What percentage of the distribution is considered Unrelated Business Taxable Income (UBTI)?
A partner’s UBTI is determined from his or her allocable share of partnership taxable income (not the distribution). The majority of Suburban’s income is considered UBTI. UBTI is calculated for each unitholder on his or her Substitute K-1. Pension, profit sharing and IRA accounts are subject to the $1,000 annual UBTI limitation amount for each account. Anyone considering the purchase of partnership units for a not-for-profit organization or for pension, profit sharing, or IRA accounts should consult his or her tax advisor.
