Private Foundations: Tax Law and Compliance / Edition 2

Private Foundations: Tax Law and Compliance / Edition 2

by Bruce R. Hopkins, Judy Blazek
     
 

The 2006 Cumulative supplement includes the following updates:

  • 2005 version of Form 990-PF, filled in to illustrate reporting issues, is included in Chapter 12.
  • The IRS has substantially revised the application for recognition of exemption filed by private foundations (and other charitable organizations), Form 1023. This application is

See more details below

Overview

The 2006 Cumulative supplement includes the following updates:

  • 2005 version of Form 990-PF, filled in to illustrate reporting issues, is included in Chapter 12.
  • The IRS has substantially revised the application for recognition of exemption filed by private foundations (and other charitable organizations), Form 1023. This application is included in supplemental materials for Chapter 2, along with some details about preparation of the form and some traps inherent therein.
  • Discussion of application of self-dealing rules, the personal services exception, the exception for incidental benefits, and foundation-funded disaster relief programs.

Product Details

ISBN-13:
9780471794790
Publisher:
Wiley
Publication date:
07/28/2006
Edition description:
Revised Edition
Pages:
216
Product dimensions:
6.90(w) x 9.80(h) x 0.60(d)

Table of Contents

Note: Sections not in the main bound volume are indicated by “(New)” after the title. Material new to or modified in this supplement is indicated by an asterisk (*) in the left margin in the contents and throughout the supplement.

List of Exhibits.

Preface.

Chapter One Introduction to Private Foundations.

§ 1.6 Operating for Charitable Purposes.

Chapter Two Starting and Funding a Private Foundation.

• 2.5 Acquiring Tax-Exempt Status.

(a) Preparing Form 1023.

* § 2.7 When to Report Back to the IRS.

Chapter Three Types of Private Foundations.

• 3.1 Private Operating Foundations.

(a) Direct Charitable Distributions.

• 3.2 Conduit Foundations.

• 3.6 Nonexempt Charitable Trusts.

Chapter Four Disqualified Persons.

• 4.1 Substantial Contributors.

* § 4.8 Governmental Officials.

Chapter Five Self-Dealing.

• 5.2 Private Benefit Doctrine.

§ 5.3 Definition of Self-Dealing.

(c) Exceptions Provided in Regulations.

§ 5.4 Sale, Exchange, Lease, or Furnishing of Property.

*(c) Leasing of Property.

*(d) Furnishing of Goods, Services, or Facilities.

*(e) Co-owned Property.

§ 5.5 Loans and Other Extensions of Credit.

(b) Interest-Free Loans.

§ 5.6 Payment of Compensation.

(a) Definition of Personal Services (New).

*(b) Definition of Compensation (New).

(d) Finding Salary Statistics.

*(f) Expense Reimbursements and Advances.

(g) Bank Fees.

§ 5.8 Uses of Income or Assets by Disqualified Persons.

(c) For the Benefit of Transactions (New).

*(f) Benefit Tickets.

§ 5.9 Sharing Space, People, and Expenses.

*(b) Office Space and Personnel.

• 5.11 Indirect Self-Dealing.

§ 5.12 Property Held by Fiduciaries.

*(a) General Rules.

§ 5.12A Early Terminations of Charitable Remainder Trusts.

§ 5.14 Issues Once Self-Dealing Occurs.

(a) Undoing the Transaction.

(b) Amount Involved.

(d) Payment of Tax.

(e) Advice of Counsel.

Chapter Six Mandatory Distributions.

§ 6.2 Assets Used to Calculate Minimum Investment Return.

(c) Exempt Function Assets.

(f) Acquisition Indebtedness.

§ 6.4 Distributable Amount.

(a) Controversial Addition.

§ 6.5 Qualifying Distributions.

*(b) Direct Charitable Expenditures.

(c) Controversial Proposal.

*(d) Set-Asides.

§ 6.6 Satisfying the Distribution Test.

(b) Planning for Excess Distributions.

(d) Abatement of the Tax.

Chapter Seven Excess Business Holdings.

§ 7.1 General Rules.

*(a) Definition of Business Enterprise.

*(d) Percentage Limitations.

§ 7.2 Permitted and Excess Holdings.

(d) Disposition Periods.

• 7.3 Functionally Related Businesses.

§ 7.4 Excise Taxes on Excess Holdings.

Chapter Eight Jeopardizing Investments.

§ 8.2 Prudent Investments.

* § 8.3 Program-Related Investments.

§ 8.4 Excise Taxes for Jeopardizing Investments.

(b) Reliance on Outside Advisors.

Chapter Nine Taxable Expenditures.

§ 9.1 Legislative Activities.

*(c) Grants to Charities That Lobby.

§ 9.3 Grants to Individuals.

(a) Grants for Travel, Study, or Other Purposes.

*(b) Other Individual Grants.

(c) Compensatory Payments.

*(d) Selection Process.

*(e) Employer-Related Programs.

(h) Individual Grant Intermediaries.

§ 9.4 Grants to Public Charities.

*(b) Documenting Public Charity Grants.

(c) The Reliance Problem.

§ 9.5 Grants to Foreign Organizations.

• 9.6 Expenditure Responsibility.

(a) General Rules.

§ 9.9 Excise Tax for Taxable Expenditures.

(b) Paying or Abating the Tax.

Chapter Ten Tax on Investment Income.

§ 10.3 Formula for Taxable Income.

(c) Dividends.

(f) Estate or Trust Distributions.

§ 10.4 Capital Gains.

(a) Basis.

(b) Nontaxed Gains.

Chapter Eleven Unrelated Business Income.

§ 11.1 General Rules.

*(e) Real Estate Activities.

§ 11.2 Exceptions.

(e) Revenue Produced on the Internet (New).

• 11.4 Unrelated Debt-Financed Income.

(b) Related-Use Exceptions.

Chapter Twelve Tax Compliance and Administrative Issues.

* § 12.1 Successful Completion of Form 990-PF.

(a) Part I, Analysis of Revenue and Expenses.

§ 12.2 Reports Unique to Private Foundations.

*(c) Part VII-A, Statements Regarding Activities.

§ 12.3 Compliance Issues.

(c) Where and When to File Form 990-PF.

(e) Reporting Violations and Other IRS Issues.

*(f) Employment Tax Considerations (New).

*(g) Reporting Requirements for Offshore Investments (New).

Chapter Thirteen Termination of Foundation Status.

• 13.1 Voluntary Termination.

§ 13.3 Transfer of Assets to a Public Charity.

(c) Eligible Public Charity Recipients.

§ 13.5 Mergers, Split-ups, and Transfers between Foundations.

*(c) Unanswered Question.

Chapter Fourteen Charitable Giving Rules.

§ 14.2 Gifts of Appreciated Property.

Chapter Fifteen Private Foundations and Public Charities.

• 15.4 Publicly Supported Organizations—Donative Entities.

*(b) Support Test.

• 15.5 Service Provider Organizations.

*(a) Investment Income Test.

(c) Unusual Grants.

Chapter Sixteen Donor-Advised Funds.

§ 16.2 General Concept of a Gift.

§ 16.3 Types of Donor Funds.

§ 16.7 Public Charity Status of Funds.

Cumulative Table of Cases.

Cumulative Table of IRS Revenue Rulings and Revenue Procedures.

Cumulative Table of IRS Private Determinations Cited in Text.

Cumulative Table of IRS Private Determinations Discussed in Bruce R. Hopkins’ Nonprofit Counsel.

Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda.

Cumulative Table of Cases Discussed in Bruce R. Hopkins’ Nonprofit Counsel.

Cumulative Index.

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