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Rental income is excluded from taxation under Code Section 512(b), unless the rental income is derived from Debt-Financed Property (as defined in Code Section 514) that is subject to outstanding Acquisition Indebtedness incurred in acquiring or improving the property. If a congregation is debt free, none of its rental income could be derived from DFP subject to AI, since there obviously is no outstanding debt. Therefore, a congregation that is debt free will not incur any liability for UBIT with respect to its rental income.
So, if your church has debt, there is UBIT, and where the congregation is debt free there is no UBIT
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