UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)


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


For the quarterly period ended December 15, 1997

                                       OR

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


                         Commission File Number 0-17015


                          LIBERTY TAX CREDIT PLUS L.P.
             (Exact name of registrant as specified in its charter)


           Delaware                                          13-3446500
-------------------------------                          -------------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                          Identification No.)


625 Madison Avenue, New York, New York                         10022
----------------------------------------                     ----------
(Address of principal executive offices)                     (Zip Code)


Registrant's telephone number, including area code (212) 421-5333


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _X_ No ___

<PAGE>


                         PART I - Financial Information

Item 1.  Financial Statements

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)

                                                ============      ============
                                                December 15,         March 15,
                                                     1997              1997
                                                ------------      ------------
ASSETS
Property and equipment, at cost,
  net of accumulated depreciation
  of $78,498,820 and $72,046,250,
  respectively                                  $176,953,900      $182,767,711
Cash and cash equivalents                          2,845,224         2,918,344
Cash held in escrow                                9,938,923         9,258,938
Accounts receivable - tenants                        643,954           612,022
Deferred costs - net of accumulated
  amortization of $3,918,553
  and $3,694,780, respectively                     3,613,044         3,836,817
Other assets                                       1,439,590         1,404,120
                                                ------------      ------------
  Total assets                                  $195,434,635      $200,797,952
                                                ============      ============

LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
  Mortgage notes payable                        $156,090,792      $157,643,066
  Accounts payable and other
   liabilities                                     9,193,596         7,954,170
  Due to local general partners and
   affiliates                                     14,017,189        14,161,748
  Due to general partners and
   affiliates                                      3,922,098         2,987,268
  Due to selling partners                            923,385           980,913
                                                ------------      ------------
  Total liabilities                              184,147,060       183,727,165
                                                ------------      ------------
Minority interest                                  5,574,354         6,124,180
                                                ------------      ------------

Commitments and contingencies (Note 4)

Partners' capital:
  Limited partners (15,987.5 BACs
   issued and outstanding)                         6,385,933        11,566,985
  General partners                                  (672,712)         (620,378)
                                                ------------      ------------
  Total partners' capital                          5,713,221        10,946,607
                                                ------------      ------------
  Total liabilities and partners'
   capital                                      $195,434,635      $200,797,952
                                                ============      ============


           See Accompanying Notes to Consolidated Financial Statements

                                       -2-
<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)

                       ==========================    ==========================
                            Three Months Ended            Nine Months Ended
                                December 15,                 December 15,
                       --------------------------    -------------------------- 
                           1997          1996*            1997          1996*
                       --------------------------    -------------------------- 
REVENUES
Rental income          $ 8,515,444    $ 8,403,160    $25,375,316    $25,120,030
Other                      311,498        332,624        825,149      1,063,270
                       -----------    -----------    -----------    -----------
                         8,826,942      8,735,784     26,200,465     26,183,300
                       -----------    -----------    -----------    -----------
EXPENSES
General and     
  administrative         1,279,667      1,405,592      4,023,130      3,946,059
General and              
  administrative -
  related parties
  (Note 2)                 665,283        431,984      1,965,758      1,269,834
Repairs and              
  maintenance            1,660,415      1,587,753      4,521,311      4,691,155
Operating and            
  other                    785,321        877,172      3,087,429      3,013,642
Taxes                      423,374        390,658      1,211,803      1,189,787
Insurance                  348,052        228,813      1,058,969        916,043
Financial,             
  primarily            
  interest               3,464,855      3,434,839      9,840,625     10,080,409
Depreciation and       
  amortization           2,237,927      2,263,618      6,676,343      6,807,005
                       -----------    -----------    -----------    -----------
                        10,864,894     10,620,429     32,385,368     31,913,934
                       -----------    -----------    -----------    -----------
Loss before             
  minority
  interest and
  extraordinary
  item                  (2,037,952)    (1,884,645)    (6,184,903)    (5,730,634)
Minority interest      
  in loss of
  subsidiaries              73,996         99,322        258,177        280,502
Loss before            
  extra-ordinary
  item                  (1,963,956)    (1,785,323)    (5,926,726)    (5,450,132)

Extraordinary item -   
 forgiveness of
 indebtedness
 income (Note 3)                 0              0        693,340              0
                       -----------    -----------    -----------    ----------- 

Net loss               $(1,963,956)   $(1,785,323)   $(5,233,386)   $(5,450,132)
                       ===========    ===========    ===========    ===========

*Reclassified for comparative purposes


           See Accompanying Notes to Consolidated Financial Statements

                                       -3-
<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (continued)
                                   (Unaudited)

                      ===========================   ==========================
                           Three Months Ended            Nine Months Ended
                               December 15,                 December 15,
                      ---------------------------   --------------------------
                          1997          1996*          1997            1996*
                      -----------    -----------    -----------    -----------
Loss before extra-
  ordinary item-
  limited partners    $(1,944,317)   $(1,767,470)   $(5,867,459)   $(5,395,631)
                                                                  
Extraordinary                                                     
  item - limited                                                  
  partners                      0              0        686,406              0
                      -----------    -----------    -----------    -----------
                                                                  
Net loss-                                                         
  limited                                                         
  partners            $(1,944,317)   $(1,767,470)   $(5,181,053)   $(5,395,631)
                      ===========    ===========    ===========    ===========
                                                                  
Number of                                                         
  BACs                                                            
  outstanding            15,987.5       15,987.5       15,987.5       15,987.5
                      ===========    ===========    ===========    ===========
                                                                  
Per BAC:                                                          
  Loss before                                                     
  extraordinary                                                   
  item                $   (121.61)   $   (110.55)   $   (367.00)   $   (337.49)
  Extraordinary                                                       
  item                          0              0          42.93              0
                      -----------    -----------    -----------    -----------
                                                                     
  Net loss per                                                       
  BAC                 $   (121.61)   $   (110.55)   $   (324.07)   $   (337.49)
                      ============   ============   ============   ===========
                                                                      
           See Accompanying Notes to Consolidated Financial Statements

                                       -4-

<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
             Consolidated Statement of Changes in Partners' Capital
                                   (Unaudited)


                             ================================================= 
                                                   Limited            General
                                Total             Partners            Partners
                             ------------------------------------------------- 

Partners' capital -
 March 16, 1997              $10,946,607         $11,566,985         $(620,378)

Net loss, nine
 months ended
 December 15, 1997            (5,233,386)         (5,181,052)          (52,334)
                             -----------         -----------         --------- 

Partners' capital -
 December 15, 1997            $5,713,221          $6,385,933         $(672,712)
                             ===========         ===========         ========= 


          See Accompanying Notes to Consolidated Financial Statements

                                      -5-
<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                            Statements of Cash Flows
                (Decrease) Increase in Cash and Cash Equivalents
                                   (Unaudited)

                                                 =============================
                                                       Nine Months Ended
                                                          December 15,
                                                 -----------------------------
                                                     1997              1996
                                                 -----------------------------
Cash flows from operating activities:
  Net loss                                       $(5,233,386)      $(5,450,132)
  Adjustments to reconcile net loss
   to net cash provided
   by operating activities:
  Extraordinary item - forgiveness
   of indebtedness (Note 3)                         (693,340)                0
  Depreciation and amortization                    6,676,343         6,807,005
  Minority interest in loss of
   subsidiaries                                     (258,177)         (280,502)
  (Increase) decrease in accounts
   receivable-tenants                                (31,932)           57,871
  Increase in other assets                           (35,470)          (82,286)
  Increase in accounts payable and
   other liabilities                               1,239,426           519,719
  Increase (decrease) in due to
   general partners and affiliates                   934,830          (442,622)
  Decrease in cash held in escrow                    112,953            15,164
                                                 -----------       ----------- 

  Net cash provided by
   operating activities                            2,711,247         1,144,217
                                                 -----------       ----------- 

Cash flows from investing activities:

  (Increase) decrease in cash held
   in escrow                                        (792,938)           71,459
  Improvements to property and
   equipment                                        (638,759)         (541,676)
                                                 -----------       ----------- 

  Net cash used in investing activities           (1,431,697)         (470,217)
                                                 -----------       ----------- 


           See Accompanying Notes to Consolidated Financial Statements

                                       -6-
<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                            Statements of Cash Flows
                (Decrease) Increase in Cash and Cash Equivalents
                                   (continued)
                                   (Unaudited)

                                                 =============================
                                                       Nine Months Ended
                                                          December 15,
                                                 -----------------------------
                                                     1997              1996
                                                 -----------------------------
Cash flows from financing activities:

  Increase in deferred costs                               0          (162,248)
  Decrease in due to selling partners                (57,528)          (72,560)
  Proceeds from mortgage notes                             0         4,480,000
  Repayments of mortgage notes                    (1,552,274)       (4,863,407)
  Increase in due to local general
   partners and affiliates                           555,477           650,982
  Decrease in due to local general
   partners and affiliates                            (6,696)         (162,706)
  Decrease in capitalization of
   consolidated subsidiaries
   attributable to minority interest                (291,649)         (698,492)
                                                  ----------        ---------- 

Net cash used in
  financing activities                            (1,352,670)         (828,431)
                                                  ----------        ---------- 

Net decrease in cash and
  cash equivalents                                   (73,120)         (154,431)

Cash and cash equivalents at
  beginning of period                              2,918,344         2,780,280
                                                  ----------        ---------- 

Cash and cash equivalents at
  end of period                                   $2,845,224        $2,625,849
                                                  ----------        ---------- 

Supplemental disclosure of noncash activities:

   Forgiveness of indebtedness (Note 3)
   Decrease in due to local
   general partner and affiliates                 $  693,340        $        0
                                                  ==========        ==========


           See Accompanying Notes to Consolidated Financial Statements

                                       -7-
<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1997
                                   (Unaudited)


Note 1 - General

The consolidated financial statements include the accounts of the Partnership
and 31 subsidiary partnerships ("subsidiary partnerships" or Local Partnerships)
in which the Partnership is a limited partner. Through the rights of the
Partnership and/or a General Partner, which General Partner has a contractual
obligation to act on behalf of the Partnership, to remove the general partner of
the subsidiary partnerships and to approve certain major operating and financial
decisions, the Partnership has a controlling financial interest in the
subsidiary partnerships. All intercompany accounts and transactions with the
subsidiary partnerships have been eliminated in consolidation.

The Partnership's fiscal quarter ends on December 15. All subsidiary
partnerships have fiscal quarters ending September 30. Accounts of the
subsidiary partnerships have been adjusted for intercompany transactions from
October 1 through December 15.

In the opinion of the general partners of the Partnership, the accompanying
unaudited financial statements contain all adjustments (consisting only of
normal recurring adjustments) necessary to present fairly the financial position
of the Partnership as of December 15, 1997, the results of operations for the
three and nine months ended December 15, 1997 and 1996 and cash flows for the
nine months ended December 15, 1997 and 1996. However, the operating results for
the nine months ended December 15, 1997 may not be indicative of the results for
the year.

Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principals
have been omitted or condensed. These consolidated financial statements should
be read in conjunction with the financial statements and notes thereto included
in the Partnership's Annual Report on Form 10-K for the period ended March 15,
1997.

Increases (decreases) in the capitalization of consolidated subsidiary
partnerships attributable to minority interest arise from cash


                                      -8-
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1997
                                   (Unaudited)


contributions from and cash distributions to the minority interest partners.

Losses attributable to minority interests which exceed the minority interests'
investment in subsidiary partnerships have been charged to the Partnership. Such
losses aggregated $38,000 and $48,000 and $123,000 and $145,000, for the three
and nine months ended December 15, 1997 and 1996, respectively. The
Partnership's investment in each subsidiary partnership is equal to the
respective subsidiary partnership's partners' equity less minority interest
capital, if any. In consolidation, all subsidiary partnership losses are
included in the Partnership's capital account except for losses allocated to
minority interest capital.

Note 2 - Related Party Transactions

An affiliate of the General Partners has a 1% interest as a special limited
partner, in each of the subsidiary partnerships. An affiliate of the General
Partners also has a minority interest in certain subsidiary partnerships.

The costs incurred to related parties for the three and nine months ended
December 15, 1997 and 1996 were as follows:

                            Three Months Ended             Nine Months Ended
                               December 15,                   December 15,
                         ------------------------      -------------------------
                           1997            1996*          1997           1996*
                         ------------------------      -------------------------

Partnership        
management fees (a)      $284,500        $ 50,000      $  853,500     $  150,000
Expense           
reimbursement (b)          33,161          45,477         115,220        117,053
Property        
management fees (c)       328,622         316,507         940,038        941,781
Local administrative
fee (d)                    19,000          20,000          57,000         61,000
                         --------        --------      ----------     ----------
                         $665,283        $431,984      $1,965,758     $1,269,834
                         ========        ========      ==========     ==========

* Reclassified for comparative purposes


                                       -9-
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1997
                                   (Unaudited)

(a) The General Partners are entitled to receive a partnership management fee,
after payment of all Partnership expenses, which together with the local annual
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. The partnership management fee, subject to the foregoing
limitation, will be determined by the general partners in their sole discretion
based upon their review of the Partnership's investments. Partnership management
fees owed to the General Partners amounting to approximately $2,841,000 and
$1,988,000 were accrued and unpaid as of December 15, 1997 and March 15, 1997,
respectively.

(b) The Partnership reimburses the General Partners and their affiliates for
actual Partnership operating expenses incurred by the General Partners and their
affiliates on the Partnership's behalf. The amount of reimbursement from the
Partnership is limited by the provisions of the Partnership Agreement. Another
affiliate of the General Partners performs asset monitoring for the Partnership.
These services include site visits and evaluations of the subsidiary
partnerships' performance. Expense reimbursements and asset monitoring fees owed
to Related Credit Properties L.P. amounting to approximately $408,000 and
$293,000 were accrued and unpaid as of December 15, 1997 and March 15, 1997,
respectively.

The General Partners have continued advancing and allowing the accrual without
payment of the amounts set forth in (a) and (b) but are under no obligation to
do so.

(c) Property management fees incurred by subsidiary partnerships amounted to
$391,892 and $440,878 and $1,308,080 and $1,357,755 for the three and nine
months ended December 15, 1997 and 1996, respectively. Of these fees $307,470
and $296,380 and $876,581 and $881,399 were incurred to affiliates of the
subsidiary partnerships' general partners. In addition, $21,152 and $20,127 and
$63,457 and $60,382 were incurred to affiliates of the Partnership.


                                      -10-
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1997
                                   (Unaudited)

(d) Liberty Associates III L.P., the special limited partner of the subsidiary
partnerships, is entitled to receive a local administrative fee of up to $2,500
per year from each subsidiary partnership.

Note 3 - Extraordinary Item

Walnut Park Plaza Associates ("Walnut Park") has sustained recurring losses from
operations. At December 31, 1996, Walnut Park had not made certain payments
required under the terms of the Bond Indenture and , as a result, is in default.
In August 1995, the Project's bonds payable were sold by the bondholder to E. A.
Moos ("Moos"). On April 9, 1996, Walnut Park entered into an interim agreement
with Moos which expired October 15, 1996. Moos and Walnut Park continued to
operate under the interim agreement while negotiating a Settlement Agreement and
Release (the "Agreement"). The interim agreement primarily allows Moos to select
an interim and permanent replacement property manager, to formulate a proposal
to replace the general partner, and to possibly restructure the indebtedness of
the project. On April 29, 1997, the Agreement was signed which provides for,
among other things, the transfer of the general partner interest to RCC Partners
'96 LLC ("RCC"), an affiliate of the Partnership. Upon transfer of the general
partner interest to RCC, amounts due to the former general partner and its
affiliates totaling $693,340 were forgiven resulting in forgiveness of
indebtedness income. Through the rights of the Partnership and/or a General
Partner, which General Partner has a contractual obligation to act on behalf of
the Partnership to approve certain major operating and financial decisions, the
Partnership continues to have a controlling financial interest in Walnut Park.
Walnut Park's continued existence is dependent on the impact of the interim
agreement and ultimately the resolution of the default of certain obligations
under the terms of the Bond Indenture. Contingent upon the outcome of the
interim agreement and the status of the Bond Indenture default, Walnut Park may
be unable to continue as a going concern in its present form. The Partnership's
investment in Walnut Park at December 15, 1997 and March 15, 1997 was reduced to
zero by prior years' losses and the minority interest balance amounted to
approximately $440,000 and $437,000, respectively. Walnut Park's net income
(loss) after minority interest amounted to approximately ($102,000) and 


                                      -11-
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1997
                                   (Unaudited)

($64,000) and $286,000 and ($193,000) for the three and nine months ended
December 15, 1997 and 1996, respectively.

Note 4 - Commitments and Contingencies

The following disclosure includes changes and/or additions to the disclosures
regarding the subsidiary partnerships which were included in the Partnership's
Annual Report on Form 10-K for the period ended March 15, 1997.

Regent Street Associates, L.P.

Regent Street Associates, L.P. ("Regent Street") received from the Internal
Revenue Service a Notice of Final Partnership Administrative Adjustment.
Pursuant to the notice, the Internal Revenue Service challenged the method in
which Regent Street has allocated the below-market federal financing to its
properties, contending that Regent Street is entitled to only a 4% Low Income
Housing Tax Credit rather than a 9% Low Income Housing Tax Credit. The Internal
Revenue Service also challenged the inclusion of a portion of the developer's
fee and legal costs in qualified expenditures for the purpose of determining Low
Income Housing and Historic Rehabilitation Tax Credits and depreciable basis.
The general partners of the Regent Street subsidiary partnership have filed a
petition in the United States Tax Court for readjustment challenging each of the
positions taken by the Internal Revenue Service. Regent Street and the Internal
Revenue Services have agreed to a settlement of adjustments proposed by the
Service with respect to the 1988 through 1996 taxable years. Under the
settlement, in its 1997 taxable year Regent Street will recapture low income
housing credits of $1,097,719, recapture rehabilitation credits of $254,244 and
recapture depreciation expense of approximately $192,198. This prospective
settlement approach will result in there being no liability for interest with
respect to the years involved.


                                      -12-
<PAGE>


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

Liquidity and Capital Resources

The Partnership's capital has been invested in 31 Local Partnerships.

The Partnership's primary sources of funds are the cash distributions from
operations of the Local Partnerships in which the Partnership has invested.
These sources are available to meet obligations of the Partnership. However, the
cash distributions received from the Local Partnerships to date have not been
sufficient to meet all such obligations of the Partnership. During the nine
months ended December 15, 1997 and 1996 such distributions amounted to
approximately $101,011 and $88,000 respectively. Accordingly, Related Credit
Properties L.P. and affiliates advanced funds totaling approximately $119,000
and $118,000 at December 15, 1997 and March 15, 1997 respectively, to meet the
Partnership's third party obligations. In addition, certain fees and expense
reimbursements owed to the General Partners amounting to approximately
$3,250,000 and $2,281,000 were accrued and unpaid as of December 15, 1997 and
March 15, 1997, respectively. Without the General Partners' advances and
continued accrual without payment of certain fees and expense reimbursements,
the Partnership will not be in a position to meet its obligations. The General
Partners have continued advancing and allowing the accrual without payment of
these amounts but are under no obligation to do so.

For the nine months ended December 15, 1997, cash and cash equivalents of the
Partnership and its 31 consolidated subsidiary partnerships decreased
approximately $73,000. This decrease is attributable to improvements to property
and equipment ($639,000), an increase in cash held in escrow for investing
activities ($793,000), a decrease in due to selling partners ($58,000),
repayments of mortgage notes ($1,552,000) and a decrease in capitalization of
consolidated subsidiaries attributable to minority interest ($292,000) which
exceeded cash provided by operating activities ($2,711,000) and a net increase
in due to local general partners and affiliates ($549,000). Included in the
adjustments to reconcile the net loss to cash provided by operating activities
is forgiveness of indebtedness income ($693,000) and depreciation and
amortization ($6,676,000).

For a discussion of contingencies affecting certain Local Partnerships, see Note
4 to the financial statements. Since the maximum loss the Partnership would be
liable for is its net investment in the respective Local Partnerships, the
resolution of the existing con-


                                      -13-
<PAGE>


tingencies is not anticipated to impact future results of operations, liquidity
or financial condition in a material way. However, the Partnership's loss of its
investment in a Local Partnership will eliminate the ability to generate future
tax credits from such Local Partnership and may also result in recapture of tax
credits if the investment is lost before the expiration of the compliance
period.

Management is not aware of any other trends or events, commitments or
uncertainties that will impact liquidity in a material way. Management believes
the only impact would be from laws that have not yet been adopted. The portfolio
is diversified by the location of the properties around the United States so
that if one area of the country is experiencing downturns in the economy, the
remaining properties in the portfolio may be experiencing upswings. However, the
geographic diversifications of the portfolio may not protect against a general
downturn in the national economy. The Partnership has fully invested the
proceeds of its offerings in 31 Local Partnerships, all of which fully have
their tax credits in place (see Note 4 to the financial statements with respect
to Regent Street Associates L.P.). The tax credits are attached to the project
for a period of ten years and are transferable with the property during the
remainder of such ten year period. If the General Partners determined that a
sale of a property is warranted, the remaining tax credits would transfer to the
new owner, thereby adding significant value to the property on the market, which
are not included in the financial statement carrying amount.

Results of Operations

Results of operations for the three and nine months ended December 15, 1997 and
1996 consisted primarily of the results of the Partnership's investment in the
consolidated Local Partnerships.

Rental income increased approximately 1% for both the three and nine months
ended December 15, 1997 as compared to the corresponding periods in 1996
primarily due to rental rate increases.

Other income decreased approximately $238,000 for the nine months ended December
15, 1997 as compared to the corresponding period in 1996 primarily due to the
receipt of a real estate tax refund at one Local Partnership during the second
quarter of 1996.

Total expenses excluding general and administrative-related parties, operating
and other and insurance remained fairly consistent with decreases of less than
1% and approximately 2% for the three and nine months ended December 15, 1997 as
compared to 1996.

                                      -14-
<PAGE>

General and administrative-related parties increased approximately $233,000 and
$696,000 for the three and nine months ended December 15, 1997 as compared to
the corresponding periods in 1996 primarily due to an increase in partnership
management fees payable to the General Partners.

Operating and other decreased approximately $92,000 for the three months ended
December 15, 1997 as compared to the corresponding period in 1996 primarily due
to decreases in utilities at three Local Partnerships.

Insurance increased approximately $119,000 and $143,000 for the three and nine
months ended December 15, 1997 as compared to the corresponding periods in 1996
primarily due to an underaccrual of such expenses at three Local Partnerships in
1996.


                                      -15-
<PAGE>


                           PART II. OTHER INFORMATION

Item 1.    Legal Proceedings

           The litigation described in Note 4 to the financial statements
contained in Part 1, Item I of this quarterly report on Form 10-Q is
incorporated herein by reference.

Item 2.    Changes in Securities - None

Item 3.    Defaults Upon Senior Securities - None

Item 4.    Submission of Matters to a Vote of Security Holders - None

Item 5.    Other Information

           On November 25, 1997, affiliates of Related Credit Properties L.P.
("RCP") and Liberty GP Inc. ("LGP"), general partners of the Partnership,
entered into a Purchase Agreement pursuant to which an affiliate of RCP
purchased LGP's general partner interest in the Partnership (the "Transfer"). In
addition to the Transfer, an affiliate of RCP also acquired LGP's general
partner interest in Liberty Associates III L.P., the special limited partner of
the Partnership. Pursuant to the Partnership's Amended and Restated Partnership
Agreement, the limited partners approved the Transfer.

Item 6.    Exhibits and Reports on Form 8-K

           (a)   Exhibits:

                 27 Financial Data Schedule (filed herewith).

           (b)   Reports on Form 8-K - A report on Form 8-K dated November 25,
1997 was filed by the Partnership on December 5, 1997 which reported in Item 1.
the Transfer referred to in Item 5. Other Information of this Form 10-Q.


                                      -16-
<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                       LIBERTY TAX CREDIT PLUS L.P.
                       ----------------------------
                              (Registrant)


                       By: RELATED CREDIT PROPERTIES L.P.,
                           a General Partner

                       By: RELATED CREDIT PROPERTIES INC.,
                           General Partner

Date:  January 20, 1998

                           By: /s/ Alan P. Hirmes
                               ------------------
                               Alan P. Hirmes,
                               Vice President
                               (principal financial officer)
                           
Date:  January 20, 1998    
                           
                           By: /s/ Glenn F. Hopps
                               ------------------
                               Glenn F. Hopps,
                               Treasurer
                               (principal accounting officer)