Exempt Organizations Technical Guide›TG 48: Unrelated Business Income Tax›Table of Contents
A. Trade or Business
Publication 5894 — Exempt Organizations Technical Guides TG 48: Unrelated Business Income Tax · 2026-10-03 edition · updated 2026-10-04 · United States
(1) For purposes of Section 513, the term "trade or business" has the same
meaning as it has in Section 162, and generally includes any activity carried on for the production of income from the sale of goods or performance of services. See Section 513(c) and Treas. Reg. 1.513-1(b).
(2) The standard test for whether an activity constitutes a trade or business for
purposes of Section 162 is whether the activity “was entered into with the dominant hope and intent of realizing a profit.” See American Bar Endowment, 477 U.S. 105, 110 n.1 (1986) (quoting Brannen v. Commissioner, 722 F.2d 695, 704 (11th Cir. 1984)).
(3) A profit motive requires “an intent to generate receipts in excess of costs.”
Portland Golf Club v. Commissioner, 497 U.S. 154, 166 (1990).
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