Source: http://taxtv.com/code/00421-USCODE-2011-title26-subtitleA-chap1-subchapF-partII-sec509/
Timestamp: 2017-11-18 19:28:00
Document Index: 374833219

Matched Legal Cases: ['§509', '§509', '§509', '§1241', '§1221', '§1221', '§2', '§1241']

IRC §509. Private foundation defined - TaxTV.com
IRC §509. Private foundation defined
View related content: IRC §509
For purposes of this title, the term “private foundation” means a domestic or foreign organization described in section 501(c)(3) other than—
(ii) gross receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in an activity which is not an unrelated trade or business (within the meaning of section 3), not including such receipts from any person, or from any bureau or similar agency of a governmental unit (as described in section 170(c)(1)), in any taxable year to the extent such receipts exceed the greater of $5,000 or 1 percent of the organization’s support in such taxable year,
(ii) the excess (if any) of the amount of the unrelated business taxable income (as defined in section 2) over the amount of the tax imposed by section 1;
For purposes of this part and chapter 42, the term “support” includes (but is not limited to)—
(2) gross receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities in any activity which is not an unrelated trade or business (within the meaning of section 3),
For purposes of subsection (d), the term “gross investment income” means the gross amount of income from interest, dividends, payments with respect to securities loans (as defined in section 2(a)(5)), rents, and royalties, but not including any such income to the extent included in computing the tax imposed by section 1. Such term shall also include income from sources similar to those in the preceding sentence.
(iii) a 35-percent controlled entity (as defined in section 4958(f)(3) by substituting “persons described in clause (i) or (ii) of section 509(f)(2)(B)” for “persons described in subparagraph (A) or (B) of paragraph (1)” in subparagraph (A)(i) thereof).
For purposes of this subsection, the term “supported organization” means, with respect to an organization described in subsection (a)(3), an organization described in paragraph (1) or (2) of subsection (a)—
2006—Subsec. (a)(3)(B). Pub. L. 109–280, §1241(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “is operated, supervised, or controlled by or in connection with one or more organizations described in paragraph (1) or (2), and”. See Codification note above.
Subsec. (e). Pub. L. 109–280, §1221(a)(2), inserted at end “Such term shall also include income from sources similar to those in the preceding sentence.” See Codification note above.
Pub. L. 109–280, title XII, §1221(c), Aug. 17, 2006, 120 Stat. 1089, provided that: “The amendments made by this section [amending this section and section 4940 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 17, 2006].”
Section 2(e) of Pub. L. 95–345, as amended by Pub. L. 99– 4, §2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section [enacting section 1058 of this title and amending sections 509, 2, 4, 8 , and 4940 of this title] apply with respect to—
“(1) amounts received after December 31, 1976, as payments with respect to securities loans (as defined in section 2(a)(5) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]), and
Section 3(b) of Pub. L. 94–81 provided that: “The amendment made by this section [amending this section] shall apply to unrelated business taxable income derived from trades and businesses which are acquired by the organization after June 30, 1975.”
Pub. L. 109–280, title XII, §1241(c), Aug. 17, 2006, 120 Stat. 1103, provided that: “For purposes of section 509(a)(3)(B)(iii) of the Internal Revenue Code of 1986, an organization which is a trust shall not be considered to be operated in connection with any organization described in paragraph (1) or (2) of section 509(a) of such Code solely because—