AMA IS a non-profit corporation under IRC 501 (c) (3). The magazine operation is considered an unrelated business. AMA is not subject to Federal Income Taxes. Portions of the magazine operation are. IMO, if MA was paying some $400,000 FIT each year, then over a million $$ of AMA funds would be available for other interests, perhaps subsidizing park-fliers.
Wow, how did i miss this one? Sorry I'm still not talking to you, but this one I just can't let go, it's still part of previous discussion.
Hoss, federal income tax burden for the unrelated business is NET dollars, not gross. Based on the financial report the tax liability for MA is roughly $500.00, the minimum FIT for an entity that did not produce a profit. And if the payroll of the AMA employees was buried into the operating dollars of the unrelated business, the loss would be EVEN GREATER and the chance of a tax liability would be further. You DO NOT pay taxes on a business until that business makes money, except for the minimum amount which is now $500, and that's for a C corp, I'm not exactly sure what the burden is for a 501C3 unrelated, but it's certainly not going to be more then a C corp.
Where on earth did you come up with the conclusion that MA paid $400,000 in FIT's?