Foundations pay excise tax. But if they can meet spending requirements this will be returned. (or a portion of it will be reimbursed) There is also unrelated business tax. But this is valid for endowments as well. Are these correct?
there is a 1-2% investment income tax on private foundations in the US. but i haven’t ever seen a ques where they consider it
I saw one in schweser session quizes, only today. They say they are not.
I’m a bit worried about this too, but I think that foundations are mostly tax exempt which is enough to state this on the IPS and advise further tax counsel.
I like this counseling business. And if there is any IPS parts which makes me feel unconfortable, I will send the client for counseling.