UBIT Silos: Final Regulations

Published on: November 22, 2020November 22, 2020 by Gene Takagi

Earlier this week, Treasury posted an advance copy of the final regulations addressing how a tax-exempt organization subject to unrelated business income tax (UBIT) determines if it has more than one unrelated trade or business, and, if it does, how it calculates unrelated business taxable income (UBTI). The final regulations make minor modifications to the […]

UBIT Silos: Proposed Regulations

Published on: April 26, 2020April 26, 2020 by Gene Takagi

On April 24, 2020, the IRS and Treasury Department published proposed regulations under the law commonly referred to as the Tax Cuts and Jobs Act (TCJA) that provide guidance on how a tax-exempt organization subject to unrelated business income tax (UBIT) determines if it has more than one unrelated trade or business, and, if it […]

IRS Guidance on UBIT Silos – 512(a)(6) – PART II

Published on: September 13, 2018 by Gene Takagi 1 Comment

In Part I of this two-part article on IRS Notice 2018-67 regarding the calculation of unrelated business taxable income (UBTI) under the Tax Cuts and Jobs Act (TCJA), we discussed the need to separate different lines of unrelated business activities, which is now required to calculate an organization’s unrelated business income tax (UBIT). In Part II, we focus on special […]

IRS Guidance on UBIT Silos – 512(a)(6) – PART I

Published on: August 30, 2018September 13, 2018 by Gene Takagi

On August 21, 2018, the IRS released Notice 2018-67 which both provides preliminary guidance and seeks comments on the calculation of unrelated business taxable income (UBTI) under the Tax Cuts and Jobs Act (TCJA). Tax-exempt organization that may be earning unrelated business income should be aware of the changes under the TCJA that impact this […]

Nonprofit Radio: Unrelated Business Income Tax and Fringe Benefits

Published on: May 30, 2018August 2, 2018 by Gene Takagi

I’ll be on Nonprofit Radio this Friday, June 1, at 10:30 am PT / 1:30 pm ET talking with host Tony Martignetti about the unrelated business income tax and how charities who provide certain transportation- or parking-related fringe benefits to their employees may now be required to pay the tax even if they have no unrelated business income. Basics […]

Commerciality Doctrine: Denial of Exemption

Published on: August 6, 2017August 6, 2017 by Gene Takagi

Earlier this month, the IRS denied the exemption application of an organization whose articles stated that it would provide colleges and universities with the ability to engage in science and engineering studies and research in the submarine environment, including the ability to acquire by purchase, lease, gift, loan or by other means, vessels, vehicles and ancillary […]

Two Lawline CLE Programs for Attorneys Helping California Nonprofits

Published on: January 11, 2017January 18, 2017 by Gene Takagi

We are presenting two Continuing Legal Education (CLE) programs for Lawline on Friday, January 13, 2016 that we hope California attorneys will find helpful in their representation of nonprofits: Forming a California Nonprofit (Erin) This program will discuss the process of forming a California nonprofit entity, going through the legal considerations involved in each step in […]

UBIT – Issues for Shared Spaces

Published on: November 17, 2014November 17, 2014 by Erin Bradrick

I will be speaking this week for The Nonprofit Centers Network on unrelated business income tax (“UBIT”) related issues faced by nonprofits providing shared space with other individuals or entities (you can register for the webinar here). As we’ve discussed in previous posts on UBIT, generally, net income from unrelated business activities will be […]

Unrelated Business Taxable Income – What Doesn’t Count?

Published on: October 17, 2013February 25, 2014 by Erin Bradrick 1 Comment

Revenues created by business ventures of nonprofits can result in unrelated business taxable income (“UBTI”) subject to the unrelated business income tax (“UBIT”), but it’s important to understand that not all revenues generated by unrelated businesses are subject to UBIT. And to be clear, if you have no UBTI, you owe no UBIT. We have […]