Match the following statements.

-§ 501(h) election
A) Carries on a trade or business for the benefit of an exempt organization, remits its profits to the exempt organization, and is not exempt from Federal income tax.
B) May be subject to some Federal income taxation and classification may adversely affect amount of charitable contributions received.
C) Tax imposed for engaging in transactions with disqualified persons.
D) Enables certain exempt organizations to engage in lobbying activities on a limited basis.
E) Tax imposed on investments that enable a private foundation to control unrelated businesses.

Question

Match the following statements.

-§ 501(h) election
A)	Carries on a trade or business for the benefit of an exempt organization, remits its profits to the exempt organization, and is not exempt from Federal income tax.
B)	May be subject to some Federal income taxation and classification may adversely affect amount of charitable contributions received.
C)	Tax imposed for engaging in transactions with disqualified persons.
D)	Enables certain exempt organizations to engage in lobbying activities on a limited basis.
E)	Tax imposed on investments that enable a private foundation to control unrelated businesses.

Quizplus · Accepted Answer

The § 501(h) election allows certain exempt organizations to engage in lobbying activities within specified limits without jeopardizing their tax-exempt status.

Match the Following Statements