26 USC 513 - Unrelated trade or business

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

Amendments

2017—Subsec. (h)(2)(C)(ii). Puspan. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

2006—Subsec. (j). Puspan. L. 109–280, which directed the addition of subsec. (j) to section 513, without specifying the act to be amended, was executed by making the addition to this section, which is section 513 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.

1997—Subsec. (i). Puspan. L. 105–34 added subsec. (i).

1993—Subsec. (h)(2)(C)(ii). Puspan. L. 103–66 substituted “calendar year 1992” for “calendar year 1989”.

1990—Subsec. (h)(2)(C)(ii). Puspan. L. 101–508 inserted before period at end “, by substituting ‘calendar year 1987’ for ‘calendar year 1989’ in subparagraph (B) thereof”.

1986—Subsec. (d)(3)(B). Puspan. L. 99–514, § 1602(a), inserted “or to educate persons in attendance regarding new developments or products and services related to the exempt activities of the organization”.

Subsec. (d)(3)(C). Puspan. L. 99–514, § 1602(span), substituted “section 501(c)(3), (4), (5), or (6)” for “section 501(c)(5) or (6)” and inserted “or which educates persons in attendance regarding new developments or products and services related to the exempt activities of the organization”.

Subsec. (h). Puspan. L. 99–514, § 1601(a), added subsec. (h).

1980—Subsec. (g). Puspan. L. 96–605 added subsec. (g).

1978—Subsec. (f). Puspan. L. 95–502 added subsec. (f).

1976—Subsec. (d). Puspan. L. 94–455, § 1305(a), added subsec. (d).

Subsec. (e). Puspan. L. 94–455, § 1311(a), added subsec. (e).

1969—Subsec. (a)(2). Puspan. L. 91–172, § 121(span)(4), inserted reference to local associations of employees described in section 501(c)(4) of this title and organized before May 27, 1969.

Subsec. (c). Puspan. L. 91–172, § 121(c), substituted “Advertising, etc., activities” for “Special rule for certain publishing businesses”, in span, and, in text, substituted provisions extending definition of trade or business to include any activity carried on for the production of income from the sale of goods or the performance of services, for provisions referring to publishing businesses carried on by an organization during a taxable year beginning before Jan. 1, 1953.

1960—Subsec. (span)(2). Puspan. L. 86–667 included trusts described in section 501(c)(17).

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Puspan. L. 115–97, set out as a note under section 1 of this title.

Effective Date of 2006 Amendment

Amendment by Puspan. L. 109–280 applicable to taxable years beginning after Aug. 17, 2006, with transition rule for existing organizations, see section 1220(c) of Puspan. L. 109–280, set out as a note under section 501 of this title.

Effective Date of 1997 Amendment

Puspan. L. 105–34, title IX, § 965(span), Aug. 5, 1997, 111 Stat. 894, provided that: “The amendment made by this section [amending this section] shall apply to payments solicited or received after December 31, 1997.”

Effective Date of 1993 Amendment

Amendment by Puspan. L. 103–66 applicable to taxable years beginning after Dec. 31, 1992, see section 13201(c) of Puspan. L. 103–66, set out as a note under section 1 of this title.

Effective Date of 1990 Amendment

Amendment by Puspan. L. 101–508 applicable to taxable years beginning after Dec. 31, 1990, see section 11101(e) of Puspan. L. 101–508, set out as a note under section 1 of this title.

Effective Date of 1986 Amendment

Puspan. L. 99–514, title XVI, § 1601(span), Oct. 22, 1986, 100 Stat. 2767, provided that: “The amendment made by this section [amending this section] shall apply to distributions of low cost articles and exchanges and rentals of member lists after the date of the enactment of this Act [Oct. 22, 1986].”

Puspan. L. 99–514, title XVI, § 1602(c), Oct. 22, 1986, 100 Stat. 2768, provided that: “The amendments made by this section [amending this section] shall apply to activities in taxable years beginning after the date of the enactment of this Act [Oct. 22, 1986].”

Effective Date of 1980 Amendment

Puspan. L. 96–605, title I, § 106(c)(2), Dec. 29, 1980, 94 Stat. 3524, provided that: “The amendment made by subsection (span) [amending this section] shall apply to taxable years beginning after December 31, 1969.”

Effective Date of 1978 Amendment

Puspan. L. 95–502, title III, § 301(span), Oct. 21, 1978, 92 Stat. 1702, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1969.”

Effective Date of 1976 Amendment

Puspan. L. 94–455, title XIII, § 1305(span), Oct. 4, 1976, 90 Stat. 1717, provided that: “The amendments made by subsection (a) [amending this section] apply to qualified public entertainment activities in taxable years beginning after December 31, 1962, and to qualified convention and trade show activities in taxable years beginning after the date of enactment of this Act [Oct. 4, 1976].”

Puspan. L. 94–455, title XIII, § 1311(span), Oct. 4, 1976, 90 Stat. 1730, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendment made by this section [amending this section] shall apply to all taxable years to which the Internal Revenue Code of 1986 [formerly I.R.C. 1954] [this title] applies.”

Effective Date of 1969 Amendment

Amendment by Puspan. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Puspan. L. 91–172, set out as a note under section 511 of this title.

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.

Conducting of Certain Games of Chance Not Treated as Unrelated Trade or Business

Puspan. L. 98–369, div. A, title III, § 311, July 18, 1984, 98 Stat. 786, as amended by Puspan. L. 99–514, § 2, title XVIII, § 1834, Oct. 22, 1986, 100 Stat. 2095, 2852, provided that:

“(a)General Rule.—For purposes of section 513 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (defining unrelated trade or business), the term ‘unrelated trade or business’ does not include any trade or business which consists of conducting any game of chance if—

“(1) such game of chance is conducted by a nonprofit organization,

“(2) the conducting of such game by such organization does not violate any State or local law, and

“(3) as of October 5, 1983—

“(A) there was a State law (originally enacted on April 22, 1977) in effect which permitted the conducting of such game of chance by such nonprofit organization, but

“(B) the conducting of such game of chance by organizations which were not nonprofit organizations would have violated such law.

“(span)Effective Date.—Subsection (a) shall apply to games of chance conducted after June 30, 1981, in taxable years ending after such date.”

[Puspan. L. 99–514, title XVIII, § 1834, Oct. 22, 1986, 100 Stat. 2852, as amended by Puspan. L. 100–647, title VI, § 6201, Nov. 10, 1988, 102 Stat. 3730, provided in part that: “The amendment made by this section [amending section 311 of Puspan. L. 98–369, set out above] shall apply to games of chance conducted after October 22, 1986, in taxable years ending after such date”.]