Even if an activity is considered to be taxable, there are a number of modifications to income and statutory exceptions that are available under the UBIT regulations.
These include the following:
- Passive income such as dividends, interest, annuities, and royalties where no active business participation and management is involved;
- Rents from real property (contingent with debt finance issue) and some personal property;
- Income from certain forms of research;
- Income generated from donated services or property;
- Income produced from sales made primarily for the convenience of the organization's members, students, and employees (including faculty and staff).