UBTI is income earned by a tax-exempt entity from activities unrelated to its exempt purpose. Unrelated Business Taxable Income (UBTI) is the income earned by a tax-exempt entity from activities ...

Statutory Exceptions – Even if an activity meets the definition of an unrelated trade or business, it may not be subject to tax if it meets the following criteria: Modifications to Income – The ...

Unfortunately, that's sometimes not an option for an MLP because of something called unrelated business taxable income, or UBTI, that can leave investors owing tax on assets in a retirement account.

1.513-1(d)(3)). If the activity is determined to likely generate unrelated business taxable income (i.e., be subject to UBIT), the department will need to complete a Unrelated Business Income (UBIT) ...