Avoiding unrelated business income on payments from a controlled entity.: An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on November 1, 1992. The length of the article is 4531 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Tax-exempt organizations can avoid paying taxes on unrelated business income from businesses paying them rents, interest, annuities or royalties if the business in uncontrolled by the organization or is a second-tier subsidiary under IRC 512(b)(13). Care should be taken by the tax-exempt organization to maintain an arms length position, be able to provide a business reason for the transactions and pay fair market value. In addition, the tax exempt should be aware of regulations governing asset transfer, net operating loss status, accounting methods and earnings stripping.

Citation Details
Title: Avoiding unrelated business income on payments from a controlled entity.
Author: Edward J. Schnee
Publication:The Tax Adviser (Magazine/Journal)
Date: November 1, 1992
Publisher: American Institute of CPA's
Volume: 23 Issue: n11 Page: 761(6)

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