The income most likely to be considered unrelated business income of a human service organization that provides immunizations to children in the community is:
A) Rental of extra space in the building.
B) Regular sale of sweatshirts with the organization's logo on it at a price considerably above cost.
C) Interest and dividend income on investments.
D) Gain on the sale of equipment no longer needed by the organization.

Question

Quizplus · Accepted Answer

The regular sale of sweatshirts with the organization's logo at a price considerably above cost is not related to the organization's exempt purpose of providing immunizations. This activity generates income, which is likely to be considered unrelated business income subject to unrelated business income tax (UBIT). A, C, and D are not likely to be considered unrelated business income.

The Income Most Likely to Be Considered Unrelated Business Income