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Efile Tax Extension Free

When Amend Tax ReturnFree Tax FileFile State Tax OnlineH & R Block Free TaxesFree Federal & State Tax FilingAmend Federal TaxesIrs Tax FormsE File 2011 Taxes Online1040x Turbotax OnlineFiling State Tax ReturnsIrs Free File 20111040x Instructions DummiesHow Do You Amend TaxesTaxes For Self Employed2012 Free1040x File OnlineIncome Tax For Students1040x Online FreeWww.1040ez.com2011 Tax FormFile State Taxes For FreeSearch Irs Gov Freefile2012 Amended Tax FormFile Late Taxes Online FreeIrs Gov 1040ez InstructionsHow To File An Amended Tax Return For 2011 TurbotaxHow Do I Fill Out A 1040xH&r Block Free State Tax E FileCan I File 2010 Taxes OnlineIrs Form1040xHow To File Amended Tax ReturnIrs Form 1040vIrs Form 1040ez Tax TablesFree Turbo Tax Filing 2013Www Irs Gov Efile Index HtmlFile 2012 Federal TaxesH Rblock ComE File State TaxesI Did Not File 2011 TaxesE File A 1040xFree Tax Filing Federal And State

Efile Tax Extension Free

Efile tax extension free Index Symbols 28% rate gain, Collectibles (28% rate) gain. Efile tax extension free , Figuring 28% rate gain (line 11). Efile tax extension free A Adjustments to income, defined, Adjustment to income. Efile tax extension free Age 65 or older dependents, Both Earned and Unearned Income Aliens Individual taxpayer identification number (ITIN), Reminders Standard deduction, Standard Deduction of Zero Alternative minimum tax (AMT), Other Filing Requirements, Alternative minimum tax. Efile tax extension free , Alternative Minimum Tax Assistance (see Tax help) B Blind dependents, filing requirements, Both Earned and Unearned Income C Capital gain distributions, Capital gain distributions. Efile tax extension free Capital losses, Capital loss. Efile tax extension free Child's earnings, Child's earnings. Efile tax extension free Child's expenses, Child's expenses. Efile tax extension free Child's return Responsibility for, Should a Return Be Filed Even If Not Required?, Child's expenses. Efile tax extension free Child's unearned income Tax on, Renewing an exemption from withholding. Efile tax extension free Church, wages from, Other Filing Requirements Credits, reduced, Reduced deductions or credits. Efile tax extension free D Deductible investment interest, Deductible investment interest. Efile tax extension free Deductions, Deductions you cannot take. Efile tax extension free Deductions, reduced, Reduced deductions or credits. Efile tax extension free Dependents Exemption for, Standard Deduction of Zero Own exemption, Standard Deduction of Zero Social security numbers (SSNs) of, Reminders Divorced parents, reporting child's unearned income, Parents are divorced. Efile tax extension free E Earned income, Earned Income Only, Both Earned and Unearned Income Education credit, recaptured, Other Filing Requirements Election to include child's income on parent's return, Parent's Election To Report Child's Interest and Dividends, How to make the election. Efile tax extension free , Estimated tax, penalty, Penalty for underpayment of estimated tax. Efile tax extension free Exemption Own exemption — dependent, Dependent's Own Exemption Exemption from withholding, Claiming exemption from withholding. Efile tax extension free Extension of time to file, Extension of time to file. Efile tax extension free F Figures (see Tables and figures) Figuring child's income, Penalty for underpayment of estimated tax. Efile tax extension free Filing requirements, Part 1. Efile tax extension free Rules for All Dependents, Should a Return Be Filed Even If Not Required? Form 1040 Schedule A, Directly connected. Efile tax extension free Schedule J, Using Schedule J (Form 1040), for line 9 tax. Efile tax extension free , Using Schedule J for line 15 tax. Efile tax extension free Form 1040A Filled in example, Form 1099-DIV, Collectibles (28% rate) gain. Efile tax extension free Form 2555, Child files Form 2555 or 2555-EZ. Efile tax extension free , Parent files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free Form 2555-EZ, Child files Form 2555 or 2555-EZ. Efile tax extension free , Parent files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free , Child files Form 2555 or 2555-EZ. Efile tax extension free Form 2848, Designated as representative. Efile tax extension free , How to request. Efile tax extension free Form 6251, Alternative minimum tax. Efile tax extension free , Limit on exemption amount (AMT). Efile tax extension free Form 8615, Providing Parental Information (Form 8615, Lines A–C), Line 18 (Tax) Filled in example, Form 8814, How to make the election. Efile tax extension free , Figuring Child's Income, Figuring Additional Tax Form W-4, Claiming exemption from withholding. Efile tax extension free Free tax services, Free help with your tax return. Efile tax extension free G Gift, income from property received as, Income from property received as a gift. Efile tax extension free H Help (see Tax help) I Individual taxpayer identification numbers (ITINs), Reminders Investment interest, Deductible investment interest. Efile tax extension free IRS notice sent to child, IRS notice. Efile tax extension free Itemized deductions Directly connected, Directly connected. Efile tax extension free J Joint return of parents, Which Parent's Return To Use L Life insurance, Other Filing Requirements Limit on exemption amount (AMT) Alternative Minimum Tax — Limit on exemption amount, Limit on exemption amount (AMT). Efile tax extension free M Married parents filing separately, Parents are married. Efile tax extension free Medicare tax, Other Filing Requirements Missing children, photographs of, Reminders N Net capital gain, Net capital gain. Efile tax extension free Net unearned income, Line 5 (Net Unearned Income) P Parents Election (see Election to include child's income on parent's return) Which parent's return to use, Which Parent's Return To Use Penalty, estimated tax, Penalty for underpayment of estimated tax. Efile tax extension free Publications (see Tax help) Q Qualified dividends, Qualified dividends. Efile tax extension free , Qualified dividends. Efile tax extension free R Recapture taxes, Other Filing Requirements Remarried custodial parent, reporting child's unearned income, Custodial parent remarried. Efile tax extension free Remarried widowed parent, reporting child's unearned income, Widowed parent remarried. Efile tax extension free Returns Filing even if not required, Should a Return Be Filed Even If Not Required? Parent's election to include child's income (see Election to include child's income on parent's return) Responsibility for child's return, Responsibility for Child's Return, Child's expenses. Efile tax extension free Signing child's return, Signing the child's return. Efile tax extension free Who must file, Filing Requirements, Should a Return Be Filed Even If Not Required? S Schedule D Tax Worksheet, Using the Schedule D Tax Worksheet for line 9 tax. Efile tax extension free , Figuring 28% rate gain (line 11). Efile tax extension free , Using the Schedule D Tax Worksheet for line 15 tax. Efile tax extension free Section 1202 gain, Section 1202 gain. Efile tax extension free Self-employed, filing requirements, Other Filing Requirements Separated parents, reporting child's unearned income, Parents not living together. Efile tax extension free Signing child's return, Signing the child's return. Efile tax extension free Social security numbers (SSNs) of dependents, Reminders Social security tax, Other Filing Requirements Standard deduction, Standard Deduction, Standard Deduction of Zero Worksheet for dependents (Worksheet 1), Worksheet 1. Efile tax extension free Zero, Standard Deduction of Zero T Tables and figures Determining whether Form 8615 is required (Figure 2), Election to include child's income on parent's return (Figure 1), Filing requirements for dependents (Table 1), Table 1. Efile tax extension free 2013 Filing Requirements for Dependents Tax help, How to request. Efile tax extension free , How To Get Tax Help Tax on child's unearned income, Renewing an exemption from withholding. Efile tax extension free Age requirement, Certain January 1 birthdays. Efile tax extension free Figured on Form 8615, Tax for Certain Children Who Have Unearned Income Third party designee, Third party designee. Efile tax extension free Tips not reported to employer, Other Filing Requirements Trust income, Trust income. Efile tax extension free TTY/TDD information, How To Get Tax Help U Unearned income, Unearned Income Only, Both Earned and Unearned Income Defined, Unearned income defined. Efile tax extension free Election to include child's income on parent's return (see Election to include child's income on parent's return) Tax on, Part 2. Efile tax extension free Tax on Unearned Income of Certain Children Unrecaptured section 1250 gain, Unrecaptured section 1250 gain. Efile tax extension free , Figuring unrecaptured section 1250 gain (line 11). Efile tax extension free W Withholding, Withholding From Wages Worksheets Dependent's filing requirement, Both Earned and Unearned Income Form 8615 alternate worksheet, Line 1 (Unearned Income) Qualified dividends and capital gain tax, Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Schedule D Tax, Figuring 28% rate gain (line 11). Efile tax extension free Standard deduction worksheet for dependents (Worksheet 1), Worksheet 1. Efile tax extension free Unrecaptured section 1250 gain, Figuring unrecaptured section 1250 gain (line 11). Efile tax extension free Prev  Up     Home   More Online Publications
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New IRS Video Helps Same-Sex Couples; Joins Extensive IRS Library Of Online Tax Tips

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IRS YouTube Video:

Tax Information About Same-Sex Marriage: English / Spanish / ASL

IR-2014-22, March 6, 2014

WASHINGTON — The Internal Revenue Service released a new YouTube video designed to provide useful tax tips to married same-sex couples.

The video is the latest addition to an online  library featuring short IRS instructional videos covering  more than 100 topics ranging from tips for victims of identity theft to taking advantage of the new simplified home office deduction. These videos have been viewed more than seven million times.

The new video, less than two minutes long, is available in English, Spanish and American Sign Language and can be accessed via IRS.gov. It joins an array of online products, including answers to frequently-asked questions, designed to help same-sex couples file their federal income tax returns.

Following last summer’s Supreme Court decision invalidating a key provision of the Defense of Marriage Act, the IRS ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, are now treated as married for federal tax purposes. The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit.

Visit IRS.gov to access these and other helpful tax resources.

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Page Last Reviewed or Updated: 07-Mar-2014

The Efile Tax Extension Free

Efile tax extension free 3. Efile tax extension free   Unrelated Trade or Business Table of Contents Selling of products of exempt functions. Efile tax extension free Dual use of assets or facilities. Efile tax extension free Exploitation of exempt functions. Efile tax extension free ExamplesExceptions. Efile tax extension free Excluded Trade or Business ActivitiesQualified sponsorship payment. Efile tax extension free Advertising. Efile tax extension free Exception for contingent payments. Efile tax extension free Exception for periodicals. Efile tax extension free Exception for conventions and trade shows. Efile tax extension free Legal definition. Efile tax extension free Legal where played. Efile tax extension free No for-profit games where played. Efile tax extension free Unrelated business income. Efile tax extension free   Unrelated business income is the income from a trade or business regularly conducted by an exempt organization and not substantially related to the performance by the organization of its exempt purpose or function, except that the organization uses the profits derived from this activity. Efile tax extension free   Certain trade or business activities are not treated as an unrelated trade or business. Efile tax extension free See Excluded Trade or Business Activities, later. Efile tax extension free Trade or business. Efile tax extension free   The term “trade or business” generally includes any activity conducted for the production of income from selling goods or performing services. Efile tax extension free An activity does not lose its identity as a trade or business merely because it is conducted within a larger group of similar activities that may or may not be related to the exempt purposes of the organization. Efile tax extension free   For example, the regular sale of pharmaceutical supplies to the general public by a hospital pharmacy does not lose its identity as a trade or business, even though the pharmacy also furnishes supplies to the hospital and patients of the hospital in accordance with its exempt purpose. Efile tax extension free Similarly, soliciting, selling, and publishing commercial advertising is a trade or business even though the advertising is published in an exempt organization's periodical that contains editorial matter related to the organization's exempt purpose. Efile tax extension free Regularly conducted. Efile tax extension free   Business activities of an exempt organization ordinarily are considered regularly conducted if they show a frequency and continuity, and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. Efile tax extension free   For example, a hospital auxiliary's operation of a sandwich stand for 2 weeks at a state fair would not be the regular conduct of a trade or business. Efile tax extension free The stand would not compete with similar facilities that a nonexempt organization would ordinarily operate year-round. Efile tax extension free However, operating a commercial parking lot every Saturday, year-round, would be the regular conduct of a trade or business. Efile tax extension free Not substantially related. Efile tax extension free    A business activity is not substantially related to an organization's exempt purpose if it does not contribute importantly to accomplishing that purpose (other than through the production of funds). Efile tax extension free Whether an activity contributes importantly depends in each case on the facts involved. Efile tax extension free   In determining whether activities contribute importantly to the accomplishment of an exempt purpose, the size and extent of the activities involved must be considered in relation to the nature and extent of the exempt function that they intend to serve. Efile tax extension free For example, to the extent an activity is conducted on a scale larger than is reasonably necessary to perform an exempt purpose, it does not contribute importantly to the accomplishment of the exempt purpose. Efile tax extension free The part of the activity that is more than needed to accomplish the exempt purpose is an unrelated trade or business. Efile tax extension free   Also in determining whether activities contribute importantly to the accomplishment of an exempt purpose, the following principles apply. Efile tax extension free Selling of products of exempt functions. Efile tax extension free   Ordinarily, selling products that result from the performance of exempt functions is not an unrelated trade or business if the product is sold in substantially the same state it is in when the exempt functions are completed. Efile tax extension free Thus, for an exempt organization engaged in rehabilitating handicapped persons (its exempt function), selling articles made by these persons as part of their rehabilitation training is not an unrelated trade or business. Efile tax extension free   However, if a completed product resulting from an exempt function is used or exploited in further business activity beyond what is reasonably appropriate or necessary to dispose of it as is, the activity is an unrelated trade or business. Efile tax extension free For example, if an exempt organization maintains an experimental dairy herd for scientific purposes, the sale of milk and cream produced in the ordinary course of operation of the project is not an unrelated trade or business. Efile tax extension free But if the organization uses the milk and cream in the further manufacture of food items such as ice cream, pastries, etc. Efile tax extension free , the sale of these products is an unrelated trade or business unless the manufacturing activities themselves contribute importantly to the accomplishment of an exempt purpose of the organization. Efile tax extension free Dual use of assets or facilities. Efile tax extension free   If an asset or facility necessary to the conduct of exempt functions is also used in commercial activities, its use for exempt functions does not, by itself, make the commercial activities a related trade or business. Efile tax extension free The test, as discussed earlier, is whether the activities contribute importantly to the accomplishment of exempt purposes. Efile tax extension free   For example, a museum has a theater auditorium designed for showing educational films in connection with its program of public education in the arts and sciences. Efile tax extension free The theater is a principal feature of the museum and operates continuously while the museum is open to the public. Efile tax extension free If the organization also operates the theater as a motion picture theater for the public when the museum is closed, the activity is an unrelated trade or business. Efile tax extension free   For information on allocating expenses for the dual use of assets or facilities, see Deductions in chapter 4. Efile tax extension free Exploitation of exempt functions. Efile tax extension free   Exempt activities sometimes create goodwill or other intangibles that can be exploited in a commercial way. Efile tax extension free When an organization exploits such an intangible in commercial activities, the fact that the income depends in part upon an exempt function of the organization does not make the commercial activities a related trade or business. Efile tax extension free Unless the commercial exploitation contributes importantly to the accomplishment of the exempt purpose, the commercial activities are an unrelated trade or business. Efile tax extension free   For the treatment of expenses attributable to the exploitation of exempt activities, see Deductions in chapter 4. Efile tax extension free Examples The following are examples of activities that were determined to be (or not to be) unrelated trades or businesses using the definitions and principles just discussed. Efile tax extension free Sales commissions. Efile tax extension free   An agricultural organization, whose exempt purposes are to promote better conditions for cattle breeders and to improve the breed generally, engages in an unrelated trade or business when it regularly sells cattle for its members on a commission basis. Efile tax extension free Artists' facilities. Efile tax extension free   An organization whose exempt purpose is to stimulate and foster public interest in the fine arts by promoting art exhibits, sponsoring cultural events, and furnishing information about fine arts leases studio apartments to artist tenants and operates a dining hall primarily for these tenants. Efile tax extension free These two activities do not contribute importantly to accomplishing the organization's exempt purpose. Efile tax extension free Therefore, they are unrelated trades or businesses. Efile tax extension free Membership list sales. Efile tax extension free   An exempt educational organization regularly sells membership mailing lists to business firms. Efile tax extension free This activity does not contribute importantly to the accomplishment of the organization's exempt purpose and therefore is an unrelated trade or business. Efile tax extension free Also see Exchange or rental of member lists under Excluded Trade or Business Activities, later. Efile tax extension free Hospital facilities. Efile tax extension free   An exempt hospital leases its adjacent office building and furnishes certain office services to a hospital-based medical group for a fee. Efile tax extension free The group provides all diagnostic and therapeutic procedures to the hospital's patients and operates the hospital's emergency room on a 24-hour basis. Efile tax extension free The leasing activity is substantially related to the hospital's exempt purpose and is not an unrelated trade or business. Efile tax extension free   The hospital also operates a gift shop patronized by patients, visitors making purchases for patients, and employees; a cafeteria and coffee shop primarily for employees and medical staff; and a parking lot for patients and visitors only. Efile tax extension free These activities are also substantially related to the hospital's exempt purpose and do not constitute unrelated trades or businesses. Efile tax extension free Book publishing. Efile tax extension free   An exempt organization engages primarily in activities that further its exempt purposes. Efile tax extension free It also owns the publication rights to a book that does not relate to any of its exempt purposes. Efile tax extension free The organization exploits the book in a commercial manner by arranging for printing, distribution, publicity, and advertising in connection with the sale of the book. Efile tax extension free These activities constitute a trade or business regularly conducted. Efile tax extension free Because exploiting the book is unrelated to the organization's exempt purposes (except for the use of the book's profits), the income is unrelated business income. Efile tax extension free   However, if the organization transfers publication rights to a commercial publisher in return for royalties, the royalty income received will not be unrelated business income. Efile tax extension free See Royalties under Exclusions in chapter 4. Efile tax extension free School handicraft shop. Efile tax extension free   An exempt vocational school operates a handicraft shop that sells articles made by students in their regular courses of instruction. Efile tax extension free The students are paid a percentage of the sales price. Efile tax extension free In addition, the shop sells products made by local residents who make articles at home according to the shop's specifications. Efile tax extension free The shop manager periodically inspects the articles during their manufacture to ensure that they meet desired standards of style and quality. Efile tax extension free Although many local participants are former students of the school, any qualified person may participate in the program. Efile tax extension free The sale of articles made by students does not constitute an unrelated trade or business, but the sale of products made by local residents is an unrelated trade or business and is subject to unrelated business income tax. Efile tax extension free School facilities. Efile tax extension free   An exempt school has tennis courts and dressing rooms that it uses during the regular school year in its educational program. Efile tax extension free During the summer, the school operates a tennis club open to the general public. Efile tax extension free Employees of the school run the club, including collecting membership fees and scheduling court time. Efile tax extension free   Another exempt school leases the same type of facilities to an unrelated individual who runs a tennis club for the summer. Efile tax extension free The lease is for a fixed fee that does not depend on the income or profits derived from the leased property. Efile tax extension free   In both situations, the exempt purpose is the advancement of education. Efile tax extension free Furnishing tennis facilities in the manner described does not further that exempt purpose. Efile tax extension free These activities are unrelated trades or businesses. Efile tax extension free However, in the second situation the income derived from the leasing of the property is excluded from unrelated business taxable income as rent from real property. Efile tax extension free See Rents under Exclusions in chapter 4. Efile tax extension free Services provided with lease. Efile tax extension free   An exempt university leases its football stadium during several months of the year to a professional football team for a fixed fee. Efile tax extension free Under the lease agreement, the university furnishes heat, light, and water and is responsible for all ground maintenance. Efile tax extension free It also provides dressing room, linen, and stadium security services for the professional team. Efile tax extension free   Leasing of the stadium is an unrelated trade or business. Efile tax extension free In addition, the substantial services furnished for the convenience of the lessee go beyond those usually provided with the rental of space for occupancy only. Efile tax extension free Therefore, the income from this lease is rent from real property and unrelated business taxable income. Efile tax extension free Broadcasting rights. Efile tax extension free   An exempt collegiate athletic conference conducts an annual competitive athletic game between its conference champion and another collegiate team. Efile tax extension free Income is derived from admission charges and the sale of exclusive broadcasting rights to a national radio and television network. Efile tax extension free An athletic program is considered an integral part of the educational process of a university. Efile tax extension free   The educational purposes served by intercollegiate athletics are identical whether conducted directly by individual universities or by their regional athletic conference. Efile tax extension free Also, the educational purposes served by exhibiting a game before an audience that is physically present and exhibiting the game on television or radio before a much larger audience are substantially similar. Efile tax extension free Therefore, the sale of the broadcasting rights contributes importantly to the accomplishment of the organization's exempt purpose and is not an unrelated trade or business. Efile tax extension free   In a similar situation, an exempt organization was created as a national governing body for amateur athletes to foster interest in amateur sports and to encourage widespread public participation. Efile tax extension free The organization receives income each year from the sale of exclusive broadcasting rights to an independent producer, who contracts with a commercial network to broadcast many of the athletic events sponsored, supervised, and regulated by the organization. Efile tax extension free   The broadcasting of these events promotes the various amateur sports, fosters widespread public interest in the benefits of the organization's nationwide amateur program, and encourages public participation. Efile tax extension free The sale of the rights and the broadcasting of the events contribute importantly to the organization's exempt purpose. Efile tax extension free Therefore, the sale of the exclusive broadcasting rights is not an unrelated trade or business. Efile tax extension free Yearbook advertising. Efile tax extension free   An exempt organization receives income from the sale of advertising in its annual yearbook. Efile tax extension free The organization hires an independent commercial firm, under a contract covering a full calendar year, to conduct an intensive advertising solicitation campaign in the organization's name. Efile tax extension free This firm is paid a percentage of the gross advertising receipts for selling the advertising, collecting from advertisers, and printing the yearbook. Efile tax extension free This advertising activity is an unrelated trade or business. Efile tax extension free Pet boarding and grooming services. Efile tax extension free   An exempt organization, organized and operated for the prevention of cruelty to animals, receives unrelated business income from providing pet boarding and grooming services for the general public. Efile tax extension free These activities do not contribute importantly to its purpose of preventing cruelty to animals. Efile tax extension free Museum eating facilities. Efile tax extension free   An exempt art museum operates a dining room, a cafeteria, and a snack bar for use by the museum staff, employees, and visitors. Efile tax extension free Eating facilities in the museum help to attract visitors and allow them to spend more time viewing the museum's exhibits without having to seek outside restaurants at mealtime. Efile tax extension free The eating facilities also allow the museum staff and employees to remain in the museum throughout the day. Efile tax extension free Thus, the museum's operation of the eating facilities contributes importantly to the accomplishment of its exempt purposes and is not unrelated trade or business. Efile tax extension free Halfway house workshop. Efile tax extension free   A halfway house organized to provide room, board, therapy, and counseling for persons discharged from alcoholic treatment centers also operates a furniture shop to provide full-time employment for its residents. Efile tax extension free The profits are applied to the operating costs of the halfway house. Efile tax extension free The income from this venture is not unrelated trade or business income because the furniture shop contributes importantly to the organization's purpose of aiding its residents' transition from treatment to a normal and productive life. Efile tax extension free Travel tour programs. Efile tax extension free   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose for which tax exemption was granted to the organization. Efile tax extension free Example 1. Efile tax extension free A tax-exempt university alumni association provides a travel tour program for its members and their families. Efile tax extension free The organization works with various travel agencies and schedules approximately ten tours a year to various places around the world. Efile tax extension free It mails out promotional material and accepts reservations for fees paid by the travel agencies on a per-person basis. Efile tax extension free The organization provides an employee for each tour as a tour leader. Efile tax extension free There is no formal educational program conducted with these tours, and they do not differ from regular commercially operated tours. Efile tax extension free By providing travel tours to its members, the organization is engaging in a regularly conducted trade or business. Efile tax extension free Even if the tours it offers support the university, financially and otherwise, and encourage alumni to do the same, they do not contribute importantly to the organization's exempt purpose of promoting education. Efile tax extension free Therefore, the sale of the travel tours is an unrelated trade or business. Efile tax extension free Example 2. Efile tax extension free A tax-exempt organization formed for the purpose of educating individuals about the geography and the culture of the United States provides study tours to national parks and other locations within the United States. Efile tax extension free These tours are conducted by teachers and others certified by the state board of education. Efile tax extension free The tours are primarily designed for students enrolled in degree programs at state educational institutions but are open to all who agree to participate in the required study program associated with the tour taken. Efile tax extension free A tour's study program consists of instruction on subjects related to the location being visited on the tour. Efile tax extension free Each tour group brings along a library of material related to the subjects being studied on the tour. Efile tax extension free During the tour, 5 or 6 hours per day are devoted to organized study, preparation of reports, lectures, instruction, and recitation by the students. Efile tax extension free Examinations are given at the end of each tour. Efile tax extension free The state board of education awards academic credit for tour participation. Efile tax extension free Because these tours are substantially related to the organization's exempt purpose, they are not an unrelated trade or business. Efile tax extension free Insurance programs. Efile tax extension free   An organization that acts as a group insurance policyholder for its members and collects a fee for performing administrative services is normally carrying on an unrelated trade or business. Efile tax extension free Exceptions. Efile tax extension free   Organizations whose exempt activities may include the provision of insurance benefits, such as fraternal beneficiary societies, voluntary employees beneficiary associations, and labor organizations, are generally exceptions to this rule. Efile tax extension free Magazine publishing. Efile tax extension free   An association of credit unions with tax-exempt status as a business league publishes a consumer-oriented magazine four times a year and makes it available to member credit unions for purchase. Efile tax extension free   By selling a magazine to its members as a promotional device, the organization furnishes its members with a regular commercial service they can use in their own operations. Efile tax extension free This service does not promote the improvement of business conditions of one or more lines of business, which is the exempt purpose of a business league. Efile tax extension free   Since the activity does not contribute importantly to the organization's exempt function, it is an unrelated trade or business. Efile tax extension free Directory of members. Efile tax extension free   A business league publishes an annual directory that contains a list of all its members, their addresses, and their area of expertise. Efile tax extension free Each member has the same amount of space in the directory, and its format does not emphasize the relative importance or reputation of any member. Efile tax extension free The directory contains no commercial advertisement and is sold only to the organization's members. Efile tax extension free   The directory facilitates communication among the members and encourages the exchange of ideas and expertise. Efile tax extension free Because the directory lists the members in a similar noncommercial format without advertising and is not distributed to the public, its sale does not confer private commercial benefits on the members. Efile tax extension free The sale of the directory does contribute importantly to the organization's exempt purpose and is not an unrelated trade or business. Efile tax extension free This directory differs from the publication discussed next because of its noncommercial characteristics. Efile tax extension free Sales of advertising space. Efile tax extension free   A national association of law enforcement officials publishes a monthly journal that contains articles and other editorial material of professional interest to its members. Efile tax extension free The journal is distributed without charge, mainly to the organization's members. Efile tax extension free   The organization sells advertising space in the journal either for conventional advertising or to merely identify the purchaser without a commercial message. Efile tax extension free Some of the noncommercial advertising identifies the purchaser in a separate space, and some consists of listings of 60 or more purchasers per page. Efile tax extension free A business firm identified in a separate space is further identified in an Index of Advertisers. Efile tax extension free   The organization solicits advertising by personal contacts. Efile tax extension free Advertising from large firms is solicited by contacting their chief executive officer or community relations officer rather than their advertising manager. Efile tax extension free The organization also solicits advertising in form letters appealing for corporate and personal contributions. Efile tax extension free   An exempt organization's sale of advertising placed for the purchaser's commercial benefit is a commercial activity. Efile tax extension free Goodwill derived by the purchaser from being identified as a patron of the organization is usually considered a form of commercial benefit. Efile tax extension free Therefore, advertising in an exempt organization's publication is generally presumed to be placed for the purchaser's commercial benefit, even if it has no commercial message. Efile tax extension free However, this presumption is not conclusive if the purchaser's patronage would be difficult to justify commercially in view of the facts and circumstances. Efile tax extension free In that case, other factors should also be considered in determining whether a commercial benefit can be expected. Efile tax extension free Those other factors include: The normal manner in which the publication is circulated; The territorial scope of the circulation; The extent to which its readers, promoters, or the like could reasonably be expected to further, either directly or indirectly, the commercial interest of the advertisers; The eligibility of the publishing organization to receive tax-deductible contributions; and The commercial or noncommercial methods used to solicit the advertisers. Efile tax extension free   In this situation, the purchaser of a separate advertising space without a commercial message can nevertheless expect a commercial benefit from the goodwill derived from being identified in that manner as a patron of the organization. Efile tax extension free However, the purchaser of a listing cannot expect more than an inconsequential benefit. Efile tax extension free Therefore, the sale of separate spaces, but not the listings, is an unrelated trade or business. Efile tax extension free Publishing legal notices. Efile tax extension free   A bar association publishes a legal journal containing opinions of the county court, articles of professional interest to lawyers, advertisements for products and services used by the legal profession, and legal notices. Efile tax extension free The legal notices are published to satisfy state laws requiring publication of notices in connection with legal proceedings, such as the administration of estates and actions to quiet title to real property. Efile tax extension free The state designated the bar association's journal as the place to publish the required notices. Efile tax extension free   The publication of ordinary commercial advertising does not advance the exempt purposes of the association even when published in a periodical that contains material related to exempt purposes. Efile tax extension free Although the advertising is directed specifically to members of the legal profession, it is still commercial in nature and does not contribute importantly to the exempt purposes of the association. Efile tax extension free Therefore, the advertising income is unrelated trade or business income. Efile tax extension free   On the other hand, the publication of legal notices is distinguishable from ordinary commercial advertising in that its purpose is to inform the general public of significant legal events rather than to stimulate demand for the products or services of an advertiser. Efile tax extension free This promotes the common interests of the legal profession and contributes importantly to the association's exempt purposes. Efile tax extension free Therefore, the publishing of legal notices does not constitute an unrelated trade or business. Efile tax extension free Museum greeting card sales. Efile tax extension free    An art museum that exhibits modern art sells greeting cards that display printed reproductions of selected works from other art collections. Efile tax extension free Each card is imprinted with the name of the artist, the title or subject matter of the work, the date or period of its creation, if known, and the museum's name. Efile tax extension free The cards contain appropriate greetings and are personalized on request. Efile tax extension free   The organization sells the cards in the shop it operates in the museum and sells them at quantity discounts to retail stores. Efile tax extension free It also sells them by mail order through a catalog that is advertised in magazines and other publications throughout the year. Efile tax extension free As a result, a large number of cards are sold at a significant profit. Efile tax extension free   The museum is exempt as an educational organization on the basis of its ownership, maintenance, and exhibition for public viewing of works of art. Efile tax extension free The sale of greeting cards with printed reproductions of artworks contributes importantly to the achievement of the museum's exempt educational purposes by enhancing public awareness, interest, and appreciation of art. Efile tax extension free The cards may encourage more people to visit the museum itself to share in its educational programs. Efile tax extension free The fact that the cards are promoted and sold in a commercial manner at a profit and in competition with commercial greeting card publishers does not alter the fact that the activity is related to the museum's exempt purpose. Efile tax extension free Therefore, these sales activities are not an unrelated trade or business. Efile tax extension free Museum shop. Efile tax extension free   An art museum maintained and operated for the exhibition of American folk art operates a shop in the museum that sells: Reproductions of works in the museum's own collection and reproductions of artistic works from the collections of other art museums (prints suitable for framing, postcards, greeting cards, and slides); Metal, wood, and ceramic copies of American folk art objects from its own collection and similar copies of art objects from other collections of artworks; Instructional literature and scientific books and souvenir items concerning the history and development of art and, in particular, of American folk art; and Scientific books and souvenir items of the city in which the museum is located. Efile tax extension free   The shop also rents originals or reproductions of paintings contained in its collection. Efile tax extension free All of its reproductions are imprinted with the name of the artist, the title or subject matter of the work from which it is reproduced, and the museum's name. Efile tax extension free   Each line of merchandise must be considered separately to determine if sales are related to the exempt purpose. Efile tax extension free   The sale and rental of reproductions and copies of works from the museum's own collection and reproductions of artistic works not owned by the museum contribute importantly to the achievement of the museum's exempt educational purpose by making works of art familiar to a broader segment of the public, thereby enhancing the public's understanding and appreciation of art. Efile tax extension free The same is true for the sale of literature relating to art. Efile tax extension free Therefore, these sales activities are not an unrelated trade or business. Efile tax extension free   On the other hand, the sale of scientific books and souvenir items of the city where the museum is located has no causal relationship to art or to artistic endeavor and, therefore, does not contribute importantly to the accomplishment of the museum's exempt educational purposes. Efile tax extension free The fact that selling some of these items could, under different circumstances, be held related to the exempt educational purpose of some other exempt educational organization does not change this conclusion. Efile tax extension free Additionally, the sale of these items does not lose its identity as a trade or business merely because the museum also sells articles which do contribute importantly to the accomplishment of its exempt function. Efile tax extension free Therefore, these sales are an unrelated trade or business. Efile tax extension free Business league's parking and bus services. Efile tax extension free   A business league, whose purpose is to retain and stimulate trade in a downtown area that has inadequate parking facilities, operates a fringe parking lot and shuttle bus service. Efile tax extension free It also operates, as an insubstantial part of its activities, a park and shop plan. Efile tax extension free   The fringe parking lot and shuttle bus service operate in a manner that does not favor any individual or group of downtown merchants. Efile tax extension free The merchants cannot offer free or discount parking or bus fares to their customers. Efile tax extension free   The park and shop plan allows customers of particular merchants to park free at certain parking lots in the area. Efile tax extension free Merchants participating in this plan buy parking stamps, which they distribute to their customers to use to pay for parking. Efile tax extension free   Operating the fringe parking lot and shuttle bus service provides easy and convenient access to the downtown area and, therefore, stimulates and improves business conditions in the downtown area generally. Efile tax extension free That activity contributes importantly to the organization's accomplishing its exempt purpose and is not an unrelated trade or business. Efile tax extension free   The park and shop plan encourages customers to use a limited number of participating member merchants in order to obtain free parking. Efile tax extension free This provides a particular service to individual members of the organization and does not further its exempt purpose. Efile tax extension free Therefore, operating the park and shop plan is an unrelated trade or business. Efile tax extension free Youth residence. Efile tax extension free   An exempt organization, whose purpose is to provide for the welfare of young people, rents rooms primarily to people under age 25. Efile tax extension free The residence units are operated on, and as a part of, the premises in which the organization carries on the social, recreational, and guidance programs for which it was recognized as exempt. Efile tax extension free The facilities are under the management and supervision of trained career professionals who provide residents with personal counseling, physical education programs, and group recreational activities. Efile tax extension free The rentals are not an unrelated trade or business because renting the rooms is substantially related to the organization's exempt purpose. Efile tax extension free Health club program. Efile tax extension free   An exempt charitable organization's purpose is to provide for the welfare of young people. Efile tax extension free The organization conducts charitable activities and maintains facilities that will contribute to the physical, social, mental, and spiritual health of young people at minimum or no cost to them. Efile tax extension free Nominal annual dues are charged for membership in the organization and use of the facilities. Efile tax extension free   In addition, the organization organized a health club program that its members could join for an annual fee in addition to the annual dues. Efile tax extension free The annual fee is comparable to fees charged by similar local commercial health clubs and is sufficiently high to restrict participation in the program to a limited number of members of the community. Efile tax extension free   The health club program is in addition to the general physical fitness program of the organization. Efile tax extension free Operating this program does not contribute importantly to the organization's accomplishing its exempt purpose and, therefore, is an unrelated trade or business. Efile tax extension free Miniature golf course. Efile tax extension free   An exempt youth welfare organization operates a miniature golf course that is open to the general public. Efile tax extension free The course, which is managed by salaried employees, is substantially similar to commercial courses. Efile tax extension free The admission fees charged are comparable to fees of commercial facilities and are designed to return a profit. Efile tax extension free   The operation of the miniature golf course in a commercial manner does not contribute importantly to the accomplishment of the organization's exempt purpose and, therefore, is an unrelated trade or business. Efile tax extension free Sales of hearing aids. Efile tax extension free   A tax-exempt hospital, whose primary activity is rehabilitation, sells hearing aids to patients. Efile tax extension free This activity is an essential part of the hospital's program to test and evaluate patients with hearing deficiencies and contributes importantly to its exempt purpose. Efile tax extension free It is not an unrelated trade or business. Efile tax extension free Nonpatient laboratory testing. Efile tax extension free   Nonpatient laboratory testing performed by a tax-exempt teaching hospital on specimens needed for the conduct of its teaching activities is not an unrelated trade or business. Efile tax extension free However, laboratory testing performed by a tax-exempt non-teaching hospital on referred specimens from private office patients of staff physicians is an unrelated trade or business if these services are otherwise available in the community. Efile tax extension free Selling endorsements. Efile tax extension free   An exempt scientific organization enjoys an excellent reputation in the field of biological research. Efile tax extension free It exploits this reputation regularly by selling endorsements of laboratory equipment to manufacturers. Efile tax extension free Endorsing laboratory equipment does not contribute importantly to the accomplishment of any purpose for which exemption is granted to the organization. Efile tax extension free Accordingly, the sale of endorsements is an unrelated trade or business. Efile tax extension free Sponsoring entertainment events. Efile tax extension free   An exempt university has a regular faculty and a regularly enrolled student body. Efile tax extension free During the school year, the university sponsors the appearance of professional theater companies and symphony orchestras that present drama and musical performances for the students and faculty members. Efile tax extension free Members of the general public also are admitted. Efile tax extension free The university advertises these performances and supervises advance ticket sales at various places, including such university facilities as the cafeteria and the university bookstore. Efile tax extension free Although the presentation of the performances makes use of an intangible generated by the university's exempt educational functions—the presence of the student body and faculty—such drama and music events contribute importantly to the overall educational and cultural functions of the university. Efile tax extension free Therefore, the activity is not an unrelated trade or business. Efile tax extension free Excluded Trade or Business Activities The following activities are specifically excluded from the definition of unrelated trade or business. Efile tax extension free Volunteer workforce. Efile tax extension free   Any trade or business in which substantially all the work is performed for the organization without compensation is not an unrelated trade or business. Efile tax extension free Example 1. Efile tax extension free A retail store operated by an exempt orphanage where unpaid volunteers perform substantially all the work in carrying on the business is not an unrelated trade or business. Efile tax extension free Example 2. Efile tax extension free A volunteer fire company conducts weekly public dances. Efile tax extension free Holding public dances and charging admission on a regular basis may, given the facts and circumstances of a particular case, be considered an unrelated trade or business. Efile tax extension free However, because the work at the dances is performed by unpaid volunteers, the activity is not an unrelated trade or business. Efile tax extension free Convenience of members. Efile tax extension free   A trade or business conducted by a 501(c)(3) organization or by a governmental college or university primarily for the convenience of its members, students, patients, officers, or employees is not an unrelated trade or business. Efile tax extension free For example, a laundry operated by a college for the purpose of laundering dormitory linens and students' clothing is not an unrelated trade or business. Efile tax extension free Qualified sponsorship activities. Efile tax extension free   Soliciting and receiving qualified sponsorship payments is not an unrelated trade or business, and the payments are not subject to unrelated business income tax. Efile tax extension free Qualified sponsorship payment. Efile tax extension free   This is any payment made by a person engaged in a trade or business for which the person will receive no substantial benefit other than the use or acknowledgment of the business name, logo, or product lines in connection with the organization's activities. Efile tax extension free “Use or acknowledgment” does not include advertising the sponsor's products or services. Efile tax extension free The organization's activities include all its activities, whether or not related to its exempt purposes. Efile tax extension free   For example, if, in return for receiving a sponsorship payment, an organization promises to use the sponsor's name or logo in acknowledging the sponsor's support for an educational or fundraising event, the payment is a qualified sponsorship payment and is not subject to the unrelated business income tax. Efile tax extension free   Providing facilities, services, or other privileges (for example, complimentary tickets, pro-am playing spots in golf tournaments, or receptions for major donors) to a sponsor or the sponsor's designees in connection with a sponsorship payment does not affect whether the payment is a qualified sponsorship payment. Efile tax extension free Instead, providing these goods or services is treated as a separate transaction in determining whether the organization has unrelated business income from the event. Efile tax extension free Generally, if the services or facilities are not a substantial benefit or if providing them is a related business activity, the payments will not be subject to the unrelated business income tax. Efile tax extension free   Similarly, the sponsor's receipt of a license to use an intangible asset (for example, a trademark, logo, or designation) of the organization is treated as separate from the qualified sponsorship transaction in determining whether the organization has unrelated business taxable income. Efile tax extension free   If part of a payment would be a qualified sponsorship payment if paid separately, that part is treated as a separate payment. Efile tax extension free For example, if a sponsorship payment entitles the sponsor to both product advertising and the use or acknowledgment of the sponsor's name or logo by the organization, then the unrelated business income tax does not apply to the part of the payment that is more than the fair market value of the product advertising. Efile tax extension free Advertising. Efile tax extension free   A payment is not a qualified sponsorship payment if, in return, the organization advertises the sponsor's products or services. Efile tax extension free For information on the treatment of payments for advertising, see Exploitation of Exempt Activity—Advertising Sales in chapter 4. Efile tax extension free   Advertising includes: Messages containing qualitative or comparative language, price information, or other indications of savings or value; Endorsements; and Inducements to purchase, sell, or use the products or services. Efile tax extension free   The use of promotional logos or slogans that are an established part of the sponsor's identity is not, by itself, advertising. Efile tax extension free In addition, mere distribution or display of a sponsor's product by the organization to the public at a sponsored event, whether for free or for remuneration, is considered use or acknowledgment of the product rather than advertising. Efile tax extension free Exception for contingent payments. Efile tax extension free   A payment is not a qualified sponsorship payment if its amount is contingent, by contract or otherwise, upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. Efile tax extension free However, the fact that a sponsorship payment is contingent upon an event actually taking place or being broadcast does not, by itself, affect whether a payment qualifies. Efile tax extension free Exception for periodicals. Efile tax extension free   A payment is not a qualified sponsorship payment if it entitles the payer to the use or acknowledgment of the business name, logo, or product lines in the organization's periodical. Efile tax extension free For this purpose, a periodical is any regularly scheduled and printed material (for example, a monthly journal) published by or on behalf of the organization. Efile tax extension free It does not include material that is related to and primarily distributed in connection with a specific event conducted by the organization (for example, a program or brochure distributed at a sponsored event). Efile tax extension free   The treatment of payments that entitle the payer to the depiction of the payer's name, logo, or products lines in an organization's periodical is determined under the rules that apply to advertising activities. Efile tax extension free See Sales of advertising space under Examples, earlier in this chapter. Efile tax extension free Also see Exploitation of Exempt Activity—Advertising Sales in chapter 4. Efile tax extension free Exception for conventions and trade shows. Efile tax extension free   A payment is not a qualified sponsorship payment if it is made in connection with any qualified convention or trade show activity. Efile tax extension free The exclusion of qualified convention or trade show activities from the definition of unrelated trade or business is explained later under Convention or trade show activity. Efile tax extension free Selling donated merchandise. Efile tax extension free   A trade or business that consists of selling merchandise, substantially all of which the organization received as gifts or contributions, is not an unrelated trade or business. Efile tax extension free For example, a thrift shop operated by a tax-exempt organization that sells donated clothes and books to the general public, with the proceeds going to the exempt organization, is not an unrelated trade or business. Efile tax extension free Employee association sales. Efile tax extension free   The sale of certain items by a local association of employees described in section 501(c)(4), organized before May 17, 1969, is not an unrelated trade or business if the items are sold for the convenience of the association's members at their usual place of employment. Efile tax extension free This exclusion applies only to the sale of work-related clothes and equipment and items normally sold through vending machines, food dispensing facilities, or by snack bars. Efile tax extension free Bingo games. Efile tax extension free   Certain bingo games are not included in the term “unrelated trade or business. Efile tax extension free ” To qualify for this exclusion, the bingo game must meet the following requirements. Efile tax extension free It meets the legal definition of bingo. Efile tax extension free It is legal where it is played. Efile tax extension free It is played in a jurisdiction where bingo games are not regularly conducted by for-profit organizations. Efile tax extension free Legal definition. Efile tax extension free   For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. Efile tax extension free   A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. Efile tax extension free For example, “instant bingo,” in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. Efile tax extension free Legal where played. Efile tax extension free   This exclusion applies only if bingo is legal under the laws of the jurisdiction where it is conducted. Efile tax extension free The fact that a jurisdiction's law that prohibits bingo is rarely enforced or is widely disregarded does not make the conduct of bingo legal for this purpose. Efile tax extension free No for-profit games where played. Efile tax extension free   This exclusion applies only if for-profit organizations cannot regularly conduct bingo games in any part of the same jurisdiction. Efile tax extension free Jurisdiction is normally the entire state; however, in certain situations, local jurisdiction will control. Efile tax extension free Example. Efile tax extension free Tax-exempt organizations X and Y are organized under the laws of state N, which has a law that permits exempt organizations to conduct bingo games. Efile tax extension free In addition, for-profit organizations are permitted to conduct bingo games in city S, a resort community located in county R. Efile tax extension free Several for-profit organizations conduct nightly games. Efile tax extension free Y conducts weekly bingo games in city S, while X conducts weekly games in county R. Efile tax extension free Since state law confines the for-profit organizations to city S, local jurisdiction controls. Efile tax extension free Y's bingo games conducted in city S are an unrelated trade or business. Efile tax extension free However, X's bingo games conducted in county R outside of city S are not an unrelated trade or business. Efile tax extension free Gambling activities other than bingo. Efile tax extension free   Any game of chance conducted by an exempt organization in North Dakota is not an unrelated trade or business if conducting the game does not violate any state or local law. Efile tax extension free Pole rentals. Efile tax extension free   The term unrelated trade or business does not include qualified pole rentals by a mutual or cooperative telephone or electric company described in section 501(c)(12). Efile tax extension free A qualified pole rental is the rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that the company uses in providing telephone or electric services to its members, and According to the rental, to support one or more wires (in addition to the wires described in 1 ) for use in connection with the transmission by wire of electricity or of telephone or other communications. Efile tax extension free For this purpose, the term rental includes any sale of the right to use the pole (or other structure). Efile tax extension free Distribution of low cost articles. Efile tax extension free   The term unrelated trade or business does not include activities relating to the distribution of low cost articles incidental to soliciting charitable contributions. Efile tax extension free This applies to organizations described in section 501 that are eligible to receive charitable contributions. Efile tax extension free   A distribution is considered incidental to the solicitation of a charitable contribution if: The recipient did not request the distribution, The distribution is made without the express consent of the recipient, and The article is accompanied by a request for a charitable contribution to the organization and a statement that the recipient may keep the low cost article regardless of whether a contribution is made. Efile tax extension free   An article is considered low cost if the cost of an item (or the aggregate costs if more than one item) distributed to a single recipient in a tax year is not more than $5, indexed annually for inflation. Efile tax extension free The maximum cost of a low cost article is $9. Efile tax extension free 70 for 2011. Efile tax extension free The cost of an article is the cost to the organization that distributes the item or on whose behalf it is distributed. Efile tax extension free Exchange or rental of member lists. Efile tax extension free   The exchange or rental of member or donor lists between organizations described in section 501 that are eligible to receive charitable contributions is not included in the term unrelated trade or business. Efile tax extension free Hospital services. Efile tax extension free   The providing of certain services at or below cost by an exempt hospital to other exempt hospitals that have facilities for 100 or fewer inpatients is not an unrelated trade or business. Efile tax extension free This exclusion applies only to services described in section 501(e)(1)(A). Efile tax extension free Public entertainment activity. Efile tax extension free   An unrelated trade or business does not include a qualified public entertainment activity. Efile tax extension free A public entertainment activity is one traditionally conducted at a fair or exposition promoting agriculture and education, including any activity whose purpose is designed to attract the public to fairs or expositions or to promote the breeding of animals or the development of products or equipment. Efile tax extension free   A qualified public entertainment activity is one conducted by a qualifying organization: In conjunction with an international, national, state, regional, or local fair or exposition; In accordance with state law that permits the activity to be operated or conducted solely by such an organization or by an agency, instrumentality, or political subdivision of the state; or In accordance with state law that permits an organization to be granted a license to conduct an activity for not more than 20 days on paying the state a lower percentage of the revenue from the activity than the state charges nonqualifying organizations that hold similar activities. Efile tax extension free   For these purposes, a qualifying organization is an organization described in section 501(c)(3), 501(c)(4), or 501(c)(5) that regularly conducts an agricultural and educational fair or exposition as one of its substantial exempt purposes. Efile tax extension free Its conducting qualified public entertainment activities will not affect determination of its exempt status. Efile tax extension free Convention or trade show activity. Efile tax extension free   An unrelated trade or business does not include qualified convention or trade show activities conducted at a convention, annual meeting, or trade show. Efile tax extension free   A qualified convention or trade show activity is any activity of a kind traditionally conducted by a qualifying organization in conjunction with an international, national, state, regional, or local convention, annual meeting, or show if: One of the purposes of the organization in sponsoring the activity is promoting and stimulating interest in, and demand for, the products and services of that industry or educating the persons in attendance regarding new products and services or new rules and regulations affecting the industry; and The show is designed to achieve its purpose through the character of the exhibits and the extent of the industry products that are displayed. Efile tax extension free   For these purposes, a qualifying organization is one described in section 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6). Efile tax extension free The organization must regularly conduct, as one of its substantial exempt purposes, a qualified convention or trade show activity. Efile tax extension free   The rental of display space to exhibitors (including exhibitors who are suppliers) at a qualified convention or trade show is not an unrelated trade or business even if the exhibitors who rent the space are permitted to sell or solicit orders. Efile tax extension free For this purpose, a supplier's exhibit is one in which the exhibitor displays goods or services that are supplied to, rather than by, members of the qualifying organization in the conduct of these members' own trades or businesses. Efile tax extension free    Certain Internet activities conducted by a trade association described in section 501(c)(6) will be considered qualified convention and trade show activity if conducted on a special supplementary section of the association's website in conjunction with a trade show conducted by the association. Efile tax extension free The trade show itself must be a qualified convention and trade show activity. Efile tax extension free The supplementary section of the website must be ancillary to, and serve to augment and enhance, the trade show, as when it makes available the same information available at the trade show and is available only during a time period that coincides with the time period that the trade show is in operation. Efile tax extension free Conversely, Internet activities that are not conducted in conjunction with a qualified convention and trade show activity and that do not augment and enhance the trade show cannot themselves be qualified convention and trade show activity. Efile tax extension free Prev  Up  Next   Home   More Online Publications