tax exemption

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Related to Tax-exempt organization: Tax exempt status, 501c

Tax Exempt

Describing income or organization that is not subject to taxation. Examples of tax exempt organizations include religious groups and charities. Additionally, certain income an individual or corporation derives may be tax exempt. For example, coupons from a municipal bond are tax exempt at the federal level. See also: Tax credit, tax deduction.

tax exemption

A reduction in the assessed rate of real property for purposes of calculating ad valorem taxes.Properties used for religious purposes usually have a 100 percent reduction,resulting in no tax liability. Additional exemptions might be granted for other uses, such as for a personal residence,timberland,or conservation land. One must generally apply for exemptions; they are not granted automatically.

References in periodicals archive ?
As a result, the tax-exempt organization may need to reasonably approximate UBTI by state.
In many jurisdictions, a limited liability company (but only those treated as a corporation for federal tax purposes), a trust, or a trust created by will can create a tax-exempt organization.
Small businesses and tax-exempt organizations that provide healthcare coverage are eligible for the credit if they meet the following conditions:
The organizations that must fill out Form 8922 will include a wide variety of tax-exempt organizations, such as religious, charitable, scientific and literary groups.
However, regardless of the type, joint ventures between tax-exempt organizations and for-profit entities are highly scrutinized by the IRS because of the concern that such ventures will not contribute to one or more of the exempt organization's purposes.
The Internal Revenue Service (IRS) last week issued a notice of proposed rulemaking pertaining to the public disclosure requirements of some municipalities and state municipal leagues, as well as other tax-exempt organizations.
The IRS, in Private Letter Rating 9043039, issued July 30, 1990, appears to have wavered on this position by concluding that the Subpart F income inclusion of a tax-exempt entity resulting from its ownership of a foreign captive insurance company must be characterized by the income that makes up the inclusion, thereby treating the Subpart F income inclusion as if it had been earned directly by the tax-exempt organization for UBT1 purposes.
The new Form 990 requirements generated a significant amount of discussion and debate among the IRS, tax-exempt organizations and members of the client-serving community Accounting authorities such as the AICPA have increased their involvement in these discussions to try to address the concerns of taxpayers and their preparers.
The question remains whether all of the tax-exempt organizations that have not filed are actually out of business.
Even though the emphasis of SOA is on investor protection, there has been speculation and discussion about the applicability of SOA to tax-exempt organizations, including tax-exempt social clubs.
The issue was whether the Subpart F income generated by the captive constituted "unrelated business taxable income" which would be taxable to the tax-exempt organization notwithstanding its exemption.
For a detailed discussion of the issues in this area, see "Small Tax-Exempt Organization E-Postcard Requirements Finalized," by Sarah Lovinger, in the November 2009 issue of The Tax Adviser.