Saturday, December 7, 2019
Following up on my previous posts (links below): Inside Higher Ed, $50 Million Tax Bill for Harvard:
Harvard University expects to pay $49.8 million in federal taxes as a result of the tax reform package passed in 2017.
Most of the tax bill, $37.7 million, comes from the Tax Cuts and Jobs Act’s new tax on net investment income -- the so-called endowment tax. The other $12.1 million is from a net investment income tax on operational revenues, unrelated business taxable income and excise taxes on executive compensation.
The nearly $50 million tax bill is still an estimate, Harvard said in its annual financial report for the fiscal year ending in June 2019, which the university released Thursday. The federal government hasn’t issued final guidance that would allow the exact amount of tax to be calculated, but accounting principles require Harvard to book expenses in the year they were incurred. ...
Despite the new tax bill, Harvard’s net operating surplus rose almost 52 percent to $297.9 million in 2019. Total operating revenue rose nearly 6 percent to $5.5 billion as total student revenue rose 7 percent to $1.2 billion.
Prior TaxProf Blog coverage: