Gain an understanding of the unrelated business income tax (UBIT) on income earned from both operating businesses and investment activities. You will learn tips for clients with the structuring of revenue generating activities with respect to both entity and relationship to mission. For investment activities you will learn about debt financed income, internal and external; as well as exclusions and exceptions, and entity issues. We will also discuss the expense allocation, permissible deductions, tips to prepare Form 990-T and other issues.
unrelated business income tax (UBIT).
Recognize the definition of unrelated business income and it's implications for both an organization's operating trades and businesses and investment activities.
Determine exclusions, modifications and exception to unrelated business income.
Identify debt financed income.
Recognize the rules for deducting expenses in determining unrelated business taxable income, filing requirements and the implications of earning unrelated business income beyond potentially paying tax.
Unrelated business income tax: Origins, exclusions, modifications and exceptions
Definition of unrelated business income
Debt financed income issues.
Filing requirements: Rules for deducting expenses, net operating loss rules and filing rules.
CPAs who work with exempt organizations and professionals working for exempt organizations who are responsible for filing Form 990 and/or are responsible for advising on new revenue generating endeavors.
Experience preparing Form 990 and/or Form 990-PF.
Advanced Prep: None
Speaker: Richard Ruvelson, J.D.
Field of Study: Tax
CPE Credit: 3 hours
Meet the Speaker:
Richard has nearly 30 years of experience in providing tax services to nonprofit clients, including public and private colleges and universities, hospitals and hospital systems, supporting organizations, private foundations, and religious and cultural organizations. He has worked closely with clients on a wide range of nonprofit issues including tax exemption, unrelated business income tax, charitable giving and substantiation, independent contractor issues, and Form 990 reporting.