[eBook Code] Joint Ventures Involving Tax-Exempt Organizations, 2019 Cumulative Supplement (eBook Code, 4th)

Preface xi

Acknowledgments xv

Chapter 1: Introduction: Joint Ventures Involving Exempt Organizations 1

§ 1.4 University Joint Ventures 1

§ 1.5 Low-Income Housing and New Markets Tax Credit Joint Ventures 1

§ 1.6 Conservation Joint Ventures 2

§ 1.8 Rev. Rul. 98-15 and Joint Venture Structure 2

§ 1.10 Ancillary Joint Ventures: Rev. Rul. 2004-51 2

§ 1.14 The Exempt Organization as a Lender or Ground Lessor 2

§ 1.15 Partnership Taxation 3

§ 1.17 Use of a Subsidiary as a Participant in a Joint Venture 3

§ 1.22 Limitation on Private Foundation’s Activities That Limit Excess Business Holdings 4

§ 1.24 Other Developments 4

Chapter 2: Taxation of Charitable Organizations 5

§ 2.1 Introduction (Revised) 5

§ 2.2 Categories of Exempt Organizations (Revised) 10

§ 2.3 § 501(c)(3) Organizations: Statutory Requirements (Revised) 13

§ 2.4 Charitable Organizations: General Requirements 14

§ 2.6 Application for Exemption 15

§ 2.7 Governance 21

§ 2.8 Form 990: Reporting and Disclosure Requirements (Revised) 22

§ 2.10 The IRS Audit 24

§ 2.11 Charitable Contributions (Revised) 27

Chapter 3: Taxation of Partnerships and Joint Ventures 35

§ 3.1 Scope of Chapter 35

§ 3.3 Classification as a Partnership 38

§ 3.4 Alternatives to Partnerships 38

§ 3.7 Formation of Partnership 38

§ 3.8 Tax Basis in Partnership Interest 39

§ 3.9 Partnership Operations 39

§ 3.11 Sale or Other Disposition of Assets or Interests 40

§ 3.12 Other Tax Issues (Revised) 41

Chapter 4: Overview: Joint Ventures Involving Exempt Organizations 47

§ 4.1 Introduction 47

§ 4.2 Exempt Organization as General Partner: A Historical Perspective 48

§ 4.6 Revenue Ruling 2004-51 and Ancillary Joint Ventures 50

§ 4.9 Conversions from Exempt to For-Profit and from For-Profit to Exempt Entities 50

§ 4.10 Analysis of a Virtual Joint Venture 50

Chapter 5: Private Benefit, Private Inurement, and Excess Benefit Transactions 53

§ 5.1 What Are Private Inurement and Private Benefit? (Revised) 53

§ 5.2 Transactions in Which Private Benefit or Inurement May Occur 55

§ 5.3 Profit-Making Activities as Indicia of Nonexempt Purpose 57

§ 5.4 Intermediate Sanctions (Revised) 57

§ 5.7 State Activity with Respect to Insider Transactions 65

Chapter 6: Engaging in a Joint Venture: The Choices 67

§ 6.1 Introduction 67

§ 6.2 LLCs (Revised) 68

§ 6.3 Use of a For-Profit Subsidiary as Participant in a Joint Venture 69

§ 6.5 Private Foundations and Program-Related Investments 73

§ 6.6 Nonprofits and Bonds (Revised) 77

§ 6.7 Exploring Alternative Structures 79

§ 6.8 Other Approaches 80

Chapter 7: Exempt Organizations as Accommodating Parties in Tax Shelter Transactions 83

§ 7.2 Prevention of Abusive Tax Shelters 83

§ 7.3 Excise Taxes and Penalties 84

Chapter 8: The Unrelated Business Income Tax 85

§ 8.1 Introduction 85

§ 8.3 General Rule 86

§ 8.4 Statutory Exceptions to UBIT (Revised) 87

§ 8.5 Modifications to UBIT (Revised) 87

§ 8.7 Calculation of UBIT (Revised) 88

Chapter 9: Debt-Financed Income 99

§ 9.1 Introduction 99

§ 9.2 Debt-Financed Property 99

§ 9.6 The Final Regulations 100

Chapter 10: Limitation on Excess Business Holdings 103

§ 10.1 Introduction 103

§ 10.2 Excess Business Holdings: General Rules (Revised) 103

§ 10.3 Tax Imposed 105

§ 10.4 Exclusions 105

Chapter 12: Healthcare Entities in Joint Ventures 109

§ 12.1 Overview 109

§ 12.2 Classifications of Joint Ventures 110

§ 12.3 Tax Analysis 110

§ 12.4 Other Healthcare Industry Issues 113

§ 12.5 Preserving the 50/50 Joint Venture 113

§ 12.9 Government Scrutiny 114

§ 12.11 The Patient Protection and Affordable Care Act of 2010: § 501(r) and Other Statutory Changes Impacting Nonprofit Hospitals 114

§ 12.12 The Patient Protection and Affordable Care Act of 2010: ACOs and Co-Ops: New Joint Venture Healthcare Entities 117

Chapter 13: Low-Income Housing, New Markets, Rehabilitation, and Other Tax Credit Programs 119

§ 13.2 Nonprofit-Sponsored LIHTC Project (New) 119

§ 13.3 Low-Income Housing Tax Credit (Revised) 120

§ 13.4 Historic Investment Tax Credit 122

§ 13.6 New Markets Tax Credits (Revised) 126

§ 13.10 The Energy Tax Credits 141

§ 13.11 The Opportunity Zone Funds: New Section 1400Z-1 and Section 1400Z-2 (Revised) 142

Appendix 13B (New) 165

Chapter 14: Joint Ventures with Universities 183

§ 14.1 Introduction 183

§ 14.3 Colleges and Universities IRS Compliance Initiative (New) 188

§ 14.5 Faculty Participation in Research Joint Ventures 189

§ 14.6 Nonresearch Joint Venture Arrangements 189

§ 14.7 Modes of Participation by Universities in Joint Ventures (Revised) 189

Chapter 15: Business Leagues Engaged in Joint Ventures 193

§ 15.1 Overview 193

§ 15.2 The Five-Prong Test 194

§ 15.3 Unrelated Business Income Tax 194

Chapter 16: Conservation Organizations in Joint Ventures 195

§ 16.1 Overview 195

§ 16.2 Conservation and Environmental Protection as a Charitable or Educational Purpose: Public and Private Benefit 195

§ 16.3 Conservation Gifts and § 170(h) Contributions (Revised) 196

§ 16.7 Emerging Issues 210

Chapter 17: International Joint Ventures 211

§ 17.5 General Grantmaking Rules 211

§ 17.11 Application of Foreign Tax Treaties 212

Chapter 19: Debt Restructuring and Asset Protection Issues 215

§ 19.1 Introduction 215

§ 19.2 Overview of Bankruptcy 215

§ 19.3 The Estate and the Automatic Stay 216

§ 19.4 Case Administration 217

§ 19.5 Chapter 11 Plan 217

§ 19.6 Discharge 218

Index 219