Perco Inc

Schedule D, Page 3, Part X

“The organization follows accounting rules that prescribe when to recognize and how to measure the financial effects, if any, of income tax positions taken or expected to be taken on its income tax returns, including the position that the organization continues to qualify to be treated as a non-profit organization exempt from income tax provisions. Management is required to evaluate the likelihood that, upon examination by relevant taxing jurisdictions, those income tax positions would be sustained. The organization is a non-profit voluntary organization exempt from income taxes under section 501(c)(3) of the internal revenue code. Accordingly, no provision for federal income taxes has been made in the financial statements. However, income, if any, from certain activities not directly related to the tax-exempt purpose of the organization is subject to taxation as unrelated business income. Estimated income taxes for unrelated business income generated from storage unit rentals was 1,212 and 421 for the years ended december 31, 2024 and 2023, respectively. The organization's informational returns for tax years 2021 and beyond remain subject to examination by the internal revenue service. The organization did not have unrecognized tax positions as of december 31, 2024 and does not expect this to change significantly over the next 12 months. The organization will recognize interest and penalties accrued on any unrecognized tax positions as a component of income tax expense. As of december 31, 2024, the organization has not accrued interest or penalties related to uncertain tax positions.”