Many tax-exempt healthcare organizations are facing significant challenges with the new unrelated business taxable income (UBTI) rules under legislation known as the Tax Cuts and Jobs Act. It is anticipated that many exempt healthcare organizations are likely to pay more UBTI tax than ever before while also needing to address more complicated and complex reporting and recordkeeping requirements. This article describes the provisions of the tax act related to UBTI and presents five tax planning considerations that exempt healthcare organizations may want to incorporate into their strategic tax plan.
