Whitestone Community Association

“The President and the Secretary are married. The Vice President and a board member share a business interest in an otherwise unrelated LLC. The Treasurer and a board member share a business interest in an othewise unrelated LLC. These business relationships do not constitute control over these other entities and therefore are not required to be disclosed on Schedule R.”

“The residents of the community of Whitestone are all members.”

“The residents of the community of Whitestone are all members with voting rights for board members upon reaching the age of majority.”

“There are no committees. All matters are discussed with the whole board.”

“A copy is provided to all board members prior to filing. Upon receipt of the form, board members are given a time frame in which they need to review the return, provide comments, get questions answered and request changes to the form. Approval is obtained either verbally or via electronic mail before the return is transmitted to the IRS.”

“A copy of the policy is provided periodically to the board members and they are asked to list all direct and indirect financial relationships from which a conflict of interest could arise. Potential conflicts of interest are considered when matters are being voted on.”

“One of the board members had the knowledge and ability to start up the internet service provider program that we started in 2015. His compensation was set by the rest of the board without his involvement and was determined by review of statewide averages for similar positions compared with what the program could afford to pay. The salary determined ended up being substantially below statewide averages for similar positions.”

“Copies of these documents are retained in both paper and electronic formats at the Associations office and are distributed to any interested parties upon request. No fees for duplication are charged.”

“A road grader owned by the Association for its road maintenance programs was rented to a third party briefly during 2017. While personal property rental is typically an unrelated business income activity, it does not rise to the level of taxable unrelated business income because this rental activity is not a regularly carried on business for the Association. The Association does not advertise its equipment for rent and is typically reticent to do so if asked. This rental was an isolated incident with no profit motive or intent to carry on in the future. As such and pursuant to the guidance in Treas. Reg. 1.513-1(c)(2)(ii), the Association has not prepared and filed an unrelated business income tax return because the rental activity is not being regularly carried on.”

“In 2017, the Association received a grant to stabilize a portion of river bank within the community. This project was completed during the year and will not require any ongoing costs or revenues and so will not continue in the future.”