Repair Habitat Inc., a § 501(c)(3) organization, receives the following revenues
ID: 2473132 • Letter: R
Question
Repair Habitat Inc., a § 501(c)(3) organization, receives the following revenues and incurs the following expenses.
Grant from Habitat for All Foundation $150,000
Charitable contributions received 225,000
Expenses in carrying out its exempt mission 300,000
Net income before taxes of Concrete Pour, Inc., a
Wholly owned for-profit subsidiary 85,000
Concrete Pour, Inc. remits all of its after-tax profits each year to Repair Habitat. Calculate the amount of Federal income tax, if any, for Repair Habitat and for Concrete Pour. Show your calculation in good form.
Explanation / Answer
Grant fro habitat for all Foundation 150,000 Charitable contribution received 225,000 375,000 Less: Expenses carring 300,000 Add: Income from Subsidiary 85,000 Net Income 160,000 Deduction 3.8% 6,080 Net taxable Income 153,920 Federal tax @ 39.6% 60,952 Net Income After tax 92,968