Publication 598 |
2001 Tax Year |
Introduction
An exempt organization is not taxed on its income from an activity
that is substantially related to the charitable, educational, or other
purpose that is the basis for the organization's exemption. Such
income is exempt even if the activity is a trade or business.
However, if an exempt organization regularly carries on a trade or
business that is not substantially related to its exempt purpose,
except that it provides funds to carry out that purpose, the
organization is subject to tax on its income from that unrelated trade
or business.
This publication covers the rules for the tax on unrelated business
income of exempt organizations. It explains:
- Which organizations are subject to the tax (chapter 1),
- What the requirements are for filing a tax return (chapter 2),
- What an unrelated trade or business is (chapter 3),
and
- How to figure unrelated business taxable income (chapter 4).
All section references in this publication are to the Internal
Revenue Code.
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