Total expense

This question and its instructions would benefit from further clarification by the IRS.

DISCUSSION: To calculate column (f), the net community benefit expense column (e) should be divided by the sum of the amount on Form 990, Part IX, line 25, column (A) and the proportionate share of the total expense of all joint ventures for which the expenses have been reported in Part I of the Schedule H (to the extent that these expenses are not already included in Form 990, Part IX, line 25, column (A)). The total expense number used for the denominator should not include any bad debt expense. A summary of this is as follows:

The ratio of net community benefit expense should be made up of the following:


Numerator:
   - Net community benefit expense column (e)
Denominator:
   - Amount on Form 990, Part IX, line 25, column (A)
   - PLUS Proportionate share of total expense of joint ventures reported in Part I of Schedule H
   - MINUS Bad debt expense included in Form 990, Part IX, line 25, column (A)
   - MINUS Proportionate share of bad debt expense of joint ventures reported in Part I of Schedule H


INSTRUCTIONS: Click here for the applicable IRS Schedule H instructions.

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