Exempt organizations - Uncle Fed's Tax*Board
Exempt organizations - Uncle Fed's Tax*Board
Exempt organizations - Uncle Fed's Tax*Board
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ify as a hospital as defined in section<br />
170(b)(1)(A)(iii). §1.170A-9. (Sec. 170, ’86<br />
Code.)<br />
Rev. Rul. 76-452, 1976–2 C.B. 60.<br />
214.33 Hospital; classifi1ation. A hospital<br />
described in section 170(b)(1)(A)(iii) is not prevented<br />
by reg. 1.170A-9(e)(1) from qualifying as<br />
a publicly supported organization under section<br />
170(b)(1)(A)(vi) if it desires that additional classification.<br />
§1.170A-9. (Sec. 170, ’86 Code.)<br />
Rev. Rul. 70-416, 1976-2 C.B. 57.<br />
214.34 Income; deferred incentive compensation<br />
plan. A private foundation receiving<br />
annual payments, as beneficiary of a decedent’s<br />
deferred incentive compensation income plan,<br />
includes each payment as gross income to the<br />
extent that it exceeds the amount attributable to the<br />
value of the right to receive the payment on the<br />
decedent’s date of the death. §53.4942(a)-2. (Sec.<br />
4942, ’86 Code.)<br />
Rev. Rul. 75-442, 1975–2 C.B. 448.<br />
214.35 Investment and adjusted net income;<br />
amortizable bond premium deduction. An<br />
exempt private foundation that amortizes bond<br />
premium pursuant to section 171 may deduct the<br />
amortized amount in computing its net investment<br />
income and its adjusted net income. §§53.4940–1,<br />
53.4942(a)-2. (Secs. 4940, 4942; ’86 Code.)<br />
Rev. Rul. 76-248, 1976-1 C.B. 353.<br />
214.36 Investment income; audit fees. Audit<br />
fees paid by an exempt private foundation must be<br />
apportioned between its investment and exempt<br />
activities and only that portion of the fees attributable<br />
to the investment activities is deductible in<br />
computing the foundation’s net investment<br />
income. §53.4940-1. (Sec. 4940, ’86 Code.)<br />
Rev. Rul. 75-410, 1975–2 C.B. 446.<br />
214.37 Investment income; basis of depletable<br />
property. An exempt private foundation that,<br />
prior to 1970, was not subject to tax and claimed<br />
no depletion deduction on its royalty interest in oil<br />
and gas properties recorded depletion on its books<br />
using the percentage method. The foundation need<br />
only decrease its original basis in the properties by<br />
the amount of the cost depletion allowable, and not<br />
the percentage depletion show on its books, for<br />
purposes of determining the net investment<br />
income under section 4940. §53.4940-1. (Sec.<br />
4940, ’54 code.)<br />
Rev. Rul. 79–200, 1979–1 C.B. 364.<br />
214.38 Investment income; basis; residuary<br />
interest in pre-1969 estate. Appreciated stock<br />
distributed to a private foundation in 1971, in satisfaction<br />
of a specific bequest and a percentage of<br />
the residuary estate of an individual who died in<br />
1967, will reconsidered held by the foundation on<br />
December 31, 1969, and the basis of the stock for<br />
purposes of computing capital gain includable in<br />
net investment income will be the fair market<br />
value of the stock as of December 31, 1969.<br />
§53.4940-1. (Sec. 4940, ’86 Code.)<br />
Rev. Rul. 76-424, 1976-2 C.B. 367.<br />
214.39 Investment income; Belgian foundation.<br />
A Belgian private foundation, whose only<br />
business activities in the U.S. are investments<br />
from which it derives interest income, is not<br />
exempt from the excise tax on gross investment<br />
income. §§1.881–2, 1.894-1. (Secs. 881, 894,<br />
4940, 4948; ’86 Code.)<br />
Rev. Rul. 76-330, 1976-2 C.B. 488.<br />
214.40 Investment income; Canadian<br />
foundation. A Canadian private foundation,<br />
exempt from the Canadian income tax and exempt<br />
from U.S. income tax under section 501(c)(3), is<br />
also exempt from the tax imposed on gross investment<br />
income by section 4948(a) by virtue of<br />
Article X of the U.S.-Canada Income Tax Convention.<br />
§53.4948–1. (Sec. 4948, ’86 Code.)<br />
Rev. Rul. 74-183, 1974-1 C.B. 328.<br />
214.41 Investment income; capital gain computation;<br />
sale of listed stock. For purposes of<br />
computing a private foundation’s tax on net<br />
investment income, the net capital gain on the sale<br />
of a listed common stock purchased before<br />
December 31, 1969 is the difference between the<br />
selling price and the greater of (1) the foundation’s<br />
basis in the stock, or (2) the mean average of the<br />
highest and lowest quotations on December 31,<br />
1969 plus or minus subsequent adjustment to the<br />
date of sale. §53.4940-1. (Sec. 4940, ’86 Code.)<br />
Rev. Rul. 74-403, 1974-2 C.B. 381.<br />
214.42 Investment income; capital gain dividends<br />
from a regulated investment company.<br />
Capital gain dividends received by a private<br />
foundation from a regulated investment company<br />
described in section 851 are includible in the<br />
foundation’s net investment income in the year<br />
received for purposes of determining the excise<br />
taxes imposed by section 4940(a), but are<br />
excluded from the foundation’s adjusted net<br />
income for purposes of section 4942(f).<br />
§§53.4940-1, 53.4942(a)-2. (Secs. 4940, 4942;<br />
’86 Code.)<br />
Rev. Rul. 73-320, 1973-2 C.B. 385.<br />
214.43 Investment income; capital gain from<br />
sale of donated stock. Capital gain realized by an<br />
exempt private foundation from the sale of stock<br />
donated to it during its taxable years 1970 through<br />
1972 and immediately disposed of upon receipt<br />
will not be taken into account for purposes of the<br />
tax on net investment income. §53.4940-1. (Sec.<br />
4940, ’86 Code.)<br />
Rev. Rul. 74-404, 1974-2 C.B. 382.<br />
214.44 Investment income; interest paid for<br />
funds reloaned interest free. An exempt private<br />
foundation that obtained a loan from a commercial<br />
lending institution, made an interest-free temporary<br />
construction loan to an exempt university,<br />
made no attempt to collect the loan, and forgave a<br />
portion of it, may not deduct or otherwise take into<br />
account the interest it paid for its loan in computing<br />
its net investment income. §53.4940-1. (Sec.<br />
4940, ’86 Code.)<br />
Rev. Rul. 74-579, 1974-2 C.B. 383.<br />
214.45 Investment income; U.S. savings<br />
bonds; unreported interest. A private foundation<br />
derived interest income upon redemption of<br />
Series E U.S. savings bonds that were received<br />
from the estate of the purchaser. The interest is<br />
includible in the computation of gross investment<br />
income if neither the individual nor the estate<br />
elected to report as income the periodic increases<br />
in bond value. §53.4940-1. (Sec. 4940, ’86 Code.)<br />
Rev. Rul. 80-118, 1980-1 C.B. 254.<br />
214.46 Jeopardizing investment; life insurance<br />
policy. A whole-life insurance policy that<br />
was subject to a loan to the donor-insured was<br />
donated to a private foundation. The face value of<br />
the policy, less any outstanding loan principal or<br />
interest, was payable to the donee upon the<br />
donor’s death. The combined interest and premimum<br />
payments made by the donee over the life<br />
expectancy of the donor would exceed the amount<br />
it would receive under the policy and were, therefore,<br />
jeopardizing investments. §53.4944–1. (Sec.<br />
4944, ’86 Code.)<br />
Rev. Rul. 80-133, 1980-1 C.B. 258.<br />
214.47 Minimum investment return; computation;<br />
portion of office building commercially<br />
used. A private foundation owns a building,<br />
a portion of which is used directly in carrying out<br />
its exempt purposes, with the remainder leased to<br />
commercial tenants. The percentage of exempt<br />
use of the building, for purposes of determining<br />
the foundation’s minimum investment return<br />
<strong>Exempt</strong> <strong>organizations</strong><br />
under section 4942(e), should be determined by<br />
dividing the fair rental value of that portion of the<br />
building used for exempt purposes by the fair<br />
rental value of the entire building. §53.4942(a)–2.<br />
(Sec. 4942, ’86 Code.)<br />
Rev. Rul. 82-137, 1982-2 C.B. 303.<br />
214.48 Minimum investment return; island<br />
preserved for educational purposes. The value<br />
of an island, owned by a private foundation dedicated<br />
to preserve the natural ecosystems and historical<br />
and archaeological remains on the island that<br />
has no residential use and to which present access<br />
is limited to invited public and private researchers,<br />
may be excluded from the foundation’s minimum<br />
investment return. §53.4942(a)–2. (Sec. 4942, ’86<br />
Code.)<br />
Rev. Rul. 75-207, 1975-1 C.B. 361.<br />
214.49 Minimum investment return; paintings<br />
for public exhibitions. A collection of paintings,<br />
owned by a private foundation formed to further<br />
the arts, that are loaned under an active loan<br />
program for exhibition in museums, universities,<br />
and similar institutions, are being used directly in<br />
carrying out the foundation’s exempt purposes,<br />
and the value of the paintings is excludable in<br />
computing the foundation’s minimum investment<br />
return. §53.4942(a)–2. (Sec. 4942, ’86 Code.)<br />
Rev. Rul. 74-498, 1974-2 C.B. 387.<br />
214.50 Minimum investment return; per centage.<br />
The applicable percentage to be used by private<br />
foundations in determining minimum investment<br />
return for a taxable year beginning in 1972<br />
has been changed, in the case of private foundations<br />
organized after May 26, 1969, from 6.0 percent<br />
to 5.5 percent, and for foundations organized<br />
before May 27, 1969, from 4.5 percent to 4.125<br />
percent. The applicable percentages for determining<br />
the minimum investment return for a taxable<br />
year beginning in 1973 are changed to 5.25 and<br />
4.375 respectively; the applicable percentages for<br />
a taxable year beginning in 1974 are changed to<br />
6.0 and 5.5 respectively. §53.4942(a)–2. - (Sec.<br />
4942, ’86 Code.)<br />
Rev. Rul. 72–625, 1972–2 C.B. 604; Rev. Rul.<br />
73-235, 1973–1 C.B. 519; Rev. Rul. 74-238,<br />
1974-1 C.B. 326.<br />
214.51 Minimum investment return; percentage.<br />
The percentage to be used by private<br />
foundations, organized before May 27, 1969, in<br />
determining minimum investment return for a taxable<br />
year beginning in 1975, has been changed to<br />
six percent, the same percentage as for those organized<br />
after May 26, 1969. The applicable percentage<br />
for determining the minimum investment<br />
return for a taxable year beginning in 1976 is<br />
changed to 6.75 percent. §53.4942(a)–2. (Sec.<br />
4942, ’86 Code.)<br />
Rev. Rul. 75–270, 1975–2 C.B. 449; Rev. Rul.<br />
76-193, 1976-1 C.B. 357.<br />
214.52 Minimum investment return; reasonable<br />
cash balances. In determining its minimum<br />
investment return, a private foundation whose<br />
average cash balances during the taxable year represented<br />
one percent of the fair market value of its<br />
assets may exclude an amount equal to one and<br />
one-half percent of its assets’ fair market value as<br />
reasonable cash balances used or held for use<br />
directly in carrying out its exempt purpose.<br />
§53.4942(a)-2. (Sec. 4942, ’86 Code.)<br />
Rev. Rul. 75-392, 1975-2 C.B. 447.<br />
214.53 Minimum investment return; unrelated<br />
trade or business. In determining its minimum<br />
investment return, a private foundation need<br />
not take into account assets used in a trade or business<br />
for which substantially all the work is performed<br />
without compensation. §53.4942(a)-2.<br />
(Sec. 4942, ’86 Code.)<br />
Rev. Rul. 76-85, 1970-1 C.B. 357.<br />
214.54 Operating foundation; qualifying distributions.<br />
An otherwise qualifying trust whose