For the following organizations, determine its UBTI and any related UBIT. In Care, Inc., is a § 501(c)(3) exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a patron. The store/gas pumps entity is operated as StopBy, a C corporation. Because StopBy is profit- able, In Care hires a manager and several employees to run the entity. For the current year, StopBy’s profit is $640,000. All of this amount is distributed by StopBy to In Care to use in carrying out its exempt mission.

For the following organizations, determine its UBTI and any related UBIT. In Care, Inc., is a § 501(c)(3) exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a patron. The store/gas pumps entity is operated as StopBy, a C corporation. Because StopBy is profit- able, In Care hires a manager and several employees to run the entity. For the current year, StopBy’s profit is $640,000. All of this amount is distributed by StopBy to In Care to use in carrying out its exempt mission.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter23: Exempt Entities

Section: Chapter Questions

Problem 31P

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