Unrelated Business Income

Free CPA TCP (Tax Compliance & Planning) lesson in Entity Tax Compliance. 17 min read, ~2,585 words.

Unrelated business income (UBI) arises when a tax-exempt organization conducts a trade or business, regularly carried on, not substantially related to its exempt purpose. Passive investment income (dividends, interest, royalties, rents from real property) is generally excluded from UBI unless debt-financed. Debt-financed property generates UBI proportional to the average acquisition...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• II.E2

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