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Abstract: 

Under the rules laid out in IRC §§4940 et seq., a foundation funded with cash or publicly traded securities can expect to encounter fewer issues than one that is funded with more complex assets. This article explores some of the issues that should be considered when real estate is transferred to a private foundation and provides an overview of the rules that could affect a foundation’s use of its real estate, including income from the sale, rental or lease of real estate assets.

Keywords: Tax on Net Investment Income; Unrelated Business Taxable Income; Rental of Foundation-Owned Property; Tax on Excess Business Holdings; California Thoroughbred Breeders Association v. Comm’r.

Affiliations:  1: Strasburger & Price, LLP.