The test for determining what income is subject to UBIT is as follows:
The IRS has determined the meaning of this test and the terms used in it, so it is recommended that religious organizations consult with their local attorney or Certified Public Accountant if they are concerned about UBIT.
It is recommended that religious organizations consult with their local attorney or Certified Public Accountant if they are concerned about UBIT.
If you found this information helpful, you might be interested in this other resource from Brotherhood Mutual:
Learn more about ministry finance and taxation in our article, How "Unrelated Business Income" May Affect Your Ministry.
Visit our Safety Library to find other articles, publications and tools on wide range of topics relevant to your ministry. The Internal Revenue Service also has offers a helpful Tax Guide for Churches and Religious Organizations.
*Important information: Brotherhood Mutual is pleased to provide Legal Assist as a complimentary resource. The services we offer through Legal Assist are intended to provide general legal information to our current and prospective policyholders.
The information we provide is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. Accordingly, no attorney/client relationship is created through this process, and no legal advice will be provided. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.
Thank you for your interest in Brotherhood Mutual. We appreciate the opportunity to provide your church or other ministry with an insurance quote and will reply to your request as soon as possible.
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