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Tax Issues for Real Estate Leasing By Tax-Exempt Organizations
It is not uncommon for tax-exempt organizations to want to lease real estate they own to residential or commercial tenants, whether the real estate consists of empty land or existing buildings. Such rentals often provide a good source of revenue for the organization, as well as a means of maintaining in use property that the organization may wish to hold for long-term development for its own uses, but is temporarily not needed. In other cases, it involves property that may never be used by the organization, but the organization believes that leasing the property will produce greater income, or at least a steady stream of income over a longer period of time, than would be available by selling the property outright.
In these regards, tax-exempt organizations are no different from for-profit businesses that need to find a use for property that may be temporarily or permanently not needed for the business's operations. There are major differences, however, in the consequences. Although tax-exempt entities do not ordinarily pay tax on their income, the federal tax code does tax the income of tax-exempt organizations that is derived from commercial activities. Although an organization is permitted to engage in some degree of commercial activity (and pay the tax on the income derived from such activity), if the taxable income from the activity constitutes too large a portion of the organization's overall income, it will jeopardize the organization's exemption.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.