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November 24

Article Archives >> Ready Reference >> September 2000

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Title Holding Companies Have Limited Uses

Entities must be formed for the exclusive purpose of acquiring property, collecting income, and remitting it to exempt organizations.

Excerpt:
Title holding companies, though permitted since 1916, are not used frequently today. They may be appropriate in certain limited situations, but there is very little formal guidance on their operation and not a great deal of technical literature on the requirements to retain their exemption. Be careful to study the situation fully before utilizing a title holding company in your program.

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Article Archives >> Ready Reference >> September 2000