Unrelated Business Income Tax (UBIT)
The university's income tax obligations are a result of university activities and transactions identified as an unrelated trade or business income. Unrelated trade or business income is the gross income derived from any trade or business regularly carried on and not substantially related to the organization’s exempt purpose or function. The university pays income tax on its unrelated business taxable income and files with the IRS two annual Federal Form 990-T, Exempt Organization Income Tax Return.
On an annual basis, the Tax Office communicates instructions and distributes the Unrelated Business Income Survey to be completed by each department/unit and returned to the Tax Office for analysis and Form 990-T reporting.
GL 10: Unrelated Business Income is a 30-minute course introducing the basic concepts of unrelated business income and when the university must pay taxes on said income. This course may be accessed via BuckeyeLearn.
The UBI Decision Tree is a tool departments may use to assist their analysis of current and new activity for potential unrelated business activities before reporting it to Tax Office. Click the button below to access the UBI job aides.
Contact tax@osu.edu for unrelated business income activity or tax questions.