The Tax Law of Private Foundations, 5th Edition

CHAPTER ELEVENUnrelated Business Activity

1. § 11.2 Exceptions
   1. (b) Rents
2. § 11.3 Rules Specifically Applicable to Private Foundations
   1. (b) Permitted Businesses
   2. (f) Rental Activity
3. § 11.4 Unrelated Debt-Financed Income Rules
   1. (a) Acquisition Indebtedness
4. § 11.5 Calculating and Reporting the Tax
   1. (a) General Rules
   2. (b) Bucketing Rule
   3. (b-1) Fringe Benefit Expense Rules
   4. (d) Other Tax Computation and Reporting Rules

§ 11.2 EXCEPTIONS

p. 451, note 64. Delete 512(b)(3)(A) and insert 512(b)(3)(A)(i).

(b) Rents

p. 454, first complete paragraph. Delete first sentence, including footnote, and insert:

The exclusion from unrelated business income taxation for rent is not available unless, as noted, rent from personal property leased with real property is incidental in relation to the total rent involved⁷⁹ or where more than 50 percent of the total rent received or accrued under the lease is attributable to personal property.^79.1

p. 454, first bullet point, last line. Delete rentals to be treated as taxable unrelated income and insert resulting fees to be unrelated business income.

p. 454, note 82. Delete text and insert:

Tech. Adv. Mem. 9822006. Also Tech. Adv. Mem. 9853001. This type of fee-for-service income is not rent (Tech. Adv. Mem. 9901002).

§ 11.3 RULES SPECIFICALLY APPLICABLE TO PRIVATE FOUNDATIONS

(b) Permitted Businesses

p. 462, last paragraph. Insert as last sentence:

The law as to functionally related businesses is discussed elsewhere.^133.1

p. 462, note 131, last line. ...