Which of the following is a requirement that will enable mortgaged land acquired by an exempt organization for later exempt use to be excluded from debt-financed property, for purposes of the unrelated business income tax?
A) The principal purpose of acquiring the land is for investment.
B) The land is used within ten years of the acquisition date in the organization's exempt purpose.
C) The land is located in the United States.
D) Only a. and b.

Question

Quizplus · Accepted Answer

According to the IRS, in order for mortgaged land acquired by an exempt organization for later exempt use to be excluded from debt-financed property, it must be used within ten years of the acquisition date in the organization's exempt purpose. This requirement is stated in Section 514(c)(1)(B) of the Internal Revenue Code. The other choices are not relevant to this requirement.

Which of the Following Is a Requirement That Will Enable