Which of the Following Statements Is Correct Regarding the Unrelated

question 90

Multiple Choice

Which of the following statements is correct regarding the unrelated business income tax (UBIT) ?

• A) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is regularly carried on by the organization.
• B) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business must be substantially related to the exempt purpose of the organization, and the trade or business must be regularly carried on by the organization.
• C) To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is carried on during more than half the year.
• D) An exempt entity that conducts a business that competes with for-profit businesses automatically is subject to the UBIT.
• E) None of the above statements is correct.

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Definitions:

Mixed-Union Couple

A romantic couple consisting of partners from different racial, ethnic, or cultural backgrounds.

Crowded Nest

A situation where adult children continue to live at their parents' home due to economic challenges, delaying traditional milestones of adulthood such as marriage and homeownership.

Empty Nest

A household consisting of a parent or parents whose children have grown and moved out of the house.

Cluttered Nest

A situation where adult children live at their parents' home, leading to a full or overfilled household, often due to economic factors or personal choice.