“The ‘ultimate nightmare scenario’ for this historic Miami church: A $7 million tax bill” The Miami Herald reports on the case here. The church is operating a pre-K–8 school run by a for-profit, third-party administrator.
Category: tax exemption
“Charitable Gifts: Date of Delivery Rules”
“Charitable Gifts: Date of Delivery Rules” Clergy Financial Resources has this summary of how to determine whether a gift is “delivered” by December 31 here.
9th Cir.: “Right of association isn’t infringed by disclosure of charitable donors to state”
9th Cir.: “Right of association isn’t infringed by disclosure of charitable donors to state.” The ABA Journal covers the decision here.
“Senate Tax Bill Keeps Johnson Amendment Intact”
“Senate Tax Bill Keeps Johnson Amendment Intact” Andy Segedin of The NonProfit TImes reports here.
“Johnson Amendment Repeal Attempt Cites ‘Churches’ Only”
“Johnson Amendment Repeal Attempt Cites ‘Churches’ Only” The NonProfit Times has a post here.
“Help is on the Way – How Not for Profits Can Aid Disaster Relief Efforts While Maintaining Exempt Status Within Applicable IRS Requirements”
“Help is on the Way – How Not for Profits Can Aid Disaster Relief Efforts While Maintaining Exempt Status Within Applicable IRS Requirements” The Wagenmaker & Oberly blog has this post here.
“New City church accused of claiming false tax exemption”
“New City church accused of claiming false tax exemption” The Journal News of New York’s Lower Hudson Valley reports here on charges that CSI Congregation of Hudson Valley Inc. continued to use a religious exemption from property taxes after the minister moved out and tenants began paying rent.
1742 Housing allowance decision
[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5853761/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″ placement=”top”]The federal district court for the Western District of Wisconsin recently held that the Tax Code’s housing allowance violates the First Amendment’s Establishment Clause. The decision in Gaylor v. Mnuchin, (W.D. Wis., Oct. 6, 2017), deals with 26 U.S.C. § 107(2). It does not affect the exemption from taxed income based on the value of a church-owned home, traditionally referred to as a parsonage, which is found in 26 U.S.C. § 107(1). Josh explains how the housing-allowance exemption works, why the court concluded it is unconstitutional, and what ministers and religious organizations should look for as the case progresses.
1741 What to do with assets when a worshiping community closes
[podcast src=”https://html5-player.libsyn.com/embed/episode/id/5826736/height/90/width/450/theme/custom/autonext/no/thumbnail/yes/autoplay/no/preload/no/no_addthis/no/direction/forward/render-playlist/no/custom-color/c30000/” height=”90″ width=”450″ placement=”top”]If history is any indication, every worshiping community’s life ends sometime. If that happens under the U.S. Tax Code, there are limits on how assets must be distributed. Musical instruments, books, and furnishings can’t just be given to the donors who funded them. Fair prices must be received. And any assets left at the end of the legal entity’s existence must be transferred to another charitable entity, like another house of worship, a denominational entity, relief agencies, or social service providers.