IRS Tax Guide for Tax on Unrelated Business Income of Exempt Organizations, Publication 598 (02/2019)
IRS Tax Guide for Tax on Unrelated Business Income of Exempt Organizations, Publication 598 (02/2019)

How to Read IRS Tax Guide for Tax on Unrelated Business Income of Exempt Organizations, Publication 598 (02/2019) DOC

An exempt organization isn’t taxed on its income from an activity substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. Such income is exempt even if the activity is a trade or business. However, if an exempt organization regularly carries on one or more trades or businesses not substantially related to the organization's exempt purpose, except that conducting the trade or business provides funds to carry out the exempt purpose, the organization is subject to tax on its income from the unrelated trade(s) or business(es). In addition, for organizations that have employees, UBTI is increased by any amount for which a deduction is not allowable because of section 274 and which is paid or incurred by the organization after 2017 for any qualified transportation fringe, any parking facility used in connection with qualified parking, or any on-premises athletic facility (but only if the employer's provision of on-premises athletic facilities discriminates in favor of highly compensated employees). This rule does not apply to the extent the amount paid or incurred is directly connected with an unrelated trade or business which is regularly carried on by the organization.

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  • Released: August 7, 2017
  • Author: U.S. Internal Revenue Service (IRS)
  • Rating: 5
  • Publisher: Ebook Store Group
  • Total Page: 209 pages
  • File Size: 2244 KB
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