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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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We have a Senior Center in a small a ll town I Oregon. It is

Customer Question

We have a Senior Center in a small a ll town I Oregon. It is a 501(c)(3). For a fund raiser we started a Thrift Shop. We get donations from local members of the community and all workers in the shop are volunteers. We rent the building we run the shop in. I have heard that if a landlord rents a building under the local retail price that they can take a tax break on the amount under the market price. Is this true ?
Submitted: 3 months ago.
Category: Tax
Expert:  Stephen G. replied 3 months ago.

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Expert:  Stephen G. replied 3 months ago.

Unfortunately, that is not the case. Here's a summary of the issue as described from the IRS Publication 526 on Charitable Contributions:

The charitable write-off rules generally don't treat donations of partial property interests, which include leasing your property rent-free or below market rent, to a charity, as a charitable contribution. Typically, charities must own the property as a donation rather than just having a right to use it rent-free or at a reduced rent.

Here's a link to Publication 526 if you would like to investigate the specific rules & requirements on Charitable Contributions, but there is no allowable way for a landlord to take a Charitable Contribution Deduction for renting his property to a charity for less than the fair market rent of the property.

Expert:  Stephen G. replied 3 months ago.

https://www.irs.gov/pub/irs-pdf/p526.pdf

Expert:  Stephen G. replied 3 months ago.

Good Afternoon.....................

Do you have any follow-up questions or are you having any difficulties with our rating system?

I ask because sometimes it seems to act up and is confusing to customers.

I would appreciate it if you would take a moment to rate my response as that is the only way I will receive my share of the payment that you have already made to the site.

Otherwise I receive nothing for my efforts on your behalf.

Thanks very much,

Steve G.

Expert:  Stephen G. replied 3 months ago.

Questions?

Expert:  Stephen G. replied 2 months ago.

Ruth:

Just checking in.....................

I'd like to close out this question before the end of the month, if possible.

I would appreciate it if you would take a moment to let me know if I can assist you further and/or if you would provide a rating for my responses as indicated above.

Thanks again,

Steve G.

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