Unrelated business gross income of a private foundation is considered as the income produced by the foundation through activities that aren't related to scientific, educational, charitable, or any other tax-exempt purposes. Organizations that have any unrelated business gross income of more than $1000 are required to file Form 990-T.
Certain foundations are also liable to pay taxes on their unrelated business income if their estimated tax is $500 or more. This can be calculated using the Form 990-T and has to be paid in installments.
A is a private foundation and is established to carry out charitable activities or to distribute funds to conduct charitable activities. A had organized and operated some programs that are not related to charitable purposes, to produce income. The income produced by A through these activities amounts to $1500.
A has to file Form 990-T and is also subjected to tax on the unrelated business gross income, as the income is more than $500.
Here's how you can report your unrelated business gross income in Form 990-PF using ExpressTaxExempt: