Joint venture to construct and operate an elder-care facility.: An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on January 1, 1996. The length of the article is 717 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: The IRS stated in Letter Ruling 9518014 that a tax-exempt hospital's joint venture with a for-profit entity to establish an elder-care facility would not threaten the hospital's tax exemption and the income generated would not be considered unrelated business income. The IRS found that investment in the facility was substantially related to the hospital's exempt purpose, particularly since beds would be set aside for indigent patients. The IRS also found the agreement to be arm's-length, with no private inurement present.

Citation Details
Title: Joint venture to construct and operate an elder-care facility.
Author: Phillip G. Royalty
Publication:The Tax Adviser (Magazine/Journal)
Date: January 1, 1996
Publisher: American Institute of CPA's
Volume: 27 Issue: n1 Page: 17(2)

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