Tax-Exempt Organizations / business inco

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Question

Why does private inurement threaten exempt status?

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Answer

An insider cannot benefit from net earnings; violation risks revocation.

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Question

When must an exempt organization file Form 990-T?

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Answer

When gross UBI is at least $1,000.

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Question

When does passive income become UBTI under the debt-financed income rules?

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Answer

When the property producing it is debt-financed.

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