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Line
9a. Gross Income from Gaming Activities. Organizations
that report more than $15,000 on line 9a must also answer “Yes”
to Part IV, line 19 and complete Schedule G, Supplemental
Information Regarding Fundraising or Gaming Activities,
Part III.
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Types
of gaming include, but are not limited to:
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Many
games of chance are taxable. Income from bingo
games is not subject to the tax on unrelated business income if the
games meet the legal definition of bingo. For a game to meet the
legal definition of bingo, wagers must be placed, winners must be
determined, and prizes or other property must be distributed in the
presence of all persons placing wagers in that game.
A
wagering game that does not meet the legal definition of bingo does
not qualify for the exclusion, regardless of its name. For example,
instant
bingo,
in which a player buys a pre-packaged bingo card with pull-tabs
that the player removes to determine if he or she is a winner, does
not qualify. See Pub. 598, Tax on Unrelated Business Income of Exempt
Organizations and Form 990-T.
Line
9b. Less Direct Expenses. Report
on this line the expenses that relate directly to the production of
the revenue portion of the gaming
activity.
Direct
expenses of gaming include:
cash
prizes
non-cash
prizes
compensation
to bingo
callers and workers
rental
of gaming equipment
cost
of bingo supplies such as pull
tabs,
etc.
Line
9c. Net Income or (loss) from Gaming Activities. Report
the difference between 9a and 9b.
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