Which of the following statements is correct?
A)The unrelated business income tax (UBIT)does not apply to exempt organizations that receive broad public support.
B)The unrelated business income tax (UBIT)treats the tax-exempt entity as if it were subject to the corporate income tax on its unrelated business income.
C)Unrelated business income is income derived from activities not related to the exempt purpose of the exempt organization.
D)Only b.and c.are correct.
E)a. ,b. ,and c.are correct

Question

Quizplus · Accepted Answer

The unrelated business income tax (UBIT) applies to tax-exempt organizations and treats them as if they were subject to corporate income tax on unrelated business income. Unrelated business income is indeed income from activities not related to the organization's exempt purpose.

Which of the Following Statements Is Correct