Esponda Associates Inc Group Return

PART X, LINE 2:

“Notes to consolidated financial statements: esponda is organized as a not-for-profit corporation and has obtained exemption from income taxes under section 501(c)(7) of the united states internal revenue code and similar state law. The activities of lion holdings are exempt as programs under esponda's not-for-profit exemption. Edgemere is organized as a not-for-profit corporation and has obtained exemption from income taxes under section 501(c)(7) of the united states internal revenue code and similar state law. The activities of edgemere include 12112 mendel dr. Llc, 1616 ne 50th, llc, 165 bay state, llc, 304 walnut place, llc, 301 e. Sycamore llc, and 1116 indiana, llc, the activities of which are all exempt as programs under edgemere's not-for-profit exemption. The organization obtained a group exemption ruling and files a combined return for corporations under its management (the group entities) that qualify as subordinate 501(c)(7) corporations. There are 62 (62 on may 31, 2023) corporations filed in the combined group return. The exemption is on all income except unrelated business income. An unrelated trade or business of an exempt organization is any trade or business which is not substantially related to the exercise or performance of its exempt purpose. Income earned from non-members is recognized as unrelated business income to the extent such income is not set aside. Income that is properly set aside must be used for the qualifying purposes outlined in the set aside resolution. The organization did not pay any unrelated business income tax in the years ended may 31, 2024 or 2023. The organization has filed its federal and state income tax returns for periods through may 31, 2023. These income tax returns are generally open to examination by the relevant taxing authorities for a period of three years from the later of the date the return was filed or its due date (including approved extensions).”