When computing Unrelated Business Income Tax, charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.

Question

Quizplus · Accepted Answer

When computing the unrelated business income tax, not-for-profit organizations are allowed to deduct ordinary and necessary business expenses directly connected with their trade or business, a $1,000 special deduction, charitable contributions, and many of the other deductions available to business organizations.

When Computing Unrelated Business Income Tax, Charities Are Permitted to Deduct