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Look at tax questions before you sell services
Trustee : the Journal for Hospital Governing Boards
|June 11, 1979
Abstract:
Among the issues involved in the selling of services to persons other than hospital patients are the effect of such sales on the hospital's tax-exempt status and whether the income derived is taxable as unrelated business income. The IRS's negative position on such sales is not necessarily a view shared by the courts. The use of separate corporations should be explored by hospitals seeking to maximize their net revenues.