1. The Sisters of St. Susan run a homeless shelter called Hope House, which is a 501(c)(3) charity. In order to provide job training and income for the people living in Hope House, the Sisters of St. Susan opened a restaurant called Hope Deli, which is located next to Hope House and is owned by Hope House. The homeless residents of Hope House staff the restaurant as cooks, wait staff, and managers. Hope Deli is profitable, and thus Hope House earns income. Is the income from Hope House UBTI? Why or why not?

Answer rating: 100% (QA)

The income from Hope Deli owned by Hope House would be considered Unrelated Business Taxable Income ... View the full answer