Open AccessTax Planning To Maximize The Benefits Of Faculty Research Grants
Author(s) -
Richárd Wéber,
Edmund Outslay
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v3i1.6544
Subject(s) - internal revenue , settlor , tax planning , business , revenue , section (typography) , code (set theory) , actuarial science , public economics , accounting , economics , political science , tax credit , marketing , computer science , advertising , tax avoidance , law , service (business) , set (abstract data type) , programming language
This article discusses the tax planning possibilities for maximizing the after-tax benefits of research grants received by academic researchers. The maximum benefit is achieved if the grant qualifies as a fellowship as defined in Internal Revenue Code Section 117. The requirements to meet this status can be precarious, and both the grantor and the grantee must carefully structure the conditions of the grant to qualify for beneficial treatment. These conditions are analyzed in the paper.