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Swan,Inc.,a tax-exempt organization,leases a building and equipment to ABC Corporation.The rental income from the building is $240,000 and from the equipment is $18,000.Rental expenses are $150,000 for the building and $16,500 for the equipment.What adjustment must be made to net unrelated business income?


A) $0.
B) ($16,500) .
C) ($18,000) .
D) ($91,500) .
E) Some other amount.

F) B) and D)
G) A) and B)

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Which exempt organizations can file a Form 990-N or Form 990-EZ?

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If annual gross receipts are $...

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Which of the following statements are correct with respect to the unrelated business income tax?


A) Under certain circumstances, a corporate sponsorship payment can be classified as not being an unrelated trade or business.
B) Under certain circumstances, a casino game can be classified as not being an unrelated trade or business.
C) Under certain circumstances, the exchanging or renting of membership lists to other exempt organizations can be classified as not being an unrelated trade or business.
D) Only a. and c. are correct.
E) a., b., and c. all are correct.

F) A) and B)
G) B) and C)

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Match the following statements. Match the following statements.

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Radio,Inc.,an exempt organization,trains disabled individuals to be radio announcers.Rather than hold a traditional graduation exercise,the graduates compete in a radio announcer contest.Such activities are held four times each year.An admission fee of $10 is charged to the general public to attend the contest.Eight hundred people attended the contest this year,and prizes of $2,000 were given to the top 3 graduates.Calculate the amount of Radio's unrelated business income from this activity.

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The contest activity is not classified a...

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Which of the following statements is correct?


A) A private foundation is, in general, exempt from Federal income tax.
B) A private foundation may be subject to certain types of Federal income tax.
C) If a broad public support test is satisfied, an exempt organization that otherwise would be classified as a private foundation is not classified as a private foundation.
D) Only b. and c. are correct.
E) a., b., and c. are correct.

F) C) and D)
G) None of the above

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Which of the following qualify as exempt organizations?


A) Federal and related agencies.
B) Religious, charitable, and educational organizations.
C) Civic leagues.
D) Domestic fraternal societies (e.g., the Eagles Club) .
E) All of the above can be exempt from tax.

F) B) and E)
G) C) and D)

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The excise tax that is imposed on private foundations for making jeopardizing investments is imposed because the foundation has made speculative investments that put the foundation's income at risk.

A) True
B) False

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First Americans,Inc.,a § 501(c)(3)organization,operates a museum which depicts the lives of a tribe of Native Americans.It charges an admission fee,but also finances its operations through endowment income,contributions,and gift shop sales.The gift shop is operated by 50 volunteers and the museum is operated by 15 employees.Revenue by source is: First Americans,Inc.,a § 501(c)(3)organization,operates a museum which depicts the lives of a tribe of Native Americans.It charges an admission fee,but also finances its operations through endowment income,contributions,and gift shop sales.The gift shop is operated by 50 volunteers and the museum is operated by 15 employees.Revenue by source is: First Americans,Inc.,a § 501(c)(3)organization,operates a museum which depicts the lives of a tribe of Native Americans.It charges an admission fee,but also finances its operations through endowment income,contributions,and gift shop sales.The gift shop is operated by 50 volunteers and the museum is operated by 15 employees.Revenue by source is:

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Is the taxation of a feeder organization influenced by the percentage of its earnings that it remits to an exempt organization?

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No.While a feeder organization carries o...

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If an exempt organization owns a feeder organization,the exempt organization is not taxed on the profits of the feeder organization under the unrelated business income tax (UBIT)rules.

A) True
B) False

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Define a private foundation.

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The following § 501(...

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What is a feeder organization? How is it taxed?

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A feeder organization is a taxable entit...

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Which of the following are qualified corporate sponsorship payments?


A) The amount of the payment by the corporation to the exempt organization is contingent on the attendance at one or more events.
B) The payment by the corporation to the exempt organization results in only a half-page advertisement in the event program.
C) The payment by the corporation to the exempt organization results in the corporate logo appearing in the exempt organization's monthly newsletter.
D) Only b. and c.
E) a., b., and c.

F) A) and B)
G) A) and E)

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Discuss benefits for which an exempt organization may be eligible,other than exemption from Federal income tax.

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In addition to being exempt fr...

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Discuss any negative tax consequences that result from an exempt organization being classified as a private foundation.

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Two potential negative tax consequences ...

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Which of the following statements regarding low-cost articles is correct?


A) The distribution of low-cost articles can be classified as not being an unrelated trade or business.
B) For 2011, a low-cost article is one the costs $9.70 or less.
C) Any contributions received as the result of the distribution of low-cost articles must be included in unrelated business income.
D) Only a. and b. are correct.
E) a., b., and c. are correct.

F) A) and B)
G) B) and D)

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How can an exempt organization,otherwise classified as a private foundation,avoid private foundation status?

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An exempt organization that otherwise wo...

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To maintain exempt status,an organization must do which of the following:


A) Satisfy only an organizational test.
B) Satisfy only an operational test.
C) Satisfy both an organizational test and an operational test.
D) Satisfy a financial test.
E) Once exempt status is granted, it will continue regardless of whether the organizational test and the operational test are satisfied.

F) A) and B)
G) A) and C)

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If an exempt organization is required to file an annual information return,on what form is it filed?

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Exempt organizations that are not privat...

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