenses                                                                      |       |       |       |              |       |              |       |               |       |
| Interest                                                                      |       | 4,732,842  |       | —            |       | 865,517           |       | 389,180            |       |
| Depreciation and amortization                                                 |       | 7,312,075  |       | —            |       | 1,355,889         |       | 736,644            |       |
| Taxes and insurance                                                           |       | 4,027,090  |       | —            |       | 767,203           |       | 398,232            |       |
| Repairs and maintenance                                                       |       | 7,254,519  |       | —            |       | 1,234,508         |       | 788,122            |       |
| Operating expenses                                                            |       | 9,771,846  |       | —            |       | 1,802,260         |       | 935,276            |       |
| Other expenses                                                                |       | 847,445    |       | —            |       | 68,228            |       | 121,500            |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 33,945,817 |       | —            |       | 6,093,605         |       | 3,368,954          |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
| NET LOSS                                                                      |       | $          | (3,817,221 | )                 | $          | —            |       | $                  | (885,429   | ) | $ | (401,589 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net loss allocated to Boston Capital Tax Credit  Fund II Limited Partnership* |       | $          | (3,910,282 | )                 | $          | —            |       | $                  | (889,174   | ) | $ | (358,886 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net income (loss) allocated to other partners                                 |       | $          | 93,061     |              | $          | —            |       | $                  | 3,745      |   | $ | (42,703 | ) |

 

----

| * | Amounts  include $0, $889,174, $358,886, $426,925, $726,230 and $1,509,067 for  Series 7, Series 9, Series 10, Series 11, Series 12  and Series 14, respectively, of loss not recognized under the equity  method of accounting as described in note A. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-55

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operatinglimited partnerships for the year ended December 31, 2009 in which Series 7,9 through 12, and 14 hold an interest as of December 31, 2009 are asfollows:

 

COMBINED SUMMARIZEDSTATEMENTS OF OPERATIONS - CONTINUED

 

Year ended December 31,2009

 
| ** **                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Revenue                                                                       |       |               |       |               |       |               |       |
| Rental                                                                        |       | $                  | 5,194,343  |               | $          | 4,228,207          |       | $ | 11,679,290 |   |
| Interest and other                                                            |       | 113,084            |       | 72,845             |       | 665,286            |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 5,307,427          |       | 4,301,052          |       | 12,344,576         |       |
| Expenses                                                                      |       |               |       |               |       |               |       |
| Interest                                                                      |       | 835,861            |       | 709,935            |       | 1,932,349          |       |
| Depreciation and amortization                                                 |       | 1,377,548          |       | 1,006,148          |       | 2,835,846          |       |
| Taxes and insurance                                                           |       | 793,309            |       | 526,751            |       | 1,541,595          |       |
| Repairs and maintenance                                                       |       | 1,121,245          |       | 1,242,939          |       | 2,867,705          |       |
| Operating expenses                                                            |       | 1,334,245          |       | 1,480,675          |       | 4,219,390          |       |
| Other expenses                                                                |       | 304,379            |       | 65,236             |       | 288,102            |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 5,766,587          |       | 5,031,684          |       | 13,684,987         |       |
|                                                                          |       |               |       |               |       |               |       |
| NET LOSS                                                                      |       | $                  | (459,160   | )                  | $          | (730,632           | )          | $ | (1,340,411 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net loss allocated to Boston Capital Tax Credit  Fund II Limited Partnership* |       | $                  | (426,925   | )                  | $          | (726,230           | )          | $ | (1,509,067 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net income (loss) allocated to other partners                                 |       | $                  | (32,235    | )                  | $          | (4,402             | )          | $ | 168,656 |   |

 

----

| * | Amounts  include $0, $889,174, $358,886, $426,925, $726,230 and $1,509,067 for  Series 7, Series 9, Series 10, Series 11, Series 12  and Series 14, respectively, of loss not recognized under the equity  method of accounting as described in note A. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-56

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operatinglimited partnerships for the year ended December 31, 2008 in which Series 7,9 through 12, and 14 hold an interest as of December 31, 2008 are asfollows:

 

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

 

Year ended December 31, 2008

 
| ** **                                                                    | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Revenue                                                                       |       |       |       |              |       |              |       |               |       |
| Rental                                                                        |       | $          | 32,692,150 |              | $          | —            |       | $                  | 5,734,683  |   | $ | 3,368,198 |   |
| Interest and other                                                            |       | 946,239    |       | —            |       | 154,903           |       | 87,973             |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 33,638,389 |       | —            |       | 5,889,586         |       | 3,456,171          |       |
| Expenses                                                                      |       |       |       |              |       |              |       |               |       |
| Interest                                                                      |       | 5,907,479  |       | —            |       | 1,061,429         |       | 524,468            |       |
| Depreciation and amortization                                                 |       | 8,297,108  |       | —            |       | 1,476,599         |       | 881,842            |       |
| Taxes and insurance                                                           |       | 4,453,061  |       | —            |       | 932,826           |       | 469,818            |       |
| Repairs and maintenance                                                       |       | 7,262,603  |       | —            |       | 1,216,523         |       | 778,341            |       |
| Operating expenses                                                            |       | 11,407,864 |       | —            |       | 1,896,682         |       | 1,082,152          |       |
| Other expenses                                                                |       | 912,444    |       | —            |       | 112,448           |       | 127,678            |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
|                                                                          |       | 38,240,559 |       | —            |       | 6,696,507         |       | 3,864,299          |       |
|                                                                          |       |       |       |              |       |              |       |               |       |
| NET LOSS                                                                      |       | $          | (4,602,170 | )                 | $          | —            |       | $                  | (806,921   | ) | $ | (408,128 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net loss allocated to Boston Capital Tax Credit  Fund II Limited Partnership* |       | $          | (4,072,265 | )                 | $          | —            |       | $                  | (820,715   | ) | $ | (390,895 | ) |
|                                                                          |       |       |       |              |       |              |       |               |       |
| Net income (loss) allocated to other partners                                 |       | $          | (529,905   | )                 | $          | —            |       | $                  | 13,794     |   | $ | (17,233 | ) |

 

----

| * | Amounts  include $0, $820,715, $382,106, $343,149, $762,849 and $1,503,570 for  Series 7, Series 9, Series 10, Series 11, Series 12  and Series 14, respectively, of loss not recognized under the equity  method of accounting as described in note A. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-57

----

 

Boston Capital Tax Credit Fund II Limited Partnership-

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEC - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

 

The combined summarized statements of operations of the operatinglimited partnerships for the year ended December 31, 2008 in which Series 7,9 through 12, and 14 hold an interest as of December 31, 2008 are asfollows:

 

COMBINED SUMMARIZEDSTATEMENTS OF OPERATIONS - CONTINUED

 

Year ended December 31,2008

 
| ** **                                                                    | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Revenue                                                                       |       |               |       |               |       |               |       |
| Rental                                                                        |       | $                  | 5,680,091  |               | $          | 4,088,284          |       | $ | 13,820,894 |   |
| Interest and other                                                            |       | 166,358            |       | 110,166            |       | 426,839            |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 5,846,449          |       | 4,198,450          |       | 14,247,733         |       |
| Expenses                                                                      |       |               |       |               |       |               |       |
| Interest                                                                      |       | 931,445            |       | 779,624            |       | 2,610,513          |       |
| Depreciation and amortization                                                 |       | 1,517,956          |       | 1,003,275          |       | 3,417,436          |       |
| Taxes and insurance                                                           |       | 828,929            |       | 532,474            |       | 1,689,014          |       |
| Repairs and maintenance                                                       |       | 1,059,859          |       | 1,155,417          |       | 3,052,463          |       |
| Operating expenses                                                            |       | 1,802,615          |       | 1,475,271          |       | 5,151,144          |       |
| Other expenses                                                                |       | 234,587            |       | 84,803             |       | 352,928            |       |
|                                                                          |       |               |       |               |       |               |       |
|                                                                          |       | 6,375,391          |       | 5,030,864          |       | 16,273,498         |       |
|                                                                          |       |               |       |               |       |               |       |
| NET LOSS                                                                      |       | $                  | (528,942   | )                  | $          | (832,414           | )          | $ | (2,025,765 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net loss allocated to Boston Capital Tax Credit  Fund II Limited Partnership* |       | $                  | (455,981   | )                  | $          | (762,849           | )          | $ | (1,641,825 | ) |
|                                                                          |       |               |       |               |       |               |       |
| Net income (loss) allocated to other partners                                 |       | $                  | (72,961    | )                  | $          | (69,565            | )          | $ | (383,940 | ) |

 

----

| * | Amounts  include $0, $820,715, $382,106, $343,149, $762,849 and $1,503,570 for  Series 7, Series 9, Series 10, Series 11, Series 12  and Series 14, respectively, of loss not recognized under the equity  method of accounting as described in note A. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

F-58

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN

 

For income tax purposes, the Partnership reports using a December 31year-end.  The Partnership’s net income(loss) for financial reporting and tax return purposes for the year ended March 31,2010 is reconciled as follows:

 
| ** **                                                                                                | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2010                                  |       | $          | 2,289,762  |              | $          | (17,915           | )          | $                  | (237,687   | ) | $ | 808,598 |   |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership rents received in  advance                                                  |       | 6,812      |       | —            |       | (1,341            | )          | —             |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Accrued partnership management fees not recognized  for tax purposes                                      |       | (1,910,434 | )          | —            |       | 140,641           |       | (772,514           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Other                                                                                                     |       | 8,984,847  |       | —            |       | 1,742,593         |       | 1,395,939          |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership loss not allowed for  financial reporting under equity method of accounting |       | (3,910,282 | )          | —            |       | (889,174          | )          | (358,886           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Impairment loss in investment in operating limited  partnership                                           |       | —     |       | —            |       | —            |       | —             |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Excess of tax depreciation over book depreciation  on operating limited partnership assets                |       | (1,045,342 | )          | —            |       | (187,758          | )          | (62,689            | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Difference due to fiscal year for book purposes  and calendar year for tax purposes                       |       | (3,372,903 | )          | (10,526           | )          | (41,359           | )          | (852,418           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2009                                            |       | $          | 1,042,460  |              | $          | (28,441           | )          | $                  | 525,915    |   | $ | 158,030 |   |

 

F-59

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN (Continued)

 

For income tax purposes, the Partnership reports using a December 31year-end.  The Partnership’s net income(loss) for financial reporting and tax return purposes for the year ended March 31,2010 is reconciled as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2010                                  |       | $                  | 699,882    |               | $          | (174,134           | )          | $ | 1,211,018 |   |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership rents received in  advance                                                  |       | —             |       | (167               | )          | 8,320              |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Accrued partnership management fees not recognized  for tax purposes                                      |       | (288,879           | )          | 150,168            |       | (1,139,850         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Other                                                                                                     |       | 577,640            |       | 570,114            |       | 4,698,561          |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership loss not allowed for  financial reporting under equity method of accounting |       | (426,925           | )          | (726,230           | )          | (1,509,067         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Impairment loss in investment in operating limited  partnership                                           |       | —             |       | —             |       | —             |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Excess of tax depreciation over book depreciation  on operating limited partnership assets                |       | (89,454            | )          | (161,194           | )          | (544,247           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Difference due to fiscal year for book purposes  and calendar year for tax purposes                       |       | (747,541           | )          | (133,367           | )          | (1,587,692         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2009                                            |       | $                  | (275,277   | )                  | $          | (474,810           | )          | $ | 1,137,043 |   |

 

F-60

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN (Continued)

 

For income tax purposes, the Partnership reports using a December 31year-end.  The Partnership’s net income(loss) for financial reporting and tax return purposes for the year ended March 31,2009 is reconciled as follows:

 
| ** **                                                                                                | ** ** | **Total**  | ** ** | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|------------|------------|-------------------|------------|-------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2009                                  |       | $          | (690,607   | )                 | $          | 26,922            |       | $                  | 133,887    |   | $ | (184,522 | ) |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership rents received in  advance                                                  |       | (1,740     | )          | —            |       | —            |       | —             |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Accrued partnership management fees not recognized  for tax purposes                                      |       | (1,552,226 | )          | (17,418           | )          | (90,675           | )          | (3,211             | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Other                                                                                                     |       | 12,382,859 |       | 345,998           |       | 3,727,786         |       | 1,398,903          |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Operating limited partnership loss not allowed for  financial reporting under equity method of accounting |       | (3,812,389 | )          | —            |       | (820,715          | )          | (382,106           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Impairment loss in investment in operating limited  partnership                                           |       | 1,694,994  |       | —            |       | —            |       | 108,606            |       |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Excess of tax depreciation over book depreciation  on operating limited partnership assets                |       | (1,265,961 | )          | —            |       | (172,549          | )          | (110,360           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Difference due to fiscal year for book purposes  and calendar year for tax purposes                       |       | (1,935,764 | )          | 127,057           |       | (414,382          | )          | (219,942           | )          |
|                                                                                                      |       |       |       |              |       |              |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2008                                            |       | $          | 4,819,166  |              | $          | 482,559           |       | $                  | 2,363,352  |   | $ | 607,368 |   |

 

F-61

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN (Continued)

 

For income tax purposes, the Partnership reports using a December 31year-end.  The Partnership’s net income(loss) for financial reporting and tax return purposes for the year ended March 31,2009 is reconciled as follows:

 
| ** **                                                                                                | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
| Net income (loss) for financial reporting  purposes, March 31, 2009                                  |       | $                  | (984,245   | )                  | $          | 432,175            |       | $ | (114,824 | ) |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership rents received in  advance                                                  |       | —             |       | —             |       | (1,740             | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Accrued partnership management fees not recognized  for tax purposes                                      |       | (113,383           | )          | (527,221           | )          | (800,318           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Other                                                                                                     |       | 1,716,951          |       | 2,297,442          |       | 2,895,779          |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Operating limited partnership loss not allowed for  financial reporting under equity method of accounting |       | (343,149           | )          | (762,849           | )          | (1,503,570         | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Impairment loss in investment in operating limited  partnership                                           |       | 1,049,559          |       | —             |       | 536,829            |       |
|                                                                                                      |       |               |       |               |       |               |       |
| Excess of tax depreciation over book depreciation  on operating limited partnership assets                |       | (186,615           | )          | (173,746           | )          | (622,691           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Difference due to fiscal year for book purposes  and calendar year for tax purposes                       |       | (390,497           | )          | (576,696           | )          | (461,304           | )          |
|                                                                                                      |       |               |       |               |       |               |       |
| Income (loss) for tax return purposes,  December 31, 2008                                            |       | $                  | 748,621    |               | $          | 689,105            |       | $ | (71,839 | ) |

 

F-62

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN (Continued)

 

The differences between the investments in operating limitedpartnerships for tax purposes and financial statements purposes at March 31,2010 are as follows:

 
| ** **                                                                         | ** ** | **Total**  | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** **  |
|------------------------------------------------------------------------------------|------------|------------|-------------|-------------------|------------|-------------------|------------|--------------------|-------------|
|                                                                               |       |       |        |              |       |              |       |               |        |
| Investments in operating limited partnerships -  tax return December 31, 2009 |       | $          | (44,381,228 | )                 | $          | —            |       | $                  | (10,755,201 | ) | $ | (4,592,115 | ) |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Add back losses not recognized under the equity  method                            |       | 33,637,793 |        | —            |       | 8,534,370         |       | 2,909,879          |        |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Impairment loss in investments in operating  limited partnerships                  |       | (6,150,022 | )           | —            |       | (369,919          | )          | (623,926           | )           |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Less share of loss - three months ended  March 31, 2010                       |       | (996,196   | )           | —            |       | —            |       | —             |        |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Other                                                                              |       | 17,889,653 |        | —            |       | 2,590,750         |       | 2,306,162          |        |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Investments in operating limited partnerships - as  reported, March 31, 2010  |       | $          | —      |              | $          | —            |       | $                  | —      |   | $ | — |   |

 

F-63

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN (Continued)

 

The differences between the investments in operating limitedpartnerships for tax purposes and financial statements purposes at March 31,2010 are as follows:

 
| ** **                                                                         | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                               |       |               |       |               |       |               |       |
| Investments in operating limited partnerships -  tax return December 31, 2009 |       | $                  | (4,700,507 | )                  | $          | (8,225,059         | )          | $ | (16,108,346 | ) |
|                                                                               |       |               |       |               |       |               |       |
| Add back losses not recognized under the equity  method                            |       | 4,150,927          |       | 6,497,307          |       | 11,545,310         |       |
|                                                                               |       |               |       |               |       |               |       |
| Impairment loss in investments in operating  limited partnerships                  |       | (1,682,306         | )          | (613,495           | )          | (2,860,376         | )          |
|                                                                               |       |               |       |               |       |               |       |
| Less share of loss - three months ended  March 31, 2010                       |       | —             |       | (188,442           | )          | (807,754           | )          |
|                                                                               |       |               |       |               |       |               |       |
| Other                                                                              |       | 2,231,886          |       | 2,529,689          |       | 8,231,166          |       |
|                                                                               |       |               |       |               |       |               |       |
| Investments in operating limited partnerships - as  reported, March 31, 2010  |       | $                  | —     |               | $          | —             |       | $ | — |   |

 

F-64

----

 

Boston Capital Tax Credit Fund II Limited Partnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN (Continued)

 

The differences between the investments in operating limitedpartnerships for tax purposes and financial statements purposes at March 31,2009 are as follows:

 
| ** **                                                                         | ** ** | **Total**  | ** **  | **Series 7** | ** ** | **Series 9** | ** ** | **Series 10** | ** **  |
|------------------------------------------------------------------------------------|------------|------------|-------------|-------------------|------------|-------------------|------------|--------------------|-------------|
|                                                                               |       |       |        |              |       |              |       |               |        |
| Investments in operating limited partnerships -  tax return December 31, 2008 |       | $          | (45,654,995 | )                 | $          | —            |       | $                  | (11,346,133 | ) | $ | (4,711,661 | ) |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Add back losses not recognized under the equity  method                            |       | 35,116,787 |        | —            |       | 8,848,327         |       | 3,367,547          |        |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Impairment loss in investments in operating  limited partnerships                  |       | (6,947,808 | )           | —            |       | (369,919          | )          | (622,542           | )           |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Less share of loss - three months ended  March 31, 2009                       |       | (1,185,221 | )           | —            |       | —            |       | —             |        |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Other                                                                              |       | 18,671,237 |        | —            |       | 2,867,725         |       | 1,966,656          |        |
|                                                                               |       |       |        |              |       |              |       |               |        |
| Investments in operating limited partnerships - as  reported, March 31, 2009  |       | $          | —      |              | $          | —            |       | $                  | —      |   | $ | — |   |

 

F-65

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTED - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAXRETURN (Continued)

 

The differences between the investments in operating limitedpartnerships for tax purposes and financial statements purposes at March 31,2009 are as follows:

 
| ** **                                                                         | ** ** | **Series 11** | ** ** | **Series 12** | ** ** | **Series 14** | ** ** |
|------------------------------------------------------------------------------------|------------|--------------------|------------|--------------------|------------|--------------------|------------|
|                                                                               |       |               |       |               |       |               |       |
| Investments in operating limited partnerships -  tax return December 31, 2008 |       | $                  | (4,678,927 | )                  | $          | (7,903,149         | )          | $ | (17,015,125 | ) |
|                                                                               |       |               |       |               |       |               |       |
| Add back losses not recognized under the equity  method                            |       | 4,081,996          |       | 5,945,930          |       | 12,872,987         |       |
|                                                                               |       |               |       |               |       |               |       |
| Impairment loss in investments in operating limited  partnerships                  |       | (2,258,061         | )          | (657,455           | )          | (3,039,831         | )          |
|                                                                               |       |               |       |               |       |               |       |
| Less share of loss - three months ended  March 31, 2009                       |       | —             |       | (194,516           | )          | (990,705           | )          |
|                                                                               |       |               |       |               |       |               |       |
| Other                                                                              |       | 2,854,992          |       | 2,809,190          |       | 8,172,674          |       |
|                                                                               |       |               |       |               |       |               |       |
| Investments in operating limited partnerships - as  reported, March 31, 2009  |       | $                  | —     |               | $          | —             |       | $ | — |   |

 

F-66

----

 

Boston Capital Tax Credit Fund II LimitedPartnership -

Series 7, 9 through 12, and 14

 

NOTES TO FINANCIAL STATEMENTS - CONTINUED

 

March 31, 2010 and 2009

 

NOTEE - SUBSEQUENT EVENTS

 

Subsequentto March 31, 2010, the Partnership has entered into agreements to sellinterests in four operating limited partnerships.  The estimated sales price and other terms forthe dispositions of the operating limited partnerships have beendetermined.  The estimated proceeds to bereceived for the operating limited partnerships is $1,979,219.  The estimated gain on sale of the operatinglimited partnerships is $1,835,219, which is expected to be recognized in thesecond and third quarters of fiscal year 2010.

 

NOTEF - CONCENTRATION OF CREDIT RISK

 

ThePartnership maintains its cash and cash equivalent balances in several accountsin various financial institutions.  Thebalances are generally insured by the Federal Deposit Insurance Corporation(FDIC) up to specified limits by each institution.  At times, the balances may exceed theseinsurance limits; however, the Partnership has not experienced any losses withrespect to its balances in excess of FDIC insurance.  Management believes that no significantconcentration of credit risk with respect to these cash and cash equivalentbalances exists as of March 31, 2010.

 

NOTEG - FAIR VALUE OF FINANCIAL INSTRUMENTS

 

Asof March 31, 2010, the Partnership’s financial instruments relate toaccounts payable - affiliates. Management has not disclosed the fair value of the financial instrumentsbecause determination of such fair value is deemed to be impractical.  The accounts payable - affiliates are owed toaffiliates of the Partnership.  Theunique nature of these financial instruments makes determination of any fairvalue impractical. See note B for disclosure of the carrying amount and termsof these financial instruments.

 

F-67

----