Which of the following activities give rise to Unrelated Business Income Tax?
A) Investment income arising from investment of unrestricted funds.
B) Business operated for the convenience of employees and patients.
C) Sale of donated merchandise.
D) None of the above.

Question

Quizplus · Accepted Answer

The existence of one or more of the following conditions will exempt income-producing activities from UBIT: 1) The business is not regularly carried on, 2) volunteers perform most of the labor, 3) the not-for-profit sells donated merchandise, and 4) it is operated for the convenience of employees, patients, students, etc. In addition to certain activities being exempt from UBIT, certain exceptions have been provided in legislation. One of the exceptions is income from royalties, dividends, interest and annuities except from controlled corporations) are not included in come.

Which of the Following Activities Give Rise to Unrelated Business