Tax Alert: Guidance for new UBIT law
- September 5, 2018
- Posted by: Hood & Strong
- Category: Uncategorized
|IRS Released Interim Guidance and Transition Rules for New UBIT Law
The Tax Cuts and Jobs Act of 2017 added a new section 512(a)(6) to the Internal Revenue Code. Section 512(a)(6) requires nonprofits with more than one source of unrelated business income (UBI) to calculate taxable income separately with respect to each trade or business. The new law did not explain how to segregate different lines of business. IRS Notice 2018-67 published on August 21 provided interim guidance nonprofits can rely on pending publication of proposed regulations. Here are the key highlights of the notice.
Hood & Strong’s exempt organizations tax group will discuss the new guidance extensively during our EO Tax Update webinar on September 27. Please follow the link below to register.
Final Regulations on Substantiation Requirements
The IRS issued final regulations for charitable contribution substantiation and reporting pursuant to the American Jobs Creation Act of 2004 and the Pension Protection Act of 2006.
These final regulations provide the substantiation requirements for contributions of more than $500, new definitions of qualified appraisal and qualified appraiser, and recordkeeping requirements for all cash contributions.
The following is a quick reference chart of the substantiation requirements for noncash contributions.
A qualified appraisal means one that is: