Читать книгу The Tax Law of Charitable Giving - Bruce Hopkins R., Bruce R. Hopkins, David Middlebrook - Страница 49

To be considered an unrelated trade or business, an activity of a tax-exempt organization must be regularly carried on by the organization.⁵²⁷

Income from an activity of a tax-exempt organization is considered taxable only when, assuming the other criteria are satisfied, the activity is regularly carried on, as distinguished from sporadic or infrequent commercial transactions.⁵²⁸ The factors determining whether an activity is regularly carried on are the frequency and continuity of the activity and the manner in which the activity is pursued.⁵²⁹

These factors must be evaluated in light of the purpose of the unrelated business income tax: to place tax-exempt organizations' business activities on the same tax basis as those of their nonexempt business competitors. Thus, specific business activities of a tax-exempt organization will generally “be deemed ‘regularly carried on’ if they manifest a frequency and continuity, and are pursued in a manner generally similar to comparable commercial activities of nonexempt organizations.”⁵³⁰

When income-producing activities are performed by commercial organizations on a year-round basis, the performance of these activities for a period of only a few weeks does not constitute the regular carrying on of a trade or business.⁵³¹ Similarly, occasional or annual income-producing activities, such as fundraising events, do not constitute a business regularly carried on. The conduct of year-round business activities, such as parking lot rental, for one day each week would, however, constitute the regular carrying on of a business.⁵³² When commercial entities normally undertake income-producing activities on a seasonal basis, the conduct of the activities by a tax-exempt organization during a significant portion of the season is deemed the regular conduct of that activity.⁵³³

A trade or business is regularly carried on if the attributes of the activity are similar to those of commercial activities of nonexempt organizations.⁵³⁴