02-26-1998 - Laserfiche WebLink

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GENERAL PARTNERSHIP SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PROJECTION ASSUMPTIONS FOR THE PERIOD COMMENCING JANUARY 1 , 1998 AND ENDING DECEMBER 31 , 2012 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business Silverview Estates , Inc . , A Minnesota Corporation (the General Partner) will construct, develop, lease and sell a 82 unit senior citizen multi- family market rate residential housing project, a 25 , 000 square foot office building and a 5 , 000 square foot office building located in Mounds View, Minnesota . These financial projections present, to the best of management' s knowledge and belief , the Partnership' s expected results of its balance sheet, operations , Partner' s equity and cash flow for the projected period presented on the tax basis of accounting. Accordingly, the projection reflects the General Partner' s judgment as of October 15, 1997 , the date of this projection, of the expected conditions and its expected course of action. The assumption and policies disclosed herein are those that the General Partner believes are significant to the projection. There will usually be differences between the projection and results , a because and hosts nd e differencesm mayc es lbe frequently o notoccurasexpected, material . PROJECTIONS ARE INHERENTLY SUBJECT TO VARYING DEGREES OF UNCERTAINTY, AND THEIR ACCURACY DEPENDS, AMONG OTHER THINGS, ON THE RELIABILITY OF THE UNDERLYING ASSUMPTIONS AND THE PROBABILITY OF THE OCCURRENCE OF COMPLEX SERIES OF FUTURE EVENTS OR TRANSACTIONS, MANY OF WHICH ARE NOT410 WITHIN THE CONTROL OF THE GENERAL PARTNER, ESPECIALLY MATERIAL SET FORTH UNDER "FEDERAL INCOME TAX ASPECTS" AND "RISK FACTORS" . The federal income tax position reflected in the projected financial statements are those which the Partnership intends to take in preparing and filing its federal informational returns of income. It is the belief of the General Partner that these tax positions have sufficient support under current tax law and interpretations thereof, to justify their being reflected in such returns . The reader should consult with their own tax advisor to determine the effect of their own particular tax situation. Items such as passive activity loss rules , low-income housing credits and its limitations , interest deductions , alternative minimum tatax, and d dstate and local income taxes may have additional impact on in this Partnership . Method of Accounting The projection has been prepared based on the tax basis of accounting using accrual accounting methods . • Organization/Syndication Costs Organization and start-up costs are amortized over 60 months . 110 Syndication fees are capitalized but will not be deducted or amortized. Property acquisition fees are capitalized and depreciated over 27 .5- year recovery period . ( 2 )