Tax Treatment of Exempt Organization Real Estate Income: Calculating UBTI and UDFI on Rental Income
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax professionals and advisers to exempt organizations with a practical guide to the planning opportunities, tax risks and reporting obligations of exempt organizations investing in real estate assets. The panel will outline when rental and sale income is exempt and when not, discuss the impact of debt financing on tax and reporting obligations, and provide examples of how to calculate and apportion proceeds and income between exempt purpose and unrelated business income.
- Income subject to classification as UBTI under Section 512
- Tax treatment of rental income
- Income from real property transactions where the asset is not considered part of the organization’s exempt purpose or mission
- Reporting challenges and examples
The panel will discuss these and other relevant topics:
- What are the exceptions to income from real estate that would otherwise be considered UBTI under Section 512?
- Tax treatments of real estate owned in joint ventures between exempt organizations and for-profit companies or syndicates
- Allocating sale gain in instances where some but not all proceeds are considered tax exempt
Mr. Fortsch is a lead specialist with regards to tax-exempt issues for the firm. From a national perspective , he... | Read More
Mr. Fortsch is a lead specialist with regards to tax-exempt issues for the firm. From a national perspective , he serves the tax needs of the firms taxable and tax exempt health care clients. Mr. Fortsch also is a frequent presenter for HFMA , Illinois CPA Society and RSM Industry Focused CPE Courses.Close
John R. Luksis
Mr. Luksis is a tax advisor with the Firms's national real estate practice. He provides comprehensive tax services... | Read More
Mr. Luksis is a tax advisor with the Firms's national real estate practice. He provides comprehensive tax services to real estate funds, REITs and their affiliates. He has significant experience in federal and state tax consulting, structuring and compliance for a wide range of real estate clients and regularly consults on matters including transaction support, REIT suitability analysis, state and foreign withholding considerations and tax-exempt investor (UBTI) issues including fractions rule structuring and compliance. He is a member of the firm’s national pass-through entity group.Close