990 T -Unrelated Business Income

When a nonprofit organization incurs unrelated business income greater than $1,000, it must file Form 990-T in addition to form 990 (Full Form). Using the same example from above, say the organization sells parking spaces for local events. Since this is unrelated to the nonprofit’s mission, it is unrelated business income and requires paying Unrelated Business Income Tax (UBIT). When an organization expects to pay UBIT, it must complete quarterly tax estimations using form 990-W, even if the estimated tax is less than $500.

Generally, any organization with unrelated business income should seek the advice of a tax professional. The specialists at BryteBridge are ready to assist with your 990-T and UBIT questions.