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UBTI and UBIT for Exempt Organizations: Mastering Form 990-T, Siloing Unrelated Activities, and Avoiding Audit Traps

A live 110-minute CPE video webinar with interactive Q&A

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Thursday, April 17, 2025

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

(Alert: Event date has changed from 2/27/2025!)

Early Registration Discount Deadline, Friday, March 21, 2025

or call 1-800-926-7926
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This course will give nonprofit tax professionals and advisers a good look at the rules governing unrelated business income tax. The webinar will focus on guidelines for determining whether income is unrelated business taxable income (UBTI), how separate business lines are determined under the regulations, and a detailed exploration into the calculations and preparation of Form 990-T, Exempt Organization Business Income Tax Return.

Description

A primary concern of tax-exempt organizations is navigating the rules on UBTI. Many exempt organizations receive taxable income and depend on that income to carry on their charitable purpose. However, UBTI generates the need to file an income tax return and may lead to an unexpected tax bill. Excess UBTI can even jeopardize the exempt status of a nonprofit organization.

For tax-exempt organizations operating multiple unrelated business activities, the 2017 Tax Act does not allow losses from an unrelated trade or business to offset profit from a separate unrelated trade or business. Final regulations explain how to separate unrelated business activities into silos using the two-digit NAICS codes.

Through proper planning and reporting, exempt organizations can anticipate the impact of UBTI.

Listen as our panel of experienced nonprofit tax advisers provides a deep dive into the rules and reporting requirements governing UBTI for exempt organizations.

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Outline

  1. UBTI overview
  2. Form 990-T filing thresholds
  3. UBTI calculations and schedules
    1. Rental income (Schedule A Part IV)
    2. Unrelated debt-financed income (Schedule A Part V)
    3. Income from controlled subsidiaries (Schedule A Part VI)
    4. Exploited activities other than advertising (Schedule A Part VIII)
    5. Advertising income (Schedule A Part IX)
    6. Allocation of deductible expenses
    7. Tax computation and state tax considerations
  4. Latest guidance on determining separate lines of business activities
  5. IRS audit triggers leading to increases in UBTI

Benefits

The panel will discuss these and other relevant topics:

  • Definition of UBTI and Form 990-T filing thresholds
  • Deduction standards for expenses in UBTI calculations
  • Rental income as UBTI
  • Siloing unrelated business activities
  • Advertising activities
  • Unrelated debt-financed income

Faculty

Ansari, Farah
Farah N. Ansari, Esq.
Partner
Schenck Price Smith & King

Ms. Ansari is Co-Chair of the Nonprofit Practice Group and a member of the Tax Planning Practice Group. She possesses...  |  Read More

Czerniawski, Magdalena
Magdalena M. Czerniawski, CPA, MBA
Managing Director
CBIZ Marks Paneth

Ms. Czerniawski is a member of the firm’s Nonprofit, Government & Healthcare Group. With over 15 years of...  |  Read More

Attend on April 17

Early Discount (through 03/21/25)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend April 17?

Early Discount (through 03/21/25)

CPE credit is not available on downloads.

CPE On-Demand

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