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

Note: CLE credit is not offered on this program

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

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Tuesday, March 7, 2023

1:00pm-2:50pm EST, 10:00am-11:50am PST

Early Registration Discount Deadline, Friday, February 10, 2023

or call 1-800-926-7926

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 issued in November 2020 explain how to separate unrelated business activities into silos using the 2-digit NAICS codes.

Through proper planning and reporting, exempt organizations may 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.

READ MORE

Outline

  1. UBTI overview
  2. Form 990-T filing thresholds
  3. Latest guidance on determining separate lines of business activities
  4. UBTI calculations and schedules
    1. Tax computation
    2. Allocation of expense deductions
    3. Rent income (Schedule C)
    4. Unrelated debt-financed income (Schedule E)
    5. Exploited activities (Schedule I)
    6. Advertising income (Schedule J)
    7. Other schedules
  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

Trimner, David
David Trimner, CPA, MST

Managing Partner
TrimnerBeckham

Mr. Trimner brings a wide range of experience from more than 20 years in nonprofit tax consulting. He works with...  |  Read More

Attend on March 7

Early Discount (through 02/10/23)

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 March 7?

Early Discount (through 02/10/23)

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.

Download