If Personal Property Is Leased with Real Property and More

question 129

True/False

If personal property is leased with real property and more than 45% of the rent income under the lease is from personal property, all of the rent income is subject to the unrelated business income tax.

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Definitions:

Corporate Bylaws

Detailed rules adopted by a corporation governing its operations, including the rights and responsibilities of shareholders and directors.

Corporation By Estoppel

A legal doctrine that prevents a party from denying the corporate existence of a company when it has treated it as a corporation.

De Facto Corporation

A business treated as a legally incorporated company for all purposes except against the state in a direct proceeding, despite not completing the incorporation process properly.

De Jure Corporation

a corporation that is legally established and operating in accordance with the law.