The Unrelated Business Income Tax Could Be a Significant Cost

question 28

True/False

The unrelated business income tax could be a significant cost and therefore should be of concern to tax-exempt organizations.

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Definitions:

Service Businesses

Businesses that primarily offer intangible products or services to consumers or other businesses.

Merchandising Business

A merchandising business purchases and sells goods in their original form without undergoing transformation, aiming to profit from the retail or wholesale distribution.

Credit Card Sales

Revenue generated through transactions where customers use credit cards to make purchases.

Credit Card Fees

Charges associated with the processing of credit card transactions, typically paid by merchants to credit card processors.