For purposes of the unrelated business income tax (UBIT), a trade or business consists of any activity conducted for the production of income through the sale of merchandise, or from the performance of services for which profits have been earned during at least three of the five previous years.

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The definition of a trade or business for purposes of the unrelated business income tax (UBIT) does not include a specific requirement regarding profit generation in at least three of the five previous years. This criterion is related to the IRS rule for distinguishing a hobby from a business for tax purposes, not specifically for UBIT considerations.

For Purposes of the Unrelated Business Income Tax (UBIT), a Trade