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This document is used by corporations to report unrelated business income and compute associated taxes for the tax year in New York State.

How to fill out unrelated business income tax

How to fill out Unrelated Business Income Tax Return (CT-13)

1. Gather necessary information, including your organization’s details and financial records.
2. Download the Unrelated Business Income Tax Return (CT-13) form from the state tax department website.
3. Fill in your organization's name, address, and federal employer identification number (EIN) at the top of the form.
4. Report all unrelated business income from various sources on the designated sections of the form.
5. Deduct any allowable expenses incurred in generating the unrelated business income.
6. Calculate the taxable unrelated business income by subtracting the total deductions from the total income.
7. Determine the tax owed based on the taxable income using the applicable tax rates.
8. Complete any necessary attachments or schedules that may be required for your specific situation.
9. Review the completed form for accuracy and completeness.
10. Submit the form by the due date, either electronically or by mail, according to state guidelines.

Who needs Unrelated Business Income Tax Return (CT-13)?

1. Non-profit organizations that generate income from activities unrelated to their primary exempt purposes.
2. Organizations such as charities, educational institutions, and religious organizations that have unrelated business income exceeding a certain threshold.
3. Entities that must comply with state tax regulations concerning unrelated business income.

People Also Ask about

Is a corporation required to file a tax return even if it has no taxable income?

A domestic corporation must file Form 1120, U.S. Corporation Income Tax Return, whether it has taxable income or not, unless it's exempt from filing under section 501.

What is an example of unrelated business income tax?

The most common form of unrelated business income for nonprofits, by far, is advertising income (e.g., in periodicals, on websites, on social media). UBIT is imposed at the 21% flat federal corporate income tax rate.

What triggers UBIT in an IRA?

Unrelated Business Income Tax, or UBIT, applies to the profits of an active business owned by a tax-exempt entity such as a qualified retirement plan. For example, if an IRA invests in an unincorporated active business (such as a gas station, grocery store, etc.), the net income profit generated is subject to UBIT.

What is considered unrelated business income for a 501(c)7?

The unrelated business taxable income of tax-exempt social clubs described in Internal Revenue Code section 501(c)(7) includes all gross income, less deductions directly connected with producing that income but not including exempt function income.

What is an example of an unrelated business?

Example: The manufacturing and selling by a university of all forms of homeware displaying the works of university student artists described above would be an unrelated trade or business.

How is UBIT calculated?

For example, if it has paid off 30% of the property while 70% remains debt-financed, only 70% of the gross UDFI is subject to UBIT. Find the difference: Subtract total deductions and exemptions from gross unrelated income. The resulting difference is your total income subject to UBIT.

How do I report unrelated business income?

An exempt organization that has $1,000 or more of gross income from an unrelated business must file Form 990-T PDF. An organization must pay estimated tax if it expects its tax for the year to be $500 or more.

What is the unrelated business income tax code section?

Section 512(a)(3) of the Internal Revenue Code provides for special unrelated business taxable income rules for organizations that are tax-exempt under section 501(c)(7), 501(c)(9), 501(c)(17), or 501(c)(20)*.

For pdfFiller’s FAQs

What is Unrelated Business Income Tax Return (CT-13)?

The Unrelated Business Income Tax Return (CT-13) is a tax form used by organizations that are exempt from federal income tax to report income from unrelated business activities.

Who is required to file Unrelated Business Income Tax Return (CT-13)?

Organizations that have generated unrelated business income exceeding $1,000 in a tax year are required to file the Unrelated Business Income Tax Return (CT-13). This typically includes certain nonprofits and charitable organizations.

How to fill out Unrelated Business Income Tax Return (CT-13)?

To fill out the CT-13, organizations should gather information on their unrelated business income, calculate their tax liability, and complete the form with accurate revenue and expense details, including supporting schedules if applicable.

What is the purpose of Unrelated Business Income Tax Return (CT-13)?

The purpose of the CT-13 is to ensure that organizations pay tax on income generated from business activities that are not substantially related to their exempt purpose, thereby maintaining the integrity of tax-exempt status.

What information must be reported on Unrelated Business Income Tax Return (CT-13)?

Organizations must report the amount of unrelated business income, allowable deductions, net income or loss from unrelated business activities, and any relevant credits or taxes owed.