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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Do Churches that have rental property pay taxes if they rent

Customer Question

Do Churches that have rental property pay taxes if they rent the property? Where can I find a copy of the tax exempt lawes for churches?
Submitted: 8 years ago.
Category: Tax
Expert:  RD replied 8 years ago.
Is the property owned(fully paid up) by the Church or debt financed?
Customer: replied 8 years ago.
property fully owned by the church
Customer: replied 8 years ago.
fully paid and owned by the church
Expert:  RD replied 8 years ago.

If the property is fully owned by the Church than the rent income is not considered Unrelated Business taxable income and hence is not taxes.


Here is a link to the publication for your reference-


See unrelated business income information in the link below-


See the para for "rent" not part of UBTI in the link below





Let me know if you have any question.


Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.


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