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    Created by Michael Wessels
    1. U.S. Code
    2. Title 26
    3. Subtitle A
    4. CHAPTER 1
    5. Subchapter F
    6. PART III

    § 511 Imposition of tax on unrelated business income of charitable, etc., organizations

    (a) Charitable, etc., organizations taxable at corporation rates

    (1) Imposition of tax

    There is hereby imposed for each taxable year on the unrelated business taxable income (as defined in section 512) of every organization described in paragraph (2) a tax computed as provided in section 11. In making such computation for purposes of this section, the term “taxable income” as used in section 11 shall be read as “unrelated business taxable income”.

    (2) Organizations subject to tax

    (A) Organizations described in sections 401(a) and 501(c)

    The tax imposed by paragraph (1) shall apply in the case of any organization (other than a trust described in subsection (b) or an organization described in ) which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of .

    (B) State colleges and universities

    The tax imposed by paragraph (1) shall apply in the case of any college or university which is an agency or instrumentality of any government or any political subdivision thereof, or which is owned or operated by a government or any political subdivision thereof, or by any agency or instrumentality of one or more governments or political subdivisions. Such tax shall also apply in the case of any corporation wholly owned by one or more such colleges or universities.

    (b) Tax on charitable, etc., trusts

    (1) Imposition of tax

    There is hereby imposed for each taxable year on the unrelated business taxable income of every trust described in paragraph (2) a tax computed as provided in . In making such computation for purposes of this section, the term “taxable income” as used in section 1 shall be read as “unrelated business taxable income” as defined in section 512.

    (2) Charitable, etc., trusts subject to tax

    The tax imposed by paragraph (1) shall apply in the case of any trust which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of and which, if it were not for such exemption, would be subject to subchapter J (sec. 641 and following, relating to estates, trusts, beneficiaries, and decedents).

    (c) Special rule for section 501(c)(2) corporations

    If a corporation described in section 501(c)(2)—

    (1) pays any amount of its net income for a taxable year to an organization exempt from taxation under (or which would pay such an amount but for the fact that the expenses of collecting its income exceed its income), and

    (2) such corporation and such organization file a consolidated return for the taxable year,