Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?
A) The bingo game is legal under both state and local law.
B) The bingo game is conducted by volunteers.
C) For-profit bingo games ordinarily are not permitted in the jurisdiction.
D) Only a. and b. must be satisfied.
E) Only a. and c. must be satisfied.

Question

Quizplus · Accepted Answer

For a bingo game to be classified as not being an unrelated trade or business, it must be legal under both state and local law (option A) and for-profit bingo games ordinarily are not permitted in the jurisdiction (option C). The fact that the bingo game is conducted by volunteers (option B) alone does not determine whether it is an unrelated trade or business. Therefore, only options A and C must be satisfied for a bingo game to be classified as not being an unrelated trade or business.

Which of the Following Requirements Must Be Satisfied for a Bingo