Unrelated Business Income

Topics

June 1, 2021

How much unrelated business activity is too much?

This item discusses the IRS position allowing the unrelated activities to be substantial so long as they are not the organization’s “primary purpose,” while also acknowledging the confusion and uncertainty on this point.

May 24, 2021

Sorting out tax exempts’ UBTI painlessly

To help exempt organizations “silo,” or separately compute, their unrelated business or trade income, three experts who will be giving a presentation on the topic at the upcoming Not-for-Profit Industry Conference offer their thoughts.

February 1, 2021

How to compute unrelated business taxable income for separate businesses

IRS regulations discuss how an exempt organization calculates unrelated business taxable income if it has more than one unrelated trade or business.

November 20, 2020

Final regs. govern computation of UBTI for separate businesses

The IRS has posted final regulations governing how tax-exempt organizations determine if they have more than one unrelated trade or business for purposes of unrelated business income tax.

November 1, 2020

Qualified transportation fringe disallowance

The article discusses the June 2020 proposed regulations and how they compare to the prior guidance in Notice 2018-99.

March 1, 2019

IRS issues guidance on disallowance of deductions for parking fringe benefits

The IRS issued guidance outlining how to determine the amount of parking expense that is nondeductible under Sec. 274(a)(4) when employers provide parking for their employees.

December 11, 2018

IRS explains disallowance of qualified transportation fringe benefits for parking

The IRS issued guidance outlining how to determine the amount of parking expense that is nondeductible under Sec. 274(a)(4) when employers provide parking for their employees.

December 1, 2018

IRS provides guidance for applying UBTI ‘silo’ rules

Notice 2018-67 provides interim and transition rules for aggregating qualifying partnership interests.

July 1, 2017

What proposed regulations on the fractions rule mean for tax-exempt organizations

Proposed regulations could present tax-saving opportunities for qualified organizations that invest in partnerships.

April 1, 2014

Coordinating Charitable Trusts and Private Foundations for the Business Owner: Complying With UBIT and Self-Dealing Rules

This item details some charitable giving options for owners of closely held businesses, the applicable unrelated business income and self-dealing rules, and best practices for taxpayers who have these charitable desires and restrictions.

June 1, 2013

State Taxation of Exempt Organizations’ Unrelated Business Income

How an exempt organization computes UBTI for state income tax purposes varies from state to state.

December 1, 2010

Qualified Sponsorship Payments and Advertising Income: Analyzing Unrelated Business Taxable Income

Determining whether receipts qualify as sponsorship payments or advertising income can be quite burdensome for most nonprofit organizations. The item describes how to properly structure unrelated business taxable income so as not to adversely affect the organization’s cashflow.

August 1, 2008

Tax Consequences of the Rush for Natural Gas in the Appalachians

This item provides an overview of some areas of taxation that taxpayers and their advisers must consider to ensure the most favorable terms if their clients are approached by an energy company seeking a land lease and royalty agreement.

June 1, 2008

Prop. Regs. Ease UBTI Consequences for CRTs

The Service has issued proposed regulations to reflect the change made by TRAHCA to impose a 100% excise tax on the unrelated business taxable income (UBTI) of charitable remainder trusts (CRTs) that have UBTI.

October 1, 2007

Debt-Financed Income and UBTI

Editor: Joel E. Ackerman, CPA, MST Two exempt organizations meet the requirements of Sec. 501(c)(3) (one as a charitable organization and the other as an educational organization—a university). These organizations own equal interests in a partnership, and they have boards of trustees that overlap by more than 50% of the

July 1, 2007

Teaching an Old Dog New Tricks: CRTs and UBTI

Dec. 20, 2006 marked a unique day in the taxation of charitable remainder trusts (CRTs)— President Bush signed into law the Tax Relief and Health Care Act of 2006 (TRAHCA ’06). Buried in that legislation is revised Sec. 664(c), which significantly alters the tax treatment of unrelated business taxable income