2022-2024 Form

Instructions and help about Unrelated Business Income Tax ubit Finance & Accounting

hello and welcome to the session this is Professor Farhad and the session we're going to look at the taxation of not-for-profit organization and would look briefly at something called unrelated business income tax or you be IT so what is the profit versus nonprofit taxation what is the big picture here's the big picture for a profit for a profitable for for-profit companies like let's say regular business what you do is you report your revenues minus expenses then you have something called taxable income from taxable income you multiply this by your tax rate and you pay taxes then you subtract your taxable income you subtract your taxes from your taxable income you get to your net income so for not for profit is revenues minus expenses equal to net income so basically all we do is we are exempt from paying taxes so we skip this now again we're going to talk later about the something called the unrelated business business income tax you vit but this is the big picture of a profit versu