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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Real Estate Tax Exemption for Elder Care/Hospice, New

Customer Question

Real Estate Tax Exemption for Elder Care/Hospice
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: New Mexico. I have had a Federal IRS 501c3 (religious organization/church) income tax exemption for 25+ years.
JA: Has anything been filed or reported?
Customer: I have an elder care/hospice house, which is in personal name and paying taxes.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I have a local Albuquerque property tax exemption on my house/home/parsonage. Must be exempt owned and exempt use..
Submitted: 2 months ago.
Category: Tax
Expert:  Lane replied 2 months ago.

Hi ... look's like no one's picking this up. I'll try to help. My name's Lane.

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

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You've made several statements here, but I'm not sure what you question is. Would you please re-prase in the form of question?

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Thanks so much

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I'll be here,

Lane

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Customer: replied 2 months ago.
Thank you Lane.
I have had a 501C3 IRS (Department of the Treasury) since 1989 in good standing.
We are exempt from Federal Income Tax, and Contributions by Donors are tax deductible for the donors.We pay no property tax (real estate, ad valorem) to the county or otherwise on our house, as it is used as a church parsonage (exempt use).Our house is owned by a New Mexico non-profit corporation (exempt owned).The county criteria are: exempt owned + exempt use = property tax exempt.What other purposes are 'exempt use'?
We have an Elder Care/Hospice (NM Department of Health Licensed)
Up to 8 people...currently 3-4 clients. Not yet 'exempt owned' but simple to deed over.What are 'exempt uses?'...if not an elder care, how about other uses?
Would a use have to be religious?? ( I doubt it...but "just asking")
Expert:  Lane replied 2 months ago.

Hi, ... Sorry I didn't realize you had come back.

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Exempt use is defined in 26 USC §501 and is adopted by NM (as all other states, in this case) for income, property and sales tax purposes.

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The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.

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The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

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If the hospice is set up as a not for profit, it likely satisfies as exempt under 501(c)(3)

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I'f you'll look at IRS piublication 557 you'll see this list of qualfying organizations:

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Examples. Qualifying organizations include:

  • Nonprofit old-age homes,

  • Parent-teacher associations,

  • Charitable hospitals or other charitable organizations,

  • Alumni associations,

  • Schools,

  • Chapters of the Red Cross,

  • Boys' or Girls' Clubs, and

  • Churches.

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Please let me know if you have other questions, before rating me.

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Lane

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Customer: replied 2 months ago.
much better! add a 10$ tipNon Profit Old Age Homes may be our route...
Can I find USC 501c online such as Legal Information Institute ...Cornell
Expert:  Lane replied 2 months ago.

I would appreciate that rating, using the stars on your screen.

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And if you'd like to work with ME again here, just say "For Lane only," at the beginning of your next question.

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