Principles of Unrelated Business Income and Form 990-T Reporting Requirements (Completed)

Nonprofit organizations are generally recognized as exempt from federal income taxes, with the exception of tax on unrelated business income. This course is designed to assist those working for nonprofit organizations as well as CPAs and others who consult with nonprofits to identify unrelated business activities and gain confidence in calculating unrelated business taxable income. We will cover the three primary principles of unrelated business income as well as exceptions to those principles. We will also discuss common examples of unrelated business income, siloing rules, and Form 990-T reporting.

Who Should Attend
CPAs, CFOs, Controllers, Directors of Finance, Finance and Accounting Staff, bookkeepers, and others working with exempt organizations.

Topics Covered

• Overview of unrelated business income
• Commerciality doctrine
• Common sources of unrelated business income, as well as exceptions
• Code Sec. 512(a)(6) siloing rules, including qualified partnership interests
• Net operating losses
• Form 990-T filing requirements and reporting

Learning Objectives

• Recognize and apply the three principles of unrelated business income and apply those principles to activities commonly treated as unrelated
• Identify where exceptions or special rules exist to exclude an activity from unrelated business income
• Describe the siloing rules and the impact of those rules on Form 990-T reporting

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of unrelated business income and Form 990-T Reporting Requirements.

Advance Preparation
None