Community Preservation and Development Corporation

PART X, LINE 2:

“Ecd and its consolidated nonprofit corporations are exempt from federal and state income taxes under section 501(c)(3) of the internal revenue code and comparable state statutes, except for unrelated business income. For the years ended december 31, 2023 and 2022, no provision for unrelated business income has been made. All nonprofit corporations are required to file tax returns with the internal revenue service and other taxing authorities. The following entities are corporate subsidiaries of ecd that are not exempt from federal and state taxes: chi solar management llc cove point apartments, llc cove point apartments ii, llc cpdc 1330 7th street, inc. Cpdc admiral llc cpdc baker school llc cpdc bates, inc. Cpdc buckman road llc cpdc edgewood one llc cpdc essex house, llc cpdc ft. Stevens place llc cpdc highland park senior housing llc cpdc howard manor llc cpdc iii, inc. Cpdc, inc. Cpdc island walk, inc. Cpdc iv, inc. Cpdc jackson ward multifamily llc cpdc jackson ward sr. Llc cpdc mayfair mansions, inc. Cpdc nehemiah ventures llc cpdc oxford manor, inc. Cpdc parkside terrace, inc. Cpdc randle hill mm llc cpdc suburbia fairfax llc cpdc v, inc. Cpdc wheeler terrace inc. Ehc allendale llc ehc ednor gardens, llc ehc hollins, llc ehc metro heights, llc ehc mulberry at park, llc ehc red run, llc ehc riverwoods, llc ehc taney village, llc ehi bladensburg commons igp, llc ehi cambridge commons igp, llc ehi coldspring gp, llc ehi colonial landing gp, llc ehi pv 2018 portfolio gp, llc ehi pv 2021 portfolio gp, llc ehi somerset reserve igp, llc ehi somerset reserve two, llc heritage crossing ii, llc hollins house development llc howard hill gp, llc mayfair mansions rental gp, llc the organization accounts for deferred income taxes related to the taxable corporate subsidiaries under the asset and liability method. Under this method, assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in the period that includes the enactment date. We only recognized deferred tax assets to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including tax planning strategies and other factors. We recognize the financial statement impact of a tax position when it is more-likely-than-not that the position will be sustained upon examination. If the more-likely-than-not threshold is met, the tax position is to be measured at the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement. The limited partnerships and limited liability companies in which the organization has a partnership interest have elected to be treated as pass-through entities for income tax purposes and, as such, are not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective tax returns. The partnerships' federal tax status is based on their legal status as a partnership. Accordingly, the partnerships are not required to take any tax positions in order to qualify as a pass through entity. The partnerships are required to file and do file tax returns with the internal revenue service and other taxing authorities. Accordingly, no provision for income taxes is reflected on these affiliated entities, and these affiliated entities have no other tax positions which must be considered for disclosure. Income tax returns filed by all entities are subject to examination by the internal revenue service for a period of three years. While no income tax returns are currently being examined by the internal reven”