Question 1

Match the following statements.

-Membership lists

Accepted Answer

A) 	Distribution of such items is not considered an unrelated trade or business if they are "low-cost items". 
B) 	Is considered an unrelated trade or business if the amount received is contingent upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. 
C) 	Is considered an unrelated trade or business if can be conducted by commercial (for-profit) entities. 
D) 	A trade or business that consists of either renting or exchanging these with another exempt organization is not an unrelated trade or business. 
A) 	Distribution of such items is not considered an unrelated trade or business if they are "low-cost items". 
B) 	Is considered an unrelated trade or business if the amount received is contingent upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. 
C) 	Is considered an unrelated trade or business if can be conducted by commercial (for-profit) entities. 
D) 	A trade or business that consists of either renting or exchanging these with another exempt organization is not an unrelated trade or business.

Question 2

George is running for mayor of Culpepper. The members of Third Church adamantly oppose his candidacy. They would like to run a political advertisement in the local newspaper opposing his candidacy. The newspaper ad would have no effect on Third Church's exempt status because the ad opposes George; it does not support his opponent.

Accepted Answer

A) True 
 B)False

Question 3

What is the purpose of the unrelated business income tax?

Accepted Answer

The unrelated business income tax is des

Question 4

A feeder organization is an exempt organization that provides funding for nutritional programs for children.

Accepted Answer

A) True 
 B)False

Question 5

If an exempt organization distributes "low­cost items" as an incidental part of its solicitation for charitable contributions, the distribution is not considered an unrelated trade or business.
a. Under what dollar amount is a distribution no longer a "low-cost item"?
b. Provide examples of low-cost items.

Accepted Answer

a. For 2014, a low-cost item i

Question 6

Federal agencies exempt from Federal income tax under § 501(c)(1) are not subject to the unrelated business income tax (UBIT).

Accepted Answer

A) True 
 B)False

Question 7

Teal, Inc., is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal. Which of the following statements is correct?

Accepted Answer

A)  An excise tax in the form of an initial tax at the rate of 5% may be imposed on Teal. 
B)  An excise tax in the form of an initial tax at the rate of 2.5% may be imposed on the foundation manager. 
C)  An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal. 
D)  An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager. 
E)  None of the statements is correct. 
A)  An excise tax in the form of an initial tax at the rate of 5% may be imposed on Teal. 
B)  An excise tax in the form of an initial tax at the rate of 2.5% may be imposed on the foundation manager. 
C)  An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal. 
D)  An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager. 
E)  None of the statements is correct.

Question 8

Debt-financed property consists of all real property of a tax-exempt organization on which there is a mortgage.

Accepted Answer

A) True 
 B)False

Question 9

Define average acquisition indebtedness with respect to debt-financed property.

Accepted Answer

Average acquisition indebtedness is the

Question 10

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

Accepted Answer

Many organizations that qualify for exem

Question 11

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 12

General requirements for exempt status include the organization serving the common good and the organization being a not-for-profit entity.

Accepted Answer

A) True 
 B)False

Question 13

Match the following statements with the correct description.
a. Exempt organization under § 501(c)(3).
b. May not be subject to Federal income tax.
c. Permits limited lobbying activities.
d. Exempt organization under § 501(c)(7).
e. Carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt organization.
-Exempt organization

Accepted Answer

The answer of Match the following statements with the correct...

Question 14

Unrelated business income is generally that derived from the unrelated trade or business, reduced by the deductions directly connected with the conduct of the unrelated trade or business.

Accepted Answer

The answer of Unrelated business income is generally that derived...

Question 15

Match the following tax forms.

-Form 4720

Accepted Answer

A) 	Return of Private Foundation. 
B) 	Application for Recognition of Exemption under § 501(c)(3). 
C) 	Return of Organization Exempt from Income Tax. 
D) 	Return of Certain Excise Taxes on Charities and Other Persons. 
E) 	Application for Recognition of Exemption under § 501(a).
F)	Application for Extension of Time. 
A) 	Return of Private Foundation. 
B) 	Application for Recognition of Exemption under § 501(c)(3). 
C) 	Return of Organization Exempt from Income Tax. 
D) 	Return of Certain Excise Taxes on Charities and Other Persons. 
E) 	Application for Recognition of Exemption under § 501(a).
F)	Application for Extension of Time.

Question 16

Which of the following is not an example of an exempt organization?

Accepted Answer

A)  Religious, charitable, or educational organization. 
B)  Voluntary employees' beneficiary association. 
C)  Labor, agricultural, or horticultural organization. 
D)  Stock exchange. 
E)  All of the above can be exempt from tax. 
A)  Religious, charitable, or educational organization. 
B)  Voluntary employees' beneficiary association. 
C)  Labor, agricultural, or horticultural organization. 
D)  Stock exchange. 
E)  All of the above can be exempt from tax.

Question 17

Match the following tax forms.

-Form 2758

Accepted Answer

A) 	Return of Private Foundation. 
B) 	Application for Recognition of Exemption under § 501(c)(3). 
C) 	Return of Organization Exempt from Income Tax. 
D) 	Return of Certain Excise Taxes on Charities and Other Persons. 
E) 	Application for Recognition of Exemption under § 501(a).
F)	Application for Extension of Time. 
A) 	Return of Private Foundation. 
B) 	Application for Recognition of Exemption under § 501(c)(3). 
C) 	Return of Organization Exempt from Income Tax. 
D) 	Return of Certain Excise Taxes on Charities and Other Persons. 
E) 	Application for Recognition of Exemption under § 501(a).
F)	Application for Extension of Time.

Question 18

Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?

Accepted Answer

A)  The bingo game is legal under both state and local law. 
B)  The bingo game is conducted by volunteers. 
C)  For-profit bingo games ordinarily are not permitted in the jurisdiction. 
D)  Only a. and b. must be satisfied. 
E)  Only a. and c. must be satisfied. 
A)  The bingo game is legal under both state and local law. 
B)  The bingo game is conducted by volunteers. 
C)  For-profit bingo games ordinarily are not permitted in the jurisdiction. 
D)  Only a. and b. must be satisfied. 
E)  Only a. and c. must be satisfied.

Question 19

If an exempt organization conducts a trade or business that consists of either exchanging or renting to other exempt organizations the organization's donor or membership list, such trade or business is an unrelated trade or business.

Accepted Answer

A) True 
 B)False

Question 20

What are intermediate sanctions and to what types of exempt organizations do they apply?

Accepted Answer

Intermediate sanctions apply to so-calle

Match the following statements. -Membership lists

What is the purpose of the unrelated business income tax?

A feeder organization is an exempt organization that provides funding for nutritional programs for children.

Federal agencies exempt from Federal income tax under § 501(c)(1) are not subject to the unrelated business income tax (UBIT).

Teal, Inc., is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal. Which of the following statements is correct?

Debt-financed property consists of all real property of a tax-exempt organization on which there is a mortgage.

Define average acquisition indebtedness with respect to debt-financed property.

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

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?

General requirements for exempt status include the organization serving the common good and the organization being a not-for-profit entity.

Unrelated business income is generally that derived from the unrelated trade or business, reduced by the deductions directly connected with the conduct of the unrelated trade or business.

Match the following tax forms. -Form 4720

Which of the following is not an example of an exempt organization?

Match the following tax forms. -Form 2758

Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?

If an exempt organization conducts a trade or business that consists of either exchanging or renting to other exempt organizations the organization's donor or membership list, such trade or business is an unrelated trade or business.

What are intermediate sanctions and to what types of exempt organizations do they apply?

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. -Membership lists

What is the purpose of the unrelated business income tax?

A feeder organization is an exempt organization that provides funding for nutritional programs for children.

Federal agencies exempt from Federal income tax under § 501(c)(1) are not subject to the unrelated business income tax (UBIT).

Teal, Inc., is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal. Which of the following statements is correct?

Debt-financed property consists of all real property of a tax-exempt organization on which there is a mortgage.

Define average acquisition indebtedness with respect to debt-financed property.

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

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?

General requirements for exempt status include the organization serving the common good and the organization being a not-for-profit entity.

Unrelated business income is generally that derived from the unrelated trade or business, reduced by the deductions directly connected with the conduct of the unrelated trade or business.

Match the following tax forms. -Form 4720

Which of the following is not an example of an exempt organization?

Match the following tax forms. -Form 2758

Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?

If an exempt organization conducts a trade or business that consists of either exchanging or renting to other exempt organizations the organization's donor or membership list, such trade or business is an unrelated trade or business.

What are intermediate sanctions and to what types of exempt organizations do they apply?

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