Tag Archives: UBIT

Churches and Unrelated Business Income Tax

Churches and Income Tax Although much of what follows generally applies to all tax-exempt organization, this article briefly describes how Unrelated Business Income Tax (UBIT) affects churches. Defined: According to the IRS, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the exempt purpose that is the basis of the organization’s exemption. An exempt organization that has $1,000 or more of gross income from an unrelated business must file with the IRS and must pay estimated tax if it expects […]

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