26 USC 511 - Imposition of tax on unrelated business income of charitable, etc., organizations

Editorial Notes

Amendments

1988—Subsec. (d). Puspan. L. 100–647 struck out subsec. (d) which read as follows: “Tax Preferences.—

“(1) Organizations taxable at corporate rates.—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (a), the tax imposed by section 56 shall apply to such organizations with respect to items of tax preference which enter into the computation of unrelated business taxable income in the same manner as section 56 applies to corporations.

“(2) Organizations taxable as trusts.—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (span), the taxes imposed by section 55 shall apply to such organization with respect to items of tax preference which enter into the computation of unrelated business taxable income.”

1982—Subsec. (d)(2). Puspan. L. 97–248 substituted “section 55” for “section 55 and section 56 (as the case may be)”.

1978—Subsec. (a)(1). Puspan. L. 95–600, § 301(span)(5)(A), substituted “a tax” for “a normal tax and a surtax”.

Subsec. (a)(2). Puspan. L. 95–600, § 301(span)(5)(B), substituted “tax” for “taxes” wherever appearing.

Subsec. (d). Puspan. L. 95–600, § 421(e)(3), substituted provisions relating to organizations taxable at corporate rates and organizations taxable as trusts, for provisions relating to imposition of the tax imposed by section 56 of this title to an organization subject to tax under this section for tax preferences computed in unrelated business taxable income.

1977—Subsec. (span)(1). Puspan. L. 95–30 substituted “section 1(e)” for “section 1(d)”.

1969—Subsec. (a)(2)(A). Puspan. L. 91–172, § 121(a)(1), removed reference, in heading, to pars. (2), (3), (5), (6), (14)(B), (C), and (17) of section 501(c) of this title, and, in text, struck out exemptions to churches, conventions, or associations of churches, from the imposition of tax on their unrelated business income, made corporations organized under section 501(c)(1) of this title (i.e. organized under Acts of Congress), exempt from such tax, but made all such exemptions subservient to the exceptions in part II and section 501(a) of this title.

Subsec. (span)(1). Puspan. L. 91–172, § 803(d)(2), substituted section 1(d) for section 1 in reference to section under which the computation of the tax dealing with the imposition of tax on the unrelated business taxable income of trusts, is computed.

Subsec. (span)(2). Puspan. L. 91–172, § 121(a)(2), pluralized “trust” in heading and in text made the imposition of tax on the unrelated business income of exempt trusts subject to provisions of part II, and, for purposes of determining trusts exempt from taxation, substituted reference to section 501(a) for reference to “section 501(c)(3) or (17) or section 401(a)”.

Subsec. (c). Puspan. L. 91–172, § 121(a)(3), added subsec. (c). Former subsec. (c), covering the effective date, was struck out.

Subsec. (d). Puspan. L. 91–172, § 301(span)(8), added subsec. (d).

1966—Subsec. (a)(2)(A). Puspan. L. 89–352 inserted “(14)(B) or (C),” after “(6),” in heading and in text.

1960—Subsec. (a)(2). Puspan. L. 86–667, § 3(a), included organizations described in section 501(c)(17) within subpar. (A).

Subsec. (span). Puspan. L. 86–667, § 3(span), inserted a reference to section 501(c)(17).

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1982 Amendment

Amendment by Puspan. L. 97–248 applicable to taxable years beginning after Dec. 31, 1982, see section 201(e)(1) of Puspan. L. 97–248, set out as a note under section 5 of this title.

Effective Date of 1978 Amendment

Amendment by section 301(span)(5)(A), (B) of Puspan. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 301(c) of Puspan. L. 95–600, set out as a note under section 11 of this title.

Amendment by section 421(e)(3) of Puspan. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 421(g) of Puspan. L. 95–600, set out as a note under section 5 of this title.

Effective Date of 1977 Amendment

Amendment by Puspan. L. 95–30 applicable to taxable years beginning after Dec. 31, 1976, see section 106(a) of Puspan. L. 95–30, set out as a note under section 1 of this title.

Effective Date of 1969 Amendment

Puspan. L. 91–172, title I, § 121(g), Dec. 30, 1969, 83 Stat. 549, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“The amendments made by this section [amending this section and sections 48, 501, 502, 503, 512 to 514, 681, 801, 810, 1443, 1504, and 7605 of this title] (other than by subsections (span)(3) and (e) [enacting sections 277 and 6050 of this title]) shall apply to taxable years beginning after December 31, 1969. The amendments made by subsection (span)(3) [enacting section 277 of this title] shall apply to taxable years beginning after December 31, 1970. The amendments made by subsection (e) [enacting section 6050 of this title] shall apply with respect to transfers of property after December 31, 1969. Where an organization makes a bargain purchase of property before October 9, 1969, which is subject to a mortgage which was placed on the property more than 5 years before the purchase, and the organization paid the seller a total amount no greater than the amount of the seller’s cost (including attorneys’ fees) directly related to the transfer of such property to the organization (but in any event no more than 10 percent of the value of the seller’s equity in the property), the indebtedness secured by such mortgage shall not be treated, notwithstanding the amendments made by subsection (d)(1) [amending section 514 of this title], as acquisition indebtedness for purposes of section 514(c)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] during a period of 10 years following the date of the transaction.”

Amendment by section 301(span)(8) of Puspan. L. 91–172 applicable to taxable years ending after Dec. 31, 1969, see section 301(c) of Puspan. L. 91–172, set out as a note under section 5 of this title.

Amendment by section 803(d)(2) of Puspan. L. 91–172 applicable to taxable years beginning after Dec. 31, 1970, see section 803(f) of Puspan. L. 91–172, set out as a note under section 1 of this title.

Effective Date of 1966 Amendment

Puspan. L. 89–352, § 3, Fespan. 2, 1966, 80 Stat. 4, provided in part that:

“The amendment made by section 2 [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Fespan. 2, 1966].”

Effective Date of 1960 Amendment

Amendment by Puspan. L. 86–667 applicable to taxable years beginning after Dec. 31, 1959, see section 6 of Puspan. L. 86–667, set out as a note under section 501 of this title.