FrontView REIT Inc

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a)

Basis of Presentation

The accompanying balance sheets have been prepared in accordance with accounting principles generally accepted in the United States, (“GAAP”). Separate statements of operations, changes in equity, and cash flows have not been presented in the financial statements because principal operations have not commenced.

b)

Cash

Cash of the Company is held with a major financial institution and may exceed the federal insurable limits. Generally, these deposits may be redeemed upon demand and therefore bear minimal risk.

c)

Income Taxes

The Company elected to be taxed as a pass-through entity under subchapter S of the Internal Revenue Code of 1986, as amended (the “Code”), but intends to revoke its S election prior to the closing of the IPO. The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Code, commencing with its short taxable year ending December 31, 2024. Generally, the Company will not be subject to federal income taxes on amounts distributed to stockholders, providing it distributes 90% of its REIT taxable income and meets certain other requirements for qualifying as a REIT. If the Company fails to maintain its qualification as a REIT in any taxable year, the Company will then be subject to federal income taxes on its taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could have a material adverse effect on its net income and net cash available for distribution to its members.

The Company is required to file income tax returns with federal taxing authorities. As of September 30, 2024, the Company's U.S. federal income tax returns remain subject to examination by the Internal Revenue Service for the 2023 tax year.