FAQ
Q: Who should invest in America First Tax Exempt Investors,
L.P. (NASDAQ:ATAX)?
A: Any investor who desires stable tax-exempt income is a potential investor.
Our fund has a long history of consistent distributions. Please consult
your investment and/or tax advisor to discuss fully the appropriateness
of ATAX as an investment.
Q: How is the Fund structured?
A: America First Tax Exempt Investors, L.P. owns the underlying debt
on several multi-family properties and one student housing property.
The interest paid on the debt by the properties is passed through to
the investors. This is why the income is federally tax-exempt.
Q: Who can I call with questions regarding the Fund?
A: The toll-free number found throughout the website will dial directly
to knowledgeable Fund personnel. If they cannot answer your question,
they will get you in touch with someone who can-guaranteed.
Q: Is the income from the Fund subject to Alternative Minimum Tax (AMT)?
A: The distributions to investors may be subject to AMT depending on
the type of investments within the Fund. For further clarification,
please consult your tax accountant regarding distributions and other
items that may be impacted by AMT regulations.
Q: Why did you change transfer agents?
A: Our previous transfer agent
went through two buyouts which ultimately resulted in our customer calls
being outsourced. In an effort to continue
to provide stellar customer service, we believed that our transfer agent
services needed to be re-centralized. After a diligent search, we chose
American Stock Transfer and Trust Company and know they will provide
you with excellent service.
Q: Do I pay state tax on my distributions?
A: If you do not live in a
state that issued any of the portfolio bonds you may be subject to state
taxes. However it is important to note that
because the Fund is structured as a partnership, the taxes are based
on the pass-through items identified on your K-1. For further clarification,
please speak with your tax accountant.
Q: Please explain Sarbanes-Oxley.
A: The Sarbanes-Oxley Act of 2002 mandates a comprehensive accounting
framework for all public companies doing business in the US. Companies
will be required to disclose all pertinent financial performance information
publicly in a uniform, transparent manner. Any hint of subjective or
creative interpretations of financial performance by companies is to
be eliminated. All financial performance results must have substantiating
data readily identified and easily available for follow-up audits.
Q: What impact did FIN46R have on the fund?
A: The Fund’s financial results have been affected as of January
2004 by the implementation of FIN46R, which required the consolidation
of certain “variable interest entities”. Management determined
that the Fund was required to consolidate ten of the underlying multi-family
properties. Although FIN46R decreased consolidated net income for the
Fund’s 2004 accounting year, for purposes of allocating net income
to the BUC holders, the impact is eliminated. Additionally, it is important
to note that CAD was not adversely impacted, which is a key metric used
by management to measure the Fund’s liquidity and operational performance. For further clarification, please speak with your tax accountant.
For a complete description of FIN46R, please refer to the 2004 10-K.

For questions or comments, contact Investor Services: 402.930.3098