This session will walk through the basics of UBI and the common sources of it. After laying the groundwork of the three-prong test, we’ll cover the exceptions, exclusions, and what the organization can do to minimize the tax paid from this income.
Nonprofits are generally exempt from income tax when they’re operating within their tax exempt purpose. When revenue isn’t closely tied to related activities, the unrelated business income (UBI) rules can apply and income tax may be due. Nonprofit organizations often generate UBI (knowingly or unknowingly) that provide vital support for mission activities.
Why Should You Attend:
Gain an understanding of when income tax applies for nonprofit organizations with Unrelated Business Income.Nonprofits are generally exempt from income tax when they’re operating within their tax exempt purpose. When revenue isn’t closely tied to related activities, the unrelated business income (UBI) rules can apply and income tax may be due. Nonprofit organizations often generate UBI (knowingly or unknowingly) that provide vital support for mission activities.
Areas Covered in the Webinar:
- The three factors required for an activity to be considered unrelated
- Important exceptions to and exclusions from UBI treatment
- What can an organization do to avoid UBI treatment through planning and structure
- Common sources of UBI
- Reporting requirements when there is UBI
- Expense allocation options to reduce taxable income
- State tax implications
- The effect UBI can have on the organization’s exempt status
Who Will Benefit:
Staff or seniors in public practice who are new to nonprofit issues and will be involved with nonprofit clients and preparing returns.- Controllers
- Accounting or Finance Managers
- Senior managers
- Directors
- Partners
Speaker
Tracy PagliaCourse Provider
Tracy Paglia,
