Orrick Tax Talk 6 - Sponsored Research Contracts

With increasing frequency, colleges and universities, medical schools, and hospitals are undertaking more research for outside parties such as industry members or the federal government, or “sponsored research.” Third parties are approaching these institutions because they have the capital facilities and expertise to perform the research that is being required. Research sponsored by an outside party can give rise to private business use if it does not satisfy one of the two allowable safe harbors provided by the IRS because the contract will be viewed as providing special legal entitlement to the sponsoring party. Ed and Larry review the safe harbors available and discuss how to measure or calculate private business use with respect to sponsored research contracts.

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Other Tax Talk Videos
1. The ABC’s of Governmental Bonds
2. The ABC’s of 501(c)(3) Bonds
3. Private Business Use
4. Private Payments
5. Management Contracts
6. Sponsored Research Contracts
7. Private Activity Bonds
8. Tax Credit Bonds (video removed as tax credit bonds can no longer be issued)
9. Post-Issuance Tax Compliance
10. Change in Use/VCAP
11. IRS Audits
12. Allocation of Bond Proceeds and Floating Equity
13. Management Contracts – New 2017 Rules