33. Initiate, Inc. a 501 organization, receives the following revenues and incurs the following expenses.
Grant from Gates Foundation 70,000
Charitable contributions received 625,000
Expenses in carrying out its exempt mission 500,000
Net income before taxes of landscaping inc. 400,000
a wholly owned for profit subsidiary
Landscaping Inc. remits all of its after tax profits each year to Initiate. Calculate the amount of the Federal income tax, if any, for Initiate for Landscaping.
35. Gray, Inc. a private foundation, reports the following items of income and deductions. Gray is not an exempt operating foundation, and it is not eligible for the 1% tax rate.
Interest income 29,000
Rent income 61,000
Dividend Income 15,000
Royalty Income 22,000
Unrelated business income 80,000
Rent expenses (26,000)
Unrelated business expenses (12,000)
Calculate the net investment income.
Calculate the tax on net investment income
What is the purpose of the tax on net investment income?
45. Fish, Inc. any exempt organization, reports unrelated business income of 500,000 (before any charitable contribution deduction). During the year, Fish makes charitable contributions of 54,000 of which 38,000 are associated with the unrelated trade or business.
Calculate Fish's unrelated business taxable income (UBTI).
Assume that the charitable contributions are 41,000 of which 38,000 are associated with the unrelated trade of business. Calculate the UBTI.