### Question
How is the term unrelated business taxable income defined?


### Answer
The term **unrelated business taxable income** is defined in *26 U.S.C. § 512* as the following:

> the gross income (excluding any exempt function income), less the deductions allowed by this chapter which are directly connected with the production of the gross income (excluding exempt function income), both computed with the modifications provided in paragraphs (6), (10), (11), and (12) of subsection (b)

#### Citation:
  - *26 U.S.C. § 512*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART III-TAXATION OF BUSINESS INCOME OF CERTAIN EXEMPT ORGANIZATIONS**

