Tax Law Confuses UBIT Reporting

(from Associations NOW) A provision in the Tax Cuts and Jobs Act, the sweeping overhaul of the tax code signed into law at the end of last year, requires tax-exempt organizations to compute unrelated business taxable income separately for each business activity, ostensibly to prevent the groups from using the loss from one unrelated business activity to offset the income from another unrelated business activity. The law does not specify what constitutes a separate unrelated trade or business, so a new article from ASAE and the CPA firm Tate & Tryon outlines steps tax-exempt organizations should take to make contingency plans.

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