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AT&T, Inc. Message Board

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  • whopperkaraoke whopperkaraoke Dec 9, 2012 9:29 PM Flag

    Tax churches that run non-church businesses

    What you said made such sense that I had to do a little research. So I am pasting some info .. " When a church makes money from other business activities, there is the possibility that the church may have to pay tax on the profits. This tax is known as "unrelated business income tax (UBIT)." Many churches are under the impression that because the church may have to pay a tax, it cannot own or operate a business. This is a misconception. If a church engages in business activity that incurs UBIT, all it has to do is simply fill out Form 990-T each year and report its income and pay whatever tax is due.

    In order for a church to incur UBIT, it must determine if it has earned income from unrelated activities. This can prove a little difficult sometimes. Section 513(a) of the Internal Revenue Code defines Unrelated Business Income (UBI) using three key phrases as follows:
    1.Is the income substantially related to the church's religious, charitable, educational or other purposes?
    2.Is it a trade or business?
    3.Is it regularly carried on?
    ....... "

    after googling this question I have decided, if our govenement can tax it, it is taxed, there is no break for it unless it benefits polticians

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