UDFI for Exempt Organizations: Reporting Unrelated Debt-Financed Income on Form 990-T
Avoiding Costly Allocation Mistakes in the Sale of Encumbered Property
Recording of a 110-minute CPE webinar with Q&A
This webinar will provide tax professionals and advisers to exempt organizations with a thorough and comprehensive practical guide to calculating and reporting unrelated debt financed income (UDFI) and unrelated business taxable income (UBTI) rising from the sale of property financed with debt. The panel will discuss the UDFI rules on encumbered property, and will delve into examples of how to calculate and apportion proceeds and income between exempt purpose and unrelated business for sales of mixed-use property, with illustrations on how to report UDFI income and deductions on Form 990-T, Exempt Organization Business Income Tax Return.
Outline
- Unrelated business taxable income overview
- Form 990-T filing thresholds
- Identifying transactions subject to tax as UDFI transactions
- Allocation of proceeds
- Allocation of expense deductions
- Calculating unrelated debt financed income (Schedule E)
- IRS audit “triggers” leading to increases in UBTI
Benefits
The panel will discuss these and other important topics:
- Definitions of UBTI and Form 990-T filing thresholds
- What constitutes reportable UDFI
- Allocation of income and deductions in UDFI transactions
- Reporting UDFI on Form 990-T Sch E
- Case study with illustration including example of completed 990-T with UDFI reported
Faculty
Garrett M. Higgins, CPA
Partner
O'Connor Davies
Mr. Higgins is Partner-in-Charge of the Exempt Organization Tax and Advisory Services Group of his firm. He provides... | Read More
Mr. Higgins is Partner-in-Charge of the Exempt Organization Tax and Advisory Services Group of his firm. He provides tax compliance and advisory services to tax-exempt organizations. His expertise extends across a broad range of tax-exempt and other accounting and audit topics, including significant experience with public charities and private foundations, as well as tax compliance and consulting issues affecting educational institutions, welfare benefit trusts, health care and other types of exempt organizations. He is viewed as a technical authority and is regularly asked to author articles and present at firm-sponsored and other tax-exempt industry events.
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Elizabeth M. Mills
Senior Counsel
Proskauer Rose
Ms. Mills focuses her practice on both health care organizations and tax exemption issues for not-for-profit... | Read More
Ms. Mills focuses her practice on both health care organizations and tax exemption issues for not-for-profit organizations. She addresses regulatory and transactional issues for all types of health care providers and advises these organizations as changes to their particular tax exemption standards are proposed, implemented, and litigated. She also assists tax-exempt organizations in addressing tax compliance and governance issues such as Form 990 reporting, executive compensation, payroll taxes, compliance with supporting organization and private foundation restrictions and use of tax-exempt bond-financed property. She speaks and writes frequently on tax exemption matters, particularly for health organizations.
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