California · Revenue and Taxation Code - RTC
RTC §23702: Section 502 of the Internal Revenue Code, relating to feeder organizations, shall apply, except as otherwise provided.
Read the full statutory text
Section 502 of the Internal Revenue Code, relating to feeder organizations, shall apply, except as otherwise provided. (a) Exemption shall not be allowed to any organization on the basis that all of its profits are payable to another organization exempt from taxation under either Section 501 of the Internal Revenue Code or this article, if that business activity is being conducted by a separate organization. (b) The reference to Section 501 of the Internal Revenue Code, relating to exemption, shall be modified to refer to Section 23701. (c) The reference to Sections 512 and 512(b)(3) of the Internal Revenue Code, relating to the exclusion of the deriving of rents from the definition of “trade or business,” shall be modified to refer to Section 23732.
Verify at the official source: California legislative text
Facing this? Know exactly what happens next.
MOFRD turns this code section into your situation: the deadlines that apply to you, the forms your county uses, and the resolution paths people in your position actually take. Free for 3 days — no card required.
This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.