When will business income of an organization be sheltered by its tax-exempt status?
Article Abstract:
The unrelated business income of tax-exempt organizations is taxable. The three criteria for determining an unrelated business are: the activity must be a trade or business, it must be conducted on a regular basis, and it must not be substantially related to the purpose of the tax-exempt organization. Trade and business activities which are excluded from the unrelated business income tax include businesses which are conducted by volunteers who work without compensation, thrift shops in which the merchandise is received by the organization as gifts, qualified trade shows, qualified public entertainment, bingo games, and income from the distribution of certain low-cost items.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
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Automobile and other leasing arrangements remain attractive despite loss of some benefits
Article Abstract:
The tax benefits of equipment leasing transactions are discussed. Special emphasis is given to automobile leasing. The Tax Reform Act of 1986 has restricted the tax benefits of leasing; setting forth stricter documentation rules. The useful life of automobiles has been extended. Companies can still deduct full lease payments on cars, regardless of the proportion of personal and business use. Several amendments have also been made to the luxury automobile rules.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
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