2020 US Code
Title 26 - Internal Revenue Code
Subtitle A - Income Taxes
Chapter 1 - Normal Taxes and Surtaxes
Subchapter F - Exempt Organizations
Part I - General Rule
Sec. 502 - Feeder organizations
| 26 U.S.C. § 502 (2020) |
| §502. Feeder organizations |
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(a) General rule
An organization operated for the primary purpose of carrying on a trade or business for profit shall not be exempt from taxation under section 501 on the ground that all of its profits are payable to one or more organizations exempt from taxation under section 501. (b) Special ruleFor purposes of this section, the term "trade or business" shall not include— (1) the deriving of rents which would be excluded under section 512(b)(3), if section 512 applied to the organization, (2) any trade or business in which substantially all the work in carrying on such trade or business is performed for the organization without compensation, or (3) any trade or business which is the selling of merchandise, substantially all of which has been received by the organization as gifts or contributions. |
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(Aug. 16, 1954, ch. 736, 68A Stat. 166; Pub. L. 91–172, title I, §121(b)(7), Dec. 30, 1969, 83 Stat. 542.) |
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AMENDMENTS
1969—Pub. L. 91–172 redesignated first sentence of existing provisions as subsec. (a), and substantial portion of second sentence as subsec. (b)(1), and, in subsec. (b)(1) as so redesignated, inserted reference to section 512 of this title, and added pars. (2) and (3). EFFECTIVE DATE OF 1969 AMENDMENTAmendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 121(g) of Pub. L. 91–172, set out as a note under section 511 of this title. |
| United States Code, 2018 Edition, Supplement 2, Title 26 - INTERNAL REVENUE CODE |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 26 - INTERNAL REVENUE CODE Subtitle A - Income Taxes CHAPTER 1 - NORMAL TAXES AND SURTAXES Subchapter F - Exempt Organizations PART I - GENERAL RULE Sec. 502 - Feeder organizations |
| section 502 |
| 2020 |
| January 13, 2021 |
| No |
| standard |
| 83 Stat. 542 |
| Public Law 91-172 |
