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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Accounting

Date & Time
  • event Date

    Thursday, April 17, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

This course will give nonprofit tax professionals and advisers a good look at the rules governing unrelated business income tax. The webinar will focus on guidelines for determining whether income is unrelated business taxable income (UBTI), how separate business lines are determined under the regulations, and a detailed exploration into the calculations and preparation of Form 990-T, Exempt Organization Business Income Tax Return.

Faculty

Farah N. Ansari
Partner
Schenck Price Smith & King LLP

Ms. Ansari is Co-Chair of the Nonprofit Practice Group and a member of the Tax Planning Practice Group. She possesses significant experience counseling tax-exempt organizations including charities, foundations, educational organizations, arts organizations, hospitals and other nonprofit organizations in both New York and New Jersey. Ms. Ansari’s practice includes counseling on issues relating to the formation of public charities and private foundations, including those with foreign operations. She also assists organizations with their transactions and tax compliance.

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Magdalena M. Czerniawski
Managing Director
CBIZ Marks Paneth, LLP

Ms. Czerniawski is a member of the firm’s Nonprofit, Government & Healthcare Group. With over 15 years of nonprofit industry experience, she provides tax services to a wide array of nonprofits, including charitable organizations, schools, social welfare organizations, professional associations and private foundations.

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Description

A primary concern of tax-exempt organizations is navigating the rules on UBTI. Many exempt organizations receive taxable income and depend on that income to carry on their charitable purpose. However, UBTI generates the need to file an income tax return and may lead to an unexpected tax bill. Excess UBTI can even jeopardize the exempt status of a nonprofit organization.

For tax-exempt organizations operating multiple unrelated business activities, the 2017 Tax Act does not allow losses from an unrelated trade or business to offset profit from a separate unrelated trade or business. Final regulations explain how to separate unrelated business activities into silos using the two-digit NAICS codes.

Through proper planning and reporting, exempt organizations can anticipate the impact of UBTI.

Listen as our panel of experienced nonprofit tax advisers provides a deep dive into the rules and reporting requirements governing UBTI for exempt organizations.

Outline

  1. UBTI overview
  2. Form 990-T filing thresholds
  3. UBTI calculations and schedules
    • Rental income (Schedule A Part IV)
    • Unrelated debt-financed income (Schedule A Part V)
    • Income from controlled subsidiaries (Schedule A Part VI)
    • Exploited activities other than advertising (Schedule A Part VIII)
    • Advertising income (Schedule A Part IX)
    • Allocation of deductible expenses
    • Tax computation and state tax considerations
  4. Latest guidance on determining separate lines of business activities
  5. IRS audit triggers leading to increases in UBTI

Benefits

The panel will discuss these and other relevant topics:

  • Definition of UBTI and Form 990-T filing thresholds
  • Deduction standards for expenses in UBTI calculations
  • Rental income as UBTI
  • Siloing unrelated business activities
  • Advertising activities
  • Unrelated debt-financed income

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify what qualifies as UBTI for an exempt organization
  • Recognize proper computation of allocable expenses directly connected to the operation of the unrelated trade or business
  • Discern preparation errors that lead to the reclassification of UBTI and resultant penalties
  • Determine how to identify separate business activities

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Prerequisites: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of UBTI and UBIT for Form 990 T.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).