Join us on April 25 for a chance to hear GRF Partners Jennifer Arminger and Richard J. Locastro present on the Implications of the New Tax Law on Tax-Exempt Organizations, hosted by Bernstein. Bernstein is a financial planning and investment managing company in the Washington, D.C. area and nationwide.
The recently passed Tax Cuts and Jobs Act (the Act) contains many provisions that impact tax-exempt organizations. There will undoubtedly be comprehensive analyses addressing the changes followed by guidance from the IRS on its interpretation of the new law. However, there are several significant provisions in the Act that we believe tax-exempt organizations should be aware of now, during 2018. Some highly discussed topics include:
Unrelated Business Taxable Income (UBTI)
The Act requires that tax-exempt organizations calculate UBTI separately for each “trade or business”. A loss from one activity cannot be used to offset income from another activity. For example, a tax-exempt organization with a UBTI loss from the rental of debt-financed real property cannot use that loss to offset UBTI income from advertising.
UBTI resulting from certain fringe benefits expenses
For a taxable entity, the Act disallows a deduction for employer costs incurred in providing certain employee non-taxable fringe benefits (Code section 132(f)), including qualified transportation fringe benefits, parking facilities used in connection with qualified parking, and any on-premises athletic facility. To put a tax-exempt organization (which generally does not claim tax deductions) on the same footing as a taxable corporation, the Act requires the tax-exempt organization to report as UBTI the amount spent or incurred on these benefits.
And Many More…..
Join us for a discussion that will help your nonprofit’s leadership understand how the new law may impact your organization. Attendees will come away with practical guidance to prepare their organizations for the changes ahead as well as insights on dealing with the uncertainties inherent in any new legislation.
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