How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Stephen G. Your Own Question

Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4027
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

What are the mortgage interest rate laws for tax exempt nonprofits

Resolved Question:

What are the mortgage interest rate laws for tax exempt nonprofits concerning rates, and tax refunds for paid out taxes over the course of a tax year ?
Submitted: 3 years ago.
Category: Tax
Expert:  Stephen G. replied 3 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

If you'd like I'll opt out of this, but I didn't want to leave you hanging----I answered both of these questions--------maybe the answers got lost in the posting problems?

Stephen E. Grizey :

There's no cap on interest rates for non-profits (now referred to as not-for-profits).

Stephen E. Grizey :

My last answer explained in detail the procedures for real property taxes...........are you referring to some other type of tax?

Customer :

Tax exempt entities are not supposed to pay taxes.

Customer :

Tax exempt entities are not supposed to pay taxes. What is the process for getting the tax refunds for mortgage related taxes?

Stephen E. Grizey :

Are you talking about real estate taxes? Those are the only taxes normally paid with your mortgage payment.I gave you the exact procedure you have to use to attempt to be exempted from real property taxes. Who owns the property? If it is you or your spouse, you won't get any exemption for past or future real estate taxes. Clergy have to pay taxes just like everyone else. Churches are exempt. How is the Church organized? What type of entity do you have?

Customer :

Church entity. The Church owns the property through my wife and I. Mortgage taxes and real estate taxes appear to be related. Are you stating otherwise?

Stephen E. Grizey :

There is no such thing as "mortgage taxes". There are real estate taxes often paid into an escrow account with the lender and then periodically turned over to the taxing authority.

Customer :

Alright then. Real estate taxes on Church owned property sir.

Stephen E. Grizey :

The "Church" can't own the real estate "through my wife & I". Whoever is on the deed which is recorded in your local registry of deeds, legally owns the property and will be taxed on it. Unless you have a separate legal entity, and property is recorded in that name; you won't be entitled to any exemption.

Customer :

I have such a document. What is the recoupable exemption percentage concerning the taxes?

Stephen E. Grizey :

You having the document doesn't help. The Registry of Deeds will only accept deeds for recording in the name of individuals, partnerships, corporations, LLC's, LLP,s or trusts. Unincorporated entities, for example "Ace Carpet Company" or "My XYZ Church" are not eligible to hold title to real property.

Stephen E. Grizey :

If you had such an entity, and the status as a Church was recognized by the taxing authority, then there would be no real estate taxes. But as I explained in my answers to the other series of questions the ability to recover taxes already paid would depend on the assessment date & filing for an abatement within that period. On a going forward basis, if the real property taxes are substantial, you'll need to measure the ongoing cost of maintaining a separate legal entity, getting the real property title transferred to it & applying for the exemption you are entitled to. I strongly recommend that you seek legal counsel to accomplish this as you may very well only get one attempt at it. As hard as it might be for you to believe, running a legitimate Church, there are those among us that routinely use this method to attempt to avoid real estate and income taxes on the commercial ventures they undertake. so that's what you're up against.

Stephen E. Grizey :

On another matter, surely you don't consider the $12. in the last question as the substantial bonus you promised?

Customer :

I told you the Church property was owned through my wife and l. No contradiction. I clearly stated my questions for amended tax year filing. No contradiction.

Customer :

I told you the Church property was owned through my wife and l. No contradiction. I clearly stated my questions for amended tax year filing. No contradiction. I resent your questioning the legitimacy of my Church given my well documented and free contributions to a global representation.

Stephen E. Grizey :

I'm not doing any such thing........in fact reread my answer............the point is the church can't own the property for purposes of real estate taxes, among other things "through your wife and I".............I'm just trying to save you from running into a stone wall. This isn't my first rodeo.............I've represented major not-for-profits involving several "subsidiary" entities, Universities, Hospitals, Social Service & Health Care organizations & yes several clergy and my own Church. So, do what you wish with my advice, but I stand behind what I'm telling you 100%.

Stephen E. Grizey :

What you're getting with "JustAnswer" is Rolls Royce advice at VW prices. We aren't doing this for the money. We generally gethu our professional satisfaction from helping people. I'm not judging you or the church you've organized in any way. You are the customer. We try to treat you that way. If I accept a question I work just as hard for $5. as I do for $100. As I recall, nobody wanted to take this topic on. Well I get a lot of those........we use to call them "loss leaders"............but I don't look at it that way......I also took you at your word that you were willing to sweeten the pot so to speak.............either way......I hope I've helped you.

Customer :

God will judge us both appropriately.

Customer :

Have a good day sir.

Stephen E. Grizey :

Yes, I'm sure of that & you have a Happy New Year & good luck with the church. Thanks again!

Stephen E. Grizey :

..

Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4027
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 5 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.