Tg 303 Inc.

PART X, LINE 2:

“The corporation is organized as a texas nonprofit organization. The corporation intends to operate as exempt from federal income taxes under section 501 (c)(3) of the internal revenue code and has obtained a letter from the internal revenue service ("irs") that provides tax-exempt status. Thus, no federal income tax provision has been made in the accompanying consolidated financial statements, except for unrelated business income tax. The corporation recognizes a tax position in the consolidated financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. Penalties and interest associated with any uncertain tax positions are recorded in the period assessed in general and administrative expense. As december 31, 2023,management has analyzed the tax positions taken by the corporation and has cocluded at, as of december 31 , 2023, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial)statements. During the year ended december 31, 2023, the corporation recognized an income tax provision of $127,706 as a result of the operations of the corporation's profit-motivated associates.as of december 31,2023, the corporation is no longer subject to income tax examinations by tax authorities for the years ending prior to december 31 , 2020. The limited partnerships and limited liability companies in which the corporation 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. All items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The partnerships' federal tax statuses are based on their legal status as a partnership. As such, the partnerships are not required to take any tax positions in order to qualify as a pass-through entity. The partnerships file tax returns with the internal revenue service and other taxing authorities. Accordingly, these consolidated financial statements do not reflect a provision for income taxes and the partnerships have no other tax positions which must be considered for disclosure. Income tax returns filed by the 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 revenue service, tax years since 2020 remain open. Certain associates structured as single member limited liability companies are disregarded entities for income tax purposes and do not file an income tax return. Taxable income or loss passes through to the sole member to be reported on its tax return. These associates do not take any tax positions which must be considered for disclosure. Accordingly, these consolidated financial statements do not reflect a provision for income taxes.”