UBIT (Unrelated Business Income Tax) – NON PROFIT ORGANIZATIONS

·
Define UBIT and
explain when it applies
·
Identify the most
common exceptions to UBIT
·
Assume you want to do
the following income-generating activities for a nonprofit organization. Then
explain whether the organization is required to report UBIT. Identify any
assumptions made in your example (e.g., the nonprofit’s primary tax-exempt
purpose, etc.).
o The nonprofit holds an annual fundraising
banquet and charge people $100 to attend.
o The nonprofit has spare office space in its
building and they rent it out to a for-profit business for $2,000 per month.
·
Include a brief
introduction and conclusion

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