THE NHP FOUNDATION AND ITS AFFILIATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED YEARS ENDED DECEMBER 31, 2019 and 2018
The following are single member limited liability companies and therefore, these entities are treated as disregarded entities for income tax purposes and, as such, are not subject to income taxes:
Alexander House Owner, LLC Anacostia Gardens Investor, LLC Anacostia Gardens GP, LLC Nannie Helen Owner, LLC
New Covent LLC
New Covent Managing Member, LLC
New Mark Twain, LLC
NHPF/WFH, LLC
Princess Anne Investor, LLC Princess Anne Owner, LP
Princess Anne GP, LLC The Pines Owner, LLC
Takoma Place Investor, LLC Workforce Housing I, LLC
Rather, all items of taxable income and deductions are passed through to and are reported by NHPF or its nonprofit affiliated entities on their income tax return. Accordingly, these consolidated financial statements do not reflect a provision or benefit for income taxes for these entities. Since the entities are not required to file income tax returns, they have no filings which are open to examination by the Internal Revenue Service. All other affiliated entities 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 to and are reported by the owners on their respective income tax returns. The affiliated entities’ federal tax status as pass-through entities are based on their legal status as partnerships or limited liability companies. Accordingly, these affiliated entities are not required to take any tax positions in order to qualify as pass-through entities. These affiliated entities are required to file and do file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these consolidated financial statements do not reflect a provision for federal income taxes for these affiliated entities. However, certain entities are located in the District of Columbia, Connecticut, New Jersey and Texas, which do not recognize flow through entities, and therefore, income for those entities is subject to tax. Those entities include, Woodmont Crossing, Wade Road Parkchester, Takoma Place, Anacostia Gardens, Benning Heights Investor, Columbia Heights Village, Hollybush GP, Orange GP, Bayview Preservation, and Cleme Manor Holdings. Accordingly, these statements include a provision for State income taxes in the total amount of $16,953 and $3,000, respectively, for the years ended December 31, 2019 and 2018. These affiliated entities have no other tax positions which must be considered for disclosure. Income tax returns filed by these affiliated 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 2016 remain open.
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