Rancho Cucamonga II Inc

990, PART X, LINE 2 - FIN 48 (ASC 740) FOOTNOTE:

“The Participating Plans operate with the intention to qualify as pension plans under Section 401(a) of the Code, and the MPT thereunder is entitled to exemption from federal income tax under the provision of Section 501(a) of the Code. Accordingly, no provision for federal, state or local income tax has been made. ASC 740, Income Taxes provides authoritative guidance for uncertainty in tax positions. The MPT periodically evaluates tax positions that it has taken, expects to take or that are otherwise relevant to the MPT for purposes of determining whether any relevant tax positions would "more-likely-than-not" be sustained by the applicable tax authority. Management has analyzed such tax positions and has concluded that no unrecognized tax benefits should be recorded for uncertain tax positions for all open tax years. The MPT identifies its major tax jurisdictions as jurisdictions where it operates and foreign jurisdictions where it conducts investing activity. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Tax positions that are not deemed to meet a more-likely-than-not threshold would be recorded as tax expense in the accompanying statements of changes in net assets. If the tax law requires interest and/or penalties to be paid on an underpayment of income taxes, the MPT records such interest and penalties as income taxes in the financial statements, if applicable. For the years ended December 31, 2019 and 2018, the MPT did not incur any interest or penalties. Management has analyzed the tax positions taken by the MPT and has concluded that as of December 31, 2019, there are no uncertain tax positions taken or expected to be taken. The MPT has recognized no interest or penalties related to uncertain tax positions. The MPT is subject to routine audits by taxing jurisdictions however, there are currently no audits for tax periods in progress. Management believes it is no longer subject to income tax examinations for years prior to 2016.”