The IRS has issued an advance copy of final regulations that provide guidance on how an exempt organization subject to the unrelated business income tax (UBIT) determines if it has more than one unrelated trade or business
The regulations (T.D. 9933) also discuss how an exempt organization calculates unrelated business taxable income (UBTI) if it has more than one unrelated trade or business.
The final regulations provide that an exempt organization with more than one unrelated trade or business must compute UBTI separately with respect to each unrelated trade or business, including for purposes of determining any net operating loss (NOL) deduction. Learn more.