Unrelated Business Income Tax
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Your client is a nongovernmental not-for-profit museum that operates a gift shop. Explain the unrelated business income tax to your client and suggest ways to avoid this tax.
© BrainMass Inc. brainmass.com March 7, 2023, 2:44 pm ad1c9bdddfhttps://brainmass.com/business/accounting/unrelated-business-income-tax-539979
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Unrelated business income is income that is derived from a source outside of the main scope of the normal business activities for the nonprofit entity. If the museum was selling raffle tickets for a fundraiser for (insert your cause here), it would be unrelated business income, and the nonprofit entity would be responsible for paying income taxes on the ...
Solution Summary
This solution discusses unrelated business taxes and ways a client may be able to avoid this tax.
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