Even Exempt Organizations Can Be Taxed on Unrelated Business Income
Practical Tax Strategies Volume 80, Number 05, May 2008
18 Pages Posted: 4 Dec 2013
Date Written: May 1, 2008
Tax-exempt organizations that generate revenue from businesslike activities may owe tax, regardless of whether the revenue is used to further the tax-exempt purpose. Several interesting applications of this law arise for a college or university that operates a complex intercollegiate athletics program (although the same principles can have applications in other tax-exempt organization contexts). The taxpayer must have a firm grasp of the pertinent tax law in that situation, so that the various definitions and computations of the tax law can be used to the taxpayer's advantage.
Keywords: athletics, ubti, exempt organization, tax exempt, tax exempt purpose
JEL Classification: E62, K34, H21, H25
Suggested Citation: Suggested Citation