**FORM      10-Q**

| [X] |                                        QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                SECURITIES |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                              EXCHANGE ACT OF 1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   Gateway Tax Credit Fund,                Ltd.                                                                                                                                                                                                                                                                                                                        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Exact                name of Registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                              Florida                                                                                                                                                                        |                             59-2852555      |
|  (State                or other jurisdiction of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                  (IRS Employer |
|   incorporation                or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |       Identification                No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                              880 Carillon Parkway                                                                                                                                                                                                                                          |                     St.                Petersburg,  Florida     33716   |
|                                (Address of principal executive                offices)                                                                | (Zip                Code) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Registrant's                Telephone Number Including Area Code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  (727)                567-1000      |
|                                                                                                                                                                                                                                                                                                                                                                                                       |

| YES                      X      | NO |
|----------------------------------------------------------------------------------------|----|

| Large                accelerated filer [ ] | Accelerated                filer [ ] | Non-accelerated                filer [X] |
|--------------------------------------------|--------------------------------------|------------------------------------------|

| Yes                [ ] | No                [X] |
|------------------------|-----------------------|

----

| GATEWAY                TAX CREDIT FUND, LTD.                                               |   |
|--------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                             |   |
|                                                                                       |   |   |   |   |   |   |
| CONSOLIDATED                BALANCE SHEET                                                  |   |
|                                                                                       |   |   |   |   |   |   |
|                                                                                       |   | September                30, |   |   | March                31, |   |
|                                                                                       |   | 2007 |   |   | 2007 |   |
| ASSETS                                                                                     |   | (Unaudited) |   |   | (Audited) |   |
| Current                Assets:                                                             |   |   |   |   |   |   |
|   Cash                and Cash Equivalents                                       |   | $ | 650,978 |   |   | $ | 1,034,929 |   |
|   Investments                in Securities                                       |   |   | 202,789 |   |   |   | - |   |
|   Accounts                Receivable                                             |   |   | 26,718 |   |   |   | 22,089 |   |
|   Receivable                from General Partners                                |   |   | 318,720 |   |   |   | - |   |
|   Receivable                - Other                                              |   |   | 28,000 |   |   |   | - |   |
|   Prepaid                Insurance                                               |   |   | 95 |   |   |   | 95 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|     Total                Current Assets                                |   |   | 1,227,300 |   |   |   | 1,057,113 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| Investments                in Project Partnerships, net                                    |   |   | 571,174 |   |   |   | 541,534 |   |
| Replacement                Reserves                                                        |   |   | 9,637 |   |   |   | 9,637 |   |
| Rental                Property at Cost, net                                                |   |   | 381,993 |   |   |   | 401,685 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|       Total                Assets                            |   | $ | 2,190,104 |   |   | $ | 2,009,969 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| LIABILITIES                AND PARTNERS' DEFICIT                                           |   |   |   |   |   |   |   |   |
| Current                Liabilities:                                                        |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                     |   | $ | 486,122 |   |   | $ | 496,513 |   |
|   Distribution                Payable                                            |   |   | 506,278 |   |   |   | 278,126 |   |
|   Deferred                Gain on Sale of Project Partnerships                   |   |   | 27,362 |   |   |   | - |   |
|   Accounts                Payable - Other                                        |   |   | 5,435 |   |   |   | 7,826 |   |
|   Accrued                Real Estate Taxes                                       |   |   | 10,527 |   |   |   | 10,527 |   |
|   Tenant                Security Deposits                                        |   |   | 4,700 |   |   |   | 4,700 |   |
|   Mortgage                Notes Payable - Current                                |   |   | 5,684 |   |   |   | 5,684 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|     Total                Current Liabilities                           |   |   | 1,046,108 |   |   |   | 803,376 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| Long-Term                Liabilities:                                                      |   |   |   |   |   |   |   |   |
|   Payable                to General Partners                                     |   |   | 4,388,823 |   |   |   | 4,187,572 |   |
|   Mortgage                Notes Payable                                          |   |   | 801,749 |   |   |   | 801,749 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|     Total                Long-Term Liabilities                         |   |   | 5,190,572 |   |   |   | 4,989,321 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| Minority                Interest in Local Limited                                          |   |   |   |   |   |   |   |   |
| Partnership                                                                                |   |   | (30,385 | ) |   |   | (30,271 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |
| Partners'                Equity (Deficit):                                                 |   |   |   |   |   |   |   |   |
|   Limited                Partners (25,566 units outstanding                      |   |   |   |   |   |   |   |   |
|   at                September 30, 2007 and March 31, 2007)                       |   |   | (4,603,051 | ) |   |   | (4,014,192 | ) |
|   General                Partners                                                |   |   | 586,860 |   |   |   | 261,735 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|     Total                Partners' Deficit                             |   |   | (4,016,191 | ) |   |   | (3,752,457 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |
|       Total                Liabilities and Partners' Deficit |   | $ | 2,190,104 |   |   | $ | 2,009,969 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                             |   |

----

| GATEWAY                TAX CREDIT FUND, LTD.                          |   |
|-----------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                        |   |
|                                                                  |   |   |   |   |   |   |
| CONSOLIDATED                STATEMENTS OF OPERATIONS                  |   |
| FOR                THE THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                           |   |
|                                                                  |   |   |   |   |   |   |
|                                                                  |   | 2007 |   |   | 2006 |   |
| Revenues:                                                             |   |   |   |   |   |   |
|   Rental                                                    |   | $ | 27,336 |   |   | $ | 13,584 |   |
|   Distribution                Income                        |   |   | 4,663 |   |   |   | 7,761 |   |
|   Miscellaneous                Income                       |   |   | - |   |   |   | 712 |   |
|                                                                  |   |   |   |   |   |   |   |   |
|     Total                Revenues                 |   |   | 31,999 |   |   |   | 22,057 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Expenses:                                                             |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner     |   |   | 99,115 |   |   |   | 113,715 |   |
|   General                and Administrative:                |   |   |   |   |   |   |   |   |
|     General                Partner                |   |   | 52,772 |   |   |   | 61,389 |   |
|     Other                                         |   |   | 39,011 |   |   |   | 40,867 |   |
| Rental                Operating Expenses                              |   |   | 18,663 |   |   |   | (219 | ) |
| Interest                                                              |   |   | 4,550 |   |   |   | 1,362 |   |
| Depreciation                                                          |   |   | 9,846 |   |   |   | 10,024 |   |
|                                                                  |   |   |   |   |   |   |   |   |
|     Total                Expenses                 |   |   | 223,957 |   |   |   | 227,138 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Loss                Before Equity in Income of Project                |   |   |   |   |   |   |   |   |
|   Partnerships                and Other Income              |   |   | (191,958 | ) |   |   | (205,081 | ) |
|                                                                  |   |   |   |   |   |   |   |   |
| Equity                in Income of Project Partnerships               |   |   | 39,132 |   |   |   | 13,019 |   |
| Gain                on Sale of Project Partnerships                   |   |   | 681,369 |   |   |   | 37,705 |   |
| Minority                Interest in Loss (Income) of Consolidated     |   |   |   |   |   |   |   |   |
|   Project                Partnership                        |   |   | 57 |   |   |   | (32 | ) |
| Interest                Income                                        |   |   | 11,540 |   |   |   | 8,817 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                      |   | $ | 540,140 |   |   | $ | (145,572 | ) |
|                                                                  |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                       |   |   |   |   |   |   |   |   |
|   Limited                Partners                           |   | $ | 534,738 |   |   | $ | (144,116 | ) |
|   General                Partners                           |   |   | 5,402 |   |   |   | (1,456 | ) |
|                                                                  |   |   |   |   |   |   |   |   |
|                                                                  |   | $ | 540,140 |   |   | $ | (145,572 | ) |
|                                                                  |   |   |   |   |   |   |   |   |
| Net                Income (Loss) Per Limited Partnership Unit         |   | $ | 20.92 |   |   | $ | (5.64 | ) |
|                                                                  |   |   |   |   |   |   |   |   |
| Number                of Limited Partnership Units Outstanding        |   |   | 25,566 |   |   |   | 25,566 |   |
|                                                                  |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.        |   |

----

| GATEWAY                TAX CREDIT FUND, LTD.                        |   |
|---------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                      |   |
|                                                                |   |   |   |   |   |   |
| CONSOLIDATED                STATEMENTS OF OPERATIONS                |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006 |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |
|                                                                |   | 2007 |   |   | 2006 |   |
| Revenues:                                                           |   |   |   |   |   |   |
|   Rental                                                  |   | $ | 54,671 |   |   | $ | 41,589 |   |
|   Distribution                Income                      |   |   | 43,346 |   |   |   | 31,662 |   |
|   Miscellaneous                Income                     |   |   | - |   |   |   | 1,622 |   |
|                                                                |   |   |   |   |   |   |   |   |
|     Total                Revenues               |   |   | 98,017 |   |   |   | 74,873 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Expenses:                                                           |   |   |   |   |   |   |   |   |
|   Asset                Management Fee - General Partner   |   |   | 201,252 |   |   |   | 227,963 |   |
|   General                and Administrative:              |   |   |   |   |   |   |   |   |
|     General                Partner              |   |   | 104,564 |   |   |   | 116,356 |   |
|     Other                                       |   |   | 49,798 |   |   |   | 53,177 |   |
| Rental                Operating Expenses                            |   |   | 37,326 |   |   |   | 31,225 |   |
| Interest                                                            |   |   | 9,099 |   |   |   | 2,724 |   |
| Depreciation                                                        |   |   | 19,692 |   |   |   | 20,048 |   |
|                                                                |   |   |   |   |   |   |   |   |
|     Total                Expenses               |   |   | 421,731 |   |   |   | 451,493 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Loss                Before Equity in Income of Project              |   |   |   |   |   |   |   |   |
|   Partnerships                and Other Income            |   |   | (323,714 | ) |   |   | (376,620 | ) |
|                                                                |   |   |   |   |   |   |   |   |
| Equity                in Income of Project Partnerships             |   |   | 36,777 |   |   |   | 22,741 |   |
| Gain                on Sale of Project Partnerships                 |   |   | 904,374 |   |   |   | 180,693 |   |
| Minority                Interest in Loss of Consolidated            |   |   |   |   |   |   |   |   |
|   Project                Partnership                      |   |   | 114 |   |   |   | 106 |   |
| Interest                Income                                      |   |   | 22,919 |   |   |   | 16,692 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Net                Income (Loss)                                    |   | $ | 640,470 |   |   | $ | (156,388 | ) |
|                                                                |   |   |   |   |   |   |   |   |
| Allocation                of Net Income (Loss):                     |   |   |   |   |   |   |   |   |
|   Limited                Partners                         |   | $ | 634,065 |   |   | $ | (154,824 | ) |
|   General                Partners                         |   |   | 6,405 |   |   |   | (1,564 | ) |
|                                                                |   |   |   |   |   |   |   |   |
|                                                                |   | $ | 640,470 |   |   | $ | (156,388 | ) |
|                                                                |   |   |   |   |   |   |   |   |
| Net                Income (Loss) Per Limited Partnership Unit       |   | $ | 24.80 |   |   | $ | (6.06 | ) |
|                                                                |   |   |   |   |   |   |   |   |
| Number                of Limited Partnership Units Outstanding      |   |   | 25,566 |   |   |   | 25,566 |   |
|                                                                |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.      |   |

----

| GATEWAY                TAX CREDIT FUND, LTD.                         |   |
|----------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                       |   |
|                                                                 |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED                STATEMENTS OF PARTNERS' EQUITY (DEFICIT) |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006  |   |
| (Unaudited)                                                          |   |
|                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | Limited |   |   | General |   |   |   |   |
|                                                                 |   | Partners' |   |   | Partners' |   |   |   |   |
|                                                                 |   | Deficit |   |   | Equity |   |   | Total |   |
|                                                                 |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2006                             |   | $ | (3,168,987 | ) |   | $ | 21,412 |   |   | $ | (3,147,575 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                              |   |   | (154,824 | ) |   |   | (1,564 | ) |   |   | (156,388 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                        |   |   | (40,000 | ) |   |   | - |   |   |   | (40,000 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2006                         |   | $ | (3,363,811 | ) |   | $ | 19,848 |   |   | $ | (3,343,963 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                             |   | $ | (4,014,192 | ) |   | $ | 261,735 |   |   | $ | (3,752,457 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital                Contributions                                 |   |   | - |   |   |   | 318,720 |   |   |   | 318,720 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                                            |   |   | 634,065 |   |   |   | 6,405 |   |   |   | 640,470 |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                                                        |   |   | (1,222,924 | ) |   |   | - |   |   |   | (1,222,924 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2007                         |   | $ | (4,603,051 | ) |   | $ | 586,860 |   |   | $ | (4,016,191 | ) |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.       |   |

----

| GATEWAY                TAX CREDIT FUND, LTD.                                                                         |   |
|----------------------------------------------------------------------------------------------------------------------|--------|
| (A                Florida Limited Partnership)                                                                       |   |
|                                                                                                                 |   |   |   |   |   |   |
| CONSOLIDATED                STATEMENTS OF CASH FLOWS                                                                 |   |
| FOR                THE SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006                                                  |   |
| (Unaudited)                                                                                                          |   |
|                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                 |   | 2007 |   |   | 2006 |   |
| Cash                Flows from Operating Activities:                                                                 |   |   |   |   |   |   |
|     Net                Income (Loss)                                                             |   | $ | 640,470 |   |   | $ | (156,388 | ) |
|     Adjustments                to Reconcile Net Income (Loss) to                                 |   |   |   |   |   |   |   |   |
|       Net                Cash Used in Operating Activities:                            |   |   |   |   |   |   |   |   |
|       Depreciation                                                                     |   |   | 19,692 |   |   |   | 20,048 |   |
|       Amortized                Premium on Investments in Securities                    |   |   | 53 |   |   |   | - |   |
|       Current                Year Equity in Income of Project Partnerships             |   |   | (36,777 | ) |   |   | (22,741 | ) |
|       Gain                on Sale of Project Partnerships                              |   |   | (904,374 | ) |   |   | (180,693 | ) |
|       Minority                Interest in Loss of Consolidated Project Partnership     |   |   | (114 | ) |   |   | (106 | ) |
|       Distribution                Income                                               |   |   | (43,346 | ) |   |   | (29,430 | ) |
|     Changes                in Operating Assets and Liabilities:                                  |   |   |   |   |   |   |   |   |
|       Increase                in Accounts Receivable                                   |   |   | (4,629 | ) |   |   | (9,252 | ) |
|       Increase                in Interest Receivable                                   |   |   | (2,577 | ) |   |   | - |   |
|       Decrease                in Accounts Payable                                      |   |   | (2,391 | ) |   |   | (27,662 | ) |
|       Decrease                in Replacement Reserves                                  |   |   | - |   |   |   | 1,429 |   |
|       Increase                in Security Deposits                                     |   |   | - |   |   |   | 200 |   |
|       Increase                in Payable to General Partners                           |   |   | 190,860 |   |   |   | 342,696 |   |
|           Net                Cash Used in Operating Activities     |   |   | (143,133 | ) |   |   | (61,899 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                                 |   |   |   |   |   |   |   |   |
|     Distributions                Received from Project Partnerships                              |   |   | 50,483 |   |   |   | 41,352 |   |
|     Proceeds                from Sale of Project Partnerships                                    |   |   | 911,218 |   |   |   | 40,000 |   |
|     Purchase                of Investment Securities                                             |   |   | (200,266 | ) |   |   | - |   |
|           Net                Cash Provided by Investing Activities |   |   | 761,435 |   |   |   | 81,352 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                                 |   |   |   |   |   |   |   |   |
|     Distributions                to Limited Partners                                             |   |   | (994,772 | ) |   |   | - |   |
|     Expenses                Related to Sale of Project Partnerships                              |   |   | (7,481 | ) |   |   | (1,440 | ) |
|           Net                Cash Used in Financing Activities     |   |   | (1,002,253 | ) |   |   | (1,440 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| (Decrease)                Increase in Cash and Cash Equivalents                                                      |   |   | (383,951 | ) |   |   | 18,013 |   |
| Cash                and Cash Equivalents at Beginning of Year                                                        |   |   | 1,034,929 |   |   |   | 758,509 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash                and Cash Equivalents at End of Period                                                            |   | $ | 650,978 |   |   | $ | 776,522 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash activities:                                                       |   |   |   |   |   |   |   |   |
| Increase                in Distribution Payable                                                                      |   | $ | 501,335 |   |   | $ | 40,000 |   |
| Distribution                to Limited Partners                                                                      |   |   | (501,335 | ) |   |   | (40,000 | ) |
| Increase                in Receivable - Other                                                                        |   |   | (28,000 | ) |   |   | - |   |
| Increase                in Deferred Gain on Sale of Project Partnerships                                             |   |   | 27,362 |   |   |   | - |   |
| Increase                in Payable to General Partners                                                               |   |   | 638 |   |   |   | - |   |
| Increase                in Receivable from General Partners                                                          |   |   | (318,720 | ) |   |   | - |   |
| Capital                Contributions                                                                                 |   |   | 318,720 |   |   |   | - |   |
|                                                                                                                 |   | $ | - |   |   | $ | - |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| See                accompanying notes to financial statements.                                                       |   |

----

| 1)   | Gateway's                capital contribution, |
|----------------|------------------------------------------------|

| 2)   | Acquisition                fees paid to the General Partner for services rendered in selecting                properties |
|----------------|--------------------------------------------------------------------------------------------------------------------------|

| 3)   | Acquisition                expenses including legal fees, travel and other miscellaneous costs                relating to |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

| 1)   | Increased                for equity in income or decreased for equity in losses of the Project                Partnerships, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------|

| 2)   | Decreased                for cash distributions received from the Project Partnerships,                and |
|----------------|------------------------------------------------------------------------------------------------------------|

| 3)   | Decreased                for the amortization of the acquisition fees and                expenses. |
|----------------|----------------------------------------------------------------------------------------------------|

----

|   | Buildings | 27-1/2                years |
|--------|-----------|-----------------------------|
|   | Equipment | 7                years      |

----

----

|   | Due                within 1 year                                 | $  202,789                                                                  |
|--------|------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|   | After                1 year through 5 years                      |               0 |
|   |   Total                Amount Carried on Balance Sheet | $  202,789                                                                  |

|                                                                              |   | Cost |                                                                                                                                                                                           |   | AccumulatedDepreciation |   |                                                                                                                                                                        | BookValue |   |
|-----------------------------------------------------------------------------------|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|
| LandBuildingsFurniture                and AppliancesNet                Book Value |   | $    | 32,000 968,869                        48,945 1,049,814  |   |                    | $      | 0 627,752                      40,069 667,821  |      |   | $ | 32,000341,117                                      8,876381,993 |   |

|                                                                              |   | Cost |                                                                                                                                                                               |   | AccumulatedDepreciation |   |                                                                                                                                                                                        | BookValue |   |
|-----------------------------------------------------------------------------------|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|
| LandBuildingsFurniture                and AppliancesNet                Book Value |   | $    | 32,000 968,869                      48,945 1,049,814  |   |                    | $      | 0                 609,241                      38,888 648,129  |      |   | $ | 32,000 359,628                      10,057 401,685  |   |

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|   | Year                Ending       | Amount   |
|--------|----------------------------------|----------|
|   | December                31, 2007 | 5,684    |
|   | December                31, 2008 | 5,808    |
|   | December                31, 2009 | 5,936    |
|   | December                31, 2010 | 6,065    |
|   | December                31, 2011 | 6,198    |
|   | Thereafter                       | 777,742  |
|   |   Total                | $807,433 |

| NOTE                  7 - INVESTMENTS IN PROJECT                  PARTNERSHIPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| As                  of September 30, 2007, Gateway holds a 99% interest in the profits,                  losses, and Tax Credits as a limited partner in 62 Project Partnerships                  and a general partner interest in Sparta, all together holding                  67                  properties which own and operate government assisted multi-family                  housing                  complexes. Cash flows from operations are allocated according to each                  Project Partnership agreement. Upon dissolution, proceeds will be                  distributed according to each Project Partnership                  agreement. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| The                  following is a summary of Investments in Project Partnerships,                  excluding                  the Consolidated Entity, as of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           September  30,   | March                  31,  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                    2007          |                                  2007                                    |   |
| Capital                  Contributions to Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |    |   |
| and                  purchase price paid for limited partner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
|  interests                  in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $ |                       14,244,577 |   |   | $ | 15,720,185 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Cumulative                  equity in losses of Project Partnerships (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (14,125,233 | ) |   |   | (15,751,914 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Cumulative                  distributions received from Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (682,309 | ) |   |   | (702,417 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Investment                  in Project Partnerships before Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (562,965 | ) |    |   | (734,146 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Excess                  of investment cost over the underlying                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |
| assets                  acquired:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
|   Acquisition                  fees and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,799,915 |   |   |   | 1,979,556 |   |
|   Accumulated                  amortization of acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|   fees                  and expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (665,776 | ) |   |   | (703,876 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Investments                  in Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $ | 571,174 |   |   | $ | 541,534 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| (1)                  In accordance with Gateway's accounting policy to not carry Investments                  in                  Project Partnerships below zero, cumulative suspended losses of                  $17,709,424 for the period ended September 30, 2007 and cumulative                  suspended losses of $19,299,452 for the year ended March 31, 2007                  are not                  included.                                                                                                                                                                                                                                                        |

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| NOTE                7 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| In                accordance with Gateway's policy of presenting the financial information                of the Project Partnerships, excluding the Consolidated Entity beginning                on the date of combination, on a three month lag, below is the summarized                balance sheets for the Project Partnerships as of June 30 and the                summarized statements of operations for the three months ended June                30 of                each year: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2007 |   |   | 2006 |   |
| SUMMARIZED                BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |
|     Current                assets                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 7,939,952 |   |   | $ | 9,374,182 |   |
|     Investment                properties, net                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 41,057,452 |   |   |   | 53,061,465 |   |
|     Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 905,333 |   |   |   | 465,794 |   |
|         Total                assets                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 49,902,737 |   |   | $ | 62,901,441 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Liabilities                and Partners' Deficit:                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|     Current                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 3,240,364 |   |   | $ | 3,170,577 |   |
|     Long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 67,554,368 |   |   |   | 83,650,737 |   |
|         Total                liabilities                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 70,794,732 |   |   |   | 86,821,314 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|  Partners'                deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|     Limited                Partner                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (18,839,584 | ) |   |   | (21,769,685 | ) |
|     General                Partners                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (2,052,411 | ) |   |   | (2,150,188 | ) |
|         Total                Partners' deficit                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (20,891,995 | ) |   |   | (23,919,873 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|         Total                liabilities and partners' deficit                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 49,902,737 |   |   | $ | 62,901,441 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| SUMMARIZED                STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Rental                and other income                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 5,777,275 |   |   | $ | 6,485,597 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|     Operating                expenses                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 3,909,166 |   |   |   | 4,396,473 |   |
|     Interest                expense                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 781,904 |   |   |   | 991,627 |   |
|     Depreciation                and amortization                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,373,140 |   |   |   | 1,660,456 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|         Total                expenses                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 6,064,210 |   |   |   | 7,048,556 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|             Net                loss                                                                                                                                                                                                                                                                                                                                                                                                |   | $ | (286,935 | ) |   | $ | (562,959 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Other                partners' share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $ | (2,869 | ) |   | $ | (5,631 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Gateway's                share of net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | (284,066 | ) |   | $ | (557,328 | ) |
| Suspended                losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 320,843 |   |   |   | 580,069 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Equity                in Income of Project Partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 36,777 |   |   | $ | 22,741 |   |

----

----

| Floresville                Square Apartments |   | $      | 57,694  |   |
|----------------------------------------------|--------|--------|---------|--------|
| Albany                Village Apartments     |   |   | 29,923  |   |
| Hunters                Ridge Apartments (KY) |   |   | 29,922  |   |
| Ashton                Place Apartments       |   |   | 201,181 |   |
|                                         |   |   |    |   |
| Total                                        |   | $      | 318,720 |   |

----

----

----

----

| Floresville                Square Apartments |   | $      | 57,694  |   |
|----------------------------------------------|--------|--------|---------|--------|
| Albany                Village Apartments     |   |   | 29,923  |   |
| Hunters                Ridge Apartments (KY) |   |   | 29,922  |   |
| Ashton                Place Apartments       |   |   | 201,181 |   |
|                                         |   |   |    |   |
| Total                                        |   | $      | 318,720 |   |

----

----

| Crosstown                Parkway Apts. Phase I | Crosstown                Parkway Apts. Phase II |
|------------------------------------------------|-------------------------------------------------|
| Pleasant                Valley Apartments      | Casa                Linda Apartments            |
| La                Villa Elena                  | Rio                Abajo Apartments             |
| Sage                Apartments                 | Limestone                Apartments             |
| Lakeview                Apts. Phase II         |                                            |

| Hollybrook                III Apartments | Middleport                Villa Apartments |
|------------------------------------------|--------------------------------------------|
| Kenly                Court Apartments    | Meadows                Apartments          |
| Pulaski                Village Apartment |                                       |

| Floral                Acres Apartments           | Claremont                Apartments              |
|--------------------------------------------------|--------------------------------------------------|
| Pecan                Grove Village Apartments I  | Pecan                Grove Village Apartments II |
| Teton                View Apartments Phase I     | Teton                View Apartments Phase II    |
| Village                Apartments of Centralia I | Village                Apartments of Summitville |
| Village                Apartments of Fortville I | Village                Apartments of Morgantown  |
| Village                Apartments of Sparta      |                                             |

----

----

----

|   | GATEWAY                TAX CREDIT FUND, LTD.            |
|--------|---------------------------------------------------------|
|   | (A                Florida Limited Partnership)          |
|   | By:                Raymond James Tax Credit Funds, Inc. |
|   | (the                Managing General Partner)           |

| Date:                November 14, 2007 | By:/s/                Ronald M. DinerRonald                M. Diner         |
|----------------------------------------|-----------------------------------------------------------------------------|
|                                   | President,                Director                                          |
|                                   |                                                                        |
|                                   |                                                                        |
| Date:                November 14, 2007 | By:/s/                Jonathan OorlogJonathan                Oorlog         |
|                                   | Vice                President and Chief Financial Officer                   |
|                                   |                                                                        |
|                                   |                                                                        |
| Date:                November 14, 2007 | By:/s/                Sandra C. HumphreysSandra                C. Humphreys |
|                                   | Secretary                and Treasurer                                      |

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