Apply Unrelated Business Income Tax Rules Practice Test

The activity must be carried on by a for-profit subsidiary, must be continuous, and must produce net income after deductions.

The activity must generate more than $1,000 of income, must involve paid employees, and must compete with for-profit businesses.

The activity must be a trade or business, it must be regularly carried on, and it must not be substantially related to the organization's exempt purpose.

The activity must be conducted outside the organization's primary geographic area, must be profit-motivated, and must involve tangible goods.