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Under what circumstances are bingo games not treated as an unrelated trade or business?

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A bingo game is not an unrelated trade o...

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Debt-financed property consists of all real property of a tax-exempt organization on which there is a mortgage.

A) True
B) False

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Arbor, Inc., an exempt organization, leases land, building, and machinery to a tenant for a 5-year period. The rent income for the land and building is $400,000 per year and that from the related machinery is $80,000 per year. Expenses incurred by Arbor for the land and building during the year are $60,000, and those for the machinery are $36,000. Net unrelated business income, which includes the above rental income and expenses, is $800,000. Calculate Arbor's unrelated business taxable income.

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blured image The net rent income from the land and b...

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Match the following statements. -Membership lists


A) Distribution of such items is not considered an unrelated trade or business if they are "low-cost items".
B) Is considered an unrelated trade or business if the amount received is contingent upon the level of attendance at one or more events
C) Is considered an unrelated trade or business if legally it can be conducted by commercial (for-profit) entities.
D) A trade or business that consists of either renting or exchanging these with another exempt organization is not an unrelated trade or business.

E) C) and D)
F) A) and D)

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Midnight Basketball, Inc., an exempt entity that organizes and conducts basketball games for youths ages 18-25, receives a $20,000 contribution from Brown Shoe Company. Midnight agrees to put Brown's logo on the cover of its monthly newsletter. a. Is the contribution unrelated business income to Midnight? b. Assume that instead of putting Brown's logo on the cover of its newsletter, Midnight agrees to include a statement in the newsletter that youth playing in the games conducted by Midnight wear shoes manufactured only by Brown. Is the contribution unrelated business income to Midnight? b. change if the amount of the payment was $7,500 instead of $20,000? c. Would your answer in

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a. No. The $20,000 payment is a qualifie...

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Pearl Inc., a tax-exempt organization, leases land, building, and machinery to Purple Partnership for a 5-year period. The rental income from the land and building is $100,000, with related expenses of $40,000. The rental income from the machinery is $9,000 with related expenses of $3,000. What adjustment must be made in computing net unrelated business income?

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The net rental income of $66,000 ($60,00...

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Revenue generated by an exempt organization from the distribution of low-cost items is not income from an unrelated trade or business.

A) True
B) False

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Certain § 501(c)(3) exempt organizations are permitted to engage in lobbying activities in the same manner as a C corporation.

A) True
B) False

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What are intermediate sanctions and to what types of exempt organizations do they apply?

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Intermediate sanctions apply to public c...

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A § 501(c)(3) organization exchanges its membership lists with another exempt organization. What are the Federal income tax consequences?

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If an exempt organization conducts a tra...

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An educational organization such as Williams College that is exempt under § 501(c)(3) cannot be classified as a private foundation if its only sources of revenue are from tuition and alumni contributions.

A) True
B) False

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If an exempt organization is required to file an annual information return, on what form is it filed? Be specific.

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Exempt organizations that are not privat...

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The Form 990-N:


A) Is filed by new exempt entities.
B) Records the asset holdings and liabilities of the exempt organization.
C) Is also known as the e-Postcard.
D) No longer exists.

E) A) and C)
F) A) and D)

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Match the following tax forms. -Form 990-PF


A) Return of Private Foundation.
B) Application for Recognition of Exemption under § 501(c) (3) .
C) Return of Organization Exempt from Income Tax.
D) Application for Recognition of Exemption under § 501(a) .

E) A) and D)
F) C) and D)

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Which of the following statements regarding intermediate sanctions is correct?


A) Intermediate sanctions are self-assessing (i.e., calculated and paid by the taxpayer rather than being imposed by the IRS) .
B) The excise tax is imposed on the exempt organization and on disqualified persons.
C) Both a first-level tax and a second-level tax may apply.
D) The corporate Federal income tax rates apply in calculating the amount of the tax liability.

E) A) and C)
F) A) and B)

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Match the following statements. -Branded tote bags


A) Distribution of such items is not considered an unrelated trade or business if they are "low-cost items".
B) Is considered an unrelated trade or business if the amount received is contingent upon the level of attendance at one or more events
C) Is considered an unrelated trade or business if legally it can be conducted by commercial (for-profit) entities.
D) A trade or business that consists of either renting or exchanging these with another exempt organization is not an unrelated trade or business.

E) A) and B)
F) A) and C)

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Give an example of the indicated types of exempt organizations. -Not an exempt organization


A) League of Women Voters.
B) Teachers’ association.
C) American Plywood Association.
D) Six Flags over Texas theme park.
E) Salvation Army.

F) B) and D)
G) A) and B)

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To satisfy the "not-for-profit" requirement for exempt status, the entity may not be engaged in a trade or business.

A) True
B) False

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A corporate sponsorship payment that is contingent on attendance at a sporting event increases the recipient's unrelated business income.

A) True
B) False

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For each of the following taxes that are imposed on private foundations and/or foundation managers, match the appropriate initial tax or additional tax. -Tax on excess business holdings


A) 10% initial tax and 25% additional tax on private foundation.
B) 30% initial tax and 100% additional tax on private foundation.
C) 10% initial tax and 200% additional tax on private foundation.
D) 10% initial tax and 100% additional tax on disqualified person.
E) 10% initial tax and 200% additional tax on the disqualified person.

F) A) and C)
G) All of the above

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Showing 101 - 120 of 129

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