Treasury Regulations · 26 CFR
§ 1.513-5. Certain bingo games not unrelated trade or business.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 513
Cite as 26 CFR § 1.513-5
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- May 21, 1980 by T.D. 7699
- Issued under
- 26 U.S.C. § 513
- Length
- 820 words · about 4 min to read
- Defines
- 2 terms
- Cross-references
- cites 2 Code sections and 1 regulation; cited by 0
Church Z, a tax-exempt organization, conducts weekly bingo games in State O. State and local laws in State O expressly provide that bingo games may be conducted by tax-exempt organizations. Bingo games are not conducted in State O by any for-profit businesses. Since Z's bingo games are not conducted in violation of State or local law and are not the type of activity ordinarily carried out on a commercial basis in State O, Z's bingo games do not constitute unrelated trade or business.
Rescue Squad X, a tax-exempt organization, conducts weekly bingo games in State M. State M has a statutory provision that prohibits all forms of gambling including bingo games. However, that law generally is not enforced by State officials against local charitable organizations such as X that conduct bingo games to raise funds. Since bingo games are illegal under State law, X's bingo games constitute unrelated trade or business regardless of the degree to which the State law is enforced.
Veteran's organizations Y and X, both tax-exempt organizations, are organized under the laws of State N. State N has a statutory provision that permits bingo games to be conducted by tax-exempt organizations. In addition, State N permits bingo games to be conducted by for-profit organizations in city S, a resort community located in county R. Several for-profit organizations conduct nightly bingo games in city S. Y conducts weekly bingo games in city S. X conducts weekly bingo games in county R. Since State law confines the conduct of bingo games by for-profit organizations to city S, and since bingo games are regularly carried on there by those organizations, Y's bingo games conducted in city S constitute unrelated trade or business. However, X's bingo games conducted in county R outside of city S do not constitute unrelated trade or business.
[T.D. 7699, 45 FR 33970, May 21, 1980]
Terms defined here
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Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 513 Unrelated trade or business
- § 511 Imposition of tax on unrelated business income of charitable, etc., organizations
Regulations it cites
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 7699 (45 FR 33970)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Taxation of Business Income of Certain Exempt Organizations
Nearby sections
- § 1.513-1 Definition of unrelated trade or business.
- § 1.513-2 Definition of unrelated trade or business applicable to taxable years beginning before December 13, 1967.
- § 1.513-3 Qualified convention and trade show activity.
- § 1.513-4 Certain sponsorship not unrelated trade or business.
- § 1.513-5 Certain bingo games not unrelated trade or business.
- § 1.513-6 Certain hospital services not unrelated trade or business.
- § 1.513-7 Travel and tour activities of tax exempt organizations.
- § 1.514(a)-1 Unrelated debt-financed income and deductions.
- § 1.514(a)-2 Business lease rents and deductions for taxable years beginning before January 1, 1970.