What is the percentage of tax subjected to the domestic exempt private foundations?
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Last modified 4/19/2024 4:34:35 AM EST |
Applicable To
990-PF
990-N
990-EZ
990
8868
1120-POL
- Usually, these foundations are subjected to a tax of 1.39% on net investment income under section 4940(a).
- However, a few private foundations that meet the requirements of section 4940(e) may qualify for a 1% tax.
- Certain exempt operating foundations described in section 4940(d)(2) may not owe any tax.
- For an organization making an election under section 41(e)(6)(D), section 4940 doesn't apply.
- However, an exempt foreign private foundation is subjected to a 4% tax on their gross investment income derived from U.S sources.