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Do I Have To File A State Tax Return

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Do I Have To File A State Tax Return

Do i have to file a state tax return 5. Do i have to file a state tax return   Manufacturers Taxes Table of Contents Importer. Do i have to file a state tax return Use considered sale. Do i have to file a state tax return Lease considered sale. Do i have to file a state tax return Bonus goods. Do i have to file a state tax return Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. Do i have to file a state tax return Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. Do i have to file a state tax return CoalExported. Do i have to file a state tax return Taxable TiresQualifying intercity or local bus. Do i have to file a state tax return Qualifying school bus. Do i have to file a state tax return Gas Guzzler TaxVehicles not subject to tax. Do i have to file a state tax return Imported automobiles. Do i have to file a state tax return VaccinesConditions to allowance. Do i have to file a state tax return Taxable Medical Devices The following discussion of manufacturers taxes applies to the tax on: Sport fishing equipment; Fishing rods and fishing poles; Electric outboard motors; Fishing tackle boxes; Bows, quivers, broadheads, and points; Arrow shafts; Coal; Taxable tires; Gas guzzler automobiles; and Vaccines. Do i have to file a state tax return Manufacturer. Do i have to file a state tax return   The term “manufacturer” includes a producer or importer. Do i have to file a state tax return A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. Do i have to file a state tax return If you furnish the materials and keep title to those materials and to the finished article, you are considered the manufacturer even though another person actually manufactures the taxable article. Do i have to file a state tax return   A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. Do i have to file a state tax return The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use. Do i have to file a state tax return Importer. Do i have to file a state tax return   An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States. Do i have to file a state tax return Sale. Do i have to file a state tax return   A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things. Do i have to file a state tax return Use considered sale. Do i have to file a state tax return   A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold. Do i have to file a state tax return Lease considered sale. Do i have to file a state tax return   The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. Do i have to file a state tax return However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale. Do i have to file a state tax return Manufacturers taxes based on sale price. Do i have to file a state tax return   The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. Do i have to file a state tax return The taxes imposed on coal are based either on the sale price or the weight. Do i have to file a state tax return   The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. Do i have to file a state tax return However, you include certain charges made when a taxable article is sold and you exclude others. Do i have to file a state tax return To figure the price on which you base the tax, use the following rules. Do i have to file a state tax return Include both the following charges in the price. Do i have to file a state tax return Any charge for coverings or containers (regardless of their nature). Do i have to file a state tax return Any charge incident to placing the article in a condition packed ready for shipment. Do i have to file a state tax return Exclude all the following amounts from the price. Do i have to file a state tax return The manufacturers excise tax, whether or not it is stated as a separate charge. Do i have to file a state tax return The transportation charges pursuant to the sale. Do i have to file a state tax return The cost of transportation of goods to a warehouse before their bona fide sale is not excludable. Do i have to file a state tax return Delivery, insurance, installation, retail dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale. Do i have to file a state tax return Discounts, rebates, and similar allowances actually granted to the purchaser. Do i have to file a state tax return Local advertising charges. Do i have to file a state tax return A charge made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price. Do i have to file a state tax return Charges for warranty paid at the purchaser's option. Do i have to file a state tax return However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured. Do i have to file a state tax return Bonus goods. Do i have to file a state tax return   Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. Do i have to file a state tax return Figure the tax only on the sale price attributable to the taxable articles. Do i have to file a state tax return Example. Do i have to file a state tax return A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. Do i have to file a state tax return The sale price of the shipment is $1,500. Do i have to file a state tax return The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. Do i have to file a state tax return Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). Do i have to file a state tax return The remaining $375 is allocated to the nontaxable articles. Do i have to file a state tax return Taxable Event Tax attaches when the title to the article sold passes from the manufacturer to the buyer. Do i have to file a state tax return When the title passes depends on the intention of the parties as gathered from the contract of sale. Do i have to file a state tax return In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes. Do i have to file a state tax return If the taxable article is used by the manufacturer, the tax attaches at the time use begins. Do i have to file a state tax return The manufacturer is liable for the tax. Do i have to file a state tax return Partial payments. Do i have to file a state tax return   The tax applies to each partial payment received when taxable articles are: Leased, Sold conditionally, Sold on installment with chattel mortgage, or Sold on installment with title to pass in the future. Do i have to file a state tax return To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment. Do i have to file a state tax return Exemptions The following sales by the manufacturer are exempt from the manufacturers tax. Do i have to file a state tax return Sale of an article to a state or local government for the exclusive use of the state or local government. Do i have to file a state tax return This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Do i have to file a state tax return State is defined in Definitions in chapter 1. Do i have to file a state tax return Sale of an article to a nonprofit educational organization for its exclusive use. Do i have to file a state tax return This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Do i have to file a state tax return Nonprofit educational organization is defined under Communications Tax in chapter 4. Do i have to file a state tax return Sale of an article to a qualified blood collector organization. Do i have to file a state tax return This exemption does not apply to gas guzzlers, recreational equipment, and vaccines. Do i have to file a state tax return Qualified blood collector organizations are defined under Communications Tax in chapter 4. Do i have to file a state tax return Sale of an article for use by the purchaser as supplies for vessels. Do i have to file a state tax return This exemption does not apply to the taxes on coal and vaccines. Do i have to file a state tax return Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade. Do i have to file a state tax return Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. Do i have to file a state tax return This exemption does not apply to the tax on coal and tires. Do i have to file a state tax return Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. Do i have to file a state tax return If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and sold them. Do i have to file a state tax return Sale of an article for export or for resale by the purchaser to a second purchaser for export. Do i have to file a state tax return The article may be exported to a foreign country or to a possession of the United States. Do i have to file a state tax return A vaccine shipped to a possession of the United States is not considered to be exported. Do i have to file a state tax return If an article is sold tax free for export and the manufacturer does not receive proof of export, described later, the manufacturer is liable for the tax. Do i have to file a state tax return Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U. Do i have to file a state tax return S. Do i have to file a state tax return jurisdiction in Alaska. Do i have to file a state tax return For tire exemptions, see section 4221(e)(2). Do i have to file a state tax return Requirements for Exempt Sales The following requirements must be met for a sale to be exempt from the manufacturers tax. Do i have to file a state tax return Registration requirements. Do i have to file a state tax return   The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. Do i have to file a state tax return See the Form 637 instructions for more information. Do i have to file a state tax return Exceptions to registration requirements. Do i have to file a state tax return   Registration is not required for: State or local governments, Foreign purchasers of articles sold or resold for export, The United States, or Parties to a sale of supplies for vessels and aircraft. Do i have to file a state tax return Certification requirement. Do i have to file a state tax return   If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. Do i have to file a state tax return The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale. Do i have to file a state tax return   For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. Do i have to file a state tax return See Regulations section 48. Do i have to file a state tax return 4221-5(c) for the certificate requirements. Do i have to file a state tax return   For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. Do i have to file a state tax return See Regulations section 48. Do i have to file a state tax return 4221-4(d) for the certificate requirements. Do i have to file a state tax return Proof of export requirement. Do i have to file a state tax return   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. Do i have to file a state tax return See Regulations section 48. Do i have to file a state tax return 4221-3(d) for evidence that qualifies as proof of exportation. Do i have to file a state tax return Proof of resale for further manufacture requirement. Do i have to file a state tax return   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. Do i have to file a state tax return See Regulations section 48. Do i have to file a state tax return 4221-2(c) for evidence that qualifies as proof of resale. Do i have to file a state tax return Information to be furnished to purchaser. Do i have to file a state tax return   The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate. Do i have to file a state tax return Credits or Refunds The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. Do i have to file a state tax return The claim must set forth in detail the facts upon which the claim is based. Do i have to file a state tax return Uses, sales, and exports. Do i have to file a state tax return   A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person: Exported, Used or sold for use as supplies for vessels (except for coal and vaccines), Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines), or Used for further manufacture of another article subject to the manufacturers taxes (except for coal). Do i have to file a state tax return Export. Do i have to file a state tax return   If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. Do i have to file a state tax return In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund. Do i have to file a state tax return Price readjustments. Do i have to file a state tax return   In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price. Do i have to file a state tax return Conditions to allowance. Do i have to file a state tax return   To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. Do i have to file a state tax return The claimant sold the article at a tax-excluded price. Do i have to file a state tax return The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article. Do i have to file a state tax return The person has obtained the written consent of the ultimate vendor to make the claim. Do i have to file a state tax return The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax. Do i have to file a state tax return Claim for further manufacture. Do i have to file a state tax return   To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following. Do i have to file a state tax return The name and address of the manufacturer and the date of payment. Do i have to file a state tax return An identification of the article for which the credit or refund is claimed. Do i have to file a state tax return The amount of tax paid on the article and the date on which it was paid. Do i have to file a state tax return Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of a second article manufactured or produced by the manufacturer. Do i have to file a state tax return An identification of the second article. Do i have to file a state tax return   For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. Do i have to file a state tax return The statement must include the amount of tax paid, the date of payment, and the office to which it was paid. Do i have to file a state tax return Claim for price readjustment. Do i have to file a state tax return   To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following. Do i have to file a state tax return A description of the circumstances that gave rise to the price readjustment. Do i have to file a state tax return An identification of the article whose price was readjusted. Do i have to file a state tax return The price at which the article was sold. Do i have to file a state tax return The amount of tax paid on the article and the date on which it was paid. Do i have to file a state tax return The name and address of the purchaser. Do i have to file a state tax return The amount repaid to the purchaser or credited to the purchaser's account. Do i have to file a state tax return Sport Fishing Equipment A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. Do i have to file a state tax return This includes any parts or accessories sold on or in connection with the sale of those articles. Do i have to file a state tax return Pay this tax with Form 720. Do i have to file a state tax return No tax deposits are required. Do i have to file a state tax return Sport fishing equipment includes all the following items. Do i have to file a state tax return Fishing rods and poles (and component parts), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips. Do i have to file a state tax return Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)). Do i have to file a state tax return The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies. Do i have to file a state tax return Fishing tip-ups and tilts. Do i have to file a state tax return Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers. Do i have to file a state tax return See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment. Do i have to file a state tax return Fishing rods and fishing poles. Do i have to file a state tax return   The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. Do i have to file a state tax return The tax is paid by the manufacturer, producer, or importer. Do i have to file a state tax return Fishing tackle boxes. Do i have to file a state tax return   The tax on fishing tackle boxes is 3% of the sales price. Do i have to file a state tax return The tax is paid by the manufacturer, producer, or importer. Do i have to file a state tax return Electric outboard boat motors. Do i have to file a state tax return   A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. Do i have to file a state tax return This includes any parts or accessories sold on or in connection with the sale of those articles. Do i have to file a state tax return Certain equipment resale. Do i have to file a state tax return   The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. Do i have to file a state tax return If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. Do i have to file a state tax return If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. Do i have to file a state tax return The second tax, however, is not imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. Do i have to file a state tax return   If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. Do i have to file a state tax return The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax. Do i have to file a state tax return Related person. Do i have to file a state tax return   For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C). Do i have to file a state tax return Bows, Quivers, Broadheads, and Points The tax on bows is 11% (. Do i have to file a state tax return 11) of the sales price. Do i have to file a state tax return The tax is paid by the manufacturer, producer, or importer. Do i have to file a state tax return It applies to bows having a peak draw weight of 30 pounds or more. Do i have to file a state tax return The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below. Do i have to file a state tax return Pay this tax with Form 720. Do i have to file a state tax return No tax deposits are required. Do i have to file a state tax return Arrow Shafts The tax on arrow shafts is listed on Form 720. Do i have to file a state tax return The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions. Do i have to file a state tax return It measures 18 inches or more in overall length. Do i have to file a state tax return It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier. Do i have to file a state tax return Exemption for certain wooden arrows. Do i have to file a state tax return   After October 3, 2008, the tax does not apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions. Do i have to file a state tax return It measures 5/16 of an inch or less in diameter. Do i have to file a state tax return It is not suitable for use with a taxable bow, described earlier. Do i have to file a state tax return Pay this tax with Form 720. Do i have to file a state tax return No tax deposits are required. Do i have to file a state tax return Coal A tax is imposed on the first sale of coal mined in the United States. Do i have to file a state tax return The producer of the coal is liable for the tax. Do i have to file a state tax return The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. Do i have to file a state tax return Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. Do i have to file a state tax return A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal). Do i have to file a state tax return The tax is not imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously. Do i have to file a state tax return Tax rates. Do i have to file a state tax return   The tax on underground-mined coal is the lower of: $1. Do i have to file a state tax return 10 a ton, or 4. Do i have to file a state tax return 4% of the sale price. Do i have to file a state tax return   The tax on surface-mined coal is the lower of: 55 cents a ton, or 4. Do i have to file a state tax return 4% of the sale price. Do i have to file a state tax return   Coal will be taxed at the 4. Do i have to file a state tax return 4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12. Do i have to file a state tax return 50 a ton for surface-mined coal. Do i have to file a state tax return Apply the tax proportionately if a sale or use includes a portion of a ton. Do i have to file a state tax return Example. Do i have to file a state tax return If you sell 21,000 pounds (10. Do i have to file a state tax return 5 tons) of coal from an underground mine for $525, the price per ton is $50. Do i have to file a state tax return The tax is $1. Do i have to file a state tax return 10 × 10. Do i have to file a state tax return 5 tons ($11. Do i have to file a state tax return 55). Do i have to file a state tax return Coal production. Do i have to file a state tax return   Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. Do i have to file a state tax return Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine. Do i have to file a state tax return   Treat coal as produced from an underground mine when the coal is not produced from a surface mine. Do i have to file a state tax return In some cases, a single mine may yield coal from both surface mining and underground mining. Do i have to file a state tax return Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis. Do i have to file a state tax return Determining tonnage or selling price. Do i have to file a state tax return   The producer pays the tax on coal at the time of sale or use. Do i have to file a state tax return In figuring the selling price for applying the tax, the point of sale is f. Do i have to file a state tax return o. Do i have to file a state tax return b. Do i have to file a state tax return (free on board) mine or f. Do i have to file a state tax return o. Do i have to file a state tax return b. Do i have to file a state tax return cleaning plant if you clean the coal before selling it. Do i have to file a state tax return This applies even if you sell the coal for a delivered price. Do i have to file a state tax return The f. Do i have to file a state tax return o. Do i have to file a state tax return b. Do i have to file a state tax return mine or f. Do i have to file a state tax return o. Do i have to file a state tax return b. Do i have to file a state tax return cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4. Do i have to file a state tax return 4% rate. Do i have to file a state tax return   The tax applies to the full amount of coal sold. Do i have to file a state tax return However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. Do i have to file a state tax return Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax. Do i have to file a state tax return   Do not include in the sales price the excise tax imposed on coal. Do i have to file a state tax return Coal used by the producer. Do i have to file a state tax return   The tax on coal applies if the coal is used by the producer in other than a mining process. Do i have to file a state tax return A mining process means the same for this purpose as for percentage depletion. Do i have to file a state tax return For example, the tax does not apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. Do i have to file a state tax return In this case, the tax applies only when you sell the coal. Do i have to file a state tax return The tax does not apply to coal used as fuel in the coal drying process since it is considered to be used in a mining process. Do i have to file a state tax return However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal is not used in a mining process. Do i have to file a state tax return   You must use a constructive sale price to figure the tax under the 4. Do i have to file a state tax return 4% rate if you use the coal in other than a mining process. Do i have to file a state tax return Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f. Do i have to file a state tax return o. Do i have to file a state tax return b. Do i have to file a state tax return mine or cleaning plant. Do i have to file a state tax return Normally, you use the same constructive price used to figure your percentage depletion deduction. Do i have to file a state tax return Blending. Do i have to file a state tax return   If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. Do i have to file a state tax return Figure the tax separately for each type of coal in the blend. Do i have to file a state tax return Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. Do i have to file a state tax return Base the tax on the ratio of each type originally put into the cleaning process if you cannot determine the proportion of each type of coal in the blend. Do i have to file a state tax return However, the tax is limited to 4. Do i have to file a state tax return 4% of the sale price per ton of the blended coal. Do i have to file a state tax return Exemption from tax. Do i have to file a state tax return   The tax does not apply to sales of lignite and imported coal. Do i have to file a state tax return The only other exemption from the tax on the sale of coal is for coal exported as discussed next. Do i have to file a state tax return Exported. Do i have to file a state tax return   The tax does not apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported. Do i have to file a state tax return   Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. Do i have to file a state tax return For example, coal is in the stream of export when: The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country. Do i have to file a state tax return   Proof of export includes any of the following items. Do i have to file a state tax return A copy of the export bill of lading issued by the delivering carrier. Do i have to file a state tax return A certificate signed by the export carrier's agent or representative showing actual exportation of the coal. Do i have to file a state tax return A certificate of landing signed by a customs officer of the foreign country to which the coal is exported. Do i have to file a state tax return If the foreign country does not have a customs administrator, a statement of the foreign consignee showing receipt of the coal. Do i have to file a state tax return Taxable Tires Taxable tires are divided into three categories for reporting and figuring the tax as described below. Do i have to file a state tax return A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $. Do i have to file a state tax return 0945 ($. Do i have to file a state tax return 04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Do i have to file a state tax return The three categories for reporting the tax and the tax rate are listed below. Do i have to file a state tax return Taxable tires other than biasply or super single tires at $. Do i have to file a state tax return 0945. Do i have to file a state tax return Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $. Do i have to file a state tax return 04725. Do i have to file a state tax return Taxable tires, super single tires designed for steering at $. Do i have to file a state tax return 0945. Do i have to file a state tax return A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. Do i have to file a state tax return A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. Do i have to file a state tax return A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Do i have to file a state tax return Special rule, manufacturer's retail stores. Do i have to file a state tax return   The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale. Do i have to file a state tax return Tires on imported articles. Do i have to file a state tax return   The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires). Do i have to file a state tax return Tires exempt from tax. Do i have to file a state tax return   The tax on taxable tires does not apply to the following items. Do i have to file a state tax return Domestically recapped or retreaded tires if the tires have been sold previously in the United States and were taxable tires at the time of sale. Do i have to file a state tax return Tire carcasses not suitable for commercial use. Do i have to file a state tax return Tires for use on qualifying intercity, local, and school buses. Do i have to file a state tax return For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales apply. Do i have to file a state tax return Tires sold for the exclusive use of the Department of Defense or the Coast Guard. Do i have to file a state tax return Tires of a type used exclusively on mobile machinery. Do i have to file a state tax return A taxable tire used on mobile machinery is not exempt from tax. Do i have to file a state tax return Qualifying intercity or local bus. Do i have to file a state tax return   This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver). Do i have to file a state tax return Qualifying school bus. Do i have to file a state tax return   This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools. Do i have to file a state tax return Credit or refund. Do i have to file a state tax return   A credit or refund (without interest) is allowable on tax-paid tires if the tires have been: Exported; Sold to a state or local government for its exclusive use; Sold to a nonprofit educational organization for its exclusive use (as defined under Communications Tax in chapter 4); Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood; Used or sold for use as supplies for vessels; or Sold in connection with qualified intercity, local, or school buses. Do i have to file a state tax return   Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above. Do i have to file a state tax return   The person who paid the tax is eligible to make the claim. Do i have to file a state tax return Gas Guzzler Tax Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22. Do i have to file a state tax return 5 miles per gallon. Do i have to file a state tax return If you import an automobile for personal use, you may be liable for this tax. Do i have to file a state tax return Figure the tax on Form 6197, as discussed later. Do i have to file a state tax return The tax rate is based on fuel economy rating. Do i have to file a state tax return The tax rates for the gas guzzler tax are shown on Form 6197. Do i have to file a state tax return A person that lengthens an existing automobile is the manufacturer of an automobile. Do i have to file a state tax return Automobiles. Do i have to file a state tax return   An automobile (including limousines) means any four-wheeled vehicle that is: Rated at an unloaded gross vehicle weight of 6,000 pounds or less, Propelled by an engine powered by gasoline or diesel fuel, and Intended for use mainly on public streets, roads, and highways. Do i have to file a state tax return Vehicles not subject to tax. Do i have to file a state tax return   For the gas guzzler tax, the following vehicles are not considered automobiles. Do i have to file a state tax return Limousines with a gross unloaded vehicle weight of more than 6,000 pounds. Do i have to file a state tax return Vehicles operated exclusively on a rail or rails. Do i have to file a state tax return Vehicles sold for use and used primarily: As ambulances or combination ambulance-hearses, For police or other law enforcement purposes by federal, state, or local governments, or For firefighting purposes. Do i have to file a state tax return Vehicles treated under 49 U. Do i have to file a state tax return S. Do i have to file a state tax return C. Do i have to file a state tax return 32901 (1978) as non-passenger automobiles. Do i have to file a state tax return This includes limousines manufactured primarily to transport more than 10 persons. Do i have to file a state tax return   The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered. Do i have to file a state tax return   Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function. Do i have to file a state tax return Model type. Do i have to file a state tax return   Model type is a particular class of automobile as determined by EPA regulations. Do i have to file a state tax return Fuel economy. Do i have to file a state tax return   Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0. Do i have to file a state tax return 1 mile as figured by the EPA. Do i have to file a state tax return Imported automobiles. Do i have to file a state tax return   The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. Do i have to file a state tax return An automobile imported into the United States without a certificate of conformity to United States emission standards and that has no assigned fuel economy rating must be either: Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or Modified by installation of emission control components and individually tested to demonstrate emission compliance. Do i have to file a state tax return   An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile. Do i have to file a state tax return   A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. Do i have to file a state tax return A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category). Do i have to file a state tax return   For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1. Do i have to file a state tax return Exemptions. Do i have to file a state tax return   No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. Do i have to file a state tax return However, see Vehicles not subject to tax, earlier. Do i have to file a state tax return Form 6197. Do i have to file a state tax return   Use Form 6197 to figure your tax liability for each quarter. Do i have to file a state tax return Attach Form 6197 to your Form 720 for the quarter. Do i have to file a state tax return See the Form 6197 instructions for more information and the one-time filing rules. Do i have to file a state tax return Credit or refund. Do i have to file a state tax return   If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. Do i have to file a state tax return For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Do i have to file a state tax return Vaccines Tax is imposed on certain vaccines sold by the manufacturer in the United States. Do i have to file a state tax return A taxable vaccine means any of the following vaccines. Do i have to file a state tax return Any vaccine containing diphtheria toxoid. Do i have to file a state tax return Any vaccine containing tetanus toxoid. Do i have to file a state tax return Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. Do i have to file a state tax return Any vaccine containing polio virus. Do i have to file a state tax return Any vaccine against measles. Do i have to file a state tax return Any vaccine against mumps. Do i have to file a state tax return Any vaccine against rubella. Do i have to file a state tax return Any vaccine against hepatitis A. Do i have to file a state tax return Any vaccine against hepatitis B. Do i have to file a state tax return Any vaccine against chicken pox. Do i have to file a state tax return Any vaccine against rotavirus gastroenteritis. Do i have to file a state tax return Any HIB vaccine. Do i have to file a state tax return Any conjugate vaccine against streptococcus pneumoniae. Do i have to file a state tax return Any trivalent vaccine against influenza or any other vaccine against influenza. Do i have to file a state tax return Any meningococcal vaccine. Do i have to file a state tax return Any vaccine against the human papillomavirus. Do i have to file a state tax return The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund. Do i have to file a state tax return The tax is $. Do i have to file a state tax return 75 per dose of each taxable vaccine. Do i have to file a state tax return The tax per dose on a vaccine that contains more than one taxable vaccine is $. Do i have to file a state tax return 75 times the number of taxable vaccines. Do i have to file a state tax return Taxable use. Do i have to file a state tax return   Any manufacturer (including a governmental entity) that uses a taxable vaccine before it is sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer. Do i have to file a state tax return Credit or refund. Do i have to file a state tax return   A credit or refund (without interest) is available if the vaccine is: Returned to the person who paid the tax (other than for resale), or Destroyed. Do i have to file a state tax return The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed. Do i have to file a state tax return Conditions to allowance. Do i have to file a state tax return   To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund. Do i have to file a state tax return Taxable Medical Devices Taxable medical devices. Do i have to file a state tax return   The tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device is 2. Do i have to file a state tax return 3% (. Do i have to file a state tax return 023) of the sales price. Do i have to file a state tax return A taxable medical device is a device that is listed as a device with the Food and Drug Administration (FDA) under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, pursuant to FDA requirements. Do i have to file a state tax return There are specific exemptions for eyeglasses, contact lenses, and hearing aids. Do i have to file a state tax return There is also an exemption for devices that are determined by the Secretary to be of a type that are generally purchased by the general public at retail for individual use (this exemption is known as the retail exemption). Do i have to file a state tax return See T. Do i have to file a state tax return D. Do i have to file a state tax return 9604 for information on how to determine whether a device falls within the retail exemption, and examples of how a taxpayer might evaluate a given device. Do i have to file a state tax return More information. Do i have to file a state tax return   For more information on the medical device tax, see section 4191, T. Do i have to file a state tax return D. Do i have to file a state tax return 9604, and Notice 2012-77. Do i have to file a state tax return You can find T. Do i have to file a state tax return D. Do i have to file a state tax return 9604 and Notice 2012-77 on pages 730 and 781, respectively, of I. Do i have to file a state tax return R. Do i have to file a state tax return B. Do i have to file a state tax return 2012-52 at www. Do i have to file a state tax return irs. Do i have to file a state tax return gov/pub/irs-irbs/irb12-52. 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The Do I Have To File A State Tax Return

Do i have to file a state tax return 4. Do i have to file a state tax return   Unrelated Business Taxable Income Table of Contents IncomeExclusions Dues of Agricultural Organizations and Business Leagues DeductionsDirectly Connected Exploitation of Exempt Activity—Advertising Sales Modifications Partnership Income or Loss S Corporation Income or Loss Special Rules for Foreign Organizations Special Rules for Social Clubs, VEBAs, SUBs, and GLSOsIncome that is set aside. Do i have to file a state tax return Special Rules for Veterans' Organizations Income From Controlled OrganizationsAddition to tax for valuation misstatements. Do i have to file a state tax return Net unrelated income. Do i have to file a state tax return Net unrelated loss. Do i have to file a state tax return Control. Do i have to file a state tax return Income from property financed with qualified 501(c)(3) bonds. Do i have to file a state tax return Disposition of property received from taxable subsidiary and used in unrelated business. Do i have to file a state tax return Income From Debt-Financed Property Debt-Financed PropertyAcquisition Indebtedness Computation of Debt-Financed Income Deductions for Debt-Financed Property Allocation Rules How to Get Tax Help The term “unrelated business taxable income” generally means the gross income derived from any unrelated trade or business regularly conducted by the exempt organization, less the deductions directly connected with carrying on the trade or business. Do i have to file a state tax return If an organization regularly carries on two or more unrelated business activities, its unrelated business taxable income is the total of gross income from all such activities less the total allowable deductions attributable to all the activities. Do i have to file a state tax return In computing unrelated business taxable income, gross income and deductions are subject to the modifications and special rules explained in this chapter. Do i have to file a state tax return Whether a particular item of income or expense falls within any of these modifications or special rules must be determined by all the facts and circumstances in each specific case. Do i have to file a state tax return For example, if the organization received a payment termed rent that is in fact a return of profits by a person operating the property for the benefit of the organization, or that is a share of the profits retained by the organization as a partner or joint venturer, the payment is not within the income exclusion for rents, discussed later under Exclusions. Do i have to file a state tax return Income Generally, unrelated business income is taxable, but there are exclusions and special rules that must be considered when figuring the income. Do i have to file a state tax return Exclusions The following types of income (and deductions directly connected with the income) are generally excluded when figuring unrelated business taxable income. Do i have to file a state tax return Dividends, interest, annuities and other investment income. Do i have to file a state tax return   All dividends, interest, annuities, payments with respect to securities loans, income from notional principal contracts, and other income from an exempt organization's ordinary and routine investments that the IRS determines are substantially similar to these types of income are excluded in computing unrelated business taxable income. Do i have to file a state tax return Exception for insurance activity income of a controlled foreign corporation. Do i have to file a state tax return   This exclusion does not apply to income from certain insurance activities of an exempt organization's controlled foreign corporation. Do i have to file a state tax return The income is not excludable dividend income, but instead is unrelated business taxable income to the extent it would be so treated if the exempt organization had earned it directly. Do i have to file a state tax return Certain exceptions to this rule apply. Do i have to file a state tax return For more information, see section 512(b)(17). Do i have to file a state tax return Other exceptions. Do i have to file a state tax return   This exclusion does not apply to unrelated debt-financed income (discussed under Income From Debt-Financed Property, later), to interest or annuities received from a controlled corporation (discussed under Income From Controlled Organizations, later). Do i have to file a state tax return Income from lending securities. Do i have to file a state tax return   Payments received with respect to a security loan are excluded in computing unrelated business taxable income only if the loan is made under an agreement that:    Provides for the return to the exempt organization of securities identical to the securities loaned, Requires payments to the organization of amounts equivalent to all interest, dividends, and other distributions that the owner of the securities is entitled to receive during the period of the loan, Does not reduce the organization's risk of loss or opportunity for gain on the securities, Contains reasonable procedures to implement the obligation of the borrower to furnish collateral to the organization with a fair market value each business day during the period of the loan in an amount not less than the fair market value of the securities at the close of the preceding business day, and Permits the organization to terminate the loan upon notice of not more than 5 business days. Do i have to file a state tax return   Payments with respect to securities loans include: Amounts in respect of dividends, interest, and other distributions, Fees based on the period of time the loan is in effect and the fair market value of the security during that period, Income from collateral security for the loan, and Income from the investment of collateral security. Do i have to file a state tax return The payments are considered to be from the securities loaned and not from collateral security or the investment of collateral security from the loans. Do i have to file a state tax return Any deductions that are directly connected with collateral security for the loan, or with the investment of collateral security, are considered deductions that are directly connected with the securities loaned. Do i have to file a state tax return Royalties. Do i have to file a state tax return   Royalties, including overriding royalties, are excluded in computing unrelated business taxable income. Do i have to file a state tax return   To be considered a royalty, a payment must relate to the use of a valuable right. Do i have to file a state tax return Payments for trademarks, trade names, or copyrights are ordinarily considered royalties. Do i have to file a state tax return Similarly, payments for the use of a professional athlete's name, photograph, likeness, or facsimile signature are ordinarily considered royalties. Do i have to file a state tax return However, royalties do not include payments for personal services. Do i have to file a state tax return Therefore, payments for personal appearances and interviews are not excluded as royalties and must be included in figuring unrelated business taxable income. Do i have to file a state tax return   Unrelated business taxable income does not include royalty income received from licensees by an exempt organization that is the legal and beneficial owner of patents assigned to it by inventors for specified percentages of future royalties. Do i have to file a state tax return   Mineral royalties are excluded whether measured by production or by gross or taxable income from the mineral property. Do i have to file a state tax return However, the exclusion does not apply to royalties that stem from an arrangement whereby the organization owns a working interest in a mineral property and is liable for its share of the development and operating costs under the terms of its agreement with the operator of the property. Do i have to file a state tax return To the extent they are not treated as loans under section 636 (relating to income tax treatment of mineral production payments), payments for mineral production are treated in the same manner as royalty payments for the purpose of computing unrelated business taxable income. Do i have to file a state tax return To the extent they are treated as loans, any payments for production that are the equivalent of interest are treated as interest and are excluded. Do i have to file a state tax return Exceptions. Do i have to file a state tax return   This exclusion does not apply to debt-financed income (discussed under Income From Debt-Financed Property, later) or to royalties received from a controlled corporation (discussed under Income From Controlled Organizations, later). Do i have to file a state tax return Rents. Do i have to file a state tax return   Rents from real property, including elevators and escalators, are excluded in computing unrelated business taxable income. Do i have to file a state tax return Rents from personal property are not excluded. Do i have to file a state tax return However, special rules apply to “mixed leases” of both real and personal property. Do i have to file a state tax return Mixed leases. Do i have to file a state tax return   In a mixed lease, all of the rents are excluded if the rents attributable to the personal property are not more than 10% of the total rents under the lease, as determined when the personal property is first placed in service by the lessee. Do i have to file a state tax return If the rents attributable to personal property are more than 10% but not more than 50% of the total rents, only the rents attributable to the real property are excluded. Do i have to file a state tax return If the rents attributable to the personal property are more than 50% of the total rents, none of the rents are excludable. Do i have to file a state tax return   Property is placed in service when the lessee first may use it under the terms of a lease. Do i have to file a state tax return For example, property subject to a lease entered into on November 1, for a term starting on January 1 of the next year, is considered placed in service on January 1, regardless of when the lessee first actually uses it. Do i have to file a state tax return   If separate leases are entered into for real and personal property and the properties have an integrated use (for example, one or more leases for real property and another lease or leases for personal property to be used on the real property), all the leases will be considered as one lease. Do i have to file a state tax return   The rent attributable to the personal property must be recomputed, and the treatment of the rents must be redetermined, if: The rent attributable to all the leased personal property increases by 100% or more because additional or substitute personal property is placed in service, or The lease is modified to change the rent charged (whether or not the amount of rented personal property changes). Do i have to file a state tax return Any change in the treatment of rents resulting from the recomputation is effective only for the period beginning with the event that caused the recomputation. Do i have to file a state tax return Exception for rents based on net profit. Do i have to file a state tax return   The exclusion for rents does not apply if the amount of the rent depends on the income or profits derived by any person from the leased property, other than an amount based on a fixed percentage of the gross receipts or sales. Do i have to file a state tax return Exception for income from personal services. Do i have to file a state tax return   Payment for occupying space when personal services are also rendered to the occupant does not constitute rent from real property. Do i have to file a state tax return Therefore, the exclusion does not apply to transactions such as renting hotel rooms, rooms in boarding houses or tourist homes, and space in parking lots or warehouses. Do i have to file a state tax return Other exceptions. Do i have to file a state tax return   This exclusion does not apply to unrelated debt-financed income (discussed under Income From Debt-Financed Property, later), or to interest, annuities, royalties and rents received from a controlled corporation (discussed under Income From Controlled Organizations, later), investment income (dividends, interest, rents, etc. Do i have to file a state tax return ) received by organizations described in sections 501(c)(7), 501(c)(9), 501(c)(17), and 501(c)(20). Do i have to file a state tax return See Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs, discussed later for more information. Do i have to file a state tax return Income from research. Do i have to file a state tax return   A tax-exempt organization may exclude income from research grants or contracts from unrelated business taxable income. Do i have to file a state tax return However, the extent of the exclusion depends on the nature of the organization and the type of research. Do i have to file a state tax return   Income from research for the United States, any of its agencies or instrumentalities, or a state or any of its political subdivisions is excluded when computing unrelated business taxable income. Do i have to file a state tax return   For a college, university, or hospital, all income from research, whether fundamental or applied, is excluded in computing unrelated business taxable income. Do i have to file a state tax return   When an organization is operated primarily to conduct fundamental research (as distinguished from applied research) and the results are freely available to the general public, all income from research performed for any person is excluded in computing unrelated business taxable income. Do i have to file a state tax return   The term research, for this purpose, does not include activities of a type normally conducted as an incident to commercial or industrial operations, such as testing or inspecting materials or products, or designing or constructing equipment, buildings, etc. Do i have to file a state tax return In addition, the term fundamental research does not include research conducted for the primary purpose of commercial or industrial application. Do i have to file a state tax return Gains and losses from disposition of property. Do i have to file a state tax return   Also excluded from unrelated business taxable income are gains or losses from the sale, exchange, or other disposition of property other than: Stock in trade or other property of a kind that would properly be includable in inventory if on hand at the close of the tax year, Property held primarily for sale to customers in the ordinary course of a trade or business, or Cutting of timber that an organization has elected to consider as a sale or exchange of the timber. Do i have to file a state tax return   It should be noted that the last exception relates only to cut timber. Do i have to file a state tax return The sale, exchange, or other disposition of standing timber is excluded from the computation of unrelated business income, unless it constitutes property held for sale to customers in the ordinary course of business. Do i have to file a state tax return Lapse or termination of options. Do i have to file a state tax return   Any gain from the lapse or termination of options to buy or sell securities is excluded from unrelated business taxable income. Do i have to file a state tax return The exclusion applies only if the option is written in connection with the exempt organization's investment activities. Do i have to file a state tax return Therefore, this exclusion is not available if the organization is engaged in the trade or business of writing options or the options are held by the organization as inventory or for sale to customers in the ordinary course of a trade or business. Do i have to file a state tax return Exception. Do i have to file a state tax return   This exclusion does not apply to unrelated debt-financed income, discussed later under Income From Debt-Financed Property. Do i have to file a state tax return Gain or loss on disposition of certain brownfield property. Do i have to file a state tax return   Gain or loss from the qualifying sale, exchange, or other disposition of a qualifying brownfield property (as defined in section 512(b)(19)(C)), which was acquired by the organization after December 31, 2005 and before January 1, 2011, is excluded from unrelated business taxable income and is excepted from the debt-financed rules for such property. Do i have to file a state tax return See sections 512(b)(19) and 514(b)(1)(E). Do i have to file a state tax return Income from services provided under federal license. Do i have to file a state tax return   There is a further exclusion from unrelated business taxable income of income from a trade or business conducted by a religious order or by an educational organization maintained by the order. Do i have to file a state tax return   This exclusion applies only if the following requirements are met. Do i have to file a state tax return The trade or business must have been operated by the order or by the institution before May 27, 1959. Do i have to file a state tax return The trade or business must provide services under a license issued by a federal regulatory agency. Do i have to file a state tax return More than 90% of the net income from the business for the tax year must be devoted to religious, charitable, or educational purposes that constitute the basis for the religious order's exemption. Do i have to file a state tax return The rates or other charges for these services must be fully competitive with the rates or other charges of similar taxable businesses. Do i have to file a state tax return Rates or other charges for these services will be considered as fully competitive if they are neither materially higher nor materially lower than the rates charged by similar businesses operating in the same general area. Do i have to file a state tax return Exception. Do i have to file a state tax return    This exclusion does not apply to unrelated debt-financed income (discussed under Income From Debt-Financed Property, later). Do i have to file a state tax return Member income of mutual or cooperative electric companies. Do i have to file a state tax return   Income of a mutual or cooperative electric company described in section 501(c)(12) which is treated as member income under subparagraph (H) of that section is excluded from unrelated business taxable income. Do i have to file a state tax return Dues of Agricultural Organizations and Business Leagues Dues received from associate members by organizations exempt under section 501(c)(5) or section 501(c)(6) may be treated as gross income from an unrelated trade or business if the associate member category exists for the principal purpose of producing unrelated business income. Do i have to file a state tax return For example, if an organization creates an associate member category solely to allow associate members to purchase insurance through the organization, the associate member dues may be unrelated business income. Do i have to file a state tax return Exception. Do i have to file a state tax return   Associate member dues received by an agricultural or horticultural organization are not treated as gross income from an unrelated trade or business, regardless of their purpose, if they are not more than the annual limit. Do i have to file a state tax return The limit on dues paid by an associate member is $148 for 2011. Do i have to file a state tax return   If the required annual dues are more than the limit, the entire amount is treated as income from an unrelated business unless the associate member category was formed or availed of for the principal purpose of furthering the organization's exempt purposes. Do i have to file a state tax return Deductions To qualify as allowable deductions in computing unrelated business taxable income, the expenses, depreciation, and similar items generally must be allowable income tax deductions that are directly connected with carrying on an unrelated trade or business. Do i have to file a state tax return They cannot be directly connected with excluded income. Do i have to file a state tax return For an exception to the “directly connected” requirement, see Charitable contributions deduction, under Modifications, later. Do i have to file a state tax return Directly Connected To be directly connected with the conduct of an unrelated business, deductions must have a proximate and primary relationship to carrying on that business. Do i have to file a state tax return For an exception, see Expenses attributable to exploitation of exempt activities, later. Do i have to file a state tax return Expenses attributable solely to unrelated business. Do i have to file a state tax return   Expenses, depreciation, and similar items attributable solely to the conduct of an unrelated business are proximately and primarily related to that business and qualify for deduction to the extent that they are otherwise allowable income tax deductions. Do i have to file a state tax return   For example, salaries of personnel employed full-time to conduct the unrelated business and depreciation of a building used entirely in the conduct of that business are deductible to the extent otherwise allowable. Do i have to file a state tax return Expenses attributable to dual use of facilities or personnel. Do i have to file a state tax return   When facilities or personnel are used both to conduct exempt functions and to conduct an unrelated trade or business, expenses, depreciation, and similar items attributable to the facilities or personnel must be allocated between the two uses on a reasonable basis. Do i have to file a state tax return The part of an item allocated to the unrelated trade or business is proximately and primarily related to that business and is allowable as a deduction in computing unrelated business taxable income if the expense is otherwise an allowable income tax deduction. Do i have to file a state tax return Example 1. Do i have to file a state tax return A school recognized as a tax-exempt organization contracts with an individual to conduct a summer tennis camp. Do i have to file a state tax return The school provides the tennis courts, housing, and dining facilities. Do i have to file a state tax return The contracted individual hires the instructors, recruits campers, and provides supervision. Do i have to file a state tax return The income the school receives from this activity is from a dual use of the facilities and personnel. Do i have to file a state tax return The school, in computing its unrelated business taxable income, may deduct an allocable part of the expenses attributable to the facilities and personnel. Do i have to file a state tax return Example 2. Do i have to file a state tax return An exempt organization with gross income from an unrelated trade or business pays its president $90,000 a year. Do i have to file a state tax return The president devotes approximately 10% of his time to the unrelated business. Do i have to file a state tax return To figure the organization's unrelated business taxable income, a deduction of $9,000 ($90,000 × 10%) is allowed for the salary paid to its president. Do i have to file a state tax return Expenses attributable to exploitation of exempt activities. Do i have to file a state tax return   Generally, expenses, depreciation, and similar items attributable to the conduct of an exempt activity are not deductible in computing unrelated business taxable income from an unrelated trade or business that exploits the exempt activity. Do i have to file a state tax return (See Exploitation of exempt functions under Not substantially related in chapter 3. Do i have to file a state tax return ) This is because they do not have a proximate and primary relationship to the unrelated trade or business, and therefore, they do not qualify as directly connected with that business. Do i have to file a state tax return Exception. Do i have to file a state tax return   Expenses, depreciation, and similar items may be treated as directly connected with the conduct of the unrelated business if all the following statements are true. Do i have to file a state tax return The unrelated business exploits the exempt activity. Do i have to file a state tax return The unrelated business is a type normally conducted for profit by taxable organizations. Do i have to file a state tax return The exempt activity is a type normally conducted by taxable organizations in carrying on that type of business. Do i have to file a state tax return The amount treated as directly connected is the smaller of: The excess of these expenses, depreciation, and similar items over the income from, or attributable to, the exempt activity; or The gross unrelated business income reduced by all other expenses, depreciation, and other items that are actually directly connected. Do i have to file a state tax return   The application of these rules to an advertising activity that exploits an exempt publishing activity is explained next. Do i have to file a state tax return Exploitation of Exempt Activity—Advertising Sales The sale of advertising in a periodical of an exempt organization that contains editorial material related to the accomplishment of the organization's exempt purpose is an unrelated business that exploits an exempt activity, the circulation and readership of the periodical. Do i have to file a state tax return Therefore, in addition to direct advertising costs, exempt activity costs (expenses, depreciation, and similar expenses attributable to the production and distribution of the editorial or readership content) can be treated as directly connected with the conduct of the advertising activity. Do i have to file a state tax return (See Expenses attributable to exploitation of exempt activities under Directly Connected, earlier. Do i have to file a state tax return ) Figuring unrelated business taxable income (UBTI). Do i have to file a state tax return   The UBTI of an advertising activity is the amount shown in the following chart. Do i have to file a state tax return IF gross advertising income is . Do i have to file a state tax return . Do i have to file a state tax return . Do i have to file a state tax return THEN UBTI is . Do i have to file a state tax return . Do i have to file a state tax return . Do i have to file a state tax return More than direct advertising costs The excess advertising income, reduced (but not below zero) by the excess, if any, of readership costs over circulation income. Do i have to file a state tax return Equal to or less than direct advertising costs Zero. Do i have to file a state tax return   • Circulation income and readership costs are not taken into account. Do i have to file a state tax return   • Any excess advertising costs reduce (but not below zero) UBTI from any other unrelated business activity. Do i have to file a state tax return   The terms used in the chart are explained in the following discussions. Do i have to file a state tax return Periodical Income Gross advertising income. Do i have to file a state tax return   This is all the income from the unrelated advertising activities of an exempt organization periodical. Do i have to file a state tax return Circulation income. Do i have to file a state tax return   This is all the income from the production, distribution, or circulation of an exempt organization's periodical (other than gross advertising income). Do i have to file a state tax return It includes all amounts from the sale or distribution of the readership content of the periodical, such as income from subscriptions. Do i have to file a state tax return It also includes allocable membership receipts if the right to receive the periodical is associated with a membership or similar status in the organization. Do i have to file a state tax return Allocable membership receipts. Do i have to file a state tax return   This is the part of membership receipts (dues, fees, or other charges associated with membership) equal to the amount that would have been charged and paid for the periodical if: The periodical was published by a taxable organization, The periodical was published for profit, and The member was an unrelated party dealing with the taxable organization at arm's length. Do i have to file a state tax return   The amount used to allocate membership receipts is the amount shown in the following chart. Do i have to file a state tax return   For this purpose, the total periodical costs are the sum of the direct advertising costs and the readership costs, explained under Periodical Costs, later. Do i have to file a state tax return The cost of other exempt activities means the total expenses incurred by the organization in connection with its other exempt activities, not offset by any income earned by the organization from those activities. Do i have to file a state tax return IF . Do i have to file a state tax return . Do i have to file a state tax return . Do i have to file a state tax return THEN the amount used to allocate membership receipts is . Do i have to file a state tax return . Do i have to file a state tax return . Do i have to file a state tax return 20% or more of the total circulation consists of sales to nonmembers The subscription price charged nonmembers. Do i have to file a state tax return The above condition does not apply, and 20% or more of the members pay reduced dues because they do not receive the periodical The reduction in dues for a member not receiving the periodical. Do i have to file a state tax return Neither of the above conditions applies The membership receipts multiplied by this fraction:   Total periodical costs Total periodical costs Plus Cost of other exempt activities Example 1. Do i have to file a state tax return U is an exempt scientific organization with 10,000 members who pay annual dues of $15. Do i have to file a state tax return One of U's activities is publishing a monthly periodical distributed to all of its members. Do i have to file a state tax return U also distributes 5,000 additional copies of its periodical to nonmembers, who subscribe for $10 a year. Do i have to file a state tax return Since the nonmember circulation of U's periodical represents one-third (more than 20%) of its total circulation, the subscription price charged to nonmembers is used to determine the part of U's membership receipts allocable to the periodical. Do i have to file a state tax return Thus, U's allocable membership receipts are $100,000 ($10 times 10,000 members), and U's total circulation income for the periodical is $150,000 ($100,000 from members plus $50,000 from sales to nonmembers). Do i have to file a state tax return Example 2. Do i have to file a state tax return Assume the same facts except that U sells only 500 copies of its periodical to nonmembers, at a price of $10 a year. Do i have to file a state tax return Assume also that U's members may elect not to receive the periodical, in which case their dues are reduced from $15 a year to $6 a year, and that only 3,000 members elect to receive the periodical and pay the full dues of $15 a year. Do i have to file a state tax return U's stated subscription price of $9 to members consistently results in an excess of total income (including gross advertising income) attributable to the periodical over total costs of the periodical. Do i have to file a state tax return Since the 500 copies of the periodical distributed to nonmembers represent only 14% of the 3,500 copies distributed, the $10 subscription price charged to nonmembers is not used to determine the part of membership receipts allocable to the periodical. Do i have to file a state tax return Instead, since 70% of the members elect not to receive the periodical and pay $9 less per year in dues, the $9 price is used to determine the subscription price charged to members. Do i have to file a state tax return Thus, the allocable membership receipts will be $9 a member, or $27,000 ($9 times 3,000 copies). Do i have to file a state tax return U's total circulation income is $32,000 ($27,000 plus the $5,000 from nonmember subscriptions). Do i have to file a state tax return Periodical Costs Direct advertising costs. Do i have to file a state tax return   These are expenses, depreciation, and similar items of deduction directly connected with selling and publishing advertising in the periodical. Do i have to file a state tax return   Examples of allowable deductions under this classification include agency commissions and other direct selling costs, such as transportation and travel expenses, office salaries, promotion and research expenses, and office overhead directly connected with the sale of advertising lineage in the periodical. Do i have to file a state tax return Also included are other deductions commonly classified as advertising costs under standard account classifications, such as artwork and copy preparation, telephone, telegraph, postage, and similar costs directly connected with advertising. Do i have to file a state tax return   In addition, direct advertising costs include the part of mechanical and distribution costs attributable to advertising lineage. Do i have to file a state tax return For this purpose, the general account classifications of items includable in mechanical and distribution costs ordinarily employed in business-paper and consumer-publication accounting provide a guide for the computation. Do i have to file a state tax return Accordingly, the mechanical and distribution costs include the part of the costs and other expenses of composition, press work, binding, mailing (including paper and wrappers used for mailing), and bulk postage attributable to the advertising lineage of the publication. Do i have to file a state tax return   In the absence of specific and detailed records, the part of mechanical and distribution costs attributable to the periodical's advertising lineage can be based on the ratio of advertising lineage to total lineage in the periodical, if this allocation is reasonable. Do i have to file a state tax return Readership costs. Do i have to file a state tax return   These are all expenses, depreciation, and similar items that are directly connected with the production and distribution of the readership content of the periodical. Do i have to file a state tax return Costs partly attributable to other activities. Do i have to file a state tax return   Deductions properly attributable to exempt activities other than publishing the periodical may not be allocated to the periodical. Do i have to file a state tax return When expenses are attributable both to the periodical and to the organization's other activities, an allocation must be made on a reasonable basis. Do i have to file a state tax return The method of allocation will vary with the nature of the item, but once adopted, should be used consistently. Do i have to file a state tax return Allocations based on dollar receipts from various exempt activities generally are not reasonable since receipts usually do not accurately reflect the costs associated with specific activities that an exempt organization conducts. Do i have to file a state tax return Consolidated Periodicals If an exempt organization publishes more than one periodical to produce income, it may treat all of them (but not less than all) as one in determining unrelated business taxable income from selling advertising. Do i have to file a state tax return It treats the gross income from all the periodicals, and the deductions directly connected with them, on a consolidated basis. Do i have to file a state tax return Consolidated treatment, once adopted, must be followed consistently and is binding. Do i have to file a state tax return This treatment can be changed only with the consent of the Internal Revenue Service. Do i have to file a state tax return An exempt organization's periodical is published to produce income if: The periodical generates gross advertising income to the organization equal to at least 25% of its readership costs, and Publishing the periodical is an activity engaged in for profit. Do i have to file a state tax return Whether the publication of a periodical is an activity engaged in for profit can be determined only by all the facts and circumstances in each case. Do i have to file a state tax return The facts and circumstances must show that the organization carries on the activity for economic profit, although there may not be a profit in a particular year. Do i have to file a state tax return For example, if an organization begins publishing a new periodical whose total costs exceed total income in the start-up years because of lack of advertising sales, that does not mean that the organization did not have as its objective an economic profit. Do i have to file a state tax return The organization may establish that it had this objective by showing it can reasonably expect advertising sales to increase, so that total income will exceed costs within a reasonable time. Do i have to file a state tax return Example. Do i have to file a state tax return Y, an exempt trade association, publishes three periodicals that it distributes to its members: a weekly newsletter, a monthly magazine, and a quarterly journal. Do i have to file a state tax return Both the monthly magazine and the quarterly journal contain advertising that accounts for gross advertising income equal to more than 25% of their respective readership costs. Do i have to file a state tax return Similarly, the total income attributable to each periodical has exceeded the total deductions attributable to each periodical for substantially all the years they have been published. Do i have to file a state tax return The newsletter carries no advertising and its annual subscription price is not intended to cover the cost of publication. Do i have to file a state tax return The newsletter is a service that Y distributes to all of its members in an effort to keep them informed of changes occurring in the business world. Do i have to file a state tax return It is not engaged in for profit. Do i have to file a state tax return Under these circumstances, Y may consolidate the income and deductions from the monthly and quarterly journals in computing its unrelated business taxable income. Do i have to file a state tax return It may not consolidate the income and deductions from the newsletter with the income and deductions of its other periodicals, since the newsletter is not published for the production of income. Do i have to file a state tax return Modifications Net operating loss deduction. Do i have to file a state tax return   The net operating loss (NOL) deduction (as provided in section 172) is allowed in computing unrelated business taxable income. Do i have to file a state tax return However, the NOL for any tax year, the carrybacks and carryovers of NOLs, and the NOL deduction are determined without taking into account any amount of income or deduction that has been specifically excluded in computing unrelated business taxable income. Do i have to file a state tax return For example, a loss from an unrelated trade or business is not diminished because dividend income was received. Do i have to file a state tax return   If this were not done, organizations would, in effect, be taxed on their exempt income, since unrelated business losses then would be offset by dividends, interest, and other excluded income. Do i have to file a state tax return This would reduce the loss that could be applied against unrelated business income of prior or future tax years. Do i have to file a state tax return Therefore, to preserve the immunity of exempt income, all NOL computations are limited to those items of income and deductions that affect the unrelated business taxable income. Do i have to file a state tax return   In line with this concept, an NOL carryback or carryover is allowed only from a tax year for which the organization is subject to tax on unrelated business income. Do i have to file a state tax return   For example, if an organization just became subject to the tax last year, its NOL for that year is not a carryback to a prior year when it had no unrelated business taxable income, nor is its NOL carryover to succeeding years reduced by the related income of those prior years. Do i have to file a state tax return   However, in determining the span of years for which an NOL may be carried back or forward, the tax years for which the organization is not subject to the tax on unrelated business income are counted. Do i have to file a state tax return For example, if an organization was subject to the tax for 2009 and had an NOL for that year, the last tax year to which any part of that loss may be carried over is 2029, regardless of whether the organization was subject to the unrelated business income tax in any of the intervening years. Do i have to file a state tax return   For more details on the NOL deduction, including property eligible for an extended carryback period, see sections 172 and 1400N, Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts, and Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Do i have to file a state tax return Charitable contributions deduction. Do i have to file a state tax return   An exempt organization is allowed to deduct its charitable contributions in computing its unrelated business taxable income whether or not the contributions are directly connected with the unrelated business. Do i have to file a state tax return   To be deductible, the contribution must be paid to another qualified organization. Do i have to file a state tax return For example, an exempt university that operates an unrelated business may deduct a contribution made to another university for educational work, but may not claim a deduction for contributions of amounts spent for carrying out its own educational program. Do i have to file a state tax return   For purposes of the deduction, a distribution by a trust made under the trust instrument to a beneficiary, which itself is a qualified organization, is treated the same as a contribution. Do i have to file a state tax return Deduction limits. Do i have to file a state tax return   An exempt organization that is subject to the unrelated business income tax at corporate rates is allowed a deduction for charitable contributions up to 10% of its unrelated business taxable income computed without regard to the deduction for contributions. Do i have to file a state tax return See the Instructions for Form 990-T for more information. Do i have to file a state tax return    An exempt trust that is subject to the unrelated business income tax at trust rates generally is allowed a deduction for charitable contributions in the same amounts as allowed for individuals. Do i have to file a state tax return However, the limit on the deduction is determined in relation to the trust's unrelated business taxable income computed without regard to the deduction, rather than in relation to adjusted gross income. Do i have to file a state tax return   Contributions in excess of the limits just described may be carried over to the next 5 tax years. Do i have to file a state tax return A contribution carryover is not allowed, however, to the extent that it increases an NOL carryover. Do i have to file a state tax return Suspension of deduction limits for farmers and ranchers. Do i have to file a state tax return   The limitations discussed above are temporarily suspended for certain qualified conservation contributions of property used in agriculture or livestock production. Do i have to file a state tax return See the Instructions for Form 990-T for details. Do i have to file a state tax return Specific deduction. Do i have to file a state tax return   In computing unrelated business taxable income, a specific deduction of $1,000 is allowed. Do i have to file a state tax return However, the specific deduction is not allowed in computing an NOL or the NOL deduction. Do i have to file a state tax return   Generally, the deduction is limited to $1,000 regardless of the number of unrelated businesses in which the organization is engaged. Do i have to file a state tax return Exception. Do i have to file a state tax return   An exception is provided in the case of a diocese, province of a religious order, or a convention or association of churches that may claim a specific deduction for each parish, individual church, district, or other local unit. Do i have to file a state tax return In these cases, the specific deduction for each local unit is limited to the lower of: $1,000, or Gross income derived from an unrelated trade or business regularly conducted by the local unit. Do i have to file a state tax return   This exception applies only to parishes, districts, or other local units that are not separate legal entities, but are components of a larger entity (diocese, province, convention, or association) filing Form 990-T. Do i have to file a state tax return The parent organization must file a return reporting the unrelated business gross income and related deductions of all units that are not separate legal entities. Do i have to file a state tax return The local units cannot file separate returns. Do i have to file a state tax return However, each local unit that is separately incorporated must file its own return and cannot include, or be included with, any other entity. Do i have to file a state tax return See Title-holding corporations in chapter 1 for a discussion of the only situation in which more than one legal entity may be included on the same Form 990-T. Do i have to file a state tax return Example. Do i have to file a state tax return X is an association of churches and is divided into local units A, B, C, and D. Do i have to file a state tax return Last year, A, B, C, and D derived gross income of, respectively, $1,200, $800, $1,500, and $700 from unrelated businesses that they regularly conduct. Do i have to file a state tax return X may claim a specific deduction of $1,000 with respect to A, $800 with respect to B, $1,000 with respect to C, and $700 with respect to D. Do i have to file a state tax return Partnership Income or Loss An organization may have unrelated business income or loss as a member of a partnership, rather than through direct business dealings with the public. Do i have to file a state tax return If so, it must treat its share of the partnership income or loss as if it had conducted the business activity in its own capacity as a corporation or trust. Do i have to file a state tax return No distinction is made between limited and general partners. Do i have to file a state tax return The organization is required to notify the partnership of its tax-exempt status. Do i have to file a state tax return Thus, if an organization is a member of a partnership regularly engaged in a trade or business that is an unrelated trade or business with respect to the organization, the organization must include in its unrelated business taxable income its share of the partnership's gross income from the unrelated trade or business (whether or not distributed), and the deductions attributable to it. Do i have to file a state tax return The partnership income and deductions to be included in the organization's unrelated business taxable income are figured the same way as any income and deductions from an unrelated trade or business conducted directly by the organization. Do i have to file a state tax return The partnership is required to provide the organization this information on Schedule K-1. Do i have to file a state tax return Example. Do i have to file a state tax return An exempt educational organization is a partner in a partnership that operates a factory. Do i have to file a state tax return The partnership also holds stock in a corporation. Do i have to file a state tax return The exempt organization must include its share of the gross income from operating the factory in its unrelated business taxable income but may exclude its share of any dividends the partnership received from the corporation. Do i have to file a state tax return Different tax years. Do i have to file a state tax return   If the exempt organization and the partnership of which it is a member have different tax years, the partnership items that enter into the computation of the organization's unrelated business taxable income must be based on the income and deductions of the partnership for the partnership's tax year that ends within or with the organization's tax year. Do i have to file a state tax return S Corporation Income or Loss An organization that owns S corporation stock must take into account its share of the S corporation's income, deductions, or losses in figuring unrelated business taxable income, regardless of the actual source or nature of the income, deductions, and losses. Do i have to file a state tax return For example, the organization's share of the S corporation's interest and dividend income will be taxable, even though interest and dividends are normally excluded from unrelated business taxable income. Do i have to file a state tax return The organization must also take into account its gain or loss on the sale or other disposition of the S corporation stock in figuring unrelated business taxable income. Do i have to file a state tax return Special Rules for Foreign Organizations The unrelated business taxable income of a foreign organization exempt from tax under section 501(a) consists of the organization's: Unrelated business taxable income derived from sources within the United States but not effectively connected with the conduct of a trade or business within the United States, and Unrelated business taxable income effectively connected with the conduct of a trade or business within the United States, whether or not this income is derived from sources within the United States. Do i have to file a state tax return To determine whether income realized by a foreign organization is derived from sources within the United States or is effectively connected with the conduct of a trade or business within the United States, see sections 861 through 865 and the related regulations. Do i have to file a state tax return Special Rules for Social Clubs, VEBAs, SUBs, and GLSOs The following discussion applies to: Social clubs described in section 501(c)(7), Voluntary employees' beneficiary associations (VEBAs) described in section 501(c)(9), Supplemental unemployment compensation benefit trusts (SUBs) described in section 501(c)(17), and Group legal services organizations (GLSOs) described in section 501(c)(20). Do i have to file a state tax return These organizations must figure unrelated business taxable income under special rules. Do i have to file a state tax return Unlike other exempt organizations, they cannot exclude their investment income (dividends, interest, rents, etc. Do i have to file a state tax return ). Do i have to file a state tax return (See Exclusions under Income, earlier. Do i have to file a state tax return ) Therefore, they are generally subject to unrelated business income tax on this income. Do i have to file a state tax return The unrelated business taxable income of these organizations includes all gross income, less deductions directly connected with the production of that income, except that gross income for this purpose does not include exempt function income. Do i have to file a state tax return The dividends received by a corporation are not allowed in computing unrelated business taxable income because it is not an expense incurred in the production of income. Do i have to file a state tax return Losses from nonexempt activities. Do i have to file a state tax return   Losses from nonexempt activities of these organizations cannot be used to offset investment income unless the activities were undertaken with the intent to make a profit. Do i have to file a state tax return Example. Do i have to file a state tax return A private golf and country club that is a qualified tax-exempt social club has nonexempt function income from interest and from the sale of food and beverages to nonmembers. Do i have to file a state tax return The club sells food and beverages as a service to members and their guests rather than for the purpose of making a profit. Do i have to file a state tax return Therefore, any loss resulting from sales to nonmembers cannot be used to offset the club's interest income. Do i have to file a state tax return Modifications. Do i have to file a state tax return   The unrelated business taxable income is modified by any NOL or charitable contributions deduction and by the specific deduction (described earlier under Deductions). Do i have to file a state tax return Exempt function income. Do i have to file a state tax return   This is gross income from dues, fees, charges or similar items paid by members for goods, facilities, or services to the members or their dependents or guests, to further the organization's exempt purposes. Do i have to file a state tax return Exempt function income also includes income set aside for qualified purposes. Do i have to file a state tax return Income that is set aside. Do i have to file a state tax return   This is income set aside to be used for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Do i have to file a state tax return In addition, for a VEBA, SUB, or GLSO, it is income set aside to provide for the payment of life, sick, accident, or other benefits. Do i have to file a state tax return   However, any amounts set aside by a VEBA or SUB that exceed the organization's qualified asset account limit (determined under section 419A) are unrelated business income. Do i have to file a state tax return Special rules apply to the treatment of existing reserves for post-retirement medical or life insurance benefits. Do i have to file a state tax return These rules are explained in section 512(a)(3)(E)(ii). Do i have to file a state tax return   Income derived from an unrelated trade or business may not be set aside and therefore cannot be exempt function income. Do i have to file a state tax return In addition, any income set aside and later spent for other purposes must be included in unrelated business taxable income. Do i have to file a state tax return   Set-aside income is generally excluded from gross income only if it is set aside in the tax year in which it is otherwise includible in gross income. Do i have to file a state tax return However, income set aside on or before the date for filing Form 990-T, including extensions of time, may, at the election of the organization, be treated as having been set aside in the tax year for which the return was filed. Do i have to file a state tax return The income set aside must have been includible in gross income for that earlier year. Do i have to file a state tax return Nonrecognition of gain. Do i have to file a state tax return   If the organization sells property used directly in performing an exempt function and purchases other property used directly in performing an exempt function, any gain on the sale is recognized only to the extent that the sales price of the old property exceeds the cost of the new property. Do i have to file a state tax return The purchase of the new property must be made within 1 year before the date of sale of the old property or within 3 years after the date of sale. Do i have to file a state tax return   This rule also applies to gain from an involuntary conversion of the property resulting from its destruction in whole or in part, theft, seizure, requisition, or condemnation. Do i have to file a state tax return Special Rules for Veterans' Organizations Unrelated business taxable income of a veterans' organization that is exempt under section 501(c)(19) does not include the net income from insurance business that is properly set aside. Do i have to file a state tax return The organization may set aside income from payments received for life, sick, accident, or health insurance for the organization's members or their dependents for the payment of insurance benefits or reasonable costs of insurance administration, or for use exclusively for religious, charitable, scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Do i have to file a state tax return For details, see section 512(a)(4) and the regulations under that section. Do i have to file a state tax return Income From Controlled Organizations The exclusions for interest, annuities, royalties, and rents, explained earlier in this chapter under Income, may not apply to a payment of these items received by a controlling organization from its controlled organization. Do i have to file a state tax return The payment is included in the controlling organization's unrelated business taxable income to the extent it reduced the net unrelated income (or increased the net unrelated loss) of the controlled organization. Do i have to file a state tax return All deductions of the controlling organization directly connected with the amount included in its unrelated business taxable income are allowed. Do i have to file a state tax return Excess qualifying specified payments. Do i have to file a state tax return   Excess qualifying specified payments received or accrued from a controlled entity are included in a controlling exempt organization's unrelated business taxable income only on the amount that exceeds that which would have been paid or accrued if the payments had been determined under section 482. Do i have to file a state tax return Qualifying specified payments means any payments of interest, annuities, royalties, or rents received or accrued from the controlled organization pursuant to a binding written contract in effect on August 17, 2006, or to a contract which is a renewal, under substantially similar terms of a binding written contract in effect on August 17, 2006, and the payments are received or accrued before January 1, 2012. Do i have to file a state tax return   If a controlled participant is not required to file a U. Do i have to file a state tax return S. Do i have to file a state tax return income tax return, the participant must ensure that the copy or copies of the Regulations section 1. Do i have to file a state tax return 482-7 Cost Sharing Arrangement Statement and any updates are attached to Schedule M of any Form 5471, Information Return of U. Do i have to file a state tax return S. Do i have to file a state tax return Persons With Respect To Certain Foreign Corporations, any Form 5472, Information Return of a 25% Foreign-Owned U. Do i have to file a state tax return S. Do i have to file a state tax return Corporation or a Foreign Corporation Engaged in a U. Do i have to file a state tax return S. Do i have to file a state tax return Trade or Business, or any Form 8865, Return of U. Do i have to file a state tax return S. Do i have to file a state tax return Persons With Respect to Certain Foreign Partnerships, filed for that participant. Do i have to file a state tax return Addition to tax for valuation misstatements. Do i have to file a state tax return   Under section 512(b)(13)(E)(ii), the tax imposed on a controlling organization will be increased by 20 percent of the excess qualifying specified payments that are determined with or without any amendments or supplements, whichever is larger. Do i have to file a state tax return See section 512(b)(13)(E)(ii) for more information. Do i have to file a state tax return Net unrelated income. Do i have to file a state tax return   This is: For an exempt organization, its unrelated business taxable income, or For a nonexempt organization, the part of its taxable income that would be unrelated business taxable income if it were exempt and had the same exempt purposes as the controlling organization. Do i have to file a state tax return Net unrelated loss. Do i have to file a state tax return   This is: For an exempt organization, its NOL, or For a nonexempt organization, the part of its NOL that would be its NOL if it were exempt and had the same exempt purposes as the controlling organization. Do i have to file a state tax return Control. Do i have to file a state tax return   An organization is controlled if: For a corporation, the controlling organization owns (by vote or value) more than 50% of the stock, For a partnership, the controlling organization owns more than 50% of the profits or capital interests, or For any other organization, the controlling organization owns more than 50% of the beneficial interest. Do i have to file a state tax return For this purpose, constructive ownership of stock (determined under section 318) or other interests is taken into account. Do i have to file a state tax return   As a result, an exempt parent organization is treated as controlling any subsidiary in which it holds more than 50% of the voting power or value, whether directly (as in the case of a first-tier subsidiary) or indirectly (as in the case of a second-tier subsidiary). Do i have to file a state tax return Income from property financed with qualified 501(c)(3) bonds. Do i have to file a state tax return If any part of a 501(c)(3) organization's property financed with qualified 501(c)(3) bonds is used in a trade or business of any person other than a section 501(c)(3) organization or a governmental unit, and such use is not consistent with the requirements for qualified 501(c)(3) bonds under section 145, the section 501(c)(3) organization is considered to have received unrelated business income in the amount of the greater of the actual rental income or the fair rental value of the property for the period it is used. Do i have to file a state tax return No deduction is allowed for interest on the private activity bond. Do i have to file a state tax return See sections 150(b)(3) and (c) for more information. Do i have to file a state tax return Disposition of property received from taxable subsidiary and used in unrelated business. Do i have to file a state tax return A taxable 80%-owned subsidiary corporation of one or more tax-exempt entities is generally subject to tax on a distribution in liquidation of its assets to its exempt parent (or parents). Do i have to file a state tax return The assets are treated as if sold at fair market value. Do i have to file a state tax return Tax-exempt entities include organizations described in sections 501(a), 529, and 115, charitable remainder trusts, U. Do i have to file a state tax return S. Do i have to file a state tax return and foreign governments, Indian tribal governments, international organizations, and similar non-taxable organizations. Do i have to file a state tax return A taxable corporation that transfers substantially all of its assets to a tax-exempt entity in a transaction that otherwise qualifies for nonrecognition treatment must recognize gain on the transaction as if it sold the assets at fair market value. Do i have to file a state tax return However, such a transfer is not taxable if it qualifies as a like-kind exchange under section 1031 or an involuntary conversion under section 1033. Do i have to file a state tax return In such a case the built-in appreciation is preserved in the replacement property received in the transaction. Do i have to file a state tax return A corporation that changes status from taxable to tax-exempt is treated generally as if it transferred all of its assets to a tax-exempt entity immediately before the change in status (thus subjecting it to the tax on a deemed sale for fair market value). Do i have to file a state tax return This rule does not apply where the taxable corporation becomes exempt within 3 years of formation, or had previously been exempt and within several years (generally a period of 3 years) regains exemption, unless the principal purpose of the transactions is to avoid the tax on the change in status. Do i have to file a state tax return In the transactions described above, the taxable event is deferred for property that the tax-exempt entity immediately uses in an unrelated business. Do i have to file a state tax return If the parent later disposes of the property, then any gain (not in excess of the amount not recognized) is included in the parent's unrelated business taxable income. Do i have to file a state tax return If there is partial use of the assets in unrelated business, then there is partial recognition of gain or loss. Do i have to file a state tax return Property is treated as disposed if the tax-exempt entity no longer uses it in an unrelated business. Do i have to file a state tax return Losses on the transfer of assets to a tax-exempt entity are disallowed if part of a plan with a principal purpose of recognizing losses. Do i have to file a state tax return Income From Debt-Financed Property Investment income that would otherwise be excluded from an exempt organization's unrelated business taxable income (see Exclusions under Income earlier) must be included to the extent it is derived from debt-financed property. Do i have to file a state tax return The amount of income included is proportionate to the debt on the property. Do i have to file a state tax return Debt-Financed Property In general, the term “debt-financed property” means any property held to produce income (including gain from its disposition) for which there is an acquisition indebtedness at any time during the tax year (or during the 12-month period before the date of the property's disposal, if it was disposed of during the tax year). Do i have to file a state tax return It includes rental real estate, tangible personal property, and corporate stock. Do i have to file a state tax return Acquisition Indebtedness For any debt-financed property, acquisition indebtedness is the unpaid amount of debt incurred by an organization: When acquiring or improving the property, Before acquiring or improving the property if the debt would not have been incurred except for the acquisition or improvement, and After acquiring or improving the property if: The debt would not have been incurred except for the acquisition or improvement, and Incurring the debt was reasonably foreseeable when the property was acquired or improved. Do i have to file a state tax return The facts and circumstances of each situation determine whether incurring a debt was reasonably foreseeable. Do i have to file a state tax return That an organization may not have foreseen the need to incur a debt before acquiring or improving the property does not necessarily mean that incurring the debt later was not reasonably foreseeable. Do i have to file a state tax return Example 1. Do i have to file a state tax return Y, an exempt scientific organization, mortgages its laboratory to replace working capital used in remodeling an office building that Y rents to an insurance company for nonexempt purposes. Do i have to file a state tax return The debt is acquisition indebtedness since the debt, though incurred after the improvement of the office building, would not have been incurred without the improvement, and the debt was reasonably foreseeable when, to make the improvement, Y reduced its working capital below the amount necessary to continue current operations. Do i have to file a state tax return Example 2. Do i have to file a state tax return X, an exempt organization, forms a partnership with A and B. Do i have to file a state tax return The partnership agreement provides that all three partners will share equally in the profits of the partnership, each will invest $3 million, and X will be a limited partner. Do i have to file a state tax return X invests $1 million of its own funds in the partnership and $2 million of borrowed funds. Do i have to file a state tax return The partnership buys as its sole asset an office building that it leases to the public for nonexempt purposes. Do i have to file a state tax return The office building costs the partnership $24 million, of which $15 million is borrowed from Y bank. Do i have to file a state tax return The loan is secured by a mortgage on the entire office building. Do i have to file a state tax return By agreement with Y bank, X is not personally liable for payment of the mortgage. Do i have to file a state tax return X has acquisition indebtedness of $7 million. Do i have to file a state tax return This amount is the $2 million debt X incurred in acquiring the partnership interest, plus the $5 million that is X's allocable part of the partnership's debt incurred to buy the office building (one-third of $15 million). Do i have to file a state tax return Example 3. Do i have to file a state tax return A labor union advanced funds, from existing resources and without any borrowing, to its tax-exempt subsidiary title-holding company. Do i have to file a state tax return The subsidiary used the funds to pay a debt owed to a third party that was previously incurred in acquiring two income-producing office buildings. Do i have to file a state tax return Neither the union nor the subsidiary has incurred any further debt in acquiring or improving the property. Do i have to file a state tax return The union has no outstanding debt on the property. Do i have to file a state tax return The subsidiary's debt to the union is represented by a demand note on which the subsidiary makes payments whenever it has the available cash. Do i have to file a state tax return The books of the union and the subsidiary list the outstanding debt as interorganizational indebtedness. Do i have to file a state tax return Although the subsidiary's books show a debt to the union, it is not the type subject to the debt-financed property rules. Do i have to file a state tax return In this situation, the very nature of the title-holding company and the parent-subsidiary relationship shows this debt to be merely a matter of accounting between the two organizations. Do i have to file a state tax return Accordingly, the debt is not acquisition indebtedness. Do i have to file a state tax return Change in use of property. Do i have to file a state tax return   If an organization converts property that is not debt-financed property to a use that results in its treatment as debt-financed property, the outstanding principal debt on the property is thereafter treated as acquisition indebtedness. Do i have to file a state tax return Example. Do i have to file a state tax return Four years ago a university borrowed funds to acquire an apartment building as housing for married students. Do i have to file a state tax return Last year, the university rented the apartment building to the public for nonexempt purposes. Do i have to file a state tax return The outstanding principal debt becomes acquisition indebtedness as of the time the building was first rented to the public. Do i have to file a state tax return Continued debt. Do i have to file a state tax return   If an organization sells property and, without paying off debt that would be acquisition indebtedness if the property were debt-financed property, buys property that is otherwise debt-financed property, the unpaid debt is acquisition indebtedness for the new property. Do i have to file a state tax return This is true even if the original property was not debt-financed property. Do i have to file a state tax return Example. Do i have to file a state tax return To house its administration offices, an exempt organization bought a building using $600,000 of its own funds and $400,000 of borrowed funds secured by a pledge of its securities. Do i have to file a state tax return The office building was not debt-financed property. Do i have to file a state tax return The organization later sold the building for $1 million without repaying the $400,000 loan. Do i have to file a state tax return It used the sale proceeds to buy an apartment building it rents to the general public. Do i have to file a state tax return The unpaid debt of $400,000 is acquisition indebtedness with respect to the apartment building. Do i have to file a state tax return Property acquired subject to mortgage or lien. Do i have to file a state tax return   If property (other than certain gifts, bequests, and devises) is acquired subject to a mortgage, the outstanding principal debt secured by that mortgage is treated as acquisition indebtedness even if the organization did not assume or agree to pay the debt. Do i have to file a state tax return Example. Do i have to file a state tax return An exempt organization paid $50,000 for real property valued at $150,000 and subject to a $100,000 mortgage. Do i have to file a state tax return The $100,000 of outstanding principal debt is acquisition indebtedness, as though the organization had borrowed $100,000 to buy the property. Do i have to file a state tax return Liens similar to a mortgage. Do i have to file a state tax return   In determining acquisition indebtedness, a lien similar to a mortgage is treated as a mortgage. Do i have to file a state tax return A lien is similar to a mortgage if title to property is encumbered by the lien for a creditor's benefit. Do i have to file a state tax return However, when state law provides that a lien for taxes or assessments attaches to property before the taxes or assessments become due and payable, the lien is not treated as a mortgage until after the taxes or assessments have become due and payable and the organization has had an opportunity to pay the lien in accordance with state law. Do i have to file a state tax return Liens similar to mortgages include (but are not limited to): Deeds of trust, Conditional sales contracts, Chattel mortgages, Security interests under the Uniform Commercial Code, Pledges, Agreements to hold title in escrow, and Liens for taxes or assessments (other than those discussed earlier in this paragraph). Do i have to file a state tax return Exception for property acquired by gift, bequest, or devise. Do i have to file a state tax return   If property subject to a mortgage is acquired by gift, bequest, or devise, the outstanding principal debt secured by the mortgage is not treated as acquisition indebtedness during the 10-year period following the date the organization receives the property. Do i have to file a state tax return However, this applies to a gift of property only if:    The mortgage was placed on the property more than 5 years before the date the organization received it, and The donor held the property for more than 5 years before the date the organization received it. Do i have to file a state tax return   This exception does not apply if an organization assumes and agrees to pay all or part of the debt secured by the mortgage or makes any payment for the equity in the property owned by the donor or decedent (other than a payment under an annuity obligation excluded from the definition of acquisition indebtedness, discussed under Debt That Is Not Acquisition Indebtedness, later). Do i have to file a state tax return   Whether an organization has assumed and agreed to pay all or part of a debt in order to acquire the property is determined by the facts and circumstances of each situation. Do i have to file a state tax return Modifying existing debt. Do i have to file a state tax return   Extending, renewing, or refinancing an existing debt is considered a continuation of that debt to the extent its outstanding principal does not increase. Do i have to file a state tax return When the principal of the modified debt is more than the outstanding principal of the old debt, the excess is treated as a separate debt. Do i have to file a state tax return Extension or renewal. Do i have to file a state tax return   In general, any modification or substitution of the terms of a debt by an organization is considered an extension or renewal of the original debt, rather than the start of a new one, to the extent that the outstanding principal of the debt does not increase. Do i have to file a state tax return   The following are examples of acts resulting in the extension or renewal of a debt: Substituting liens to secure the debt, Substituting obligees whether or not with the organization's consent, Renewing, extending, or accelerating the payment terms of the debt, and Adding, deleting, or substituting sureties or other primary or secondary obligors. Do i have to file a state tax return Debt increase. Do i have to file a state tax return   If the outstanding principal of a modified debt is more than that of the unmodified debt, and only part of the refinanced debt is acquisition indebtedness, the payments on the refinanced debt must be allocated between the old debt and the excess. Do i have to file a state tax return Example. Do i have to file a state tax return An organization has an outstanding principal debt of $500,000 that is treated as acquisition indebtedness. Do i have to file a state tax return The organization borrows another $100,000, which is not acquisition indebtedness, from the same lender, resulting in a $600,000 note for the total obligation. Do i have to file a state tax return A payment of $60,000 on the total obligation would reduce the acquisition indebtedness by $50,000 ($60,000 x $500,000/$600,000) and the excess debt by $10,000. Do i have to file a state tax return Debt That Is Not Acquisition Indebtedness Certain debt and obligations are not acquisition indebtedness. Do i have to file a state tax return These include the following. Do i have to file a state tax return Debts incurred in performing an exempt purpose. Do i have to file a state tax return Annuity obligations. Do i have to file a state tax return Securities loans. Do i have to file a state tax return Real property debts of qualified organizations. Do i have to file a state tax return Certain Federal financing. Do i have to file a state tax return Debt incurred in performing exempt purpose. Do i have to file a state tax return   A debt incurred in performing an exempt purpose is not acquisition indebtedness. Do i have to file a state tax return For example, acquisition indebtedness does not include the debt an exempt credit union incurs in accepting deposits from its members or the debt an exempt organization incurs in accepting payments from its members to provide them with insurance, retirement, or other benefits. Do i have to file a state tax return Annuity obligation. Do i have to file a state tax return   The organization's obligation to pay an annuity is not acquisition indebtedness if the annuity meets all the following requirements. Do i have to file a state tax return It must be the sole consideration (other than a mortgage on property acquired by gift, bequest, or devise that meets the exception discussed under Property acquired subject to mortgage or lien, earlier in this chapter) issued in exchange for the property received. Do i have to file a state tax return Its present value, at the time of exchange, must be less than 90% of the value of the prior owner's equity in the property received. Do i have to file a state tax return It must be payable over the lives of either one or two individuals living when issued. Do i have to file a state tax return It must be payable under a contract that: Does not guarantee a minimum nor specify a maximum number of payments, and Does not provide for any adjustment of the amount of the annuity payments based on the income received from the transferred property or any other property. Do i have to file a state tax return Example. Do i have to file a state tax return X, an exempt organization, receives property valued at $100,000 from donor A, a male age 60. Do i have to file a state tax return In return X promises to pay A $6,000 a year for the rest of A's life, with neither a minimum nor maximum number of payments specified. Do i have to file a state tax return The amounts paid under the annuity are not dependent on the income derived from the property transferred to X. Do i have to file a state tax return The present value of this annuity is $81,156, determined from IRS valuation tables. Do i have to file a state tax return Since the value of the annuity is less than 90 percent of A's $100,000 equity in the property transferred and the annuity meets all the other requirements just discussed, the obligation to make annuity payments is not acquisition indebtedness. Do i have to file a state tax return Securities loans. Do i have to file a state tax return   Acquisition indebtedness does not include an obligation of the exempt organization to return collateral security provided by the borrower of the exempt organization's securities under a securities loan agreement (discussed under Exclusions earlier in this chapter). Do i have to file a state tax return This transaction is not treated as the borrowing by the exempt organization of the collateral furnished by the borrower (usually a broker) of the securities. Do i have to file a state tax return   However, if the exempt organization incurred debt to buy the loaned securities, any income from the securities (including income from