What is unrelated business gross income in Form 990-PF?
3.7k views | Last modified 6/8/2020 6:08:51 AM EST | Added by ExpressTaxExempt Team

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

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:

  1. Log into your ExpressTaxExempt account.
  2. On the dashboard, click on the "Start New Return" button.
  3. Select the "Tax Year" and "Form 990-PF" option on the list of Federal returns.
  4. Enter your organization details and click "Next".
  5. In the "Organization Tax Year" page, select the tax year calendar or fiscal, for which you want to file the information return. Once done, the subsequent steps will be to fill the actual parts of the form. 
  6. Under "Statement Regarding Activities", select "Unrelated Business Gross Income".
  7. Select whether your foundation has an unrelated business gross income of $1000 or more.
  8. If "Yes", select whether your foundation has filed Form 990-T.
  9. Click Next and follow the subsequent steps as prompted.
  10. Review the details, Pay and, click the Transmit button to transmit your return to the IRS.

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