Questions about tax benefits of renting to a 501c3?
Questions about tax benefits of renting to a 501c3?
My 501c3 art center would like to rent/lease a new space. Are there any tax benefits for the landlord if he rents to us below fair market value? Can he take a deduction for the difference between the fair market value and what he receives from us?
Answers:
Wayne Z: No. Loss of Revenue is never a deduction.
The landlords taxes would be lower because he would be receiving less rent. There is no advantage to renting to you for less than fair market value.
2007-11-03 17:40:56
2007-11-03 17:40:56
Chosen Answer
ninasgramma: Even if the landlord gave you the use of the space for free, he would have no deduction for lost rent. Donation of the use of a facility is specifically excluded as a charitable donation.
2007-11-03 17:45:44
ninasgramma: Even if the landlord gave you the use of the space for free, he would have no deduction for lost rent. Donation of the use of a facility is specifically excluded as a charitable donation.
2007-11-03 17:45:44
wartz: If the tenant is a valid non-profit, you state may exempt the property from property tax so that the non-profit tenant would get the same benefits as a non-profit owner. Mine, California, does. You would have to adjust your rent so that the tenant got the benefit.
2007-11-03 18:39:42
2007-11-03 18:39:42