Contact UsAre the rental incomes of the medical equipments unrelated business taxable income?
A private clinic shares the medical equipments with SERMC in NE. The private clinic has a lease agreement with the SERMC and provides the portions of the income to the SERMC for using these medical equipments. The SERMC is tax exempt org. under Sec. 501(C)(3). The SERMC needs to file the form 990-T to IRS. My question is: Are the rental incomes from the private clinic relate to the UBI?
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Tax Professional Answers
William Keats
What is the 'unrelated business'? According to the tax laws, ALL rental income is taxable.
There is one exception, regarding real property: If rented for 14 days or less for the year, it does not have to be declared.
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554 weeks ago
There is one exception, regarding real property: If rented for 14 days or less for the year, it does not have to be declared.