The Hartford Business Journal published a column by Tax Services Director Marla Esan about the impacts of the Tax Cuts & Jobs Bill for nonprofit organizations.
Hartford Business Journal
By Marla Esan, Director, Tax & Business Services
With many variables still unknown regarding how multiple lines of unrelated business activities will be treated, consideration might be given to housing profitable and unprofitable activities in a single taxable corporate subsidiary. This would enable expenses and income to once again offset, affording the benefit of the lower 21 percent corporate income tax rate. Nonprofits should consult their tax professionals to evaluate the applicability of this and other potential strategies to their individual circumstances.