UBIT/UDFI

UBIT/UDFI

• UDFI

  • Unrelated Debt Financed Income TaxAny property held to produce income is debt-financed property if at any time during the tax year there was acquisition indebtedness outstanding for the property.

  UBIT

  • Unrelated Business Income Tax
  • If a tax exempt entity engages in a business that is unrelated to its primary purpose, any income derived from such business will be subject to UBIT
  • IRS Pub 598
  • UDFI & UBIT are reported on form 990-T
  • Instructions for the 990-T