Sec. 13702. Unrelated business taxable income separately computed for each trade or business activity

228 words·~1 min read·/bill/115/hr/1/unknown/section-13702

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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, including for purposes of determining any net operating loss deduction, 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. . Except to the extent provided in paragraph (2), the amendment made by this section shall apply to taxable years beginning after December 31, 2017. If any net operating loss arising in a taxable year beginning before January 1, 2018, is carried over to a taxable year beginning on or after such date— subparagraph

(A)of section 512(a)(6) of the Internal Revenue Code of 1986, as added by this Act, shall not apply to such net operating loss, and the unrelated business taxable income of the organization, after the application of subparagraph

(B)of such section, shall be reduced by the amount of such net operating loss.