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Category: Tax
Satisfied Customers: 3820
Experience:  over 40 years experience in tax matters
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My church has tax-exempt status. My church bought a parking

Customer Question

My church has tax-exempt status.

My church bought a parking lot from private, not connect to our worship building. Does this parking lot exempt from property tax?

We intend to let tenants park their cars and collect renting fees for church fund.

Does the church have tax exempt on that income?
Submitted: 5 years ago.
Category: Tax
Expert:  CGCPA replied 5 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.


To get a real estate tax exemption for the parking lot you will need to submit an application stating that the lot is for church tax exempt purposes. Funds raised by tenants and donated to the church are not taxable.

Customer: replied 5 years ago.
In case the church rent as a commercial entity and collect renting from tenants. Does that income tax exempt?
Expert:  CGCPA replied 5 years ago.
If the proceeds are used for church purposes and this is not the majority of the church's revenues it does not pose a problem.
CGCPA and other Tax Specialists are ready to help you
Customer: replied 5 years ago.
Should the church appoint a committee to apply for a business such as ChurchParkingLot, LLC and run as a company and sign agreement with tenants under that LLC

or one member of the governing board represent the church and just sign agreement with tenants under church name?
Expert:  CGCPA replied 5 years ago.
The LLC sounds like a good idea. It would keep individuals away from personal liability for anything that may go wrong. The LLC can be owned by the church and then donate all net proceeds to the church (income less expenses = net proceeds).