Tax Treatment of Exempt Organization Real Estate Income: Calculating UBTI and UDFI on Rental Income
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE video 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 calculating and apportioning proceeds and income between exempt purposes and unrelated business income.
Outline
- 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
Benefits
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
Faculty
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
Ms. Ansari is Co-Chair of the Nonprofit Practice Group and a member of the Tax Planning Practice Group. She possesses significant experience counseling tax-exempt organizations including charities, foundations, educational organizations, arts organizations, hospitals and other nonprofit organizations in both New York and New Jersey. Ms. Ansari’s practice includes counseling on issues relating to the formation of public charities and private foundations, including those with foreign operations. She also assists organizations with their transactions and tax compliance.
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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
Ms. Czerniawski is a member of the firm’s Nonprofit, Government & Healthcare Group. With over 15 years of nonprofit industry experience, she provides tax services to a wide array of nonprofits, including charitable organizations, schools, social welfare organizations, professional associations and private foundations.
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