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A 200% Tax on Self-Dealing? And People Think the Estate Tax is High!

With research and drafting assistance provided by our extern from Washington University School of Law, Rachael Lynch.

Now that we’ve scared you with the potentially high taxes for self-dealing in private foundations, what is self dealing?

Self dealing includes any of the following transactions:

1. sale or exchange, or leasing, of property between a private foundation and a disqualified person (click here for a definition of a disqualified person); 2. lending of money or other extension of credit between a private foundation and a disqualified person; 3. furnishing of goods, services, or facilities between a private foundation and a disqualified person; 4. payment of compensation by a foundation to a disqualified person; 5. transfer of income or assets of a private foundation to a disqualified person; and 6. agreement by a private foundation to make any payment to a government official (other than an agreement to hire the official when