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Posted by ChenangoBusinessServices@hotma on January 15, 2008, 7:48 pm
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I have a potential client who want to "lend her home" for an extended
period, three months, to a 501c3 to run a House Tour operation. The
501c3 will be fixing up the house with furniture and decorations,
charging admissions, holding fundraisers etc. The owner will have to
rent temporary accommodations, move her "stuff out" and move back in.
Likely she'll pay the utilities as well.
Do we have any history on the tax treatment of this situation.
Noel Nichols
Chenango Business Services
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Posted by Mark Bole on January 15, 2008, 10:13 pm
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ChenangoBusinessServices@hotmail.com wrote:
> I have a potential client who want to "lend her home" for an extended
> period, three months, to a 501c3 to run a House Tour operation. The
> 501c3 will be fixing up the house with furniture and decorations,
> charging admissions, holding fundraisers etc. The owner will have to
> rent temporary accommodations, move her "stuff out" and move back in.
> Likely she'll pay the utilities as well.
>
>
> Do we have any history on the tax treatment of this situation.
Not a deductible charitable contribution, but probably taxable rental
income for the value of permanent improvements to the property or
furniture left behind, therefore rental expenses (including utilities)
deductible up to the amount of income (on Schedule A, subject to 2% AGI
floor) since it is a not-for-profit rental activity.
-Mark Bole
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by ChenangoBusinessServices@hotma on January 16, 2008, 2:18 pm
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CBS
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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Posted by Stuart Bronstein on January 16, 2008, 4:18 pm
Please log in for more thread options Mark Bole wrote:
> ChenangoBusinessServices@hotmail.com wrote:
>> I have a potential client who want to "lend her home" for an
>> extended period, three months, to a 501c3 to run a House Tour
>> operation. The 501c3 will be fixing up the house with furniture
>> and decorations, charging admissions, holding fundraisers etc.
>> The owner will have to rent temporary accommodations, move her
>> "stuff out" and move back in. Likely she'll pay the utilities as
>> well.
>>
>> Do we have any history on the tax treatment of this situation.
>
> Not a deductible charitable contribution, but probably taxable
> rental income for the value of permanent improvements to the
> property or furniture left behind, therefore rental expenses
> (including utilities) deductible up to the amount of income (on
> Schedule A, subject to 2% AGI floor) since it is a not-for-profit
> rental activity.
Or perhaps there will be imputed rent, and that rent can be both
recognized and deducted, resulting in a wash. However in that case the
homeowner will be required to recognize depreciation for the period the
charity is using the property.
The way of avoiding a problem is to allow the charity to use the
property for 14 days or less in any one tax year.
Stu
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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<< Copyright (2007) - All rights reserved. >>
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Posted by Benjamin Yazersky CPA on January 16, 2008, 8:54 am
Please log in for more thread options On Jan 15, 7:48 pm, "ChenangoBusinessServi...@hotmail.com"
> I have a potential client who want to "lend her home" for an extended
> period, three months, to a 501c3 to run a House Tour operation. The
> 501c3 will be fixing up the house with furniture and decorations,
> charging admissions, holding fundraisers etc. The owner will have to
> rent temporary accommodations, move her "stuff out" and move back in.
> Likely she'll pay the utilities as well.
>
> Do we have any history on the tax treatment of this situation.
>
> Noel Nichols
> Chenango Business Services
>
> --
Thats an interesting situation.
Generally, one can claim a tax deduction for out of pocket expenses
for charitable purposes.
But, you would have to research to see just how far you can go with
it.
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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<< >>
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