Unrelated Business Taxable Income Under the Tax Cuts and Jobs Act: Determining Your Course of Action

Most tax-exempt organizations are facing significant challenges with the new unrelated business taxable income (UBTI) rules under legislation known as the Tax Cuts and Jobs Act, especially given the lack of guidance to date from IRS/Treasury. It is anticipated that many exempt organizations are likely to pay more UBTI tax than ever before under the new regime. At the same time, these organizations will need to address more complicated reporting and recordkeeping requirements. This webinar will briefly describe the provisions of the tax act related to UBTI and present five tax planning considerations that exempt organizations may want to incorporate into their strategic tax plans. 

By the end of this course, participants should be able to: 

  • Summarize the key provisions of the Tax Cuts and Jobs Act relating to UBTI (siloing of unrelated trades or businesses; limitation on net operating losses; increase in UBTI for certain parking and transportation fringe benefits) 
  • Formulate a course of action for complying with the tax law notwithstanding a lack of guidance to date from IRS/Treasury 
  • Employ a logical approach to tax planning, including quantifying the impact of the tax law, analyzing and planning related to net operating losses, revisiting expense allocation methodologies, and more
Download presentation slides