§ 502. Feeder organizations
243 words·~1 min read·
/usc/title-26/section-502A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General rule An organization operated for the primary purpose of carrying on a trade or business for profit shall not be exempt from taxation under section 501 on the ground that all of its profits are payable to one or more organizations exempt from taxation under section 501.
(b)Special rule For purposes of this section, the term “trade or business” shall not include—
(1)the deriving of rents which would be excluded under section 512(b)(3), if section 512 applied to the organization,
(2)any trade or business in which substantially all the work in carrying on such trade or business is performed for the organization without compensation, or
(3)any trade or business which is the selling of merchandise, substantially all of which has been received by the organization as gifts or contributions.
(Aug. 16, 1954, ch. 736, 68A Stat. 166; Pub. L. 91–172, title I, § 121(b)(7), Dec. 30, 1969, 83 Stat. 542.)
Connections3 cite this · traces to 2
Cited by 3 sections
6 references not yet in our index
- Aug. 16, 1954, ch. 736
- 68A Stat. 166
- Pub. L. 91–172, title I, § 121(b)(7)
- 83 Stat. 542
- Pub. L. 91–172
- section 121(g) of Pub. L. 91–172
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cites case law
§ 502
Feeder organizations
Stat.×2
U.S.C.×1
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 166
Pub. L.Pub. L. 91–172, title I, § 121(b)(7)
Stat.83 Stat. 542
Pub. L.Pub. L. 91–172
Cites 8 · showing 7Cited by 3 across 2 sources