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1040 Income Tax Form

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1040 Income Tax Form

1040 income tax form Index A Accounting method Accrual, Accrual Method, Accrual method. 1040 income tax form Automatic procedures, Automatic change procedures. 1040 income tax form Cash, Cash Method, Cash method. 1040 income tax form Change in, Change in Accounting Method Combination, Combination Method Special, Special Methods Accounting periods, Accounting Periods Accrual method Income - general rule, Income—General Rule Income - special rules, Income—Special Rules Of accounting, Accrual Method Adjusted basis, Adjusted basis. 1040 income tax form Administrator, Executor or administrator. 1040 income tax form Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911). 1040 income tax form Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910). 1040 income tax form Appeal rights, Appeals. 1040 income tax form Appreciation, Appreciation. 1040 income tax form Audits, Examinations (audits). 1040 income tax form Automobile (see Car expenses) B Bad debts, Bad Debts Barter income, Bartering for Property or Services Basis of property, Basis. 1040 income tax form Bribes, Expenses You Cannot Deduct Business expenses, Business Expenses Business income, Business Income Business use of your home, Business Use of Your Home C Canceled debt, Canceled Debt Cancellation of qualified real property business debt, Cancellation of qualified real property business debt. 1040 income tax form Capital gain or loss, Is My Gain or Loss Ordinary or Capital? Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933). 1040 income tax form Cash discount, Cash discounts. 1040 income tax form , Cash discounts. 1040 income tax form Cash method Expenses, Expenses Income, Income Changing accounting method, Changing accounting method. 1040 income tax form Charitable contributions, Expenses You Cannot Deduct Child employed by parent, Child employed by parent. 1040 income tax form Claim for refund, Refunds. 1040 income tax form Collection of tax, Collections. 1040 income tax form Combination method of accounting, Combination Method Comments on publication, Comments and suggestions. 1040 income tax form Condemned property, Condemned property. 1040 income tax form Consignments, Consignments. 1040 income tax form Construction allowances, Construction allowances. 1040 income tax form Cost of goods sold, How To Figure Cost of Goods Sold Credit Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911). 1040 income tax form Alternative motor vehicle, Alternative motor vehicle credit (Form 8910). 1040 income tax form Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933). 1040 income tax form Disabled access, Disabled access credit (Form 8826). 1040 income tax form Distilled spirits, Distilled spirits credit (Form 8906). 1040 income tax form Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882). 1040 income tax form How to claim, How To Claim the Credit Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040 income tax form Investment, Investment credit (Form 3468). 1040 income tax form Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896). 1040 income tax form Low-income housing, Low-income housing credit (Form 8586). 1040 income tax form New markets, New markets credit (Form 8874). 1040 income tax form Nonconventional source fuel, Nonconventional source fuel credit (Form 8907). 1040 income tax form Orphan drug, Orphan drug credit (Form 8820). 1040 income tax form Qualified plug-in electric drive motor vehicle, Qualified plug-in electric drive motor vehicle credit (Form 8936). 1040 income tax form Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040 income tax form Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040 income tax form Small employer health insurance premiums, Credit for small employer health insurance premiums (Form 8941). 1040 income tax form Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881). 1040 income tax form Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 1040 income tax form Work opportunity, Work opportunity credit (Form 5884). 1040 income tax form D Damages, Damages. 1040 income tax form Debt Bad, Bad Debts Canceled, Canceled Debt Qualified real property business, Qualified real property business debt. 1040 income tax form Refund offset against, Offset against debts. 1040 income tax form Definitions Accounting methods, Accounting Methods Accounting periods, Accounting Periods Barter, Bartering for Property or Services Basis, Basis. 1040 income tax form Business bad debt, Business bad debt. 1040 income tax form Calendar tax year, Calendar tax year. 1040 income tax form Cash discount, Cash discounts. 1040 income tax form , Cash discounts. 1040 income tax form Disposition of property, What Is a Disposition of Property? Drawing account, Merchandise withdrawn from sale. 1040 income tax form Entertainment expenses, Entertainment expenses. 1040 income tax form Fair market value, Fair market value. 1040 income tax form Fiscal tax year, Fiscal tax year. 1040 income tax form Fringe benefit, Fringe benefits. 1040 income tax form Local transportation expenses, Local transportation expenses. 1040 income tax form Necessary expense, Introduction Net operating loss, Net Operating Losses (NOLs) Nonbusiness bad debt, Nonbusiness bad debts. 1040 income tax form Ordinary expense, Introduction Principal place of business, Principal place of business. 1040 income tax form Qualified long-term real property, Qualified long-term real property. 1040 income tax form Qualified real property business debt, Cancellation of qualified real property business debt. 1040 income tax form Rent, Rent Expense Restricted property, Other Income Retail space, Retail space. 1040 income tax form Self-employment (SE) tax, Self-Employment (SE) Tax Sole proprietor, Sole proprietor. 1040 income tax form Tax home, Local transportation expenses. 1040 income tax form Trade discount, Trade discounts. 1040 income tax form , Cash discounts. 1040 income tax form Travel expenses, Travel, Meals, and Entertainment Depreciation Deduction, Depreciation Listed property, Listed property. 1040 income tax form Depreciation, recapture, Recapture of depreciation. 1040 income tax form Direct seller, Direct seller. 1040 income tax form , Real estate agent or direct seller. 1040 income tax form Disabled access credit, Disabled access credit (Form 8826). 1040 income tax form Disposition of property Business property, Introduction Installment sale, Installment sales. 1040 income tax form , Installment sales. 1040 income tax form Like-kind exchange, Like-kind exchanges. 1040 income tax form , Like-kind exchanges. 1040 income tax form , Exchange of like-kind property. 1040 income tax form Nontaxable exchange, Nontaxable exchanges. 1040 income tax form Sale of a business, Sale of a business. 1040 income tax form Distilled spirits credit, Distilled spirits credit (Form 8906). 1040 income tax form Dividend income, Interest and Dividend Income Donation of inventory, Donation of inventory. 1040 income tax form Drawing account, Merchandise withdrawn from sale. 1040 income tax form Due date of return, When Is My Tax Return Due? E e-file, IRS e-file (Electronic Filing) Economic injury, Economic injury. 1040 income tax form EFTPS, EFTPS Electronic filing, IRS e-file (Electronic Filing) Employee, Employee. 1040 income tax form Employee benefit programs, Fringe benefits. 1040 income tax form Employees' pay, Employees' Pay Employer identification number (EIN), Employer identification number (EIN). 1040 income tax form Employment taxes About, Employment Taxes Deduction for, Employment taxes. 1040 income tax form Entertainment expenses, Entertainment expenses. 1040 income tax form (see Travel expenses) Escrow, payments placed in, Payment placed in escrow. 1040 income tax form Estimated tax, How Do I Pay Income Tax? Examinations (audits), Examinations (audits). 1040 income tax form Excise taxes About, Excise Taxes Deduction for, Excise taxes. 1040 income tax form Executor, Executor or administrator. 1040 income tax form Expenses, Business Expenses Bad debts, Bad Debts Car, Car and Truck Expenses Depreciation, Depreciation Employees' pay, Employees' Pay Entertainment, Travel, Meals, and Entertainment Home, business use, Business Use of Your Home Insurance, Insurance Interest, Interest Legal and professional fees, Legal and Professional Fees Meals, Travel, Meals, and Entertainment Nondeductible, Expenses You Cannot Deduct Other, Other Expenses You Can Deduct Pension plans, Pension Plans Rent, Rent Expense Taxes, Taxes Travel, Travel, Meals, and Entertainment Truck, Car and Truck Expenses F Fair market value, Fair market value. 1040 income tax form Filing business taxes, Filing and Paying Business Taxes Fishing crew member, Fishing crew member. 1040 income tax form , Fishing crew member. 1040 income tax form Form 1040 (tax return), How Do I File? 1040-ES (estimated tax), How Do I Pay Income Tax? 1040-V (voucher), Balance due. 1040 income tax form 1099-B (barter), Information returns. 1040 income tax form 1099-MISC (miscellaneous), Form 1099-MISC. 1040 income tax form , Information returns. 1040 income tax form 1128 (change tax year), Change in tax year. 1040 income tax form 2210 (underpayment of estimated tax), Penalty for underpayment of tax. 1040 income tax form 2290 (excise tax for heavy trucks), Form 2290. 1040 income tax form 3115 (change accounting method), Change in Accounting Method 3468 (investment credit), Investment credit (Form 3468). 1040 income tax form 3800 (general business credit), Useful Items - You may want to see: 4562 (depreciation), Form 4562. 1040 income tax form 4684 (casualty and theft), Casualties and thefts. 1040 income tax form 4797 (sale of business property), Dispositions of business property and depreciable property. 1040 income tax form , Condemned property. 1040 income tax form , Listed property. 1040 income tax form 4868 (extension), When Is My Tax Return Due? 5884 (work opportunity credit), Work opportunity credit (Form 5884). 1040 income tax form 6251 (alternative minimum tax), Useful Items - You may want to see: 6252 (installment sale), Installment sales. 1040 income tax form 720 (excise tax return), Form 720. 1040 income tax form 8300 (cash payments over $10,000), Form 8300. 1040 income tax form 8586 (low-income housing), Low-income housing credit (Form 8586). 1040 income tax form 8594 (asset acquisition), Sale of a business. 1040 income tax form 8820 (orphan drug credit), Orphan drug credit (Form 8820). 1040 income tax form 8824 (like-kind exchange), Like-kind exchanges. 1040 income tax form , Like-kind exchanges. 1040 income tax form 8826 (disabled access credit), Disabled access credit (Form 8826). 1040 income tax form 8829 (business in home), Deduction limit. 1040 income tax form 8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040 income tax form 8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 1040 income tax form 8857 (innocent spouse), Innocent spouse relief. 1040 income tax form 8874 (new markets credit), New markets credit (Form 8874). 1040 income tax form 8879 (self-selected PIN), Using an Authorized IRS e-file Provider 8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881). 1040 income tax form 8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882). 1040 income tax form 8886 (transaction statement), Reminders 8896 (low sulfur diesel fuel production credit), Low sulfur diesel fuel production credit (Form 8896). 1040 income tax form 8906 (distilled spirits credit), Distilled spirits credit (Form 8906). 1040 income tax form 8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907). 1040 income tax form 8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910). 1040 income tax form , Car and Truck Expenses 8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911). 1040 income tax form 8933 (carbon dioxide sequestration credit), Carbon dioxide sequestration credit (Form 8933). 1040 income tax form 8936 (qualified plug-in electric drive motor vehicle), Qualified plug-in electric drive motor vehicle credit (Form 8936). 1040 income tax form 8941 (small employer health insurance premiums), Credit for small employer health insurance premiums (Form 8941). 1040 income tax form 982 (discharge of indebtedness), Exclusions Schedule C (sole proprietor), How Do I File? Schedule C-EZ (sole proprietor), How Do I File? Schedule SE (self-employment tax), Who must pay self-employment tax. 1040 income tax form SS-4 (application for EIN), Employer identification number (EIN). 1040 income tax form SS-5 (application for SSN), Social security number (SSN). 1040 income tax form W-2 (report wages), Form W-2. 1040 income tax form W-4 (employee withholding), Employee. 1040 income tax form W-7 (application for ITIN), Individual taxpayer identification number (ITIN). 1040 income tax form W-9 (request for TIN), Other payee. 1040 income tax form Fringe benefits, Fringe benefits. 1040 income tax form Fuel taxes, Fuel taxes. 1040 income tax form G Gains and losses, Gains and losses. 1040 income tax form General business credits, General Business Credits, Business Credits Gross profit Accuracy, Testing Gross Profit Accuracy Additions to, Additions to Gross Profit Guidelines for selected occupations, Guidelines for Selected Occupations (see also Occupations, selected) H Health insurance, deduction for self-employed, Self-employed health insurance deduction. 1040 income tax form Home, business use of, Business Use of Your Home Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments. 1040 income tax form Husband and wife business, Business owned and operated by spouses. 1040 income tax form I Identification numbers, Identification Numbers Income, Items That Are Not Income (see also Not income) Accounting for your, Accounting for Your Income Barter, Bartering for Property or Services Business, Business Income Damages, Damages. 1040 income tax form Gains and losses, Gains and losses. 1040 income tax form Kickbacks, Kickbacks. 1040 income tax form Kinds of income, Kinds of Income Lost income payments, Lost income payments. 1040 income tax form Other, Other Income Paid to a third party, Income paid to a third party. 1040 income tax form Personal property rent, Personal Property Rents Promissory notes, Promissory notes. 1040 income tax form Recapture of depreciation, Recapture of depreciation. 1040 income tax form Recovery of items previously deducted, Recovery of items previously deducted. 1040 income tax form Rental, Real Estate Rents, Personal Property Rents Restricted property, Restricted property. 1040 income tax form Income tax About, Income Tax Deduction for, Income taxes. 1040 income tax form How to pay, How Do I Pay Income Tax? Underpayment penalty, Penalty for underpayment of tax. 1040 income tax form Income tax return, who must file, Do I Have To File an Income Tax Return? Independent contractor, Independent contractor. 1040 income tax form , Employment Taxes, Sole proprietor or independent contractor. 1040 income tax form Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). 1040 income tax form Information returns, Information Returns Information, How to get more, How To Get More Information Innocent spouse relief, Innocent spouse relief. 1040 income tax form Installment sales, Installment sales. 1040 income tax form Insurance Expense, Insurance Nondeductible premiums, Nondeductible premiums. 1040 income tax form Prepayment, Prepayment. 1040 income tax form Proceeds, Insurance proceeds. 1040 income tax form Self-employed health, Self-employed health insurance deduction. 1040 income tax form Insurance agent Former, Insurance agent, former. 1040 income tax form Retired, Insurance agent, retired. 1040 income tax form Interest Expenses, Interest Income, Interest and Dividend Income Inventories, Inventories Investment credit, Investment credit (Form 3468). 1040 income tax form K Kickbacks, Kickbacks. 1040 income tax form , Expenses You Cannot Deduct L Lease bonus, Lease bonus. 1040 income tax form Lease cancellation payments, Lease cancellation payments. 1040 income tax form Legal fees, Legal and Professional Fees Like-kind exchanges, Like-kind exchanges. 1040 income tax form , Exchange of like-kind property. 1040 income tax form Limited liability company, Limited liability company (LLC). 1040 income tax form Listed property, Listed property. 1040 income tax form Lobbying expense, Expenses You Cannot Deduct Local transportation expenses, Local transportation expenses. 1040 income tax form Lodging, Meals and lodging. 1040 income tax form Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Lost income payments, Lost income payments. 1040 income tax form Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896). 1040 income tax form Low-income housing credit, Low-income housing credit (Form 8586). 1040 income tax form M Meals, Meals and lodging. 1040 income tax form (see Travel expenses) Methods for figuring net earnings, Methods for Figuring Net Earnings Mileage rate for vehicles, Standard mileage rate. 1040 income tax form Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910). 1040 income tax form N Net operating losses, Net Operating Losses (NOLs) Net profit or loss, Introduction New markets credit, New markets credit (Form 8874). 1040 income tax form Newspaper carrier or distributor, Newspaper carrier or distributor. 1040 income tax form Newspaper or magazine vendor, Newspaper or magazine vendor. 1040 income tax form Nonbusiness bad debt, Nonbusiness bad debts. 1040 income tax form Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907). 1040 income tax form Nondeductible insurance premiums, Nondeductible premiums. 1040 income tax form Nonemployee compensation, Introduction Nontaxable exchanges, Nontaxable exchanges. 1040 income tax form Not income Appreciation, Appreciation. 1040 income tax form Consignments, Consignments. 1040 income tax form Constructions allowances, Construction allowances. 1040 income tax form Exchange of like-kind property, Exchange of like-kind property. 1040 income tax form Leasehold improvements, Leasehold improvements. 1040 income tax form Loans, Loans. 1040 income tax form Sales tax, Sales tax. 1040 income tax form Not-for-profit activities, Not-for-Profit Activities Notary public, Notary public. 1040 income tax form , Notary public. 1040 income tax form O Occupations, selected Administrator, Executor or administrator. 1040 income tax form Direct seller, Direct seller. 1040 income tax form , Real estate agent or direct seller. 1040 income tax form Executor, Executor or administrator. 1040 income tax form Fishing crew member, Fishing crew member. 1040 income tax form Insurance agent, former, Insurance agent, former. 1040 income tax form Insurance agent, retired, Insurance agent, retired. 1040 income tax form Newspaper carrier or distributor, Newspaper carrier or distributor. 1040 income tax form Newspaper or magazine vendor, Newspaper or magazine vendor. 1040 income tax form Notary public, Notary public. 1040 income tax form Public official, Public official. 1040 income tax form Real estate agent, Real estate agent or direct seller. 1040 income tax form Securities dealer, Securities dealer. 1040 income tax form Securities trader, Securities trader. 1040 income tax form Office in the home, Office in the home. 1040 income tax form (see also Business use of your home) Optional methods, using both, Using Both Optional Methods Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital? Orphan drug credit, Orphan drug credit (Form 8820). 1040 income tax form P Parking fees, Parking fees and tolls. 1040 income tax form Partners, husband and wife, Business owned and operated by spouses. 1040 income tax form Pay, kinds of, Kinds of pay. 1040 income tax form Paying Business taxes, Filing and Paying Business Taxes Income tax, How Do I Pay Income Tax? Payments to third parties, Payments to third parties. 1040 income tax form Penalties and fines, Expenses You Cannot Deduct Penalty Failure to file Form 8300, Penalties. 1040 income tax form Failure to file information returns, Penalties. 1040 income tax form Failure to furnish correct payee statements, Penalties. 1040 income tax form Underpayment of tax, Penalty for underpayment of tax. 1040 income tax form Waiver of, Waiver of penalties. 1040 income tax form Pension plans, Pension Plans Personal property tax, Personal property tax. 1040 income tax form Prepaid expense Extends useful life, Prepayment. 1040 income tax form Rent, Rent paid in advance. 1040 income tax form Professional fees, Legal and Professional Fees Promissory notes, Promissory notes. 1040 income tax form Public official, Public official. 1040 income tax form Punitive damages, Punitive damages. 1040 income tax form Q Qualified plug-in electric drive motor vehicle credit, Qualified plug-in electric drive motor vehicle credit (Form 8936). 1040 income tax form Qualified real property business debt, Qualified real property business debt. 1040 income tax form R Real estate Agent, Real estate agent or direct seller. 1040 income tax form Dealer, Real estate dealer. 1040 income tax form Rent, Real Estate Rents Taxes, Real estate taxes. 1040 income tax form Recovery of items previously deducted, Recovery of items previously deducted. 1040 income tax form Refund Inquiries, Refund inquiries. 1040 income tax form Offsets against debts, Offset against debts. 1040 income tax form Related persons Unreasonable rent, Unreasonable rent. 1040 income tax form Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 1040 income tax form Rent expense, Rent Expense Rental income, Real Estate Rents Repayment of income, Repayment of income. 1040 income tax form Reportable transaction disclosure statement, Reminders Reporting self-employment tax, Reporting Self-Employment Tax Restricted property, Restricted property. 1040 income tax form Retirement plans (see Pension plans) S Salaries, Employees' Pay Sale of a business, Sale of a business. 1040 income tax form Sale of property, What Is a Disposition of Property? (see also Disposition of property) Sales of assets, Introduction Sales tax, Sales tax. 1040 income tax form Schedule C, How Do I File? Schedule C-EZ, How Do I File? Schedule SE (Form 1040), Who must pay self-employment tax. 1040 income tax form Schedule SE, filing requirement, Reporting Self-Employment Tax SE tax About, Self-Employment (SE) Tax Aliens, Aliens. 1040 income tax form Child employed by parent, Child employed by parent. 1040 income tax form Church employee, Church employee. 1040 income tax form Community property income, Community Property Income Deduction for, Self-employment tax. 1040 income tax form Earning credits, Earning credits in 2013 and 2014. 1040 income tax form Effects of using an optional method, Effects of using an optional method. 1040 income tax form Farm optional method, Farm Optional Method Fiscal year filer, Fiscal Year Filer Fishing crew member, Fishing crew member. 1040 income tax form Gain or loss, Gain or Loss Government employee, State or local government employee. 1040 income tax form , Foreign government or international organization employee. 1040 income tax form Joint return, Joint return. 1040 income tax form Lost income payments, Lost Income Payments Maximum earnings For 2011, What's New for 2013, Maximum earnings subject to SE tax. 1040 income tax form Subject to, Maximum earnings subject to self-employment tax. 1040 income tax form Methods for figuring net earnings, Methods for Figuring Net Earnings More than one business, More Than One Business, More than one business. 1040 income tax form Nonfarm optional method, Nonfarm Optional Method Notary public, Notary public. 1040 income tax form Optional methods Farm, Farm Optional Method Nonfarm, Nonfarm Optional Method Rate, SE tax rate. 1040 income tax form Regular method, Regular Method Residing abroad, U. 1040 income tax form S. 1040 income tax form citizen or resident alien residing abroad. 1040 income tax form Special rules and exceptions, Special Rules and Exceptions Tax rate, SE tax rate. 1040 income tax form Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income. 1040 income tax form Who must pay, Who Must Pay SE Tax? Why use an optional method, Why use an optional method? Section 179 Deduction, Section 179 deduction. 1040 income tax form Property, Section 179 property. 1040 income tax form Securities Dealer, Securities dealer. 1040 income tax form Trader, Securities trader. 1040 income tax form Self-employed health insurance deduction, Self-employed health insurance deduction. 1040 income tax form Self-employment tax (see SE tax) Settlement payments, Settlement payments. 1040 income tax form Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Signature, electronic, Electronic signatures. 1040 income tax form Small Business Administration, Small Business Administration Small employer health insurance premiums credit, Credit for small employer health insurance premiums (Form 8941). 1040 income tax form Social security coverage, Social security coverage. 1040 income tax form Social security number (SSN), Social security number (SSN). 1040 income tax form Sole proprietor, Sole proprietor. 1040 income tax form , Sole proprietor or independent contractor. 1040 income tax form Sport utility vehicle, Section 179 deduction. 1040 income tax form Standard mileage rate, Standard mileage rate. 1040 income tax form For 2011, What's New for 2013 Statutory employee, Statutory employee. 1040 income tax form Suggestions for publication, Comments and suggestions. 1040 income tax form SUV, Section 179 deduction. 1040 income tax form T Tax home, Local transportation expenses. 1040 income tax form , Travel expenses. 1040 income tax form Tax preparation fees, Tax preparation fees. 1040 income tax form Tax refund Claim for, Refunds. 1040 income tax form Offset against debts, Offset against debts. 1040 income tax form Tax return How to file, How Do I File? Who must file, Do I Have To File an Income Tax Return? Tax year, Accounting Periods Calendar, Calendar tax year. 1040 income tax form Change in, Change in tax year. 1040 income tax form Fiscal, Fiscal tax year. 1040 income tax form Taxes Deduction for, Taxes Employment, Employment Taxes, Employment taxes. 1040 income tax form Excise, Excise Taxes, Excise taxes. 1040 income tax form Fuel, Fuel taxes. 1040 income tax form Income, Income Tax, Income taxes. 1040 income tax form Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 1040 income tax form Personal property, Personal property tax. 1040 income tax form Real estate, Real estate taxes. 1040 income tax form Sales, Sales tax. 1040 income tax form Self-employment, Self-Employment (SE) Tax, Self-employment tax. 1040 income tax form Taxpayer rights, Declaration of Taxpayer Rights Third parties, Payments to, Payments to third parties. 1040 income tax form Tolls, Parking fees and tolls. 1040 income tax form Trade discount, Trade discounts. 1040 income tax form , Trade discounts. 1040 income tax form Trade or business, Trade or business. 1040 income tax form Trailer park owner, Trailer park owner. 1040 income tax form Transportation expenses, Local transportation expenses. 1040 income tax form Travel expenses, Travel expenses. 1040 income tax form U Underpayment of tax penalty, Penalty for underpayment of tax. 1040 income tax form Uniform capitalization rules, Uniform Capitalization Rules W Wages, Employees' Pay Work opportunity credit, Work opportunity credit (Form 5884). 1040 income tax form Prev  Up     Home   More Online Publications
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Federal Communications Commission (FCC)

An independent federal agency reporting to Congress, the Federal Communications Commission regulates interstate and international communications through cable, radio, television, satellite and wire. The goal of the Commission is to promote connectivity and ensure a robust and competitive market.

Contact the Agency or Department

Website: Federal Communications Commission (FCC)

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Address: 445 12th St SW
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Toll-free: (888) 225-5322

TTY: (888) 835-5322

The 1040 Income Tax Form

1040 income tax form 3. 1040 income tax form   Unrelated Trade or Business Table of Contents Selling of products of exempt functions. 1040 income tax form Dual use of assets or facilities. 1040 income tax form Exploitation of exempt functions. 1040 income tax form ExamplesExceptions. 1040 income tax form Excluded Trade or Business ActivitiesQualified sponsorship payment. 1040 income tax form Advertising. 1040 income tax form Exception for contingent payments. 1040 income tax form Exception for periodicals. 1040 income tax form Exception for conventions and trade shows. 1040 income tax form Legal definition. 1040 income tax form Legal where played. 1040 income tax form No for-profit games where played. 1040 income tax form Unrelated business income. 1040 income tax form   Unrelated business income is the income from a trade or business regularly conducted by an exempt organization and not substantially related to the performance by the organization of its exempt purpose or function, except that the organization uses the profits derived from this activity. 1040 income tax form   Certain trade or business activities are not treated as an unrelated trade or business. 1040 income tax form See Excluded Trade or Business Activities, later. 1040 income tax form Trade or business. 1040 income tax form   The term “trade or business” generally includes any activity conducted for the production of income from selling goods or performing services. 1040 income tax form An activity does not lose its identity as a trade or business merely because it is conducted within a larger group of similar activities that may or may not be related to the exempt purposes of the organization. 1040 income tax form   For example, the regular sale of pharmaceutical supplies to the general public by a hospital pharmacy does not lose its identity as a trade or business, even though the pharmacy also furnishes supplies to the hospital and patients of the hospital in accordance with its exempt purpose. 1040 income tax form Similarly, soliciting, selling, and publishing commercial advertising is a trade or business even though the advertising is published in an exempt organization's periodical that contains editorial matter related to the organization's exempt purpose. 1040 income tax form Regularly conducted. 1040 income tax form   Business activities of an exempt organization ordinarily are considered regularly conducted if they show a frequency and continuity, and are pursued in a manner similar to comparable commercial activities of nonexempt organizations. 1040 income tax form   For example, a hospital auxiliary's operation of a sandwich stand for 2 weeks at a state fair would not be the regular conduct of a trade or business. 1040 income tax form The stand would not compete with similar facilities that a nonexempt organization would ordinarily operate year-round. 1040 income tax form However, operating a commercial parking lot every Saturday, year-round, would be the regular conduct of a trade or business. 1040 income tax form Not substantially related. 1040 income tax form    A business activity is not substantially related to an organization's exempt purpose if it does not contribute importantly to accomplishing that purpose (other than through the production of funds). 1040 income tax form Whether an activity contributes importantly depends in each case on the facts involved. 1040 income tax form   In determining whether activities contribute importantly to the accomplishment of an exempt purpose, the size and extent of the activities involved must be considered in relation to the nature and extent of the exempt function that they intend to serve. 1040 income tax form For example, to the extent an activity is conducted on a scale larger than is reasonably necessary to perform an exempt purpose, it does not contribute importantly to the accomplishment of the exempt purpose. 1040 income tax form The part of the activity that is more than needed to accomplish the exempt purpose is an unrelated trade or business. 1040 income tax form   Also in determining whether activities contribute importantly to the accomplishment of an exempt purpose, the following principles apply. 1040 income tax form Selling of products of exempt functions. 1040 income tax form   Ordinarily, selling products that result from the performance of exempt functions is not an unrelated trade or business if the product is sold in substantially the same state it is in when the exempt functions are completed. 1040 income tax form Thus, for an exempt organization engaged in rehabilitating handicapped persons (its exempt function), selling articles made by these persons as part of their rehabilitation training is not an unrelated trade or business. 1040 income tax form   However, if a completed product resulting from an exempt function is used or exploited in further business activity beyond what is reasonably appropriate or necessary to dispose of it as is, the activity is an unrelated trade or business. 1040 income tax form For example, if an exempt organization maintains an experimental dairy herd for scientific purposes, the sale of milk and cream produced in the ordinary course of operation of the project is not an unrelated trade or business. 1040 income tax form But if the organization uses the milk and cream in the further manufacture of food items such as ice cream, pastries, etc. 1040 income tax form , the sale of these products is an unrelated trade or business unless the manufacturing activities themselves contribute importantly to the accomplishment of an exempt purpose of the organization. 1040 income tax form Dual use of assets or facilities. 1040 income tax form   If an asset or facility necessary to the conduct of exempt functions is also used in commercial activities, its use for exempt functions does not, by itself, make the commercial activities a related trade or business. 1040 income tax form The test, as discussed earlier, is whether the activities contribute importantly to the accomplishment of exempt purposes. 1040 income tax form   For example, a museum has a theater auditorium designed for showing educational films in connection with its program of public education in the arts and sciences. 1040 income tax form The theater is a principal feature of the museum and operates continuously while the museum is open to the public. 1040 income tax form If the organization also operates the theater as a motion picture theater for the public when the museum is closed, the activity is an unrelated trade or business. 1040 income tax form   For information on allocating expenses for the dual use of assets or facilities, see Deductions in chapter 4. 1040 income tax form Exploitation of exempt functions. 1040 income tax form   Exempt activities sometimes create goodwill or other intangibles that can be exploited in a commercial way. 1040 income tax form When an organization exploits such an intangible in commercial activities, the fact that the income depends in part upon an exempt function of the organization does not make the commercial activities a related trade or business. 1040 income tax form Unless the commercial exploitation contributes importantly to the accomplishment of the exempt purpose, the commercial activities are an unrelated trade or business. 1040 income tax form   For the treatment of expenses attributable to the exploitation of exempt activities, see Deductions in chapter 4. 1040 income tax form Examples The following are examples of activities that were determined to be (or not to be) unrelated trades or businesses using the definitions and principles just discussed. 1040 income tax form Sales commissions. 1040 income tax form   An agricultural organization, whose exempt purposes are to promote better conditions for cattle breeders and to improve the breed generally, engages in an unrelated trade or business when it regularly sells cattle for its members on a commission basis. 1040 income tax form Artists' facilities. 1040 income tax form   An organization whose exempt purpose is to stimulate and foster public interest in the fine arts by promoting art exhibits, sponsoring cultural events, and furnishing information about fine arts leases studio apartments to artist tenants and operates a dining hall primarily for these tenants. 1040 income tax form These two activities do not contribute importantly to accomplishing the organization's exempt purpose. 1040 income tax form Therefore, they are unrelated trades or businesses. 1040 income tax form Membership list sales. 1040 income tax form   An exempt educational organization regularly sells membership mailing lists to business firms. 1040 income tax form This activity does not contribute importantly to the accomplishment of the organization's exempt purpose and therefore is an unrelated trade or business. 1040 income tax form Also see Exchange or rental of member lists under Excluded Trade or Business Activities, later. 1040 income tax form Hospital facilities. 1040 income tax form   An exempt hospital leases its adjacent office building and furnishes certain office services to a hospital-based medical group for a fee. 1040 income tax form The group provides all diagnostic and therapeutic procedures to the hospital's patients and operates the hospital's emergency room on a 24-hour basis. 1040 income tax form The leasing activity is substantially related to the hospital's exempt purpose and is not an unrelated trade or business. 1040 income tax form   The hospital also operates a gift shop patronized by patients, visitors making purchases for patients, and employees; a cafeteria and coffee shop primarily for employees and medical staff; and a parking lot for patients and visitors only. 1040 income tax form These activities are also substantially related to the hospital's exempt purpose and do not constitute unrelated trades or businesses. 1040 income tax form Book publishing. 1040 income tax form   An exempt organization engages primarily in activities that further its exempt purposes. 1040 income tax form It also owns the publication rights to a book that does not relate to any of its exempt purposes. 1040 income tax form The organization exploits the book in a commercial manner by arranging for printing, distribution, publicity, and advertising in connection with the sale of the book. 1040 income tax form These activities constitute a trade or business regularly conducted. 1040 income tax form Because exploiting the book is unrelated to the organization's exempt purposes (except for the use of the book's profits), the income is unrelated business income. 1040 income tax form   However, if the organization transfers publication rights to a commercial publisher in return for royalties, the royalty income received will not be unrelated business income. 1040 income tax form See Royalties under Exclusions in chapter 4. 1040 income tax form School handicraft shop. 1040 income tax form   An exempt vocational school operates a handicraft shop that sells articles made by students in their regular courses of instruction. 1040 income tax form The students are paid a percentage of the sales price. 1040 income tax form In addition, the shop sells products made by local residents who make articles at home according to the shop's specifications. 1040 income tax form The shop manager periodically inspects the articles during their manufacture to ensure that they meet desired standards of style and quality. 1040 income tax form Although many local participants are former students of the school, any qualified person may participate in the program. 1040 income tax form The sale of articles made by students does not constitute an unrelated trade or business, but the sale of products made by local residents is an unrelated trade or business and is subject to unrelated business income tax. 1040 income tax form School facilities. 1040 income tax form   An exempt school has tennis courts and dressing rooms that it uses during the regular school year in its educational program. 1040 income tax form During the summer, the school operates a tennis club open to the general public. 1040 income tax form Employees of the school run the club, including collecting membership fees and scheduling court time. 1040 income tax form   Another exempt school leases the same type of facilities to an unrelated individual who runs a tennis club for the summer. 1040 income tax form The lease is for a fixed fee that does not depend on the income or profits derived from the leased property. 1040 income tax form   In both situations, the exempt purpose is the advancement of education. 1040 income tax form Furnishing tennis facilities in the manner described does not further that exempt purpose. 1040 income tax form These activities are unrelated trades or businesses. 1040 income tax form However, in the second situation the income derived from the leasing of the property is excluded from unrelated business taxable income as rent from real property. 1040 income tax form See Rents under Exclusions in chapter 4. 1040 income tax form Services provided with lease. 1040 income tax form   An exempt university leases its football stadium during several months of the year to a professional football team for a fixed fee. 1040 income tax form Under the lease agreement, the university furnishes heat, light, and water and is responsible for all ground maintenance. 1040 income tax form It also provides dressing room, linen, and stadium security services for the professional team. 1040 income tax form   Leasing of the stadium is an unrelated trade or business. 1040 income tax form In addition, the substantial services furnished for the convenience of the lessee go beyond those usually provided with the rental of space for occupancy only. 1040 income tax form Therefore, the income from this lease is rent from real property and unrelated business taxable income. 1040 income tax form Broadcasting rights. 1040 income tax form   An exempt collegiate athletic conference conducts an annual competitive athletic game between its conference champion and another collegiate team. 1040 income tax form Income is derived from admission charges and the sale of exclusive broadcasting rights to a national radio and television network. 1040 income tax form An athletic program is considered an integral part of the educational process of a university. 1040 income tax form   The educational purposes served by intercollegiate athletics are identical whether conducted directly by individual universities or by their regional athletic conference. 1040 income tax form Also, the educational purposes served by exhibiting a game before an audience that is physically present and exhibiting the game on television or radio before a much larger audience are substantially similar. 1040 income tax form Therefore, the sale of the broadcasting rights contributes importantly to the accomplishment of the organization's exempt purpose and is not an unrelated trade or business. 1040 income tax form   In a similar situation, an exempt organization was created as a national governing body for amateur athletes to foster interest in amateur sports and to encourage widespread public participation. 1040 income tax form The organization receives income each year from the sale of exclusive broadcasting rights to an independent producer, who contracts with a commercial network to broadcast many of the athletic events sponsored, supervised, and regulated by the organization. 1040 income tax form   The broadcasting of these events promotes the various amateur sports, fosters widespread public interest in the benefits of the organization's nationwide amateur program, and encourages public participation. 1040 income tax form The sale of the rights and the broadcasting of the events contribute importantly to the organization's exempt purpose. 1040 income tax form Therefore, the sale of the exclusive broadcasting rights is not an unrelated trade or business. 1040 income tax form Yearbook advertising. 1040 income tax form   An exempt organization receives income from the sale of advertising in its annual yearbook. 1040 income tax form The organization hires an independent commercial firm, under a contract covering a full calendar year, to conduct an intensive advertising solicitation campaign in the organization's name. 1040 income tax form This firm is paid a percentage of the gross advertising receipts for selling the advertising, collecting from advertisers, and printing the yearbook. 1040 income tax form This advertising activity is an unrelated trade or business. 1040 income tax form Pet boarding and grooming services. 1040 income tax form   An exempt organization, organized and operated for the prevention of cruelty to animals, receives unrelated business income from providing pet boarding and grooming services for the general public. 1040 income tax form These activities do not contribute importantly to its purpose of preventing cruelty to animals. 1040 income tax form Museum eating facilities. 1040 income tax form   An exempt art museum operates a dining room, a cafeteria, and a snack bar for use by the museum staff, employees, and visitors. 1040 income tax form Eating facilities in the museum help to attract visitors and allow them to spend more time viewing the museum's exhibits without having to seek outside restaurants at mealtime. 1040 income tax form The eating facilities also allow the museum staff and employees to remain in the museum throughout the day. 1040 income tax form Thus, the museum's operation of the eating facilities contributes importantly to the accomplishment of its exempt purposes and is not unrelated trade or business. 1040 income tax form Halfway house workshop. 1040 income tax form   A halfway house organized to provide room, board, therapy, and counseling for persons discharged from alcoholic treatment centers also operates a furniture shop to provide full-time employment for its residents. 1040 income tax form The profits are applied to the operating costs of the halfway house. 1040 income tax form The income from this venture is not unrelated trade or business income because the furniture shop contributes importantly to the organization's purpose of aiding its residents' transition from treatment to a normal and productive life. 1040 income tax form Travel tour programs. 1040 income tax form   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose for which tax exemption was granted to the organization. 1040 income tax form Example 1. 1040 income tax form A tax-exempt university alumni association provides a travel tour program for its members and their families. 1040 income tax form The organization works with various travel agencies and schedules approximately ten tours a year to various places around the world. 1040 income tax form It mails out promotional material and accepts reservations for fees paid by the travel agencies on a per-person basis. 1040 income tax form The organization provides an employee for each tour as a tour leader. 1040 income tax form There is no formal educational program conducted with these tours, and they do not differ from regular commercially operated tours. 1040 income tax form By providing travel tours to its members, the organization is engaging in a regularly conducted trade or business. 1040 income tax form Even if the tours it offers support the university, financially and otherwise, and encourage alumni to do the same, they do not contribute importantly to the organization's exempt purpose of promoting education. 1040 income tax form Therefore, the sale of the travel tours is an unrelated trade or business. 1040 income tax form Example 2. 1040 income tax form A tax-exempt organization formed for the purpose of educating individuals about the geography and the culture of the United States provides study tours to national parks and other locations within the United States. 1040 income tax form These tours are conducted by teachers and others certified by the state board of education. 1040 income tax form The tours are primarily designed for students enrolled in degree programs at state educational institutions but are open to all who agree to participate in the required study program associated with the tour taken. 1040 income tax form A tour's study program consists of instruction on subjects related to the location being visited on the tour. 1040 income tax form Each tour group brings along a library of material related to the subjects being studied on the tour. 1040 income tax form During the tour, 5 or 6 hours per day are devoted to organized study, preparation of reports, lectures, instruction, and recitation by the students. 1040 income tax form Examinations are given at the end of each tour. 1040 income tax form The state board of education awards academic credit for tour participation. 1040 income tax form Because these tours are substantially related to the organization's exempt purpose, they are not an unrelated trade or business. 1040 income tax form Insurance programs. 1040 income tax form   An organization that acts as a group insurance policyholder for its members and collects a fee for performing administrative services is normally carrying on an unrelated trade or business. 1040 income tax form Exceptions. 1040 income tax form   Organizations whose exempt activities may include the provision of insurance benefits, such as fraternal beneficiary societies, voluntary employees beneficiary associations, and labor organizations, are generally exceptions to this rule. 1040 income tax form Magazine publishing. 1040 income tax form   An association of credit unions with tax-exempt status as a business league publishes a consumer-oriented magazine four times a year and makes it available to member credit unions for purchase. 1040 income tax form   By selling a magazine to its members as a promotional device, the organization furnishes its members with a regular commercial service they can use in their own operations. 1040 income tax form This service does not promote the improvement of business conditions of one or more lines of business, which is the exempt purpose of a business league. 1040 income tax form   Since the activity does not contribute importantly to the organization's exempt function, it is an unrelated trade or business. 1040 income tax form Directory of members. 1040 income tax form   A business league publishes an annual directory that contains a list of all its members, their addresses, and their area of expertise. 1040 income tax form Each member has the same amount of space in the directory, and its format does not emphasize the relative importance or reputation of any member. 1040 income tax form The directory contains no commercial advertisement and is sold only to the organization's members. 1040 income tax form   The directory facilitates communication among the members and encourages the exchange of ideas and expertise. 1040 income tax form Because the directory lists the members in a similar noncommercial format without advertising and is not distributed to the public, its sale does not confer private commercial benefits on the members. 1040 income tax form The sale of the directory does contribute importantly to the organization's exempt purpose and is not an unrelated trade or business. 1040 income tax form This directory differs from the publication discussed next because of its noncommercial characteristics. 1040 income tax form Sales of advertising space. 1040 income tax form   A national association of law enforcement officials publishes a monthly journal that contains articles and other editorial material of professional interest to its members. 1040 income tax form The journal is distributed without charge, mainly to the organization's members. 1040 income tax form   The organization sells advertising space in the journal either for conventional advertising or to merely identify the purchaser without a commercial message. 1040 income tax form Some of the noncommercial advertising identifies the purchaser in a separate space, and some consists of listings of 60 or more purchasers per page. 1040 income tax form A business firm identified in a separate space is further identified in an Index of Advertisers. 1040 income tax form   The organization solicits advertising by personal contacts. 1040 income tax form Advertising from large firms is solicited by contacting their chief executive officer or community relations officer rather than their advertising manager. 1040 income tax form The organization also solicits advertising in form letters appealing for corporate and personal contributions. 1040 income tax form   An exempt organization's sale of advertising placed for the purchaser's commercial benefit is a commercial activity. 1040 income tax form Goodwill derived by the purchaser from being identified as a patron of the organization is usually considered a form of commercial benefit. 1040 income tax form Therefore, advertising in an exempt organization's publication is generally presumed to be placed for the purchaser's commercial benefit, even if it has no commercial message. 1040 income tax form However, this presumption is not conclusive if the purchaser's patronage would be difficult to justify commercially in view of the facts and circumstances. 1040 income tax form In that case, other factors should also be considered in determining whether a commercial benefit can be expected. 1040 income tax form Those other factors include: The normal manner in which the publication is circulated; The territorial scope of the circulation; The extent to which its readers, promoters, or the like could reasonably be expected to further, either directly or indirectly, the commercial interest of the advertisers; The eligibility of the publishing organization to receive tax-deductible contributions; and The commercial or noncommercial methods used to solicit the advertisers. 1040 income tax form   In this situation, the purchaser of a separate advertising space without a commercial message can nevertheless expect a commercial benefit from the goodwill derived from being identified in that manner as a patron of the organization. 1040 income tax form However, the purchaser of a listing cannot expect more than an inconsequential benefit. 1040 income tax form Therefore, the sale of separate spaces, but not the listings, is an unrelated trade or business. 1040 income tax form Publishing legal notices. 1040 income tax form   A bar association publishes a legal journal containing opinions of the county court, articles of professional interest to lawyers, advertisements for products and services used by the legal profession, and legal notices. 1040 income tax form The legal notices are published to satisfy state laws requiring publication of notices in connection with legal proceedings, such as the administration of estates and actions to quiet title to real property. 1040 income tax form The state designated the bar association's journal as the place to publish the required notices. 1040 income tax form   The publication of ordinary commercial advertising does not advance the exempt purposes of the association even when published in a periodical that contains material related to exempt purposes. 1040 income tax form Although the advertising is directed specifically to members of the legal profession, it is still commercial in nature and does not contribute importantly to the exempt purposes of the association. 1040 income tax form Therefore, the advertising income is unrelated trade or business income. 1040 income tax form   On the other hand, the publication of legal notices is distinguishable from ordinary commercial advertising in that its purpose is to inform the general public of significant legal events rather than to stimulate demand for the products or services of an advertiser. 1040 income tax form This promotes the common interests of the legal profession and contributes importantly to the association's exempt purposes. 1040 income tax form Therefore, the publishing of legal notices does not constitute an unrelated trade or business. 1040 income tax form Museum greeting card sales. 1040 income tax form    An art museum that exhibits modern art sells greeting cards that display printed reproductions of selected works from other art collections. 1040 income tax form Each card is imprinted with the name of the artist, the title or subject matter of the work, the date or period of its creation, if known, and the museum's name. 1040 income tax form The cards contain appropriate greetings and are personalized on request. 1040 income tax form   The organization sells the cards in the shop it operates in the museum and sells them at quantity discounts to retail stores. 1040 income tax form It also sells them by mail order through a catalog that is advertised in magazines and other publications throughout the year. 1040 income tax form As a result, a large number of cards are sold at a significant profit. 1040 income tax form   The museum is exempt as an educational organization on the basis of its ownership, maintenance, and exhibition for public viewing of works of art. 1040 income tax form The sale of greeting cards with printed reproductions of artworks contributes importantly to the achievement of the museum's exempt educational purposes by enhancing public awareness, interest, and appreciation of art. 1040 income tax form The cards may encourage more people to visit the museum itself to share in its educational programs. 1040 income tax form The fact that the cards are promoted and sold in a commercial manner at a profit and in competition with commercial greeting card publishers does not alter the fact that the activity is related to the museum's exempt purpose. 1040 income tax form Therefore, these sales activities are not an unrelated trade or business. 1040 income tax form Museum shop. 1040 income tax form   An art museum maintained and operated for the exhibition of American folk art operates a shop in the museum that sells: Reproductions of works in the museum's own collection and reproductions of artistic works from the collections of other art museums (prints suitable for framing, postcards, greeting cards, and slides); Metal, wood, and ceramic copies of American folk art objects from its own collection and similar copies of art objects from other collections of artworks; Instructional literature and scientific books and souvenir items concerning the history and development of art and, in particular, of American folk art; and Scientific books and souvenir items of the city in which the museum is located. 1040 income tax form   The shop also rents originals or reproductions of paintings contained in its collection. 1040 income tax form All of its reproductions are imprinted with the name of the artist, the title or subject matter of the work from which it is reproduced, and the museum's name. 1040 income tax form   Each line of merchandise must be considered separately to determine if sales are related to the exempt purpose. 1040 income tax form   The sale and rental of reproductions and copies of works from the museum's own collection and reproductions of artistic works not owned by the museum contribute importantly to the achievement of the museum's exempt educational purpose by making works of art familiar to a broader segment of the public, thereby enhancing the public's understanding and appreciation of art. 1040 income tax form The same is true for the sale of literature relating to art. 1040 income tax form Therefore, these sales activities are not an unrelated trade or business. 1040 income tax form   On the other hand, the sale of scientific books and souvenir items of the city where the museum is located has no causal relationship to art or to artistic endeavor and, therefore, does not contribute importantly to the accomplishment of the museum's exempt educational purposes. 1040 income tax form The fact that selling some of these items could, under different circumstances, be held related to the exempt educational purpose of some other exempt educational organization does not change this conclusion. 1040 income tax form Additionally, the sale of these items does not lose its identity as a trade or business merely because the museum also sells articles which do contribute importantly to the accomplishment of its exempt function. 1040 income tax form Therefore, these sales are an unrelated trade or business. 1040 income tax form Business league's parking and bus services. 1040 income tax form   A business league, whose purpose is to retain and stimulate trade in a downtown area that has inadequate parking facilities, operates a fringe parking lot and shuttle bus service. 1040 income tax form It also operates, as an insubstantial part of its activities, a park and shop plan. 1040 income tax form   The fringe parking lot and shuttle bus service operate in a manner that does not favor any individual or group of downtown merchants. 1040 income tax form The merchants cannot offer free or discount parking or bus fares to their customers. 1040 income tax form   The park and shop plan allows customers of particular merchants to park free at certain parking lots in the area. 1040 income tax form Merchants participating in this plan buy parking stamps, which they distribute to their customers to use to pay for parking. 1040 income tax form   Operating the fringe parking lot and shuttle bus service provides easy and convenient access to the downtown area and, therefore, stimulates and improves business conditions in the downtown area generally. 1040 income tax form That activity contributes importantly to the organization's accomplishing its exempt purpose and is not an unrelated trade or business. 1040 income tax form   The park and shop plan encourages customers to use a limited number of participating member merchants in order to obtain free parking. 1040 income tax form This provides a particular service to individual members of the organization and does not further its exempt purpose. 1040 income tax form Therefore, operating the park and shop plan is an unrelated trade or business. 1040 income tax form Youth residence. 1040 income tax form   An exempt organization, whose purpose is to provide for the welfare of young people, rents rooms primarily to people under age 25. 1040 income tax form The residence units are operated on, and as a part of, the premises in which the organization carries on the social, recreational, and guidance programs for which it was recognized as exempt. 1040 income tax form The facilities are under the management and supervision of trained career professionals who provide residents with personal counseling, physical education programs, and group recreational activities. 1040 income tax form The rentals are not an unrelated trade or business because renting the rooms is substantially related to the organization's exempt purpose. 1040 income tax form Health club program. 1040 income tax form   An exempt charitable organization's purpose is to provide for the welfare of young people. 1040 income tax form The organization conducts charitable activities and maintains facilities that will contribute to the physical, social, mental, and spiritual health of young people at minimum or no cost to them. 1040 income tax form Nominal annual dues are charged for membership in the organization and use of the facilities. 1040 income tax form   In addition, the organization organized a health club program that its members could join for an annual fee in addition to the annual dues. 1040 income tax form The annual fee is comparable to fees charged by similar local commercial health clubs and is sufficiently high to restrict participation in the program to a limited number of members of the community. 1040 income tax form   The health club program is in addition to the general physical fitness program of the organization. 1040 income tax form Operating this program does not contribute importantly to the organization's accomplishing its exempt purpose and, therefore, is an unrelated trade or business. 1040 income tax form Miniature golf course. 1040 income tax form   An exempt youth welfare organization operates a miniature golf course that is open to the general public. 1040 income tax form The course, which is managed by salaried employees, is substantially similar to commercial courses. 1040 income tax form The admission fees charged are comparable to fees of commercial facilities and are designed to return a profit. 1040 income tax form   The operation of the miniature golf course in a commercial manner does not contribute importantly to the accomplishment of the organization's exempt purpose and, therefore, is an unrelated trade or business. 1040 income tax form Sales of hearing aids. 1040 income tax form   A tax-exempt hospital, whose primary activity is rehabilitation, sells hearing aids to patients. 1040 income tax form This activity is an essential part of the hospital's program to test and evaluate patients with hearing deficiencies and contributes importantly to its exempt purpose. 1040 income tax form It is not an unrelated trade or business. 1040 income tax form Nonpatient laboratory testing. 1040 income tax form   Nonpatient laboratory testing performed by a tax-exempt teaching hospital on specimens needed for the conduct of its teaching activities is not an unrelated trade or business. 1040 income tax form However, laboratory testing performed by a tax-exempt non-teaching hospital on referred specimens from private office patients of staff physicians is an unrelated trade or business if these services are otherwise available in the community. 1040 income tax form Selling endorsements. 1040 income tax form   An exempt scientific organization enjoys an excellent reputation in the field of biological research. 1040 income tax form It exploits this reputation regularly by selling endorsements of laboratory equipment to manufacturers. 1040 income tax form Endorsing laboratory equipment does not contribute importantly to the accomplishment of any purpose for which exemption is granted to the organization. 1040 income tax form Accordingly, the sale of endorsements is an unrelated trade or business. 1040 income tax form Sponsoring entertainment events. 1040 income tax form   An exempt university has a regular faculty and a regularly enrolled student body. 1040 income tax form During the school year, the university sponsors the appearance of professional theater companies and symphony orchestras that present drama and musical performances for the students and faculty members. 1040 income tax form Members of the general public also are admitted. 1040 income tax form The university advertises these performances and supervises advance ticket sales at various places, including such university facilities as the cafeteria and the university bookstore. 1040 income tax form Although the presentation of the performances makes use of an intangible generated by the university's exempt educational functions—the presence of the student body and faculty—such drama and music events contribute importantly to the overall educational and cultural functions of the university. 1040 income tax form Therefore, the activity is not an unrelated trade or business. 1040 income tax form Excluded Trade or Business Activities The following activities are specifically excluded from the definition of unrelated trade or business. 1040 income tax form Volunteer workforce. 1040 income tax form   Any trade or business in which substantially all the work is performed for the organization without compensation is not an unrelated trade or business. 1040 income tax form Example 1. 1040 income tax form A retail store operated by an exempt orphanage where unpaid volunteers perform substantially all the work in carrying on the business is not an unrelated trade or business. 1040 income tax form Example 2. 1040 income tax form A volunteer fire company conducts weekly public dances. 1040 income tax form Holding public dances and charging admission on a regular basis may, given the facts and circumstances of a particular case, be considered an unrelated trade or business. 1040 income tax form However, because the work at the dances is performed by unpaid volunteers, the activity is not an unrelated trade or business. 1040 income tax form Convenience of members. 1040 income tax form   A trade or business conducted by a 501(c)(3) organization or by a governmental college or university primarily for the convenience of its members, students, patients, officers, or employees is not an unrelated trade or business. 1040 income tax form For example, a laundry operated by a college for the purpose of laundering dormitory linens and students' clothing is not an unrelated trade or business. 1040 income tax form Qualified sponsorship activities. 1040 income tax form   Soliciting and receiving qualified sponsorship payments is not an unrelated trade or business, and the payments are not subject to unrelated business income tax. 1040 income tax form Qualified sponsorship payment. 1040 income tax form   This is any payment made by a person engaged in a trade or business for which the person will receive no substantial benefit other than the use or acknowledgment of the business name, logo, or product lines in connection with the organization's activities. 1040 income tax form “Use or acknowledgment” does not include advertising the sponsor's products or services. 1040 income tax form The organization's activities include all its activities, whether or not related to its exempt purposes. 1040 income tax form   For example, if, in return for receiving a sponsorship payment, an organization promises to use the sponsor's name or logo in acknowledging the sponsor's support for an educational or fundraising event, the payment is a qualified sponsorship payment and is not subject to the unrelated business income tax. 1040 income tax form   Providing facilities, services, or other privileges (for example, complimentary tickets, pro-am playing spots in golf tournaments, or receptions for major donors) to a sponsor or the sponsor's designees in connection with a sponsorship payment does not affect whether the payment is a qualified sponsorship payment. 1040 income tax form Instead, providing these goods or services is treated as a separate transaction in determining whether the organization has unrelated business income from the event. 1040 income tax form Generally, if the services or facilities are not a substantial benefit or if providing them is a related business activity, the payments will not be subject to the unrelated business income tax. 1040 income tax form   Similarly, the sponsor's receipt of a license to use an intangible asset (for example, a trademark, logo, or designation) of the organization is treated as separate from the qualified sponsorship transaction in determining whether the organization has unrelated business taxable income. 1040 income tax form   If part of a payment would be a qualified sponsorship payment if paid separately, that part is treated as a separate payment. 1040 income tax form For example, if a sponsorship payment entitles the sponsor to both product advertising and the use or acknowledgment of the sponsor's name or logo by the organization, then the unrelated business income tax does not apply to the part of the payment that is more than the fair market value of the product advertising. 1040 income tax form Advertising. 1040 income tax form   A payment is not a qualified sponsorship payment if, in return, the organization advertises the sponsor's products or services. 1040 income tax form For information on the treatment of payments for advertising, see Exploitation of Exempt Activity—Advertising Sales in chapter 4. 1040 income tax form   Advertising includes: Messages containing qualitative or comparative language, price information, or other indications of savings or value; Endorsements; and Inducements to purchase, sell, or use the products or services. 1040 income tax form   The use of promotional logos or slogans that are an established part of the sponsor's identity is not, by itself, advertising. 1040 income tax form In addition, mere distribution or display of a sponsor's product by the organization to the public at a sponsored event, whether for free or for remuneration, is considered use or acknowledgment of the product rather than advertising. 1040 income tax form Exception for contingent payments. 1040 income tax form   A payment is not a qualified sponsorship payment if its amount is contingent, by contract or otherwise, upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. 1040 income tax form However, the fact that a sponsorship payment is contingent upon an event actually taking place or being broadcast does not, by itself, affect whether a payment qualifies. 1040 income tax form Exception for periodicals. 1040 income tax form   A payment is not a qualified sponsorship payment if it entitles the payer to the use or acknowledgment of the business name, logo, or product lines in the organization's periodical. 1040 income tax form For this purpose, a periodical is any regularly scheduled and printed material (for example, a monthly journal) published by or on behalf of the organization. 1040 income tax form It does not include material that is related to and primarily distributed in connection with a specific event conducted by the organization (for example, a program or brochure distributed at a sponsored event). 1040 income tax form   The treatment of payments that entitle the payer to the depiction of the payer's name, logo, or products lines in an organization's periodical is determined under the rules that apply to advertising activities. 1040 income tax form See Sales of advertising space under Examples, earlier in this chapter. 1040 income tax form Also see Exploitation of Exempt Activity—Advertising Sales in chapter 4. 1040 income tax form Exception for conventions and trade shows. 1040 income tax form   A payment is not a qualified sponsorship payment if it is made in connection with any qualified convention or trade show activity. 1040 income tax form The exclusion of qualified convention or trade show activities from the definition of unrelated trade or business is explained later under Convention or trade show activity. 1040 income tax form Selling donated merchandise. 1040 income tax form   A trade or business that consists of selling merchandise, substantially all of which the organization received as gifts or contributions, is not an unrelated trade or business. 1040 income tax form For example, a thrift shop operated by a tax-exempt organization that sells donated clothes and books to the general public, with the proceeds going to the exempt organization, is not an unrelated trade or business. 1040 income tax form Employee association sales. 1040 income tax form   The sale of certain items by a local association of employees described in section 501(c)(4), organized before May 17, 1969, is not an unrelated trade or business if the items are sold for the convenience of the association's members at their usual place of employment. 1040 income tax form This exclusion applies only to the sale of work-related clothes and equipment and items normally sold through vending machines, food dispensing facilities, or by snack bars. 1040 income tax form Bingo games. 1040 income tax form   Certain bingo games are not included in the term “unrelated trade or business. 1040 income tax form ” To qualify for this exclusion, the bingo game must meet the following requirements. 1040 income tax form It meets the legal definition of bingo. 1040 income tax form It is legal where it is played. 1040 income tax form It is played in a jurisdiction where bingo games are not regularly conducted by for-profit organizations. 1040 income tax form Legal definition. 1040 income tax form   For a game to meet the legal definition of bingo, wagers must be placed, winners must be determined, and prizes or other property must be distributed in the presence of all persons placing wagers in that game. 1040 income tax form   A wagering game that does not meet the legal definition of bingo does not qualify for the exclusion, regardless of its name. 1040 income tax form For example, “instant bingo,” in which a player buys a pre-packaged bingo card with pull-tabs that the player removes to determine if he or she is a winner, does not qualify. 1040 income tax form Legal where played. 1040 income tax form   This exclusion applies only if bingo is legal under the laws of the jurisdiction where it is conducted. 1040 income tax form The fact that a jurisdiction's law that prohibits bingo is rarely enforced or is widely disregarded does not make the conduct of bingo legal for this purpose. 1040 income tax form No for-profit games where played. 1040 income tax form   This exclusion applies only if for-profit organizations cannot regularly conduct bingo games in any part of the same jurisdiction. 1040 income tax form Jurisdiction is normally the entire state; however, in certain situations, local jurisdiction will control. 1040 income tax form Example. 1040 income tax form Tax-exempt organizations X and Y are organized under the laws of state N, which has a law that permits exempt organizations to conduct bingo games. 1040 income tax form In addition, for-profit organizations are permitted to conduct bingo games in city S, a resort community located in county R. 1040 income tax form Several for-profit organizations conduct nightly games. 1040 income tax form Y conducts weekly bingo games in city S, while X conducts weekly games in county R. 1040 income tax form Since state law confines the for-profit organizations to city S, local jurisdiction controls. 1040 income tax form Y's bingo games conducted in city S are an unrelated trade or business. 1040 income tax form However, X's bingo games conducted in county R outside of city S are not an unrelated trade or business. 1040 income tax form Gambling activities other than bingo. 1040 income tax form   Any game of chance conducted by an exempt organization in North Dakota is not an unrelated trade or business if conducting the game does not violate any state or local law. 1040 income tax form Pole rentals. 1040 income tax form   The term unrelated trade or business does not include qualified pole rentals by a mutual or cooperative telephone or electric company described in section 501(c)(12). 1040 income tax form A qualified pole rental is the rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that the company uses in providing telephone or electric services to its members, and According to the rental, to support one or more wires (in addition to the wires described in 1 ) for use in connection with the transmission by wire of electricity or of telephone or other communications. 1040 income tax form For this purpose, the term rental includes any sale of the right to use the pole (or other structure). 1040 income tax form Distribution of low cost articles. 1040 income tax form   The term unrelated trade or business does not include activities relating to the distribution of low cost articles incidental to soliciting charitable contributions. 1040 income tax form This applies to organizations described in section 501 that are eligible to receive charitable contributions. 1040 income tax form   A distribution is considered incidental to the solicitation of a charitable contribution if: The recipient did not request the distribution, The distribution is made without the express consent of the recipient, and The article is accompanied by a request for a charitable contribution to the organization and a statement that the recipient may keep the low cost article regardless of whether a contribution is made. 1040 income tax form   An article is considered low cost if the cost of an item (or the aggregate costs if more than one item) distributed to a single recipient in a tax year is not more than $5, indexed annually for inflation. 1040 income tax form The maximum cost of a low cost article is $9. 1040 income tax form 70 for 2011. 1040 income tax form The cost of an article is the cost to the organization that distributes the item or on whose behalf it is distributed. 1040 income tax form Exchange or rental of member lists. 1040 income tax form   The exchange or rental of member or donor lists between organizations described in section 501 that are eligible to receive charitable contributions is not included in the term unrelated trade or business. 1040 income tax form Hospital services. 1040 income tax form   The providing of certain services at or below cost by an exempt hospital to other exempt hospitals that have facilities for 100 or fewer inpatients is not an unrelated trade or business. 1040 income tax form This exclusion applies only to services described in section 501(e)(1)(A). 1040 income tax form Public entertainment activity. 1040 income tax form   An unrelated trade or business does not include a qualified public entertainment activity. 1040 income tax form A public entertainment activity is one traditionally conducted at a fair or exposition promoting agriculture and education, including any activity whose purpose is designed to attract the public to fairs or expositions or to promote the breeding of animals or the development of products or equipment. 1040 income tax form   A qualified public entertainment activity is one conducted by a qualifying organization: In conjunction with an international, national, state, regional, or local fair or exposition; In accordance with state law that permits the activity to be operated or conducted solely by such an organization or by an agency, instrumentality, or political subdivision of the state; or In accordance with state law that permits an organization to be granted a license to conduct an activity for not more than 20 days on paying the state a lower percentage of the revenue from the activity than the state charges nonqualifying organizations that hold similar activities. 1040 income tax form   For these purposes, a qualifying organization is an organization described in section 501(c)(3), 501(c)(4), or 501(c)(5) that regularly conducts an agricultural and educational fair or exposition as one of its substantial exempt purposes. 1040 income tax form Its conducting qualified public entertainment activities will not affect determination of its exempt status. 1040 income tax form Convention or trade show activity. 1040 income tax form   An unrelated trade or business does not include qualified convention or trade show activities conducted at a convention, annual meeting, or trade show. 1040 income tax form   A qualified convention or trade show activity is any activity of a kind traditionally conducted by a qualifying organization in conjunction with an international, national, state, regional, or local convention, annual meeting, or show if: One of the purposes of the organization in sponsoring the activity is promoting and stimulating interest in, and demand for, the products and services of that industry or educating the persons in attendance regarding new products and services or new rules and regulations affecting the industry; and The show is designed to achieve its purpose through the character of the exhibits and the extent of the industry products that are displayed. 1040 income tax form   For these purposes, a qualifying organization is one described in section 501(c)(3), 501(c)(4), 501(c)(5), or 501(c)(6). 1040 income tax form The organization must regularly conduct, as one of its substantial exempt purposes, a qualified convention or trade show activity. 1040 income tax form   The rental of display space to exhibitors (including exhibitors who are suppliers) at a qualified convention or trade show is not an unrelated trade or business even if the exhibitors who rent the space are permitted to sell or solicit orders. 1040 income tax form For this purpose, a supplier's exhibit is one in which the exhibitor displays goods or services that are supplied to, rather than by, members of the qualifying organization in the conduct of these members' own trades or businesses. 1040 income tax form    Certain Internet activities conducted by a trade association described in section 501(c)(6) will be considered qualified convention and trade show activity if conducted on a special supplementary section of the association's website in conjunction with a trade show conducted by the association. 1040 income tax form The trade show itself must be a qualified convention and trade show activity. 1040 income tax form The supplementary section of the website must be ancillary to, and serve to augment and enhance, the trade show, as when it makes available the same information available at the trade show and is available only during a time period that coincides with the time period that the trade show is in operation. 1040 income tax form Conversely, Internet activities that are not conducted in conjunction with a qualified convention and trade show activity and that do not augment and enhance the trade show cannot themselves be qualified convention and trade show activity. 1040 income tax form Prev  Up  Next   Home   More Online Publications