§511 — Imposition of tax on unrelated business income of charitable, etc., organizations
120 cases·13 followed·8 distinguished·3 criticized·1 overruled·95 cited—11% support
Statute Text — 26 U.S.C. §511
There is hereby imposed for each taxable year on the unrelated business taxable income (as defined in section 512) of every organization described in paragraph (2) a tax computed as provided in section 11. In making such computation for purposes of this section, the term “taxable income” as used in section 11 shall be read as “unrelated business taxable income”.
The tax imposed by paragraph (1) shall apply in the case of any organization (other than a trust described in subsection (b) or an organization described in section 501(c)(1)) which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a).
The tax imposed by paragraph (1) shall apply in the case of any college or university which is an agency or instrumentality of any government or any political subdivision thereof, or which is owned or operated by a government or any political subdivision thereof, or by any agency or instrumentality of one or more governments or political subdivisions. Such tax shall also apply in the case of any corporation wholly owned by one or more such colleges or universities.
There is hereby imposed for each taxable year on the unrelated business taxable income of every trust described in paragraph (2) a tax computed as provided in section 1(e). In making such computation for purposes of this section, the term “taxable income” as used in section 1 shall be read as “unrelated business taxable income” as defined in section 512.
The tax imposed by paragraph (1) shall apply in the case of any trust which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a) and which, if it were not for such exemption, would be subject to subchapter J (sec. 641 and following, relating to estates, trusts, beneficiaries, and decedents).
If a corporation described in section 501(c)(2)—
pays any amount of its net income for a taxable year to an organization exempt from taxation under section 501(a) (or which would pay such an amount but for the fact that the expenses of collecting its income exceed its income), and
such corporation and such organization file a consolidated return for the taxable year,
such corporation shall be treated, for purposes of the tax imposed by subsection (a), as being organized and operated for the same purposes as such organization, in addition to the purposes described in section 501(c)(2).
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.511-1 Imposition and rates of tax
- Treas. Reg. §Treas. Reg. §1.511-2 Organizations subject to tax
- Treas. Reg. §Treas. Reg. §1.511-2(a) Organizations other than trusts and title holding companies.
- Treas. Reg. §Treas. Reg. §1.511-2(b) Trusts—(1) In general.
- Treas. Reg. §Treas. Reg. §1.511-2(c) Title Holding Companies—(1) In general.
- Treas. Reg. §Treas. Reg. §1.511-2(d) The fact that any class of organizations exempt from taxation under section 501(a) is subject to the unrelated business income tax under section 511 and this section does not in any way enlarge the permissible scope of business activities of such class for purposes of the continued qualification of such class under section 501(a).
- Treas. Reg. §Treas. Reg. §1.511-2(e) ABLE programs—(1) Unrelated business taxable income.
- Treas. Reg. §Treas. Reg. §1.511-2(i) §1.511-2(i)
- Treas. Reg. §Treas. Reg. §1.511-3 Provisions generally applicable to the tax on unrelated business income
- Treas. Reg. §Treas. Reg. §1.511-3(a) Assessment and collections.
- Treas. Reg. §Treas. Reg. §1.511-3(b) Returns.
- Treas. Reg. §Treas. Reg. §1.511-3(c) Taxable years, method of accounting, etc.
- Treas. Reg. §Treas. Reg. §1.511-3(d) Foreign tax credit.
- Treas. Reg. §Treas. Reg. §1.511-4 Minimum tax for tax preferences
120 Citing Cases
did not bill cardholders, collect payments, or decide who was eligible to receive a credit card. - 25 - We disagree with respondent's contention that petitioner was unfairly competing with taxed businesses. C. Conclusion For the foregoing reasons, we hold that petitioner's income from the affinity credit card program is a royalty for purposes of section 511. To reflect the foregoing, Decision will be entered under Rule 155.
did not bill cardholders, collect payments, or decide who was eligible to receive a credit card. We disagree with respondent's contention that petitioner was unfairly competing with taxed businesses. - 26 - C. Conclusion For the foregoing reasons, we hold that petitioner’s income from the affinity credit card program is a royalty for purposes of section 511. To reflect the foregoing, Decision will be entered under Rule 155.
one- third of its support in each taxable year from the sum of-- (i) gross investment income * * * and (ii) the excess (if any) of the amount of the unrelated business taxable income (as defined in section 512) over the amount of the tax imposed by section 511. Respondent contends that petitioner is not a publicly supported organization pursuant to section 509(a)(2) because it received all of its support from pickle card sales which is an unrelated trade or business; petitioner must therefore b
whether income generated by petitioner's solicitation program for its yearbook is unrelated business income subject to tax pursuant to section 511 for the taxable periods in issue; and 3.
17 Congress created: (1) cash contributions are generally deductible; (2) accretions from the IRA’s assets are not taxable (except for section 511 unrelated business income); and (3) distributions are taxable.9 See I.R.C.
Royalty income is excluded from the definition of unrelated business taxable income. Sec. 512(b)(2). Lighthouse reported its beneficial shares ofthe partnerships' income as royalties and generally did not report unrelated business income for the years at issue. - 15 - [*15] income from the four partnerships on the basis that Watchman was
Royalty income is excluded from the definition of unrelated business taxable income. Sec. 512(b)(2). Lighthouse reported its beneficial shares ofthe partnerships' income as royalties and generally did not report unrelated business income for the years at issue. - 15 - [*15] income from the four partnerships on the basis that Watchman was
Royalty income is excluded from the definition of unrelated business taxable income. Sec. 512(b)(2). Lighthouse reported its beneficial shares ofthe partnerships' income as royalties and generally did not report unrelated business income for the years at issue. - 15 - [*15] income from the four partnerships on the basis that Watchman was
Royalty income is excluded from the definition of unrelated business taxable income. Sec. 512(b)(2). Lighthouse reported its beneficial shares ofthe partnerships' income as royalties and generally did not report unrelated business income for the years at issue. - 15 - [*15] income from the four partnerships on the basis that Watchman was
Royalty income is excluded from the definition of unrelated business taxable income. Sec. 512(b)(2). Lighthouse reported its beneficial shares ofthe partnerships' income as royalties and generally did not report unrelated business income for the years at issue. - 15 - [*15] income from the four partnerships on the basis that Watchman was
Royalty income is excluded from the definition of unrelated business taxable income. Sec. 512(b)(2). Lighthouse reported its beneficial shares ofthe partnerships' income as royalties and generally did not report unrelated business income for the years at issue. - 15 - [*15] income from the four partnerships on the basis that Watchman was
Royalty income is excluded from the definition of unrelated business taxable income. Sec. 512(b)(2). Lighthouse reported its beneficial shares ofthe partnerships' income as royalties and generally did not report unrelated business income for the years at issue. - 15 - [*15] income from the four partnerships on the basis that Watchman was
By comparison, contributions to a traditional IRA are deductible and earnings accrue tax free (except with respect to section 511 unrelated business income), but - 15 - [*15] distributions from a traditional IRA are includable in the recipient's gross income.
By comparison, contributions to a traditional IRA are deductible and earnings accrue tax free (except with respect to section 511 unrelated business income), but - 15 - [*15] distributions from a traditional IRA are includable in the recipient's gross income.
By comparison, contributions to a traditional IRA are deductible and earnings accrue tax free (except with respect to section 511 unrelated business income), but - 15 - [*15] distributions from a traditional IRA are includable in the recipient's gross income.
By comparison, contributions to a traditional IRA are deductible and earnings accrue tax free (except with respect to section 511 unrelated business income), but - 15 - [*15] distributions from a traditional IRA are includable in the recipient's gross income.
By comparison, contributions to a traditional IRA are deductible and earnings accrue tax free (except with respect to section 511 unrelated business income), but - 15 - [*15] distributions from a traditional IRA are includable in the recipient's gross income.
By c mparison, contributions to atraditional IRA are deductible and earnings accrue tarfree (exceptwith respect to section 511 unrelated business income), b t distributions from a traditional IRA are includable in the recipient's gross income See secs.
Section 501(a) provides that a section 501(c)(3) - 11 - organization "shall be exempt from taxation under this subtitle [subtitle A] unless such exemption is denied under sections 502 or 503".
By c mparison, contributions to atraditional IRA are deductible and earnings accrue tarfree (exceptwith respect to section 511 unrelated business income), b t distributions from a traditional IRA are includable in the recipient's gross income See secs.
Section 511 imposes a tax on the UBTI of an organization described in section 501(c)(3). Section 512 defines UBTI as the gross income derived by an exempt organization from any unrelated trade or business regularly carried on by it, less certain deductions and modifications. Section 514(a) provides that income from unrelated debt-financed property
ughes; Mr. Swanson attended graduate school at the University of California Los Angeles i(UCLA) where 3The basic tax characteristics of.a traditional IRA are ,(1) deductible contrLbutions, (2) the accrual of ta -free earnings (except with res>ect to sec. 511 unrelated business income), and (3) the inclusiofof diètrib tions in gross income. See secs. 219 (a) , 408 (a) , (d) (1) , .(e) ; see also Taproot Admin. Servs . , Inc . v. Commissioner, 133 T.C. 202, 206 (2009). The basic tax characteristic
ceived a management certificate for technical persoÁnel from the University of California Los Angeles. 4The basic t x characteristics of a traditional IRA are (1) deductible contributions, (2) the accrual of tax-free earnings (except with res ect to sec. 511 unrelated business income), and (3) the inclusio of distributions in gross income. See secs. 219(a), 408 (a), (d) (1), (e). The basic tax characteristics of a Roth IRA are (1) nondeductible contributions, (2) the accrual of tax-free earnings
In the stipulation of settled issues, the IRS'conceded that the revenue received by the Association from the leasing of its Ocean City parking lots to third parties in the evening hours and during the off-season(" is excepted from § 511 unrelated business taxable income because it satisfies the § 512(b) exception to unrelated business income for the rent from real property .
In the stipulation of settled issues, the IRS conceded that the revenue received by the Association from the leasing of its Ocean City parking lots to third parties in the evening hours and during the off-season[] is excepted from § 511 unrelated business taxable income because it satisfies the § 512(b) exception to unrelated business income for the rent from real property.
The basic tax characteristics of a traditional IRA are (1) deductible contributions, (2) the accrual of tax-free earnings (except with respect to section 511 unrelated business 6The American Jobs Creation Act of 2004:, Pub.
The basic tax characteristics of a traditional IRA are (1) deductible contributions, (2) the accrual of tax-free earnings (except with respect to section 511 unrelated business income), and (3) the inclusion of distributions in gross income.
returned the two executed separate Forms 872 with a cover letter to the Appeals officer which stated: The execution and filing of the consents are conditioned upon the following compromise of this case which we agreed to this morning: (1) The income tax deficiency under Section 511 will be reduced by the sum of $8374.54 * * * (2) The Foundation agrees to a deficiency of 35% of the Section 4945(a) tax or $14,584.33.
Section 511 of the conference committee report corresponds to section 1421 of H.R. 3838 as passed by the Senate. In large part, section 511(b) of the conference committee report tracks section 1421(a) of H.R. 3838 as passed by the Senate. Section 511(b) of the conference committee report presents a new section 163(h), which provides in pertinent pa
Section 511 of the conference committee report corresponds to section 1421 of H.R. 3838 as passed by the Senate. In large part, section 511(b) of the conference committee report tracks section 1421(a) of H.R. 3838 as passed by the Senate. Section 511(b) of the conference committee report presents a new section 163(h), which provides in pertinent pa
Transportation Assistance Act of 1982 expanded the availability of the credit to ground applicators if the farm - 10 - owner, operator, or tenant waives the right to be treated as the user and ultimate purchaser of the gasoline. See Pub. L. 97-424, sec. 511(f), 96 Stat. 2172; H. Rept. 97-945 at 2, 1983-1 C.B. 421. The legislative history of section 6420 establishes that the requirement that applicators obtain waivers from their farm customers was not designed solely to ensure that two taxpayers
(a) General Rule.–-The term “unrelated trade or business” means, in the case of any organization subject to the tax imposed by section 511, any trade or business the conduct of which is not substantially related (aside from the need of such organization for income or funds or the use it makes of the profits derived) to the exercise or performance by such organization of its charitable, educational, or other purpose or function constituting the basis for its exemption under
The issues presented by the parties include: (1) Whether, for purposes of the unrelated business income tax provisions of section 511, petitioner is carrying on a list rental business that is not substantially related to its exempt purpose; (2) if so, whether the list brokers, list managers, and computer house used by petitioner are agents of petitioner for the purpose of carrying on such a business; and (3) whether the mailer's list rental payments are royalties that
The issues presented by the parties include: (1) Whether, for purposes of the unrelated business income tax provisions of section 511, petitioner is carrying on a list rental business that is not substantially related to its exempt purpose; (2) if so, whether the list brokers, list manager, and computer house used by petitioner are agents of petitioner for the purpose of carrying on such a business; and (3) whether the mailer's list rental payments are royalties that
The issues presented by the parties include: (1) Whether, for purposes of the unrelated business income tax provisions of section 511, petitioner is carrying on a list rental business that is not substantially related to its exempt purpose; (2) if so, whether the list brokers, list manager, and computer house used by petitioner are agents of petitioner for the purpose of carrying on such a business; and (3) whether the mailer’s list rental payments are royalties that
511.020 (West 1952). An order is every direction of a court or judge, made or entered in writing and not included in a judgment. An application for an order is a motion. Mo. Ann. Stat. sec. 506.050 (West 1952). In Missouri, a request for relief pendente lite is in the nature of an independent cause of action. Tate v. Tate, 920 - 7 - S.W.2d 98
511(e) of the Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat 2085, 2249. Petitioners paid the interest at issue in 1989, 1990, and 1991, all of which was during petitioners' taxable years beginning after December 31, 1986. Petitioners contend that section 162(a)4 or section 163(a)5 allows them to deduct the interest at issue here because Con
e statute as amended in 1988, because sec. 1005(c)(9) of the TAMRA 88, Pub. L. 100-647, 102 Stat. 3342, 3392, amended sec. 163(h)(6) retroactively to taxable years beginning after Dec. 31, 1986. See TAMRA 88, sec. 1019(a), 102 Stat. at 3593; TRA 86, sec. 511(e), 100 Stat. at 2249. 37 When a check is mailed, as opposed to being hand delivered as in the instant case, the mailing of the check, properly addressed, generally constitutes delivery of that check to the addressee. See, e.g.; Griffin v. C