Friday, June 29, 2018

The New Tax Law and Its Impact on Nonprofits-Part 2

    Part 2 of this article discusses how the operations of nonprofit organizations and how the new jobs act will impact them. The first impact it discusses is how UBIT is calculated. Before if a nonprofit ran two different unrelated business activities the nonprofit could offset the losses from one activity against the gains of the other one. This is not permitted anymore. Now, any losses from one activity can be carried over indefinitely, but can only offset the same activity. Next, the article explores the limitations on entertainment related deductions. Organizations may no longer take deductions for any activity considered entertainment, amusement, or recreation (even if it is directly related to the organizations purpose); any facility used for entertainment, amusement, or recreation; or any transportation fringe benefit. To learn more about how the operations of nonprofits are impacted by the new jobs act, click here:<>



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