Why do you think the UBIT provisions apply to tax exempt organizations?

Accounting
Tutor: None Selected Time limit: 1 Day

Why do you think the UBIT(unrelated business income tax) provisions apply to tax exempt organizations?

Nov 12th, 2015

Thank you for the opportunity to help you with your question!

It is because of fact that there is a provision that tax exempt organizations are associated with unrelated business income. Therefore that organization is tax exempt, but its income from unrelated business is not tax-exempt. For example, a charity center have a pizza. The charity center is a tax-exempt organization and its pizza parlor produces unrelated business income. It make is obvious to have UBIT(unrelated business income tax) provisions apply to tax exempt organizations as charity are tax exempt, but its income from the pizza parlor is not tax-exempt.

Let me know if you need more help

Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 12th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Nov 12th, 2015
...
Nov 12th, 2015
Dec 3rd, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer