Summary What are the two basic requirements that must be met in order for something to be consi
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Grado
ACC 205
Institución
Ashford University
What are the two basic requirements that must be met in order for something to be considered an excess benefit transactionWhat are the two basic requirements that must be met in order for something to be considered an excess benefit transaction?Answer & ExplanationAn excess benefit transactio...
what are the two basic requirements that must be m
and the value of the benefit exceeds the value of
or key employees it can also include family memb
Escuela, estudio y materia
Ashford University
ACC 205
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What are the two basic requirements that must be met in order for something to
be considered an excess benefit transaction?
Answer & Explanation
An excess benefit transaction involves a situation where an economic benefit is
provided by a tax-exempt organization to a disqualified person, and the value of
the benefit exceeds the value of the consideration received in return. The two
basic requirements that must be met for something to be considered an excess
benefit transaction are:
1. Involvement of a Disqualified Person: A disqualified person is typically
someone who has substantial influence over the organization, such as
officers, directors, trustees, or key employees. It can also include family
members of these individuals or entities they control.
2. Excess Benefit: The transaction must result in an economic benefit being
provided by the tax-exempt organization to this disqualified person that
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