A tax-exempt organization is required to pay income taxes on

Question

Quizplus · Accepted Answer

Tax-exempt organizations are only exempt from taxes on income that is related to their tax-exempt purpose. Any unrelated business income, which is income from a business that is not related to the organization's mission or purpose, is subject to income tax.

Answer: A and C 
 If a tax-exempt organization earns a profit from activities related to its tax-exempt purpose, that profit is not subject to income tax. However, if the organization earns income from investments or other activities that are not related to its purpose, that income may be subject to income tax.

A Tax-Exempt Organization Is Required to Pay Income Taxes on