Form 990-T Schedule A
Unrelated Business Taxable Income From an Unrelated Trade or Business
- Updated April 03, 2025 - 11.00 AM - Admin, Tax990
Table of Contents
What is Form 990-T Schedule A?
Form 990-T Schedule A is a supporting document used by tax-exempt organizations to report the income, expenses, and allowable deductions for each unrelated trade or business separately on Form 990-T. Schedule A used to calculate Unrelated Business Taxable Income (UBTI) separately for each trade or business.
Who needs to file 990-T Schedule A?
Tax-exempt organizations that file Form 990, 990-EZ, or 990-PF are required to file IRS Form 990-T along with Schedule A if they generate $1,000 or more in gross income from one or more unrelated trades or businesses during the tax year.
What information is needed to complete Form 990-T
Schedule A ?
Form 990-T Schedule A requires information regarding,
- Unrelated trade or business income and deductions
- Cost of goods sold
- Rent income
- Unrelated debt-financed income
- Exploited exempt activities and advertising income
- Compensation information
How to complete Form 990-T Schedule A?
Initially, you need to enter basic information about your organization, including the legal name of the organization, employer identification number, and information regarding unrelated business activity.
Part I - Unrelated Trade or Business Income
This part requires you to report income from unrelated business activities, including:
- Line 1 (a-c): Enter the gross receipts or sales, less returns and allowances, with balance.
- Lines 2 & 3: Cost of goods sold as entered in Part III, Line 8, and determine the gross profit by subtracting line 2 from line 1c.
- Line 4 (a-c): Include capital gain net income (attach Schedule D of Form 1041 or 1120), net gain/loss from the sale of business property (Form 4797), and capital loss deductions for trusts.
- Lines 5-8: Income from a partnership or an S corporation, rent income, unrelated debt-financed income, Interest, annuities, royalties, and rents from a controlled organization.
- Lines 9-13: Investment income, exploited exempt activity income, advertising income, other income, and the sum of the income.
Part II - Deductions Not Taken Elsewhere
If total income from all Schedule A forms (Part I, Line 13a) is $10,000 or less, Lines 1-14 of Part II may be skipped.
- Lines 1-14: Report expenses such as salaries, wages, officer compensation, employee benefits, and other deductions.
- Lines 15-18: Calculate total deductions, subtract Line 17 from Line 16, and determine Unrelated Business Taxable Income.
Note:
Form 4562 (Depreciation and Amortization) can be used for additional depreciation details.
Part III - Cost of Goods Sold
- Lines 1-9: Enter the inventory valuation method and report beginning and ending inventory values, purchases, labor costs, and other related costs. Use this data to calculate and enter the Cost of Goods Sold.
Part IV - Rent Income (From Real & Personal Property Leased with Real Property)
This part is applicable to all organizations except 501(c)(7), (9), and (17) organizations.
- Lines 1: Provide property details (address, city, state, ZIP code)
- Lines 2-5: Report rents received from personal property, real property, and total rents and calculate total deductions accordingly.
Part V - Unrelated Debt-Financed Income
Report income from debt-financed properties as per Sections 512(b)(4) and 514.
- Lines 1-7: Provide property details, gross income, deductions, and depreciation.
- Lines 8-11: Calculate and report total gross income, total allocable deductions, and total dividends.
Part VI - Interest, Annuities, Royalties, and Rents from Controlled Organizations
- Columns 1-12: This section comprises a table requiring the basic information about the organization, including name, EIN, and details of exempt and nonexempt controlled organizations, including net unrelated income, taxable income, deductions, and total.
Part VII - Investment Income of a Section 501(c)(7), (9), or (17) Organization
- Columns 1-5: This section requires information regarding the income, deduction, and set-asides.
Part VIII - Exploited Exempt Activity Income, Other Than Advertising Income
This section requires information regarding the income from an unrelated business activity that leverages an exempt activity (excluding advertising).
- Lines 1-7: Describe the exploited activity and provide details on gross income, net income, and expenses.
Part IX - Advertising Income
Organization's earnings from advertising in an exempt organization periodical must be reported here.
- Lines 1-3: Report names of periodicals, gross advertising income, and direct advertising costs by periodical.
Part X - Compensation of Officers, Directors, and Trustees
- Columns 1-4: Enter details about officers, directors, and trustees, including name, title, percentage of time devoted to business, and compensation for unrelated business activities.
Part XI - Supplemental Information
Use this section to provide additional details about the organization’s operations, clarify amounts reported on Schedule A, or explain any changes in the NAICS or Business Activity Code from previous years.
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