### Question
How is the "unrelated business income" defined?


### Answer
The term **unrelated business income** is defined in *26 U.S.C. § 681* as follows -

> an amount equal to the amount which, if such trust were exempt from tax under section 501(a) by reason of section 501(c)(3), would be computed as its unrelated business taxable income under section 512 (relating to income derived from certain business activities and from certain property acquired with borrowed funds)

#### Citation:
  - *26 U.S.C. § 681*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter J-Estates, Trusts, Beneficiaries, and Decedents > PART I-ESTATES, TRUSTS, AND BENEFICIARIES > Subpart F-Miscellaneous**

