About the Course
Introduction
This course will provide tax professionals and advisers to exempt organizations with a practical guide to the planning opportunities, tax risks, and reporting obligations of exempt organizations investing in real estate assets. The panel will outline when rental and sale income is exempt and when not, discuss the impact of debt financing on tax and reporting obligations, and provide examples of calculating and apportioning proceeds and income between exempt purposes and unrelated business income.
Description
While exempt organizations are generally not subject to income tax, many nonprofits receive unrelated business taxable income (UBTI) subject to tax (UBIT). Navigating the UBTI rules for rental income and sale gain for organizations owning real property can be a significant challenge and concern.
Investment in real estate by an exempt organization in a joint venture or other partnership with a taxable entity can complicate the tax treatment of income or gain from the real property. The Code provides structures to exempt from tax-specific income that it would otherwise treat as UBTI. However, tax advisers must have a thorough grasp of the rules to avoid costly consequences from a reclassification of income.
Listen as our panel of experienced nonprofit tax advisers provides a deep dive into the rules and reporting requirements governing UBTI for exempt organizations.
Presented By
Ms. Cresswell is a Senior Tax Manager at Baker Tilly US.
Ms. Elliott is a Director at Baker Tilly US.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
Date + Time
- event
Monday, January 26, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Income subject to classification as UBTI under Section 512
II. Tax treatment of rental income
III. Income from real property transactions where the asset is not considered part of the organization's exempt purpose or mission
IV. Reporting challenges and examples
The panel will discuss these and other relevant topics:
- What are the exceptions to income from real estate that would otherwise be considered UBTI under Section 512?
- Tax treatments of real estate owned in joint ventures between exempt organizations and for-profit companies or syndicates
- Allocating sale gain in instances where some but not all proceeds are considered tax exempt
Learning Objectives
After completing this course, you will be able to:
- Identify structures in ownership of real property by exempt organizations that can bypass UBTI treatment of rental income
- Discern how to allocate rental income and/or gain on the sale of real property when a portion of the income is subject to UBIT
- Recognize exceptions in UBTI treatment of rental income and sale gain on disposition of real property assets by an exempt organization
- Field of Study: Accounting
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of cost allocation principles; familiarity with government standards for nonprofit organizations receiving federal grant monies.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
