A private foundation is subject to which of the following taxes?
A)Tax on self-dealing.
B)Tax on investments in publicly traded stock.
C)Tax on taxable expenditures that jeopardize charitable purposes.
D)Only a.and c.
E)a., b., and c.

Question

Quizplus · Accepted Answer

Private foundations are subject to tax on self-dealing and on taxable expenditures that jeopardize charitable purposes. They are not subject to tax on investments in publicly traded stock, as long as the investments are not jeopardizing their tax-exempt status. Therefore, the best choice is D, which includes the two taxes that private foundations are subject to.

A Private Foundation Is Subject to Which of the Following