Which of the following is not one of the three unrelated business income activit
ID: 2601855 • Letter: W
Question
Which of the following is not one of the three unrelated business income activity categories? A) the organisation must be conducting a trade of budiness, B) an activity carried on by an IRC c3 entityWhich of the following is not one of the three unrelated business income activity categories? A) the organisation must be conducting a trade of budiness, B) an activity carried on by an IRC c3 entity
A) the organisation must be conducting a trade of budiness, B) an activity carried on by an IRC c3 entity
Explanation / Answer
The unrelated business inccome activity categories are below:
1. It is a trade or business
2. It is regularly carried on, &
3. It is not substantially related to furthering the exempt purpose of the organisation.
From the above two points:
(A) Perfectly matches with our first category. Therefore A is not the answer.
(B) doesnt match with any of the three categories mentioned by irs. Thats why option (B) is the answer.
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