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IRS Offers More Details on Possible CUSO Tax Break

A state-chartered credit union with a majority stake in a CUSO will not owe unrelated business income tax on interest or rental income received from its CUSO under certain conditions.

By Staff Writer | Updated on January 23, 2007

WASHINGTON — A state-chartered credit union with a majority stake in a CUSO will not owe unrelated business income tax on interest or rental income received from its CUSO under certain conditions.

The stipulation comes under a provision of the Pension Protection Act of 2006, which became law Aug. 16. CUNA reports that state-chartered credit unions with over 50% interest in a CUSO may be eligible for a bit of a tax break on their 2006 and 2007 tax returns. The tax relief only applies to rental and loan contracts in place on Aug. 17, 2006 and only for the 2006 and 2007 tax years.

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