Opinion ID: 411167
Heading Depth: 1
Heading Rank: 5

Heading: the second inquiry: regularly carried on?

Text: 47 Income of a tax-exempt organization is taxable as unrelated business income if it is generated by a trade or business regularly carried on by the organization and not substantially related (other than through the production of funds) to the organization's performance of its exempt functions. Treas.Reg. Sec. 1.513-1(a). We have found that LCUL's insurance and debt collection activities constitute a trade or business for purposes of section 513. The second step in the computation of unrelated business taxable income is determining whether the trade or business is regularly carried on. See Treas.Reg. Sec. 1.513-1(c). The League does not argue that its activities are not regular, and with good reason, for the record indicates that the League's endorsement and administration of these programs was ongoing and continuous. Clearly the League's trade or business activity is regularly carried on for purposes of the unrelated business income tax. 48