Joint Ventures Involving Tax-Exempt Organizations, 2018 Cumulative Supplement

MICHAEL I. SANDERS (Washington DC) is the lead partner of Blank Rome's Washington office's tax group with a large practice in the area of exempt organizations involving healthcare and low-income housing, associations and joint ventures between for-profits and nonprofits, as well as structuring New Markets Tax Credit transactions. Sanders is also an adjunct professor at George Washington University Law Center and Georgetown University Law School teaching Income Taxation of Partnerships and Subchapter S Corporations and Tax Treatment of Charities and Other Non-Profit Organizations, Joint Ventures Involving Tax Exempt Organizations (including healthcare, universities, LIHTC, new markets, conservation organizations, respectively. Previously, Mr. Sanders served as an attorney-advisor to the assistant secretary of tax policy at the Office of Tax Legislative Counsel and as a trial attorney at the U.S. Department of Justice (Attorney General's Honors Program). He was recently honored in 2010 by The George Washington University School of Law for his 35 years of teaching at the law school.

• Preface xiAcknowledgments xvChapter 1: Introduction: Joint Ventures Involving Exempt Organizations 11.4 University Joint Ventures 11.5 Low-Income Housing and New Markets Tax Credit Joint Ventures 11.6 Conservation Joint Ventures 21.8 Rev. Rul. 98-15 and Joint Venture Structure (New) 21.10 Ancillary Joint Ventures: Rev. Rul. 2004-51 21.14 The Exempt Organization as a Lender or Ground Lessor 21.15 Partnership Taxation 31.17 Use of a Subsidiary as a Participant in a Joint Venture 31.22 Limitation on Private Foundation’s Activities That Limit Excess Business Holdings 41.24 Other Developments 4Chapter 2: Taxation of Charitable Organizations 52.1 Introduction (Revised) 52.2 Categories of Exempt Organizations 102.3 § 501(c)(3) Organizations: Statutory Requirements (Revised) 122.6 Application for Exemption (Revised) 132.7 Governance (Revised) 202.8 Form 990: Reporting and Disclosure Requirements 212.10 The IRS Audit 222.11 Charitable Contributions 26Chapter 3: Taxation of Partnerships and Joint Ventures 333.1 Scope of Chapter (New) 333.3 Classification as a Partnership 363.4 Alternatives to Partnerships 363.7 Formation of Partnership (New) 363.8 Tax Basis in Partnership Interest (Revised) 373.9 Partnership Operations 373.11 Sale or Other Disposition of Assets or Interests (Revised) 383.12 Other Tax Issues (Revised) 39Chapter 4: Overview: Joint Ventures Involving Exempt Organizations 434.1 Introduction (New) 434.2 Exempt Organization as General Partner: A Historical Perspective (Revised) 444.6 Revenue Ruling 2004-51 and Ancillary Joint Ventures 464.9 Conversions from Exempt to For-Profit and from For-Profit to Exempt Entities 464.10 Analysis of a Virtual Joint Venture 47Chapter 5: Private Benefit, Private Inurement, and Excess Benefit Transactions 495.1 What Are Private Inurement and Private Benefit? 495.2 Transactions in Which Private Benefit or Inurement May Occur 505.3 Profit-Making Activities as Indicia of Nonexempt Purpose 515.4 Intermediate Sanctions (Revised) 515.7 State Activity with Respect to Insider Transactions 53Chapter 6: Engaging in a Joint Venture: The Choices 556.1 Introduction (New) 556.2 LLCs 566.3 Use of a For-Profit Subsidiary as Participant in a Joint Venture (Revised) 566.5 Private Foundations and Program-Related Investments (Revised) 606.6 Nonprofits and Bonds 646.7 Exploring Alternative Structures 666.8 Other Approaches (Revised) 67Chapter 7: Exempt Organizations as Accommodating Parties in Tax Shelter Transactions 717.2 Prevention of Abusive Tax Shelters 717.3 Excise Taxes and Penalties 72Chapter 8: The Unrelated Business Income Tax 738.1 Introduction 738.3 General Rule (Revised) 748.4 Statutory Exceptions to UBIT (New) 758.5 Modifications to UBIT (New) 758.7 Calculation of UBIT (New) 75Chapter 9: Debt-Financed Income 819.1 Introduction 819.2 Debt-Financed Property (Revised) 819.6 The Final Regulations 82Chapter 10: Limitation on Excess Business Holdings 8510.1 Introduction 8510.2 Excess Business Holdings: General Rules (Revised) 8510.3 Tax Imposed 8610.4 Exclusions (Revised) 86Chapter 12: Healthcare Entities in Joint Ventures 8912.1 Overview (New) 8912.2 Classifications of Joint Ventures 9012.3 Tax Analysis (Revised) 9012.4 Other Healthcare Industry Issues 9312.5 Preserving the 50/50 Joint Venture (Revised) 9312.9 Government Scrutiny 9412.11 The Patient Protection and Affordable Care Act of 2010: 501(r) and Other Statutory Changes Impacting Nonprofit Hospitals 9412.12 The Patient Protection and Affordable Care Act of 2010: ACOs and Co-Ops: New Joint Venture Healthcare Entities 97Chapter 13: Low-Income Housing, New Markets, Rehabilitation, and Other Tax Credit Programs 9913.3 Low-Income Housing Tax Credit (Revised) 9913.4 Historic Investment Tax Credit 10013.6 New Markets Tax Credits (Revised) 10413.10 The Energy Tax Credits 12013.11 The Opportunity Zone Funds: New Section 1400Z-1 and Section 1400Z-2 (New) 121Chapter 14: Joint Ventures with Universities 13114.1 Introduction (New) 13114.5 Faculty Participation in Research Joint Ventures 13614.6 Nonresearch Joint Venture Arrangements 13614.7 Modes of Participation by Universities in Joint Ventures (Revised) 137Chapter 15: Business Leagues Engaged in Joint Ventures 14115.1 Overview (Revised) 14115.2 The Five-Prong Test 14215.3 Unrelated Business Income Tax 142Chapter 16: Conservation Organizations in Joint Ventures 14316.1 Overview 14316.2 Conservation and Environmental Protection as a Charitable or Educational Purpose: Public and Private Benefit (Revised) 14316.3 Conservation Gifts and 170(h) Contributions (Revised) 14416.7 Emerging Issues (Revised) 156Chapter 17: International Joint Ventures 15917.5 General Grantmaking Rules 15917.11 Application of Foreign Tax Treaties (Revised) 160Chapter 19: Debt Restructuring and Asset Protection Issues 16319.1 Introduction (New) 16319.2 Overview of Bankruptcy (Revised) 16319.3 The Estate and the Automatic Stay (Revised) 16419.4 Case Administration (Revised) 16519.5 Chapter 11 Plan (Revised) 16519.6 Discharge (New) 166Index 167