Venice Community Housing Corporation

PART X, LINE 2:

“The organization and other nonprofit entities consolidated in these consolidated financial statements are exempt from federal income tax under section 501(c)(3) of the internal revenue code and section 23701(d) of the california revenue and taxation code. Accordingly, no provision for federal and state taxes on revenue and income has been recognized in the accompanying consolidated financial statements. Even though the organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income (ubi). The corporation evaluates uncertain tax positions through its review of the sources of income to identify ubi and certain other matters, including those which may affect its tax exempt status. The effect of the uncertainty would be recorded if the outcome was considered probable and reasonably estimable. As of december 31, 2024 and 2023, the organization had no uncertain tax positions requiring accrual. Income taxes on limited partnerships and limited liability companies are included in the tax returns of the partners or members. The federal tax status as a pass-through entity is based on its legal status as a limited partnership or limited liability company. Accordingly, the limited partnership or limited liability company is not required to take any tax positions in order to qualify as a passthrough entity, but is required to file and does 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. However, the limited partnerships and the limited liability companies are required to pay an $800 fee to the california franchise tax board. The organization determined there are no tax positions which must be considered for disclosure. Generally, the federal and state returns are subject to examination for three years after the later of the original or extended due date or the date filed with the applicable tax authority. There are no current tax examinations pending.”