Archived posting to the Leica Users Group, 2001/02/01
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]If the LHSA sell advertising, it will be generating "unrelated business income" subject to federal income tax on the net income. At issue will be the amount of the publication cost that can be allocated to the advertising activity as distinguished from the portion of expense that is related to the newsletter portion. Any net unrelated business net income will be subject to income tax. I have represented clients in audits on these issues. It can sometimes be a problem. Roland Smith roland@dnai.com