Treasury Regulations (26 C.F.R.)
26 CFR § 53.4943-1
General rule; purpose.
Generally, under section 4943, the combined holdings of a private foundation and all disqualified persons (as defined in section 4946(a)) in any corporation conducting a business which is not substantially related (aside from the need of the foundation for income or funds or the use it makes of the profits derived) to the exempt purposes of the foundation are limited to 20 percent of the voting stock in such corporation. In addition, the combined holdings of a private foundation and all disqualified persons in any unincorporated business (other than a sole proprietorship) which is not substantially related (aside from the need of the foundation for income or funds or the use it makes of the profits derived) to the exempt purposes of such foundation are limited to 20 percent of the beneficial or profits interest in such business. In the case of a sole proprietorship which is not substantially related (within the meaning of the preceding sentence), section 4943 provides that a private foundation shall have no permitted holdings. These general provisions are subject to a number of exceptions and special provisions which will be described in following sections.
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In this part (40 sections)
- 53.4940-1 · Excise tax on net investment income.
- 53.4941(a)-1 · (a)-1 Imposition of initial taxes.
- 53.4941(b)-1 · (b)-1 Imposition of additional taxes.
- 53.4941(c)-1 · (c)-1 Special rules.
- 53.4941(d)-1 · (d)-1 Definition of self-dealing.
- 53.4941(d)-2 · (d)-2 Specific acts of self-dealing.
- 53.4941(d)-3 · (d)-3 Exceptions to self-dealing.
- 53.4941(d)-4 · (d)-4 Transitional rules.
- 53.4941(e)-1 · (e)-1 Definitions.
- 53.4941(f)-1 · (f)-1 Effective dates.
- 53.4942(a)-1 · (a)-1 Taxes for failure to distribute income.
- 53.4942(a)-2 · (a)-2 Computation of undistributed income.
- 53.4942(a)-3 · (a)-3 Qualifying distributions defined.
- 53.4942(b)-1 · (b)-1 Operating foundations.
- 53.4942(b)-2 · (b)-2 Alternative tests.
- 53.4942(b)-3 · (b)-3 Determination of compliance with operating…
- 53.4943-1 · General rule; purpose.
- 53.4943-2 · Imposition of tax on excess business holdings of private…
- 53.4943-3 · Determination of excess business holdings.
- 53.4943-4 · Present holdings.
- 53.4943-5 · Present holdings acquired by trust or a will.
- 53.4943-6 · Five-year period to dispose of gifts, bequests, etc.
- 53.4943-7 · Special rules for readjustments involving grandfathered…
- 53.4943-8 · Business holdings; constructive ownership.
- 53.4943-9 · Business holdings; certain periods.
- 53.4943-10 · Business enterprise; definition.
- 53.4943-11 · Effective/applicability date.
- 53.4944-1 · Initial taxes.
- 53.4944-2 · Additional taxes.
- 53.4944-3 · Exception for program-related investments.
- 53.4944-4 · Special rules.
- 53.4944-5 · Definitions.
- 53.4944-6 · Special rules for investments made prior to January 1, 1970.
- 53.4945-1 · Taxes on taxable expenditures.
- 53.4945-2 · Propaganda influencing legislation.
- 53.4945-3 · Influencing elections and carrying on voter registration…
- 53.4945-4 · Grants to individuals.
- 53.4945-5 · Grants to organizations.
- 53.4945-6 · Expenditures for noncharitable purposes.
- 53.4946-1 · Definitions and special rules.