UBTI Tax – IRC Section 511 taxes unrelated business taxable income (UBTI) at the rates applicable to corporations or trust.
Calculating the UBTI tax rate is the gross income “derived…from or on account of” debt-financed property. It is unrelated business income.
The UBTI Tax Rate prevents tax-exempt entities from competing unfairly with taxable entities. Learn more about the UBTI tax and how it may affect you.