Tax-Exempt Organizations: New Guidance UBTI Rule

September 19, 2018

Thanks to the Tax Cuts and Jobs Act, unrelated business taxable income (UBTI) must be calculated for each separate trade or business.

The IRS recently issued much-needed guidance on how tax-exempt organizations should calculate unrelated business taxable income (UBTI) for each separate trade or business they operate. This requirement was part of the Tax Cuts and Jobs Act (TCJA), which was signed into law in December 2017. The new UBTI requirement generally applies to tax years beginning after 2017. Organizations can rely on Notice 2018-67 until proposed regulations are issued. Read more