Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
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.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
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.
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.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.