By NEO Law Group
Here are some of the highlights from 2 of the subcommittee meetings at the ABA Exempt Organizations Committee meeting held in San Diego on February 10, 2023 as part of the ABA 2023 Midyear Tax Meeting. Private Foundations & Unrelated Business Income Taxes & International Philanthropy Political and Lobbying;...
Earlier this week, Treasury posted an advance copy of the final regulations addressing how a tax-exempt organization subject to unrelated business income tax (UBIT) determines if it has more than one unrelated trade or business, and, if it does, how it calculates unrelated business taxable income (UBTI). The final...
On April 24, 2020, the IRS and Treasury Department published proposed regulations under the law commonly referred to as the Tax Cuts and Jobs Act (TCJA) that provide guidance on how a tax-exempt organization subject to unrelated business income tax (UBIT) determines if it has more than one unrelated...
There were two big changes to tax laws affecting nonprofits sure to spread some cheer. They were part of a year-end appropriations act signed into law on December 20, 2019. Repeal of the “Parking Tax” The first change is a repeal of the nonsensical and unpopular tax on qualified...
The quick and admittedly general answers (because there are exceptions) are: (1) yes, a nonprofit can own a for-profit; and (2) no, a for-profit cannot own a nonprofit, but it can select all of the nonprofit’s board members and thereby largely control the nonprofit. Can a Nonprofit Own a...
On December 10, 2018, the Internal Revenue Service (IRS) issued interim guidance on the treatment of qualified transportation fringe benefit expenses under the Tax Cuts and Jobs Act (TCJA). According to the IRS press release: The new rules assist taxpayers in determining the amount of parking expenses that are no...
In Part I of this two-part article on IRS Notice 2018-67 regarding the calculation of unrelated business taxable income (UBTI) under the Tax Cuts and Jobs Act (TCJA), we discussed the need to separate different lines of unrelated business activities, which is now required to calculate an organization’s unrelated business income tax (UBIT)....
On August 21, 2018, the IRS released Notice 2018-67 which both provides preliminary guidance and seeks comments on the calculation of unrelated business taxable income (UBTI) under the Tax Cuts and Jobs Act (TCJA). Tax-exempt organization that may be earning unrelated business income should be aware of the changes...
Thanks to the Tax Cuts and Jobs Act (TCJA), if your nonprofit provides parking to its employees, it may now need to pay unrelated business income tax (UBIT) on the value of that parking benefit. That’s right – your tax-exempt organization may now need to pay income tax on an...
I’ll be on Nonprofit Radio this Friday, June 1, at 10:30 am PT / 1:30 pm ET talking with host Tony Martignetti about the unrelated business income tax and how charities who provide certain transportation- or parking-related fringe benefits to their employees may now be required to pay the tax even if they...