1666. CHAPTER 15—EXEMPT ENTITIES Question TF #37 Revenue generated by an exempt organization from the distribution of low-cost items is not income from an unrelated trade or business. a. True b. False 1667. CHAPTER 15—EXEMPT ENTITIES Question TF #38 The activity of exchanging with or renting to other exempt organizations the exempt organization’s donor or membership list is not an unrelated trade or business. a. True b. False 1668. CHAPTER 15—EXEMPT ENTITIES Question TF #39 For an activity to be considered as regularly carried on for purposes of the unrelated business income tax the activity must be conducted during the work week (i.e. activities performed on the weekend are not considered in determining if the activity is regularly carried on). a. True b. False 1669. CHAPTER 15—EXEMPT ENTITIES Question TF #40 In calculating unrelated business taxable income the exempt organization is permitted to deduct only the charitable contributions associated with the unrelated trade or business. a. True b. False 1670. CHAPTER 15—EXEMPT ENTITIES Question TF #41 Unrelated debt-financed income net of the unrelated debt-financed deductions is subject to the unrelated business income tax only if the exempt organization is a private foundation. a. True b. False 1671. CHAPTER 15—EXEMPT ENTITIES Question TF #42 Personal property rental income is subject to and real property rental income is not subject to the unrelated business income tax. a. True b. False 1672. CHAPTER 15—EXEMPT ENTITIES Question TF #43 If personal property is leased with real property and more than 80% of the rent income under the lease is from personal property all of the rent income is subject to the unrelated business income tax. a. True b. False 1673. CHAPTER 15—EXEMPT ENTITIES Question TF #44 If the unrelated business income of an exempt organization is $25 000 or less the unrelated business income tax (UBIT) will be $0. a. True b. False 1674. CHAPTER 15—EXEMPT ENTITIES Question TF #45 For purposes of the unrelated business income tax debt-financed property is all property of the exempt organization that is held to produce income and on which there is acquisition indebtedness. a. True b. False 1675. CHAPTER 15—EXEMPT ENTITIES Question TF #46 A church is required to obtain IRS approval for its exempt status if its annual gross receipts exceed $25 000. a. True b. False 1676. CHAPTER 15—EXEMPT ENTITIES Question TF #47 Even though a church is not required to obtain IRS approval of its exempt status it still must file Form 990 (Return of Organization Exempt from Income Tax) annually. a. True b. False 1677. CHAPTER 15—EXEMPT ENTITIES Question TF #48 The due date for both Form 990 (Return of Organization Exempt from Income Tax) and Form 990-PF (Return of Private Foundation) is the fifteenth day of the fifth month after the end of the taxable year. a. True b. False 1678. CHAPTER 15—EXEMPT ENTITIES Question TF #49 All exempt organizations which are subject to the unrelated business income tax must file Form 990-T (Exempt Organization Business Income Tax Return). a. True b. False 1679. CHAPTER 15—EXEMPT ENTITIES Question TF #50 Unless the “widely available” provision is satisfied a § 501(c)(3) exempt organization (excluding churches and private foundations) must make copies of the following available to the general public: Form 990 (Return of Organization Exempt from Income Tax) and Form 1023 [Application for Recognition of Exemption under § 501(c)(3)] or Form 1024 [Application for Recognition of Exemption under § 501(a)]. a. True b. False
