Trade and professional association tax treatment: general surpluses are non taxable while member service income is taxable. Trade and professional associations are associations of traders or professionals. General surplus from ordinary activities (e.g., entrance fees) is not taxable and related general expenditures are not deductible. Income from providing specific services to members is taxable, and expenditures incurred to earn such service income are deductible.
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Provisions expressly mentioned in the judgment/order text.
Trade and professional association tax treatment: general surpluses are non taxable while member service income is taxable.
Trade and professional associations are associations of traders or professionals. General surplus from ordinary activities (e.g., entrance fees) is not taxable and related general expenditures are not deductible. Income from providing specific services to members is taxable, and expenditures incurred to earn such service income are deductible.
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