Tampa Bay Builder'S Association Inc

PART X, LINE 2:

“The association is exempt from federal income taxes under section 501(c)(6) of the internal revenue code. The association however, is subject to taxation for unrelated business income, which includes income from the multiple listing service system and advertising income. There was no gross unrelated business income for the years ended october 31, 2024 and 2023. Management is not aware of any activities that would jeopardize the association's tax exempt status. The association is not aware of any tax positions it has taken that are subject to a significant degree of uncertainty. Tax years after october 31, 2021 remain subject to examination by federal and state taxing authorities. Deferred taxes are provided using the liability method, whereby, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates which are expected to be in effect when these differences are expected to reverse. Deferred income taxes result from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The association follows fasb accounting standards update no. 2015-17, income taxes(topic 740): balance sheet classification of deferred taxes and the update will be presented for the years ended october 31, 2024 and 2023. This standard requires deferred tax assets and liabilities to be classified as noncurrent when reporting using a statement of financial position. Uncertain tax positions are recognized if it is more likely than not that the tax position will be realized or sustained upon examination including resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgement. As of october 31, 2024, management is not aware of any uncertain tax positions that would have a material effect on the financial statements.”