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ARTICLE · 06 JANUARY 2020

Tax Act Changes Affecting Tax Exempt Organizations

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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Here's some good news for charitable organizations. The Taxpayer Certainty and Disaster Tax Relief Act of 2019

United StatesTax
Jeffrey Marks
Jeffrey Marks
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Here's some good news for charitable organizations. The Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the "Act"), signed into law on December 20, 2019 as part of a spending bill to fund the government through September 2020, repeals the notorious "nonprofit parking tax" and simplifies the excise tax on private foundation investment income.

Repeal of Nonprofit Parking Tax

Under Internal Revenue Code ("IRC") Section 512(a)(7), which was enacted as part of the 2017 Tax Cuts and Jobs Act, transportation fringe benefits such as parking and public transit benefits provided by nonprofit employers have been subject to the tax on unrelated business taxable income ("UBTI") imposed on tax-exempt organizations. The imposition of this tax resulted in nonprofit employers having to pay a 21% tax on parking and transit benefits provided to their employees, even if the employees paid for those benefits themselves through pretax salary reduction and even if those benefits

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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