Part I. Total Unrelated Business Taxable Income

Total of Unrelated Business Taxable Income Computed From All Unrelated Trades or Businesses

Line 1. Enter the sum of the positive amounts from all Schedules A (Form 990-T), Part II, line 18. Don’t include any amount from Schedule A (Form 990-T), Part II, line 18, that is less than zero in the computation of total unrelated trade or business income reported on Part I, line 1.

Line 2. Reserved. Do not enter any amount on this line.

Charitable Contributions

Line 4. Enter contributions or gifts actually paid within the tax year to or for the use of charitable and governmental organizations described in section 170(c). Also, enter any unused contributions carried over from earlier years. The deduction for contributions will be allowed whether or not directly connected with the conduct of a trade or business. See Appendix B. Charitable Contribution Deduction, later.

Deductions for Net Operating Loss Arising in Tax Years Beginning Before 2018

Line 6. Enter the smaller of (a) the amount of net operating loss (NOL) arising in tax years beginning before January 1, 2018, or (b) the amount shown on Part I, line 1.

Specific Deduction

Line 8. A specific deduction of $1,000 is allowed except for computing the NOL and the net operating loss deduction under section 172.

Only one specific deduction may be taken, regardless of the number of unrelated businesses conducted. However, a diocese, province of a religious order, or convention or association of churches is allowed one specific deduction for each parish, individual church, district, or other local unit that regularly conducts an unrelated trade or business. This applies only to those parishes, districts, or other local units that aren’t separate legal entities but are components of a larger entity (diocese, province, convention, or association). Each specific deduction will be the smaller of $1,000 or the gross income from any unrelated trade or business the local unit conducts. If you claim a total specific deduction larger than $1,000, you must attach a statement showing how you figured the amount. The attached statement should include the name of each local unit, its gross unrelated business income, and its allowable specific deduction (which can’t exceed the smaller of $1,000 or the local unit’s gross unrelated business income).

The diocese, province of a religious order, or convention or association of churches must file a return reporting the gross income and deductions of all its units that aren’t separate legal entities. These local units can’t file separate returns because they aren’t separately incorporated. Local units that are separately incorporated must file their own returns and can’t be included with any other entity except for a title holding company. See Consolidated returns , earlier.

For details on the specific deduction, see section 512(b)(12) and the related regulations.

Section 199A Deduction

For trust filers only. If you are a trust filing Form 990-T and have unrelated business income, you may have qualified business income (QBI) and may be allowed a QBI deduction under section 199A.

Refer to the instructions for Form 8995, or Form 8995-A, (as applicable) to determine whether you meet the requirements for the QBI deduction and how to complete the applicable form.

Line 9. For purposes of calculating the QBI deduction, the taxable income before the QBI deduction is the amount reported on Part I, line 7, minus the amount reported on Part I, line 8.

Note: The organization determines the unrelated business income separately for each unrelated trade or business, and the income for an unrelated trade or business can’t be less than zero. Since a loss from an unrelated trade or business isn’t included in the UBTI for the tax year due to application of section 512(a)(6), when calculating QBI, omit items of income, gain, deduction, and loss from any unrelated trade or business that operated at a loss. A loss from an unrelated trade or business will be carried forward to future years when the trust has income (or gain that is subject to unrelated business income tax) from the same unrelated trade or

12 Instructions for Form 990-T (2025)

business and will be used in those years in calculating the QBI. Additionally, W-2 wages and unadjusted basis immediately after the acquisition of qualified property from an unrelated trade or business that operated at a loss for the current tax year aren’t used in calculating the limitation on QBI for taxpayers over the threshold.