UBIT Navigational Tips (GOV2632)
Primary Presenter: Jessica Sayles, CPA, Managing Principal, HRC
Primary Presenter: Dave Moja, CPA, Moja & Company
As tax-exempt organizations seek new and innovative ways to diversify their revenue streams—from digital advertising and complex sponsorships to alternative investments—the risk of triggering Unrelated Business Income Tax (UBIT) has never been higher. This session provides a practical roadmap for "navigating" the UBIT landscape without losing your way. We will cover the basic definitions to explore the nuances of the "regularly carried on" and "substantially related" tests in the context of modern and traditional nonprofit activities. Attendees will gain insights into the latest IRS focus areas, including the proper allocation of indirect costs, the "siloing" rules for separate trades or businesses, and the UBIT implications of debt-financed property. Regardless of the size of the entity, this session will equip you with the navigational tools to identify potential tax traps before they become audit liabilities.