Question 1

Match the following statements.

Accepted Answer

The answer of Match the following statements.
  ...

Question 2

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?

Accepted Answer

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

Question 3

Match the following statements.

Accepted Answer

The answer of Match the following statements.
  ...

Question 4

Which of the following taxes that are imposed on private foundations is, effectively, an audit fee to defray IRS expenses?

Accepted Answer

A)  Tax on self-dealing. 
B)  Tax on failure to distribute income. 
C)  Tax on excess business holdings. 
D)  Only a. and c. 
E)  None of the above. 
A)  Tax on self-dealing. 
B)  Tax on failure to distribute income. 
C)  Tax on excess business holdings. 
D)  Only a. and c. 
E)  None of the above.

Question 5

What are the common characteristics of organizations that receive exempt status?

Accepted Answer

Many organizations t

Question 6

The key factors in determining whether an exempt entity's income from a bingo game is unrelated trade or business income are whether substantially all the work is performed by volunteers and all of the prizes to be awarded are received as donations.

Accepted Answer

A) True 
 B)False

Question 7

Which requirements must be satisfied for an exempt organization to be classified as an unrelated trade or business? Is being classified as an unrelated trade or business good or bad?

Accepted Answer

If the following requirements are satisf

Question 8

For purposes of the unrelated business income tax, debt-financed property is all property of the exempt organization that is held to produce income and on which there is acquisition indebtedness.

Accepted Answer

A) True 
 B)False

Question 9

Miracle, Inc., is a § 501(c)(3) organization involved in medical research. Based on its expectation that proposed legislation will adversely affect the funding supporting its mission, Miracle hires a lobbyist to work in Washington to represent its views.

Accepted Answer

Miracle is eligible for and thus makes t

Question 10

Which of the following are qualified corporate sponsorship payments?

Accepted Answer

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. 
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.

Question 11

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

Accepted Answer

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. 
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.

Question 12

Define "trade or business" for purposes of the unrelated business income tax (UBIT).

Accepted Answer

Trade or business, for purposes of the U

Question 13

For purposes of the unrelated business income tax (UBIT), land that is acquired by the exempt organization for later exempt-use is excluded from the definition of debt-financed property if certain requirements are satisfied. Which of the following is not included in the requirements?

Accepted Answer

A)  The principal purpose of acquiring the land is for use (substantially all) in achieving the organization's exempt purpose. 
B)  The fair market value of the land is not over 50% of the fair market value of land presently owned by the exempt organization. 
C)  The use of the land by the exempt organization will begin within ten years of the acquisition date. 
D)  At the date the land is acquired, it is located in the neighborhood of other property of the organization for which substantially all the use is for achieving the organization's exempt purpose. 
E)  All of the above are requirements. 
A)  The principal purpose of acquiring the land is for use (substantially all) in achieving the organization's exempt purpose. 
B)  The fair market value of the land is not over 50% of the fair market value of land presently owned by the exempt organization. 
C)  The use of the land by the exempt organization will begin within ten years of the acquisition date. 
D)  At the date the land is acquired, it is located in the neighborhood of other property of the organization for which substantially all the use is for achieving the organization's exempt purpose. 
E)  All of the above are requirements.

Question 14

If an exempt organization distributes "low-cost items" as an incidental part of its solicitation for charitable contributions, the distribution is not considered an unrelated trade or business.

Accepted Answer

The answer of If an exempt organization distributes "low-cost items"...

Question 15

The excise taxes such as the tax on self-dealing and the tax on excess business holdings are imposed on exempt organizations classified as private foundations and also are imposed on exempt organizations classified as public charities.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements regarding exempt organization filing requirements is incorrect?

Accepted Answer

A)  Churches are required to file Form 990 (Return of Organization Exempt from Income Tax) only if its annual gross receipts exceed $50,000. 
B)  The due date for Form 990 (Return of Organization Exempt from Income Tax) is the fifteenth day of the fifth month after the end of the taxable year whereas for private foundations the due date for Form 990-PF (Return of Private Foundation) is the fifteenth day of the fourth month after the end of the tax year. 
C)  All exempt organizations whose annual gross receipts do not exceed $50,000 can file Form 990-N (the "e-Postcard"). 
D)  Only a. and b. are incorrect. 
E)  a., b., and c. are incorrect. 
A)  Churches are required to file Form 990 (Return of Organization Exempt from Income Tax) only if its annual gross receipts exceed $50,000. 
B)  The due date for Form 990 (Return of Organization Exempt from Income Tax) is the fifteenth day of the fifth month after the end of the taxable year whereas for private foundations the due date for Form 990-PF (Return of Private Foundation) is the fifteenth day of the fourth month after the end of the tax year. 
C)  All exempt organizations whose annual gross receipts do not exceed $50,000 can file Form 990-N (the "e-Postcard"). 
D)  Only a. and b. are incorrect. 
E)  a., b., and c. are incorrect.

Question 17

An educational organization such as the College of William and Mary that is exempt under § 501(c)(3) cannot be classified as a private foundation.

Accepted Answer

A) True 
 B)False

Question 18

Assist, Inc., a § 501(c)(3) organization, receives the following sources of support during the tax year.
   Is Assist, Inc., classified as a private foundation?

Accepted Answer

To not be classified as a private founda

Question 19

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:

Accepted Answer

The answer of First Americans, Inc., a § 501(c)(3) organization,...

Question 20

Which of the following statements regarding a private foundation is not correct?

Accepted Answer

A)  Only certain exempt organizations are classified as private foundations. 
B)  A donor who makes a contribution to a private foundation has identical tax consequences as a donor who makes a contribution to a public charity. 
C)  A private foundation may be subject to certain excise taxes because it is a private foundation. 
D)  A church is not a private foundation. 
E)  All of the statements are correct. 
A)  Only certain exempt organizations are classified as private foundations. 
B)  A donor who makes a contribution to a private foundation has identical tax consequences as a donor who makes a contribution to a public charity. 
C)  A private foundation may be subject to certain excise taxes because it is a private foundation. 
D)  A church is not a private foundation. 
E)  All of the statements are correct.

Match the following statements.

Match the following statements.

Which of the following taxes that are imposed on private foundations is, effectively, an audit fee to defray IRS expenses?

What are the common characteristics of organizations that receive exempt status?

The key factors in determining whether an exempt entity's income from a bingo game is unrelated trade or business income are whether substantially all the work is performed by volunteers and all of the prizes to be awarded are received as donations.

Which requirements must be satisfied for an exempt organization to be classified as an unrelated trade or business? Is being classified as an unrelated trade or business good or bad?

For purposes of the unrelated business income tax, debt-financed property is all property of the exempt organization that is held to produce income and on which there is acquisition indebtedness.

Miracle, Inc., is a § 501(c)(3) organization involved in medical research. Based on its expectation that proposed legislation will adversely affect the funding supporting its mission, Miracle hires a lobbyist to work in Washington to represent its views.

Which of the following are qualified corporate sponsorship payments?

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

Define "trade or business" for purposes of the unrelated business income tax (UBIT).

For purposes of the unrelated business income tax (UBIT), land that is acquired by the exempt organization for later exempt-use is excluded from the definition of debt-financed property if certain requirements are satisfied. Which of the following is not included in the requirements?

If an exempt organization distributes "low-cost items" as an incidental part of its solicitation for charitable contributions, the distribution is not considered an unrelated trade or business.

The excise taxes such as the tax on self-dealing and the tax on excess business holdings are imposed on exempt organizations classified as private foundations and also are imposed on exempt organizations classified as public charities.

Which of the following statements regarding exempt organization filing requirements is incorrect?

An educational organization such as the College of William and Mary that is exempt under § 501(c)(3) cannot be classified as a private foundation.

Assist, Inc., a § 501(c)(3) organization, receives the following sources of support during the tax year. Is Assist, Inc., classified as a private foundation?

Which of the following statements regarding a private foundation is not correct?

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 15: Exempt Entities

Match the following statements.

Match the following statements.

Which of the following taxes that are imposed on private foundations is, effectively, an audit fee to defray IRS expenses?

What are the common characteristics of organizations that receive exempt status?

The key factors in determining whether an exempt entity's income from a bingo game is unrelated trade or business income are whether substantially all the work is performed by volunteers and all of the prizes to be awarded are received as donations.

Which requirements must be satisfied for an exempt organization to be classified as an unrelated trade or business? Is being classified as an unrelated trade or business good or bad?

For purposes of the unrelated business income tax, debt-financed property is all property of the exempt organization that is held to produce income and on which there is acquisition indebtedness.

Miracle, Inc., is a § 501(c)(3) organization involved in medical research. Based on its expectation that proposed legislation will adversely affect the funding supporting its mission, Miracle hires a lobbyist to work in Washington to represent its views.

Which of the following are qualified corporate sponsorship payments?

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

Define "trade or business" for purposes of the unrelated business income tax (UBIT).

For purposes of the unrelated business income tax (UBIT), land that is acquired by the exempt organization for later exempt-use is excluded from the definition of debt-financed property if certain requirements are satisfied. Which of the following is not included in the requirements?

If an exempt organization distributes "low-cost items" as an incidental part of its solicitation for charitable contributions, the distribution is not considered an unrelated trade or business.

The excise taxes such as the tax on self-dealing and the tax on excess business holdings are imposed on exempt organizations classified as private foundations and also are imposed on exempt organizations classified as public charities.

Which of the following statements regarding exempt organization filing requirements is incorrect?

An educational organization such as the College of William and Mary that is exempt under § 501(c)(3) cannot be classified as a private foundation.

Assist, Inc., a § 501(c)(3) organization, receives the following sources of support during the tax year. Is Assist, Inc., classified as a private foundation?

Which of the following statements regarding a private foundation is not correct?

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S: Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters