The fact pattern is this:
NH allows a 501(C) to conduct poker tornaments, but it is illegal for non charitable groups.
NH takes the first cut (%) of gross entry fees, sets the % of gross allocated to winners. The 501(C) then pays the rental of the facility, cost of renting gambling equipment and the balance is income to the 501(C), The members of the 501(C) volunteer and run the event, no hired help. All 501(C) in the state are eligible; however, dates are allocated by NH and each 501(C) is limited to have only 10 days in the year.
I believe that this is all the relevent facts. Is the income to the 501(C) subject to UBTI?
Some of the 501(C) organizations are paying tax, other organizations are not. My understanding is that some are 501(C)3, 501(C)4 and 501(C)8.
They issue 1099 to winners over $500.
John
NH allows a 501(C) to conduct poker tornaments, but it is illegal for non charitable groups.
NH takes the first cut (%) of gross entry fees, sets the % of gross allocated to winners. The 501(C) then pays the rental of the facility, cost of renting gambling equipment and the balance is income to the 501(C), The members of the 501(C) volunteer and run the event, no hired help. All 501(C) in the state are eligible; however, dates are allocated by NH and each 501(C) is limited to have only 10 days in the year.
I believe that this is all the relevent facts. Is the income to the 501(C) subject to UBTI?
Some of the 501(C) organizations are paying tax, other organizations are not. My understanding is that some are 501(C)3, 501(C)4 and 501(C)8.
They issue 1099 to winners over $500.
John