[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.512(a)-2]

[Page 152]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.512(a)-2  Definition applicable to taxable years beginning 
before December 13, 1967.

    (a) In general. The unrelated business taxable income which is 
subject to the tax imposed by section 511 is the gross income, derived 
by any organization to which section 511 applies, from any unrelated 
trade or business regularly carried on by it, less the deductions 
allowed by chapter 1 of the Code which are directly connected with the 
carrying on of such trade or business, subject to certain exceptions, 
additions, and limitations referred to below. In the case of an 
organization which regularly carries on two or more unrelated 
businesses, its unrelated business taxable income is the aggregate of 
its gross income from all such unrelated businesses, less the aggregate 
of the deductions allowed with respect to all such unrelated businesses. 
For provisions generally applicable to the unrelated business tax, see 
Sec. 1.511-3, and for rules applicable to the determination of the 
adjusted basis of property, see paragraph (a)(2) of Sec. 1.514(a)-1.
    (b) Effective date. Except as provided in paragraph (f) of Sec. 
1.512(a)-1, this section is applicable with respect to taxable years 
beginning before December 13, 1967.

[T.D. 6500, 25 FR 11737, Nov. 26, 1960, as amended by T.D. 6939, 32 FR 
17660, Dec. 12, 1967]