“Newman’s Own” Exception Creates New Opportunity for Donors and Private Foundations
Author: Katherine E. David, J.D..
Source: Volume 18, Number 01, November/December 2018 , pp.13-13(1)
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Abstract:
The Bipartisan Budget Act of 2018 added new subsection (g) to IRC §4943 that provides an exception to the excess business holdings rule, under which foundations are subject to a tax of 10% of the value of business enterprises owned by the foundation that exceed 20% of the foundation’s assets. Under the exception, a private foundation is not subject to the tax on excess business holdings if certain requirements are met. This article highlights the principle factors foundations can use to qualify for this exemption.Keywords: IRC §4943
Affiliations:
1: Clark Hill Strasburger.