Central Union Mission

fin 48

“The Mission is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, except for income taxes on "unrelated business income," if any. For the year ended June 30, 2014, the entity did not have any "unrelated business income" subject to income taxes; accordingly, no provision for income taxes for the entity has been included in the consolidated financial statements. Income tax returns filed by the Mission 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 Revenue Service, tax years since 2010 remain open. The Mission and its Subsidiary and Affiliates adopted provisions related to the subsequent recognition and measurement of tax positions. This guidance requires recognition and the financial statement impact of a tax position when it is more-likely-than-not that the position will be sustained upon examination. The Mission did not identify any uncertain tax positions that qualify for either recognition or disclosure in the consolidated financial statements. Mission DC Manager, LLC was formed as a limited liability company. Accordingly, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Mission DC Landlord, LLC and Mission DC Master Tenant, LLC 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 and are reported by their owners on their respective income tax returns. The District of Columbia does not recognize pass-through entities, and therefore, income earned in the District of Columbia by these two entities is subject to tax with a minimum tax liability of $250. There was no income earned during the year ended June 30, 2013. Mission DC Landlord, LLC and Mission DC Master Tenant, LLC's federal tax status as a pass-through entity is based on their legal status as a limited liability company. Accordingly, Mission DC Landlord, LLC and Mission DC Master Tenant, LLC are not required to take any tax positions in order to qualify as a pass-through entity. Mission DC Landlord, LLC and Mission DC Master Tenant, LLC are required to file and do file tax returns with the Internal Revenue Service. Accordingly, these financial statements do not reflect a provision for income taxes and Mission DC Landlord, LLC and Mission DC Master Tenant, LLC have no other tax positions which must be considered for disclosure. Income tax returns filed by Mission DC Manager, LLC, Mission DC Landlord, LLC and Mission DC Master Tenant, LLC 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 Revenue Service, tax years since 2013 remain open”