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What is Unrelated Business Taxable Income, or UBTI?

April 26, 2017Business income taxable UBTI unrelated

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What is Unrelated Business Taxable Income, or UBTI?

1 Answer

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10 Posted

UBTI is income derived by any organization from any unrelated trade or business regularly carried on by it, IRC section 512. Tax is imposed on such income at the standard corporate tax rate. UBTI is a complicated matter and is applied to all tax exempt or tax free entities, including qualified retirement plans, like IRAs and 401(k)s. Please feel free to call us to discuss the implications of UBTI for your proposed transaction.