unrelated business income

unrelated business income definition - business

unrelated business income

For a tax-exempt organization, this is income from a trade or business that is regularly carried on and not substantially related to the tax-exempt status of the organization. Unrelated business income is generally taxable, although dividends, interest, certain rental income, royalties, and gains and losses from disposition of properties are excluded when calculating unrelated business income.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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