<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by clarkc:
My church recently purchased a house, originally intended to be used as a parsonage for the pastor. The membership is now leaning toward renting this property to outside individuals. Others are concerned this would endanger our non-profit and tax exempt status. Would this effect our status? This house is one of two owned by the church. We already owned one home, used as a parsonage and provided, rent-free to the pastor.<HR></BLOCKQUOTE>
My response:
So as not to disturb or endanger your tax exempt status, just rent the house for what the mortgage payment is, property taxes, insurance, and upkeep. That way, there is no "profit." However, if you do make a profit, the profit must be used for administration costs and expenses of the church and other charitable interests.
Talk to you tax advisor for further details.
IAAL
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