Tax Tips for Higher Education

Issue The rules regarding the identification of “dual-use” property rentals are murky and can be difficult to navigate. We’ve talked about these rules previously – in a different context. How about a refresher course on facility rentals? Situation Denali Christian...

The PATH Act of 2015 includes a stipulation that colleges would no longer have the option of reporting amounts billed on Form 1098-T after 2015. Many schools and other groups commented to the IRS on the “murkiness” of this new rule.

The new Department of Labor regulations were released on May 18, 2016. They will move the minimum compensation for an “exempt” employee from $23,660 per year to $47,476 per year ($913 per week) – might some colleges be exempt because their “unrelated” income is less than $500,000? (Also, please see “Tax Tips” from April 27, 2016.)

As the IRS and Treasury prepare to issue “guidance under §512 regarding methods of allocating expenses relating to dual use facilities” (per the current “Priority Guidance Plan”), what might some of those expense allocation methods look like?

Issue **DEVELOPMENT DIRECTOR ALERT**  The PATH Act of 2015 made the “IRA Charitable Rollover” a permanent law.  This can be very beneficial to your institution and some major donors. Situation Marathon Bible College (MBC), a public charity under I.R.C. section...