Unrelated Business Taxable Income
Unrelated Business Taxable Income, or UBTI, is income earned by a tax-exempt entity through non tax-exempt means.
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Expanded Definition
UBTI is often generated by Master Limited Partnerships, or MLPs. Part of an MLP's distribution can be classified as UBTI and could therefore be subject to taxation if in excess of $1000 per year [not to be construed as tax advice, please consult your tax advisor].
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