Continuing fromWeek 1, in the current tax year, BJS, LLC rented land and a building, which housed...

Question

Continuing fromWeek 1, in the current tax year, BJS, LLC rented land and a building, which housed computers and other related equipment for use in its business operations from WADA, Inc. WADA, Inc. is a 501(c)(3) organization that provides counseling services for victims of domestic abuse. The rental agreement between BJS, LLC and WADA, Inc. states that $13,000 is the rent per annum for the computers and other related equipment. This was the only rental that BJS, LLC had in this tax year.

In this tax year, WADA, Inc. has $275,000 of unrelated business income excluding any rental income received. Charitable contributions made by WADA, Inc. associated to unrelated trade or businesses are $15,000 and contributions not associated to unrelated trade or businesses are $10,000 for the current tax year.

Tasks:

Calculate the unrelated business taxable income for WADA, Inc. for the current tax year using the information above.

Describe how you came to your calculations.

Analyze the implications for WADA based on your calculations.

suacc6374w1cpgarnert-jiukwajt.xlsx form-1065-suacc6374w1cpgarnert-jm3xpbzo.pdf

Shivi · Accepted Answer

Sheet1
		WADA Inc.						Implications		Description
		For Year ending 2022
		Unrelated Business Taxable Income (Calculation)
										1) gross rents from personal property (e.g., computer equipment or furniture) leased with real property, if the rental income from the personal property was more than 10 percent, but not more than 50 percent, of the total rents from all leased property;

Continuing fromWeek 1, in the current tax year, BJS, LLC rented land and a building, which housed computers and other related equipment for use in its business operations from WADA, Inc. WADA, Inc. is...

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