Unrelated Business: Modifications, Exceptions, and Special Rules
§ 25.1 MODIFICATIONS
p. 772, first complete paragraph. Insert as last sentence:
For example, the IRS ruled that revenues paid by vendors at an event, sponsored by a tax-exempt alumni association, were not rent, largely because of the extensive services provided the vendors that go “far beyond” services “usually rendered for occupancy only.”38.1
§ 25.2 EXCEPTIONS
(j) Low-Cost Articles
p. 787, note 190. Delete sentence and substitute:
The IRS calculated that the low-cost article threshold for tax years beginning in 2017 is $10.70 (Rev. Proc. 2016-55, 2016-45 I.R.B. 707 § 3.30(1)).
(l) Associate Member Dues
p. 788, note 200. Delete sentence and substitute:
For tax years beginning in 2017, this threshold is $162 (Rev. Proc. 2016-55, 2016-45 I.R.B. 707 § 3.29).
§ 25.3 SPECIAL RULES
p. 789, third paragraph. Insert as third sentence:
For example, with respect to tax-exempt voluntary employees' beneficiary associations, investment income, employer contributions, and other income received by a VEBA set aside to pay plan benefits is exempt function income.217.1
p. 789, third paragraph, fourth sentence. Delete For example, a tax-exempt voluntary employees' beneficiary association and substitute By contrast, an exempt VEBA.