Disabled American Veterans v. Commissioner
United States Tax Court
D, an organization exempt from Federal income tax, "rented" the names on its donor list to other organizations, both tax-exempt and for profit, for one-time mailings. D conceded that its "rental" activity was a trade or business, regularly carried on, that was unrelated to its exempt purpose.
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D, an organization exempt from Federal income tax, "rented" the names on its donor list to other organizations, both tax-exempt and for profit, for one-time mailings. D conceded that its "rental" activity was a trade or business, regularly carried on, that was unrelated to its exempt purpose. Held, the amounts D received from its "rental" activities were royalties which are excluded from UBTI because sec. 512(b)(2) excludes all royalties from UBTI whether or not derived from the active conduct of a trade or business. National Collegiate Athletic Assn. v. Commissioner, 92 T.C. 456 (1989);…
1Opinion of the Court
WILLIAMS, Judge:
In these consolidated cases, the Commissioner determined deficiencies in petitioner’s Federal income tax as follows:
Year Deficiency
1974. $347,594
1975. 316,287
1977. 228,335
1978. 253,155
1979. 324,387
1980. 324,213
1981 . 278,851
1982. 346,397
1983. 455,566
1984. 598,530
1985. 626,338
After concessions, the issues presented at trial were (1) whether payments to petitioner for the use of names from petitioner’s list of donors are “royalties” within the meaning of section 512(b)(2)1 (and, therefore, excluded from unrelated business taxable income (UBTI)) or are “rents” (not excluded from…
2Cases cited26 opinions
- Montana v. United StatesSupreme Court of the United States · 1979
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Helvering v. Stockholms Enskilda BankSupreme Court of the United States · 1934
- Rowan Cos. v. United StatesSupreme Court of the United States · 1981
- Disabled American Veterans v. United StatesUnited States Court of Claims · 1981
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3Cited by15 opinions
- Sierra Club Inc. v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1996
- Brotman v. CommissionerUnited States Tax Court · 1995
- Sierra Club v. CommissionerUnited States Tax Court · 1994
- Common Cause v. CommissionerUnited States Tax Court · 1999
- Sierra Club v. CommissionerUnited States Tax Court · 1999
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