Unrelated Business Income Tax

Unrelated Business Income Tax

Unrelated business activities generally involve providing services or products to individuals or entities who are not affiliated with the University (i.e., non-UC groups and corporations, and those who are not University students, faculty and administrative personnel).

Unrelated business activities are revenue-producing and taxable activities that are:

  • Not directly related to achieving the University's educational and research missions.
  • Conducted for the primary purpose of earning a profit.

These activities may be subject to unrelated business income tax (UBIT), which is imposed at the same tax rates applicable to for-profit corporations.

Units operating unrelated business activities  are required to contact Tax Reporting and Compliance.   

Activities that are determined to produce Unrelated Business Income/Loss (UBI) will be included in the university's consolidated Exempt Organization Business Income Tax Return (Form 990-T), to be prepared each year for submission to the Internal Revenue Service.