Which of the following requirements must be satisfied for an organization to be subject to the unrelated business income tax (UBIT)?
A)The organization is an exempt organization.
B)The organization conducts a trade or business that is regularly carried on.
C)The trade of business is not substantially related to the exempt purpose of the organization.
D)Only b.and c.must be satisfied.
E)a., b., and c.must be satisfied.

Question

Quizplus · Accepted Answer

For an organization to be subject to UBIT, it must be an exempt organization (A), conduct a trade or business that is regularly carried on (B), and the trade or business must not be substantially related to the organization's exempt purpose (C).

Which of the Following Requirements Must Be Satisfied for an Organization