A Type 1 Diabetic  social club that was classified as being tax exempt under Code Sec. 501(c)(7) had taxable unrelated business income derived from dividends on investments.  Can that social club claim the dividends received deduction allowed by Code. Sec. 243 against this income?

 

2) John Smith , owner of Comic Plus Store, began selling a wide range of his sneaker gadgets on eBay. Since these online transactions are conducted on the internet between him and the bidder, he has decided not to include these sales in his gross income.  Is John correct?