Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

 Rev. Rul. 68-59

1968-1 C.B. 273

Sec. 172

Sec. 512

Full Text

Rev. Rul. 68-59

An exempt organization with unrelated business taxable income computed its net operating loss for the taxable years of 1960 and 1961 without taking into account the $1,000 specific deduction under section 512(b)(12) of the Internal Revenue Code of 1954. Thereafter, the organization filed timely claims for refund on the ground that the specific deduction of $1,000 should have been taken into account in computing its net operating loss under section 172 of the Code.

Held , the exempt organization in computing its net operating loss under section 172 of the Code must exclude the specific deduction of $1,000 provided in section 512(b)(12) from such computation.