Relevant factors in the unrelated business income tax (UBIT) rules for determining whether a trade or business is regularly carried on by an exempt organization do not include which of the following?
A)The proportion of the total revenue of the exempt organization raised by the activity.
B)The frequency of the activity.
C)The continuity of the activity.
D)The manner in which the activity is pursued.
E)All of the above are relevant factors.

Question

Quizplus · Accepted Answer

The proportion of total revenue raised by the activity is not relevant in determining whether a trade or business is regularly carried on by an exempt organization for UBIT purposes. The relevant factors are the frequency, continuity, and manner in which the activity is pursued. Therefore, choice A is not a relevant factor.

Relevant Factors in the Unrelated Business Income Tax (UBIT) Rules