NOT2106. Introduction to UBIT: Do You Owe Tax as a Tax-Exempt Organization?

Tax-exempt organizations are generally aware that they may be subject to the unrelated business income tax (UBIT) on income derived from certain types of activities, despite being recognized by the IRS as organizations that are otherwise exempt from income tax under Section 501(c)(3) or under other provisions of U.S. Internal Revenue Code Section 501(c). Whether the UBIT applies in a particular instance or to a particular activity, however, may not always be clear.

In this session, we will cover the various elements that affect UBIT. This topic usually generates many questions and will assist attendees with identifying the following:


• Three factors when determining if an unrelated trade or business


• Exclusions from unrelated trade or business income


• Common unrelated trade or business activities


• Expenses


• Form 990-T

Learning Objectives:

• Understand the various elements that impact UBIT
• Identify the three factors to use when determining an unrelated trade or business, exclusions from UBTI, and common unrelated trade or business activities