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

See all articles by William A. Raabe

William A. Raabe

University of Wisconsin - Whitewater - College of Business and Economics

Gerald E. Whittenburg

San Diego State University

Ira Horowitz

University of Florida

Date Written: May 1, 2008

Abstract

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

Raabe, William A. and Whittenburg, Gerald E. and Horowitz, Ira, Even Exempt Organizations Can Be Taxed on Unrelated Business Income (May 1, 2008). Practical Tax Strategies Volume 80, Number 05, May 2008. Available at SSRN: https://ssrn.com/abstract=2362352

William A. Raabe (Contact Author)

University of Wisconsin - Whitewater - College of Business and Economics ( email )

Whitewater, WI 53190
United States

HOME PAGE: http://billraabetax.com

Gerald E. Whittenburg

San Diego State University ( email )

5500 Campanile Drive
San Diego, CA 92182-8230
United States
619-594-5693 (Phone)

Ira Horowitz

University of Florida ( email )

PO Box 117165, 201 Stuzin Hall
Gainesville, FL 32610-0496
United States

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