UDFI

• Unrelated Debt Financed Income Tax
  Any property held to produce income is debt-financed property if at any time during the tax year there was acquisition indebtedness outstanding for the property.

UBIT

• Unrelated Business Income Tax
• If a tax exempt entity engages in a business that is unrelated to its primary purpose, any income derived from such business will be subject to UBIT
• IRS Pub 598
• UDFI & UBIT are reported on form 990-T