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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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I have a non-profit and am looking to buy a office building

Customer Question

I have a non-profit and am looking to buy a office building for my office. Are there tax advantages for non-profits when purchasing buildings? I have tax exempt status for the equipment and materials I need to do the work I am committed to complete in our community.
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

Not really in that regard. You are talking about an exemption from sales taxes when you are purchasing equipment and materials; there is no sales tax on the purchase of real property, including buildings. The only other tax involved to the purchaser if you are a 501(c)(3) charitable organization is that you would not be subject to local real estate taxes for periods beginning at your purchase date.

As a non-profit organization you will have to be certain that the building is used to further your exempt purpose and not just part of it being used for your office or your organization will be subject to the "Unrelated Business Income Tax" on any portion of the building not devoted to your exempt purpose.

Steve G.

Expert:  Stephen G. replied 1 year ago.

Just checking in..................update 5/31/2016......................

Do you have any follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.