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Category:
Financial


Responsible Office:

Procedure Title:
Unrelated Business Income Reporting

Document Number:
7305

Effective Date:
June 01, 2004


This procedure item applies to:
State-Operated Campuses

Table of Contents
Summary

Process
Forms
Related Procedures
Other Related Information
Authority
History
Appendices

Summary
The State University of New York (University) conducts an annual tax survey to identify any revenue generating activities in the University's operations that may result in unrelated business income (UBI). UBI is any activity considered to be (1) a “trade or business” and (2) regularly carried on but (3) not substantially related to the organization’s exempt purpose. Any activity that does not meet all of these criteria is to be excluded from UBI.

Process

Each year the University conducts a tax survey to identify any revenue generating activities in the University's operations that may result in unrelated business income (UBI). The survey, sent annually to each state-operated campus, includes narrative description of UBI, worksheets, questionnaires, and a listing of potential UBI activities previously reported. Each campus is required to complete the survey for those activities considered state activities (i.e., State purpose funds, IFRs, residence halls).

An activity is not an UBI if it satisfies any of the following tests:

Additionally, statutory exclusions provide another opportunity to exclude income from taxation. These exclusions are as follows:


Forms

Form 990T (Exempt Organization Business Income Tax Return)


Related Procedures

There are no related procedures relevant to this procedure.


Other Related Information

Unrelated Trade or Business (598)

Charities and Non Profit




Authority

26 USC § 511 (Imposition of tax on unrelated business income of charitable, etc., organizations)

26 USC § 512 (Unrelated business taxable income)

26 USC § 513 (Unrelated trade or business)

Office of the University Controller Accounting Requirements.


History

There is no history relevant to this procedure.


Appendices

There are no appendices relevant to this procedure.