UBIT: The Minimum Required Level of Knowledge

Dave Moja | Jul 5, 2017 | TaxTips


As we celebrate our 100th post, how about a UBIT Refresher?


Troas Bible College (TBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  They are required to file Form 990 annually.  Their new CFO calls us and says, “I’m new to higher education – with a background in banking – and this UBI stuff seems daunting.  How can I find out more about it – and fast?”

We respond – to quote the 2014 ACT Report – that, “The UBIT rules are not complex. They are, however, very detailed. Tax administrative officials, as well as outside tax advisors, for colleges and universities, must know and understand these rules in order to report the institution’s revenues properly to avoid an underpayment of tax, with interest and penalties.”

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