Which of the following activities is least likely to be excluded from the definition of unrelated...
Which of the following activities is least likely to be excluded from the definition of unrelated trade or business?
a. A trade or business in which substantially all the work is performed for the organization without compensation
b. A bingo game that is legal where it is played (and played in a jurisdiction where bingo games are not regularly carried on by for-profits)
c. Payments for advertising that strongly endorses sponsor's products
d. A trade or business carried on by a university primarily for the convenience of its students
Unrelated trade or business:
"Unrelated trade or business" is an activity that is not related to the performance or function done as a charity, for educational purposes or any other purpose lead to getting the exemptions. Rental income, research income, income from royalties, or gain or loss on the sale of property are the examples excluded from the unrelated business taxable income.
Answer and Explanation: 1
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Option (c) Payments for advertising that strongly endorses the sponsor's products is the correct answer because this element is...
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fromChapter 4 / Lesson 1
Trade and service businesses differ by selling goods and inventory versus selling experiences and intangible goods. Explore how trade businesses and service businesses differ through examples of each.
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