Tax and legal terms

UBTI (Unrelated Business Taxable Income)

UBTI (unrelated business taxable income) is income that can create tax obligations for a tax-exempt investor, including some IRAs, when an investment generates certain business income or debt-financed income. Ask a tax adviser about the fund’s structure before you invest through a tax-advantaged account.

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Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

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