search query: @indexterm taxation / total: 1872
reference: 400 / 1872
| Author: | Sansing, R. C. |
| Title: | In search of profits: measuring income from the unrelated commercial use of a tax-exempt organization´s assets |
| Journal: | Accounting Review
2001 : APR, VOL. 76:2, p. 245-262 |
| Index terms: | Taxation Income tax Measurement |
| Language: | eng |
| Abstract: | This paper shows that when the taxable and tax-exempt activities are substitutes, taxable income exceeds the incremental pretax financial return from the unrelated business activity because the exempt organization cannot deduct the opportunity cost of lost exempt function revenues when computing UBIT. As a result, the exempt organization may: (1) reduce or eliminate its unrelated business activity, or (2) change the way it uses its assets for unrelated business purposes by licensing the use of its assets to an unrelated business purposes by licensing the use of its assets to an unrelated taxable organization in exchange for nontaxable royalties. |
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