Stubs for Tax Exempts

Does this category include charitable contribution deductions? Limit the amount of a charitable contribution to the donor's basis. Allow an election to treat the property as if sold to the charity, recognizing gain, and then allowing deduction of fair market value.

Tax the net investment income of IRC 501(c)(3), (c)(4), (c)(5), (c)(6), (c)(7), and (c)(10) tax exempt organizations (basically, tax exempt organizations whose principal purposes are not specifically exempted financial services), subject to an exclusion of $600 per year, in the same manner as 527 organizations (essentially expanding 527(f) which imposs this tax in cases where a 501(c)(3) non-profit engaged in political activity to all non-profits). Those entities that most need exemption from taxation of their own income typically have little investment income, and only a small part of the universe of non-profits would be impacted. The narrow nature of the tax basis alleviates concerns about intertwining state supervision with religious organizations. The well endowed entities with substantial investment income are also those most likely to engage in self-dealing transactions, to lack eligiblity of 501(c)(3) status, and/or to engage in for profit/non-profit partnerships which are tax motivated. This change would also have the virtue of faciliting a withholding tax regime for investment income generally.