Unrelated Business Income Tax (UBIT)
There are many exemptions and adjustments available to UBIT. Any department conducting business-like activities should contact the Tax Department to review the activity for any potential UBIT exposure.
Revenue generated from a trade or business conducted by a university may be subject to the Unrelated Business Income Tax (UBIT). UBIT is a tax that is assessed at corporate income tax rates on the net income from a tax exempt organization’s unrelated trade or business activities. Generally, an activity, which is unrelated to the mission of the exempt organization, carried on with the intent to generate a profit from the sale of goods or services may be subject to UBIT.
Disclaimer: The University of Central Florida and its related organizations do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.