If you need to file Form 990-T that means your UBIT investment was profitable for the year, and that’s good news.

The alternative is that your UBIT investment was not profitable for that year and had a net operating loss (NOL). By filing the form, you may be able to carry that loss forward or backward to offset potential future or prior gains and reduce your tax liability at a later date. For more information about the carry-forward loss, please visit Turning a NOL into a Gain.