Effect of the Unrelated Business Income Tax on Today's Hospital, The
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Authors
Niemann, Nicholas K.
Issue Date
1980
Volume
13
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|Today's hospital is quite often the nucleus of a health care complex. Besides general patient care facilities, this complex usually includes doctors' offices, pharmacies, clinics, parking facilities, cafeterias and gift shops. The various relationships between these diverse activities and the hospital's exempt purpose make it difficult to determine whether the tax on unrelated business income applies. In the past few years a steady flow of revenue rulings and court decisions have dealt with the unrelated business income tax. There have also been important legislative changes in the application of the tax to particular types of activities. The law is therefore constantly developing as the courts and the Internal Revenue Service (IRS) rule on what seems to be an endless variety of situations. The purpose of this article is to examine the circumstances in which the unrelated business income tax may affect a tax exempt hospital. This article will attempt to aid hospital officials in avoiding this tax by making them aware of the tax consequences of their business decisions. To demonstrate how the various aspects of this tax work, this article will use a hypothetical hospital called Forbes General Hospital. Forbes is a health-care center which offers all levels of care...
Description
Citation
13 Creighton L. Rev. 573 (1979-1980)
Publisher
Creighton University School of Law