Which of the following is true concerning tax-exempt organizations with unrelated business income?
A) They may deduct the first $1,000 of unrelated business income.
B) They must include income from donated merchandise.
C) They must include investment income in computing their tax liability.
D) None of the above.

Question

Quizplus · Accepted Answer

Tax-exempt organizations with unrelated business income are required to pay tax on that income and cannot deduct the first $1,000. They may also have to include income from donated merchandise and investment income in computing their tax liability. Therefore, none of the options (A), (B), or (C) is true.

Which of the Following Is True Concerning Tax-Exempt Organizations with Unrelated