An exempt organization is located in the state of Nevada.Gambling in Nevada is legal.Therefore, bingo games are conducted by both taxable and tax-exempt organizations.If the net earnings from the bingo games are less than $25,000, the exempt organization is not subject to the unrelated business income tax (UBIT).

Question

Quizplus · Accepted Answer

The unrelated business income tax (UBIT) applies to exempt organizations regardless of the amount of net earnings from unrelated business activities like bingo games, unless specific exceptions apply. The $25,000 threshold is not a general exemption for UBIT.

An Exempt Organization Is Located in the State of Nevada