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 Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29574
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

We are a 501c3 church with a large facility in Texas, We are

Customer Question

Hello there, We are a 501c3 church with a large facility in Texas, We are considering "renting" a small portion of the building to a local business. There is not going to be any exchange of money because the small business is going to exchange building maintenance for the cost of the small portion of our building.
Is this going to be a problem with property taxes or anything else that might get our non-profit status revoked?
Thanks, Church
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Lev replied 1 year ago.

You woudl need to record the value of rent and the value of building maintenance - that are likely will be same.
That will not create any issues with your 501c3 status.
But fro property tax exemption - a part of the building that is not used for 501c3 purposes may not be exempt.

Expert:  Lev replied 1 year ago.

A nonprofit religious organization is exempt from franchise, sales and the state portion of hotel occupancy taxes if it is an organized group of people regularly meeting at a particular location with an established congregation for the primary purpose of holding, conducting and sponsoring religious worship services according to the rites of their sect.

Organizations that simply support and encourage religion as an incidental part of their overall purpose, or that further religious work or teach their membership religious understanding, will not qualify for exempt status under this category.

To apply for exemption, complete AP-209 and provide all required documentation as listed in the application. If the organization is unincorporated, include a copy of the organization’s governing document, such as the bylaws or constitution. The document must show that the organization is nonprofit. We will review the corporation’s formation documents on file with the Texas Secretary of State to verify that the corporation’s purpose is consistent with the requirements of this section. Non-Texas corporations must also include a copy of the corporation’s formation documents and a current Certificate of Existence issued by their state of incorporation.

Regarding texas Charitable Organization Property Tax Exemption - see here