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For each of the following organizations, determine its UBTI and any related UBIT. If an amount is zero, enter 0 . Assume a
For each of the following organizations, determine its UBTI and any related UBIT. If an amount is zero, enter Assume a corporate income tax rate. Question Content Area a Connect, Inc., an exempt organization, provides food for the homeless. It operates a thrift store that sells used clothing to the general public. The thrift shop is staffed soley by four salaried employees. All of the clothes it sells are received as contributions. The $ profit generated for the year by the thrift shop is used in Connect's mission of providing food to homeless people. The UBTI is $fill in the blank bfffd and the UBIT is $fill in the blank bfffd Feedback Area Feedback The unrelated business income tax UBIT is designed to treat the charitable entities as if they were subject to the corporate income tax. Thus, the rates that are used are those applicable to a corporate taxpayer. In general, unrelated business income UBI is derived from activities not related to the exempt purpose of the exempt organization. Question Content Area b Small, Inc., an exempt organization, has gross unrelated business income of $ and unrelated business expenses of $ The UBTI is $fill in the blank edafdfc and the UBIT is $fill in the blank edafdfc Question Content Area c In Care, Inc., is a c exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a patron. The storegas pumps entity is operated as StopBy, a C corporation. Because StopBy is profitable, In Care hires a manager and several employees to run the entity. For the current year, StopBy's profit is $ All of this amount is distributed by StopBy to In Care to use in carrying out its exempt purpose. In Care Inc., is considered a feeder organization and therefore the UBIT does not apply. As result, the Federal income tax imposed is $fill in the blank aefffef
For each of the following organizations, determine its UBTI and any related UBIT.
If an amount is zero, enter Assume a corporate income tax rate.
Question Content Area
a Connect, Inc., an exempt organization, provides food for the homeless. It operates a thrift store that sells used clothing to the general public. The thrift shop is staffed soley by four salaried employees. All of the clothes it sells are received as contributions. The $ profit generated for the year by the thrift shop is used in Connect's mission of providing food to homeless people.
The UBTI is $fill in the blank bfffd
and the UBIT is $fill in the blank bfffd
Feedback Area
Feedback
The unrelated business income tax UBIT is designed to treat the charitable entities as if they were subject to the corporate income tax. Thus, the rates that are used are those applicable to a corporate taxpayer. In general, unrelated business income UBI is derived from activities not related to the exempt purpose of the exempt organization.
Question Content Area
b Small, Inc., an exempt organization, has gross unrelated business income of $ and unrelated business expenses of $
The UBTI is $fill in the blank edafdfc
and the UBIT is $fill in the blank edafdfc
Question Content Area
c In Care, Inc., is a c exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a patron. The storegas pumps entity is operated as StopBy, a C corporation. Because StopBy is profitable, In Care hires a manager and several employees to run the entity. For the current year, StopBy's profit is $ All of this amount is distributed by StopBy to In Care to use in carrying out its exempt purpose.
In Care Inc., is considered a
feeder organization
and therefore the UBIT
does not
apply. As result, the Federal income tax imposed is $fill in the blank aefffef
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