Unrelated Business: Modifications, Exceptions, and Special Rules


(h) Rent

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


(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).


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.

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