AAU, on Monday joined NACUBO, and 8 other organizations to submit comments to the IRS in response to its April 24 notice of proposed rulemaking related to the implementation of a new “basketing” rule added by the Tax Cuts and Jobs Act. This rule would require tax-exempt entities, such as colleges and universities, to compute taxable income for each trade or business separately for each trade or business that has created unrelated business taxable income, or UBTI. Previously, tax-exempt properties were able to aggregate UBTI just like taxable entities – a method that more accurately reflects an entity’s taxable income. According to the comments, the rule would prevent “colleges and universities from offsetting the UBTI of one trade or business with the loss of another, thereby increasing the institution’s overall tax burden.”