[SJAAboard] Advertising in the Ephemeris

[Mark Wagner]

Nice helpful reply Mike!  Thank you.

Mark


Michael D. Turner wrote:
> Paid advertisements are considered by the IRS to be in the class of
> "unrelated business income". This UBI will not impact the tax-exempt status
> of the club so long as it doesn't become a major part of the club's income.
> There is no filing requirement so long as this income is less than $1000 per
> year; if it is greater, then the club would need to file a 990-T and a
> California form 100 (corporation tax return) and pay tax at the corporate
> rates on net income above the $1000 exemption.
>
> I would recommend keeping this income below the exemption limit if for no
> other reason than to avoid the hassle factor and cost of preparing these
> returns.
>
> -Mike
>
>