Sec. 5003. Unrelated business taxable income separately computed for each trade or business activity

282 words·~1 min read·/bill/113/hr/1/ih/section-5003

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Subsection

(a)of section 512 is amended by adding at the end the following new paragraph: In the case of any organization with more than 1 unrelated trade or business— unrelated business taxable income shall be computed separately with respect to each such trade or business and without regard to subsection (b)(12), the unrelated business taxable income of such organization shall be the sum of the unrelated business taxable income so computed with respect to each such trade or business, less a specific deduction under subsection (b)(12), and for purposes of subparagraph (B), unrelated business taxable income with respect to any such trade or business shall not be less than zero, and the net operating loss deduction shall only be allowed with respect to the trade or business from which the net operating loss arose. . Except to the extent provided in paragraph (2), the amendment made by this section shall apply to taxable years beginning after December 31, 2014. In the case of any net operating loss arising in a taxable year beginning before January 1, 2015, that is carried over to a taxable year beginning on or after such date, section 512(a)(6)(D) of the Internal Revenue Code of 1986, as added by this Act, shall not apply. In the case of any net operating loss arising in a taxable year beginning after December 31, 2014, and carried back to any taxable year beginning on or before such date, in computing unrelated business taxable income of an organization under section 512(a) of such Code for the taxable year, the net operating loss deduction shall be allowed only with respect to the trade or business from which the net operating loss arose.